Social Responsibility

Human Resource Management

In 2009, the Bank adapted its human resource activities to the harsher market conditions and followed the NLB Group’s fundamental strategic goals. The priority of the Bank’s tasks applied to:

• Ensuring human resources with special attention to the internal labor market;
• Targeted staff advancement and professional training;
• Rewarding and motivating employees;
• Ensuring employees safe and healthy work;
• Harmonization of human resource functions within the NLB Group.

Number of Employees

The number of employees at NLB and associated companies of the NLB Group amounted to 8,019; of these 3,698 or 46% were employed abroad.

At the end of the year, the entire NLB Group, including associated and joint venture companies, employed a total of 8,991 employees, with 3,817 working abroad. In comparison with the previous year, the number of employees decreased by 4.7%. The biggest decrease in the number of employees was at NLB Prishtina and NLB Banka, Beograd.

At the end of the year, NLB had 4,050 employees, which is 1.2% less than in 2008. The decrease in employees was due to a restrictive human resource policy.

Employment from external markets was restricted and only exceptionally approved if the Bank did not have adequate staff at its disposal for redistribution. In the course of the year, 128 new employees, or 85 fewer than in 2008, were hired.

The Bank dismissed 175 employees, of which almost 40% were superfluous employees. Their work was redistributed among the remaining employees, thus increasing work optimization.

Staff Development and Training

The Bank’s staff development and training are planned via annual performance appraisals. As a priority, the Bank focused on the development and training of certain target groups (i.e., employees in a managerial capacity across all levels and highpotential staff). These include successors for managerial positions, high-potential staff, and key specialists. The Bank carried out the following for these target groups:

• Establishment of their development potential;
• Development appraisals;
• Planning of development activities and career paths, as well as establishment of management competencies through the 360° tool.

In 2009, 14,087 NLB employees and 373 NLB Group employees, who were trained by NLB, were included in a variety of educational and training formats carried out at NLB, in Slovenia, or abroad. Almost 96% or 3,863 NLB employees participated at least once in educational and training programs. On average, 3.4 days were dedicated to professional education and training. The Bank financed work-study programs and sabbaticals for 35 employees. A total of 159 employees (3.9% of all employees) concluded a contract on work-study programs and sabbaticals with the Bank.

Rewarding and Motivating Employees

In 2009, growing competition and decreasing economic growth largely influenced the Bank’s awards policy. In spite of focusing on optimizing and economizing personnel costs, NLB provided for further development and training of its key staff. More emphasis was put on recognizing special achievement at work with special focus on the Bank’s key employees. In addition to material forms of recognition, the Bank increasingly encourages awards.

Employee Care

In spite of tougher conditions, the Bank tried to keep its employee care programs at the same level as in previous years. NLB amended its Security and Risk Evaluation Declaration, which specifies new job groups and complements existing measures to prevent disease and health damages. Employees were offered regular physicals, as well as organized seasonal and pandemic flu vaccinations.

Harmonization of Human Resource–Related Functions within the NLB Group

The Bank has been harmonizing human resource– related functions for the past four years, which is done in compliance with the management policies of the NLB Group members. This is carried out within the framework of the “Organization and Human Resources” business line.

At annual meetings, the human resource officers of the NLB Group banks determine priority HRobjectives subject to harmonization during the current year. Fulfillment of these objectives is regularly reviewed. In 2009, the Bank mainly focused on:

• Economizing personnel costs;
• Classification of jobs;
• Selection processes;
• Trainee programs;
• Annual appraisals, evaluation of work performance, and rewarding.

Regarding education and training, HR in cooperation with other lines of business organized the transfer of specific know-how (129 participants in total). According to the example of the Internal Bank School of the NLB Group, a test run of the “School for Managers of NLB Group Branch Offices” was organized in Serbia. Sixteen managers from banks of the NLB Group participated in this test run. On the basis of the test run, a training program was compiled, which will be one of the NLB Group’s fundamental management trainee programs. Furthermore, individual members were offered advisory services and technical support regarding the introduction of the variable rewarding and annual appraisal system, as well as job classification and salary systems. Harmonization of the business operations of other business functions is also carried out by short-term and long-term assignments of NLB staff to NLB Group members. At the end of 2009, 47 employees employed at the NLB parent bank were moved to NLB Group members.

Customers

NLB’s focus on its customers and meeting the needs of various customer segments is also confirmed by various studies carried out by independent research agencies. According to most results, NLB is the best-known and most trusted bank in Slovenia. NLB was rated as the best and most socially responsible bank by approximately one-third of respondents. Furthermore, the population as well as companies attribute many other qualities to NLB that are important for selecting a bank in the first place: a widespread network of branch offices, tradition, power and stability, trustworthiness, a good, diverse, comprehensive, and high-quality portfolio of services, a bank that fulfills its clients’ needs, an internationally renowned bank, and so on.

NLB has been closely monitoring the most important parameters of customer satisfaction with the international company GfK Slovenia since 1999. The latest satisfaction indices (population and companies: 82; 100 = highest satisfaction) confirm that on average NLB’s customers are content. In particular, above-average ratings were received for customer satisfaction with NLB staff, NLB’s modern marketing channels, the varied service portfolio, and other aspects. Due to the stable satisfaction of NLB customers, the elimination of negative factors, and the reduction in complaints, despite less favorable market conditions, the Bank expects to maintain this position in the future.

