Human resources management
Headcount and employment structure
As at 31 December 2016, the Group had 1,546 FTEs vs. 1,618 FTEs at the end of 2015 (a decrease by 72 FTEs). The headcount was reduced in Microbranches following the optimization in the Bank’s sales network and closing unprofitable outlets. Headcount in subsidiaries decreased by 22 FTE. Employment in Head Office increased by 20 FTE, mostly in digital banking, in relation to implementation of EnveloBank planned for 2017.
|Head Office of the Bank||788||712||727||669||685||705||20|
|Local offices and Branch||325||270||244||178||155||158||3|
|Total Capital Group||1 496||1 571||1 700||1 633||1 618||1 546||(72)|
At the end of 2016, the Bank employed 1,345 people:
- most of the employees were female (946 FTEs, i.e. 71%);
- 5 years of service on average;
- the average age of an employee was 37.
An analysis of detailed employment data indicates that employee turnover reduction is a key development challenge, in particular in Microbranches and in IT. Comprehensive measures reducing the turnover ratio and improving incentive systems are planned for 2017.
Training and development
In 2016, development activities focused on supporting skills and knowledge necessary to effectively achieve goals and to ensure compliance with requirements of Bank’s supervisors. Specialized training courses were delivered by external experts and internal resources.
Training courses improving business efficiency:
- Introductory training dedicated to new hires in the consumer segment, covering the Bank’s product offer, professional sales techniques with final tests checking the knowledge of bank and investment products, systems and processing. The training is supplemented with internship supervised by an Expert and supported by a Trainer.
- Courses improving competences of Account Managers and Advisers with regard to winning new clients, work planning, goal-setting and monitoring, sharing knowledge and best practices, enhancing pro-sales attitudes and building long-term relations with clients.
- Training for retail network employees improving their prospecting and on-the-phone meeting arrangement skills.
- Courses improving work planning, goal-setting and supporting, efficient client winning methods, giving and receiving feedback, knowledge-sharing skills of Experts.
- Training courses advancing knowledge and skills related to investment funds. Delivered training included basic knowledge of investment products, MIFID, extending knowledge of POCZTOWY SFIO, sales conversation enhancement skills and knowledge of foreign and domestic markets. The courses were supplemented with quarterly meetings of experts on investment products under the “Leader Club” initiative.
- Customer Relationship Management system training courses aimed at organizing knowledge and perfecting the ability to use the sales management system, initiated in 2015, were continued in 2016.
- Top salesmen could also develop their financial knowledge participating in the European Financial Advisor (EFA EFPA) studies. When participating in the studies, employees get introduced to the basic package of financial services, including investment and insurance products, learn simple application of maths in finance and analysis of key client’s needs and profile. They understand the finance planning process, can match financial products to key client’s needs and thus build their knowledge and competence base to take over the role of a trusted advisor in relations with their clients.
- A series of development measures was carried out to support Own Network Strategy implementation. Their scope included workshops for Regional Directors, Sales Support Managers and Experts. The related activities supporting the new working standards included preparation of movies and learning aids for e-learning purposes, regional on-the-job training workshops, managerial coaching and training, and a contest promoting work standards. Development activities included all sales employees.
- ROZWOJOWNIA (Development incubator) - Internal expert knowledge sharing program Bank employees, experts in various fields, share their knowledge in the form of internal courses following appropriate preparation as trainers.
- DZIEŃ W MIKRO (A Day in Microbranch) - The implementation program for new Head Office employees has been extended by one-day visit to Microbranch. The project objective is to gain a better understanding of the work in the sales network and products among head office staff and to foster cooperation between the sales force and the head office.
- WŁĄCZ ZIELONE (Turn on Green Light) - A program supporting cooperation and communication between the Head Office and the sales network, aimed at managerial knowledge sharing. Head Office managers as mentors share their experience with sales network Experts.
- EFEKTYWNE CONTACT CENTER (Effective contact center) - In 2016 development activities were performed to build managerial and trainer competences in the Contact Centre (‘CC’). Workshops were held for managers and trainers on activities that build efficiency in a given area and a development program was delivered for CC trainers (Train the Trainer). A course for managers was delivered including introduction to contracting and executing targets, team incentives and selection of motivation tools.
Other training initiatives
- In 2016 the staff was offered individual support in the form of training, individual coaching, conferences, seminars and post-graduate studies focused on new consumer banking trends, finance, risk, security, internal audit and HR.
- Individual and group training courses for IT staff on project financing, programming languages, application development and databases and management of IT services.
- Obligatory training imposed by the law, e.g. by Labor Law, Banking Law, OHS, personal data protection.
- E-learning courses for Bank employees included security, banking secret, AML, personal data protection and ethics.
- A course for new hires entitled “Welcome to Pocztowy”. It presents the mission, vision, strategy, values, processes and principles adopted by the Bank. The training also includes an introduction to IT systems and practical information useful in the first weeks of working at the Bank.
- Managerial workshops dedicated to managerial staff were aimed at working on the Bank’s business strategy.
- “Train the Trainers” courses for Bank employees to prepare dedicated employees to carry out training in the sales network.
- E-learning courses for employees of Bank Pocztowy including security, bank secrecy, AML, personal data protection, ethics, quality standards, MIFID, CRM, as well as the Bank’s product offer.
