Social responsibility

Human resource management

The global financial and economic crisis had a significant impact on the operations of the Bank and its employees in 2010. The expectations of shareholders, regulators and customers have changed. Such conditions require employees to be more committed, motivated and persistent in resolving problems to achieve strategic objectives.

Number of employees

NLB and subsidiaries of the NLB Group employed 7,873 employees as at December 31, 2010, of which 3,616 or 46% were employed abroad.

At the end of the year, the entire NLB Group, including associates and joint ventures, employed a total of 8,809 employees, with 3,725 persons working abroad. The number of employees was down 2% on the previous year.

NLB had 3,991 employees at the end of the year, of which 169 were temporary employees. Staff turnover was 4.9% at NLB, up 0.8 percentage points on 2009.

The decrease in the number of employees was the result of the measure to reduce labor costs and the restriction of employment from the external market. The Bank hired 146 new employees in 2010, 106 of which were temporary. On the other hand, the Bank released 205 employees, of which almost 55% were older employees.

There was no significant change in the educational structure at NLB with respect to 2009.

Staff development and training

The Bank invests a great deal in staff development and training. Special attention is given to the development of specific target groups: managers across all levels, experts in key positions and employees demonstrating development potential.

In addition to systematic career planning for the aforementioned employees, the Bank plans and monitors personal and professional development, provides employee-specific training and co-finances on- and off-the-job training. The Bank approved study grants for 30 employees in 2010. A total of 133 employees, or 3.3% of all employees, concluded a work-study program agreement with the Bank.

The Bank has a management competencies system for managers, which measures competencies using a 360° method. In 2010, a total of 540 persons, or 13.5% of employees, were included in the group of high potentials. Emphasis is placed on identifying successors for management positions and systematically identifying high potentials.

By providing opportunities for regular training and education, the Bank facilitates both professional and personal development. Nearly 90% of training is organized internally at the Bank. Education and training are carried out in the form of banking courses in various technical areas, and in the areas of functional knowledge and communication, management and sales skills. Traditional forms of education and training are increasingly supplemented by e-training, which is a more costeffective form of training and accessible to all employees in Slovenia. In 2010, a total of 15,104 NLB employees and 394 NLB Group employees participated in various forms of education and training in Slovenia and abroad. Almost 90% of employees participated in at least one educational or training program. Employees received an average of 4.1 days of education and training.

Employee care

The Bank's activities are aimed at prevention and promoting a healthy lifestyle. On the basis of its Declaration of Safety with Risk Assessment, the Bank defines measures to prevent disease and health issues. To that end, the scope of training for various target groups was expanded in 2010.

NLB continued to improve the working environment by providing employees ergonomic work stations. A total of 970 employees were referred for periodic medical exams.

Employee care is also included in the Bank’s core document relating to social responsibility: Social and Environmental Policy of NLB.

Customers

NLB’s focus on its customers and meeting the needs of various customer segments is confirmed by various studies by independent domestic and international research agencies. According to most results, NLB is the best-known and most respected bank in Slovenia, with the highest market shares in all customer segments and the majority services. From the latest research by RM Plus in June 2010, it is estimated that 46% of the Slovenian population over the age of 15 use at least one NLB service, and that NLB is the main bank of 39% of the population. NLB is also the best bank according to 39% of survey respondents. In various studies, households and companies listed several traits important in selecting a bank: an extensive network of branches, tradition, power and stability, trustworthiness, a good, diverse, comprehensive and high-quality portfolio of services, an internationally recognized bank, etc.

NLB has monitored the most important factors of customer satisfaction for more than 10 years. Studies confirm stable or moderate growth in retail and corporate customer satisfaction with respect to general and specific factors. In cooperation with the international company GfK Slovenija, NLB measured the satisfaction of 737 corporate customers at the end of 2009, and the satisfaction of 5,000 retail customers at the end of 2010. Both overall satisfaction indexes (82 for corporate customers and 84 for retail customers on a scale of 100) confirm that NLB’s customers are satisfied on average. Satisfaction with advisory staff, electronic banking and the range of corporate services was above-average. Satisfaction was slightly lower with respect to prices and interest rates, and corporate financing or lending. According to study forecasts, customers will remain loyal to NLB in the future.