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Society and Environment

NLB is an integral part of the environment in which it works. NLB identifies with local communities and is actively involved in community affairs through its funding activities and philanthropic donations. In 2009, the Bank sponsored over 700 projects that demonstrated its social consciousness.

Sports

In 2009, for the fourth consecutive year, the NLB Group was the general sponsor of the regional basketball league, the NLB League. Competition began in 2001 and 14 clubs from Bosnia and Herzegovina, Croatia, Slovenia, Serbia and Montenegro participate. The NLB League brings together teams from countries that represent NLB Group’s target markets. The NLB League and NLB Group also share something else that is bringing them success: ambitious goals, excellent results and consistent growth. In the European Year of Intercultural Dialogue the NLB League was given a special recognition by the European Union.

By supporting top athletes and teams representing Slovenia, the Bank makes an important contribution to the success of Slovenian sports in general. Among the Bank’s major projects is its long-term role as golden sponsor and partner of the Slovenian Men and Women’s Alpine Skiing Teams.

There is no recreation without sports. In recent years, interest in running and biking has increased dramatically in Slovenia. The NLB cooperates and works with recreational sports organizers throughout Slovenia. Many employees belong to teams that regularly participate in various competitions.

Culture

As a result of its longstanding collaboration, the Bank has become an important partner of the Ljubljana Jazz Festival, which celebrated its 50th anniversary. Numerous other events and exhibitions accompany the festival.

Imago Sloveniae was founded in 1994 to enliven and reinvigorate old city centers. Cultural performances in old town centers highlight the beauty of ancient squares, castles, museums, churches and other treasures that represent the Slovenian cultural heritage. The Bank has supported this project since 2000. In 2009, 30 cities and towns participated in the program by hosting renowned national and international classical musicians, who performed at over 100 concerts during the summer.

NLB has cooperated with the Ljubljana Festival for more than 10 years. Ljubljana’s summer events attract many of tourists. Without doubt, the Festival, featuring more than 70 concerts and events in two months, is one of the most important events in Slovenia’s capital.

Every large Slovenian town presents numerous cultural events, and NLB is involved in nearly every event where it operates. In 2009, the Bank sponsored over 60 cultural events, organizations, and institutions.

For decades, the Bank has been assembling its own Art Collection with the aim of preserving Slovenian cultural identity. The long-term goal of the Bank is to build one of the most representative collections of prominent Slovenian artists of the twentieth and twenty-first centuries. An expert commission expands the collection every year by recommending key additions. Thus, we believe that our collection is a good investment in art, as well as Slovenian culture, which, in times of globalization, is of even greater importance to the Slovenian nation. By purchasing artworks by renowned artists, the Bank supports the development and promotion of Slovenian art. Moreover, as the NLB Group expands into foreign markets, it will also progressively expand its collection to include the works of artists from these regions.

Many of these works, which the Bank has had for decades, as well as pieces it acquired in past years represent top-quality Slovenian art. We are proud that experts show great interest in the works in our collection, thereby confirming that it includes truly important artworks by Slovenian artists. Thus, the Bank along with museums and galleries significantly shapes the national art collection and contributes to preserving Slovenia’s cultural heritage. In the NLB Gallery Hall, which has a tradition of 39 years, the Bank continues to feature creators and trends in visual communication from Slovenia, Europe, and America selected by the Emzin Institute of Creative Production for the tenth consecutive year.

Charities

NLB cooperates with over 200 different charitable organizations in all the regions where it operates. Among the largest and most longstanding are Karitas, Slovenian Red Cross, and UNICEF Slovenia. Every year the NLB also makes donations to purchase equipment for many hospitals. All branch offices have collection boxes. Clients make voluntary donations for humanitarian campaigns in their area. NLB supported the Slovenian Red Cross in carrying out a blood drive with over 100,000 participating each year, thus showing their solidarity. In lieu of cards and gifts to customers at the end of the year, the NLB Group made donations to all pediatric wards of regional hospitals in Slovenia to improve medical treatment, and children in hospitals were treated to a visit from Red Nose Comic Relief doctors.

Environmental Conduct and Awareness

Environmental responsibility and conduct are factors that can no longer be ignored. Employees of the NLB Group are aware of their responsibility towards our planet, all people, animals, plants, and all of the Earth’s natural resources. Therefore the NLB Group’s employees respect and implement all policies and measures intended to decrease harmful effects on the environment. Environmental protection measures, however, must not contradict the Bank’s business interests.

In compliance with the aforementioned, in 2009 the Bank:

• Continued to automatically switch off PCs at night;
• Introduced the green message: “I think before I print. I know why!” on Earth Day (April 22) 2009;
• As of April 20, 2009 discontinued the automatic attachment of e-business cards, thus relieving mail servers;
• In cooperation with Telekom Slovenia, introduced e-invoices for legal entities (instead of paper payment orders; as of this year legal entities can send payment orders as e-invoices via e-banking);
• Introduced waste separation (glass and packaging) in the NLB Group, Prospera Plus company;
• In June 2009, was named “Green Office 2009” by Planet GV.

NLB Group
Annual Report 2009