- In June 2016 an Employee Portal was launched in Intranet providing information, forms and documents regarding employee issues, as well as training and support materials: guides for new hires, and materials supporting quality conversations with employees.
Training for the Poczta Polska S.A. Capital Group
In 2016, e-learning courses for Poczta Polska staff initiated in 2015 were offered on product and systems (Ferry, Front End), security policy, and Front-End application in post offices.
In February 2016 implementation training was commenced for employees of Postal Finance Zones including banking products, pro-sales attitude and selling skills improvement. The training ended with an exam checking the knowledge of banking products.
Training for coordinators of the Poczta Polska sales network was carried out with regard to banking products and processes.
Szkolenia w Centrum Operacyjnym
Centrum Operacyjne has continued professional development of its employees and building its market position thanks to experienced staff.
In 2016, its employees participated in a number of training sessions and seminars:
- document authenticity check, consumer bankruptcy, enforcement regarding a bank account in light of legal changes effective as of 8 September 2016, loan collateral;
- complaint handling and mediation in financial institutions; changes in deposit operations of banks.
IT and data security courses:
- CCNA, Introduction to Web Development with Microsoft Visual Studio 2010, internal control and IT supervision with respect to security.
Courses regarding recent law amendments:
- IAS, OHS, CCO, finance for non-bankers, HR and payroll, taxes, legal guide for managers, SAF-T.
On-the-job competence training:
- internal audit, Six Sigma – Black Belt, quality management, Excel and PowerPoint, process mapping, operating risk management, management accounting, real property valuation, project management.
The company obtained training funds from County Labor Office (from the National Training Fund). The program commenced in June 2016 and was to improve efficiency and productivity of employees with regard to banking, IT, processes and finance related knowledge. The funds from the National Training Fund were earmarked for training and post-graduate courses. Participation in the above courses brings measurable benefits to company employees since they can gain new skills and use them at work. Training participants improve their skills and thus become more innovative and self-reliant.
Another training program co-financed by the National Training Fund allows the Company to pursue a well-balanced training policy that improves its performance.
In 2011, the Bank implemented an incentive scheme based on the Management by Objectives methodology, where the variable portion of the remuneration depends of goal performance. Tasks and jobs and performance measures are determined depending on position and category: executives, direct sales support and support.
Attempts to link individual’s remuneration with his/her performance and achievement of goals agreed on with the employee for a given period will allow the Bank to reinforce the variable portion of the remuneration to provide an additional incentive for work.
Additionally, focusing on key objectives allows mobilization and preparing the Bank for achieving stretch goals (including finance) in rapidly changing business environment. Implementing of MbO assumptions contributes to improving of productivity and competencies of employees, providing incentives and involvement in the performance of tasks aligned with strategic objectives.
Objectives for 2016 were determined based on:
- Bank’s strategy,
- initiatives of Bank’s business lines developed during managerial workshops,
- business initiatives commenced in 2015.
Recently, certain shortcomings have showed in the operation of the bonus system, related to the bonus calculation mechanism. Therefore, a material modification of the system is planned for 2017 so that the calculated bonus matches the performance of the Bank and of the Group.
Sales network employees are included in the commission-based remuneration system, which provides incentives to increase sales in selected product groups. Each product included in the sales plan has been assigned specific weight. Depending on the performance vs. plan, individual product weights affect the monthly commission amount.
The base pay system in the sales network is linked to the professional development path. It allows continuous professional development beginning from Junior Relationship Manager / Account Manager all the way through Relationship Manager / Account Manager and Senior Relationship Manager / Account Manager. Employees can be promoted every six months if specific criteria are met. Additionally, in each stage of the development path, they can improve their sales and product related qualifications through dedicated training. Promotion to a higher position entails a higher base pay.
Variable components of managerial staff remuneration
Implementing the requirements of PFSA Resolution no. 258/2011 of 4 October 2011 on detailed principles of operating risk management and internal control system, detailed terms of estimating internal capital in banks and review of the process of estimating and maintaining internal capital and determining the variable remuneration policy for managerial staff of banks, the Bank applies the variable pay policy for individuals on managerial positions. Following restrictions imposed by the Act on remunerating managers of certain entities of 3 March 2000, provisions regarding deferred variable compensation and non-cash compensation do not apply to the variable compensation of Bank’s Management Board members.
The basis to grant an individual a variable compensation, including the deferred portion of such compensation, and to determine the total amount of the variable compensation applicable to qualifying individuals includes:
- assessing an individual's performance vs. individual goals planned for the year subject to evaluation,
- financial performance of the Bank for the last financial year,
- performance of the cost budget,
- financial profit/sales plan performance.
The variable compensation is deferred and at least 50% of its amount is paid in phantom stock entitling to cash receipt. The phantom stock value depends on its measurement as at the vesting date, based on equity per share amount adjusted by paid or payable dividend. The measurement is carried out and annually verified by the Bank’s Finance Function based on annual consolidated profit of the Group, audited and approved by the General Meeting, within 15 days of the date of approval of the respective annual financial statements. In 2016, following a positive opinion issued by the Supervisory Board in the form of resolutions, the Bank paid the third deferred portion of variable compensation for 2012 of PLN 49.7 thousand. Variable compensation provisions regarding the deferral and non-cash compensation did not apply to the compensation for 2015. Therefore, the Bank did not defer the variable compensation for 2015.