In cooperation with RM Plus, NLB also measured the satisfaction of its most demanding customers and asset management clients in 2010. On average, these customers are slightly more satisfied than the overall market.

Due to the stable and high level of customer satisfaction, the elimination of negative factors and NLB’s willingness to fulfill the wishes of its customers, the Bank expects to maintain this position in the future, despite the somewhat less favorable market conditions.

Society and the environment

In 2010, NLB adopted the document Social and Environmental Policy of NLB in which the Bank sets out its broader vision of social and environmental responsibility, and meets the requirements of international development institutions with whom NLB cooperates, primarily in the various forms of borrowing.

NLB also expresses its social role in sponsorship activities and donations, and is perceived as an integral part of the environment in which it operates. In 2010, the Bank sponsored over 700 projects that demonstrated its social consciousness.

Sports

In 2010, for the fourth consecutive year, the NLB Group was the general sponsor of the regional basketball league, the NLB League. Competition began in 2001, with 14 clubs from Bosnia and Herzegovina, Croatia, Slovenia, Serbia and Montenegro participating. A team from the Czech Republic joined the league in 2010. Basketball is one of the most popular sports in these countries, while the NLB league is one of the largest regional projects in the field of sports. The NLB League also received special recognition from the European Union during the European Year of Intercultural Dialogue.

By supporting top athletes and teams representing Slovenia, the Bank makes an important contribution to the success of Slovenian sports in general. In parallel with the NLB League, a regional wheelchair basketball league, NLB Wheel, has also been developed with NLB’s assistance. The league includes teams from Slovenia, Croatia, Bosnia and Herzegovina, Serbia and Italy. 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.

Recreation and sport go hand in hand. In recent years, interest in running and biking has increased dramatically in Slovenia. NLB 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 51st anniversary in 2010.

NLB has played a role in the festival for more than 10 years. Ljubljana’s summer events attract many tourists. Without a doubt, the Festival, featuring more than 70 concerts and events over two months, is one of the most important events in Slovenia’s capital. Every large Slovenian town has numerous cultural events to offer, and NLB is involved in nearly everywhere it operates. In 2010, the Bank sponsored over 50 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 20th and 21st centuries. A commission of experts expands the collection every year with important works from prominent Slovenian artists. By purchasing artworks by renowned artists, the Bank supports the development and promotion of Slovenian art.

The NLB Gallery Hall, with its 40-years tradition, has featured creators and trends in visual communication from Slovenia, Europe, and America, as selected by the Emzin Institute of Creative Production, for 11 consecutive years.

Humanitarian activities

NLB participates in more than 200 humanitarian projects in all regions where it operates. Among the largest and longest standing are Karitas, the Slovenian Red Cross, and UNICEF Slovenia. NLB also makes annual donations to purchase equipment for many hospitals and institutions. In 2010, NLB activated the Slovenian-wide humanitarian campaign Dobra zvezda (Good Star), in which funds were donated to 12 retirement homes in 2010. All branch offices have collection boxes, while local humanitarian organizations collect contributions to support their activities. NLB supported the Slovenian Red Cross in its campaign "Peljimo jih na morje" (Let’s Go to the Seaside). In the scope of the aforementioned campaign, the Slovenian Red Cross organizes holidays every year for children and the elderly who otherwise couldn’t afford holidays. The Bank also participates in annual blood drives, attracting more than 100,000 donors.

Environmental protection

Environmental responsibility and conduct are factors that can no longer be overlooked. Employees of the NLB Group are aware of their responsibility to our planet, their fellow people, animals, plants and all of the Earth’s natural resources.

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