Human resource management

The NLB Group's strategy, the focal point of which is the Bank's cost effectiveness, required adapting to the changing economic conditions. A number of activities were carried out to lower operating costs and labor costs, and to reduce the number of employees, with the aim of improving the Bank's results.

The primary focus of human resource management was the implementation of measures to achieve the NLB Group's strategic objectives.

The reduced number of employees at NLB was the result of measures in the scope of the cost reduction project and the adoption of the Decision regarding the sustained elimination of the need for a larger number of workers for business reasons. The business reasons for the regular termination of employment contracts were of an economic nature, and were based on the automation of processes, the termination of activities with low added value and the centralization of activities that were carried out by several organizational units at different locations.

Development planning for all employees is based on their segmentation in terms of performance and development opportunities. The objective of segmentation is to identify employees who demonstrate development potential, to accelerate the development of the most effective employees and to employ the right people in the right jobs. This provides the starting point for advice regarding approaches to motivating, remunerating, development planning, promoting and even the firing of employees. The identification of key and prospective staff targets three job types: management positions, specialist positions and management-specialist positions.

The key elements of support for an individual's planned development are education, training and advanced studies. In line with the Bank's strategy and the new human resource strategy, the education and training is also shifting to a strategic function.

Nearly 90% of education and training is organized internally at the Bank. Education and training programs vary, are in line with the Bank's vision and strategy, ensure compliance with legal obligations and support the development of the individual.

The recognition received by the Bank in 2011 is evidence that NLB invests a great deal in the development and education of its employees.

• The NLB Financial Advisory School received the award for best HRM project of the year, presented by Planet GV in conjunction with the magazine HRM. The purpose of the award is to present successful HRM projects from Slovenian corporate practice and promote the introduction of new projects relating to the treatment of people in the workplace.
• NLB was the recipient of the TOP 10 Education Management 2011 award. NLB received the aforementioned award, which recognizes systematic investment in knowledge and concern for employee education and training, for the fourth time.

Certain activities were introduced in 2011 with the objective of comprehensively managing performance, which is based on the linking of job descriptions, required employee competencies, regular annual interviews, staff development, education and training, advancement (both horizontal and vertical) and remuneration. These activities, which will continue in 2012, include:

• changes to Job Systemization Rules with the aim of aligning jobs with actual needs and introducing competencies (i.e. not just WHAT?, but also HOW?);
• the updating of annual interviews and the assessment of performance with the objectives of improving performance, introduction of the transparent allocation of the variable component of wages and targeted employee development; and
• the adoption of a Remuneration Policy for Employees whose Work is of a Specific Nature in accordance with the amended Banking Act with the aim of establishing an appropriate remuneration system, consistent with appropriate and effective risk management.

For several years, NLB has demonstrated its socially responsible treatment of employees through systematic education and the cofinancing of studies, by providing financial assistance to employees in distress, by collecting funds to help those affected by major disasters, by facilitating regular recreational activities for employees through a sports club, etc.

NLB also received the Family-Friendly Company certificate in 2011. Receipt of the certificate is recognition of the Bank's sustained commitment and its constant efforts to create a work environment that stimulates employees and raises their level of satisfaction and loyalty to the Bank as an employer. The measures adopted cover different areas: improving management across all levels at the Bank, improving the organizational climate, increasing employee satisfaction and their motivation to work, optimizing the exploitation of employees' abilities, etc. NLB strives to take into account the objectives of the Fair Balance Strategy of the Union to the greatest extent possible and to solidify constructive cooperation with unions. Active cooperation with unions is one of the management team's most important tasks.