Edward Jones

EDWARD JONES

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TABLE OF CONTENT

FRONT MATERIAL

EXECUTIVE SUMMARY I

HR MISSION Iii

OPERATING ENVIRONMENT AND STRATEGY

COMPETITION AND INDUSTRY

2

COMPETITIVE RESPONSE AND STRATEGY

6

ORGANIZATIONAL STRUCTURE AND CULTURE

COMPANY CULTURE AND VALUES

10

PRIMARY JOBS AND WORK PERFORMED

14

HR PLAN

RECRUITING AND HIRING

18

TRAINING AND DEVELOPMENT

27

COMPENSATION STRUCTURE AND BENEFITS

40

PERFORMANCE MANAGEMENT

50

SUMMARY 63

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EXECUTIVE SUMMARY

Edward Jones is a partnership, exactly as it was when it was established in 1922; every

single one of the company's employees is eligible to be a limited partner in the rapidly

expanding company. Edward Jones has not forgotten over the last 86 years that every employee

contribution - on the front line with customers or in the corporate office - can make the

company stronger and more successful. Though it competes with well-known companies such as

Merrill Lynch and Charles Schwab for clients, it is unmatched in its selection of and treatment of

employees. Edward Jones has consistently been named a superior company to work for by

magazines such as Fortune and Business Week.

Edward Jones recognizes that the best customer service is built by the best employees -

and it recruits people who have what it takes to please the customers. The company sets rigorous

standards for candidates, but makes a point to find these candidates in the local communities

where they place their branches. In the past, Edward Jones has relied on word of mouth, college

recruiting, and catering to underrepresented minorities to seek out fresh talent for the company.

Importantly, Edward Jones recruits people who want to build a career with the company and who

embody the company values - conservative, dedicated customer care first and foremost.

Once candidates become employees, Edward Jones gives employees every opportunity to

build their knowledge and increase their contributions to the company and their customers.

Edward Jones recognizes that training and developing employees is a critical part of staying

ahead of competition and adding to the bottom line because employees reap more from their jobs

when they have the technology and knowledge to do a better job. Training employees for

diversity and compliance helps Edward Jones increase creativity and talent within the company

and reduce time spent fixing preventable problems such as illegal trading.

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Edward Jones recruits talented employees and enables them to develop their careers with

tools that are paid for by the company, such as seminars and classes. Edward Jones

acknowledges that as employees build their capital with these tools, they deserve to be

compensated for their time, effort, and knowledge. The company makes a habit of setting pay

above the market to increase production, reduce turnover, and attract more qualified candidates.

Edward Jones also introduces an element of risk to the compensation scheme by including

commissions-based pay; the risk attracts candidates who know they can exceed expectations.

Between commissions-based pay and other bonuses for milestones and new accounts, Edward

Jones employees have many opportunities to earn an income commensurate with the worth they

add to the company.

Edward Jones offers incentives to employees to encourage hard work and long-term

retention. Incentives help align employee goals with the firm's commitment to customer care -

some incentives are based on how well portfolios meet the client's needs, and Edward Jones

actively shares profits with employees when the company succeeds. The company is also wellknown

for giving hard-working employees all-expenses-paid vacations, partnership status and

recognition. These incentives encourage employees to dedicate themselves to the customer and

to the job.

Edward Jones is built on the contentment of thousands of employees in multiple

countries. Year after year, the company is applauded by its employees for its recognition of their

needs as workers, with better development tools to control their careers, and as individuals, with

compensation, incentives, and awards that complement their talent and contributions. As the

partnership expands each year with more branches and more clients, Edward Jones endeavors to

please customers by providing them with the best employees