Human resource management

In managing human resources, the Bank pursued established objectives in line with the Employee Competency Management Policy, and continued to introduce changes and human resource processes in the areas of hiring, education and training, motivation, and the monitoring and assessment of performance.

Competencies represent the basis for the implementation of all human resource processes, thus a great deal of attention was given to this area. A Competency Catalogue was adopted, with key competencies for all employees, managerial competencies for management positions and job-specific competencies for all positions.

The Bank gave priority to the internal labor market in its hiring process, and exceptionally turned to the external labor market, but only when it required staff with specific professional knowledge. The effect of efforts to control labor costs was seen in a 11.7% decrease in the number of employees between 2010 and 2012. Activities to reduce labor costs were focused on measures to optimize the business network, automate back-office processes and centralize activities that were distributed across several organizational units at various locations. The Bank reduced the number of employees by filling positions vacated by departing workers internally.

Development planning for all employees is based on their segmentation in terms of on-thejob performance and development opportunities. The objective of segmentation is to identify employees who demonstrate development potential and the most effective employees, and to employ the right people in the right jobs. This also 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 process of employee segmentation was carried out in several phases.

Special attention was given to managers due to their importance in achieving and/or exceeding the established objectives of individuals and thus of the Bank. The identification of management competencies was also carried out with the aim of developing the competencies of employees in management positions. The measurement and assessment of the competencies of directors was also carried using the 360º feedback method and the assessment center method. The results of the measurement will serve as the basis for the drafting of employee development and career plans.

A total of 95% 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 following activities were carried out 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:

• changes to the Job Systemization Rules with the aim of aligning jobs with actual needs and introducing competencies;
• management by objective as the basis for updating annual interviews and the assessment of performance with the objectives of improving performance, stimulating objective-oriented managers and employees, introducing the transparent allocation of the variable component of wages and targeted employee development;
• 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; and
• research of the positions, opinions and satisfaction of employees: on the basis of results, activities are prepared to increase employee satisfaction and loyalty.

For several years, NLB has demonstrated its socially responsible treatment of employees through systematic training and the co-financing of on-the-job and off-the-job education, 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, by organizing holidays for the children of employees during the school year, by participating in blood drives, etc.

The Family-Friendly Company Certificate, which NLB received in 2011, is also an integral part of the Group’s social responsibility. The certificate demonstrates the Bank’s sustained commitment to ensuring 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.