Human Resource Management

The NLB Group at the end of 2007 employed a total of more than 8,200 with almost 4,000 working abroad. This great human resource potential at home and abroad is, without a doubt, the key to the successful implementation of the strategic objectives of the NLB Group. This is what makes the emphasis on human resource management so important.

Optimizing the Number and Structure of Employees

In the last four years, with the expansion of the NLB Group, the number of Group employees increased by one third, or by a little less than 2100. In the same period, the number of employees in NLB decreased by 6.8%, or 257 workers. As a result, the number of NLB employees, relative to the total employed by the Group, declined from 62% to 43%.

At the end of 2007, NLB had 3,548 employees, only five more than in 2006. After the reductions in the workforce of the past few years, the Bank continued to make the most of its human resources and to introduce project solutions. The trend of restructuring the workforce makes it possible to hire younger workers with associate and bachelor degrees. NLB hired 149 new employees, while 144 left the company.

Staff Development

NLB encourages the professional development and training of its entire workforce. Special priority is given to the progress and systematic training of those employees that, compared to others, show greater growth potential, achieve more success and are the key to the Bank’s future. These employees lead the way at every level and demonstrate great promise. They are the core cadre, the critical keys to success and the future directors of the business.

After identifying employees’ individual potentials through various helpful tools, programs are designed to promote their strengths, capabilities and future career plans. The Bank encourages growth by providing job mobility within the NLB and the Group and by providing targeted professional training and education. These cadres are given precedence for advancement and offered opportunities for work-study programs, sabbaticals and preferential home mortgages.

Once a year, the Bank arranges interviews for each employee, including a plan for the personal development of each individual. Key task areas and goals are defined for each. Meeting and even surpassing these goals is the basis for future growth, promotion and compensation.

Professional Training

NLB has provided employees professional training in a variety of formats for 34 years. During this period, the function of employee training has undergone tremendous change. In 2007, instead of offering a tremendous variety of instructional programs, the Bank concentrated its efforts into offering content relevant training to individual groups of employees to better enable the new knowledge to be put into practice.

In 2007, 2,607 employees, or 73%of the entire workforce, received professional training, with an average attendance of 4 days.

Most of the training emphasized improving communication, marketing and management skills, the implementation of new project solutions, retraining employees and license certification programs.

Rewarding and Motivating Employees

In 2007, to motivate and reward employees for their work, the Bank revamped its compensation system through collective agreement and adopted a Book of Rules for recognizing, evaluating and rewarding job performance.

Along with material rewards, the Bank also recognizes employee contributions by awards: examples, for useful suggestions, for participation in training courses, membership in professional clubs.

Internal NLB and NLB Group Mobility

The Bank encourages mobility within the NLB and the NLB Group through internal work exchanges. In this way, the Bank provides opportunities for either advancement to more demanding positions, or expansion of professional knowledge and skills. The rules that govern internal work exchanges apply equally to all the members of the NLB Group.

Overall 229 openings were posted for internal work exchanges, 25 for NLB Group members. 51 were selected in the internal selection procedure, 6 from these were from the NLB Group. A total of 574 were participated, 131 moved to a different organizational unit, and 443 changed positions.

Activities with NLB Group

In its efforts to consolidate the Group at home and abroad, the Bank pays special attention to its human resources, their growth and future assignments.

Along the customary role of staffing the workforce, and to assure technical support to its member banks, NLB also adopted the Salary and Bonus Policy for NLB employees who are assigned to a member of the NLB Group.

In 2007, four NLB workers were referred to member banks in order to provide professional assistance and transfer of knowledge to their coworkers. At the end of 2007, the NLB Group employed 53 employees from NLB.

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NLB Group
Annual Report 2007