About the Capital Group

Headcount and employment structure

As at 31 December 2015, the Group had 1,618 FTEs vs. 1,633 FTEs at the end of 2014.

As at 31 December 2015, the Bank employed 1,386 people vs. 1,401 FTEs at the end of 2014 (a decrease by 15 FTEs). The headcount was reduced in the Bank’s offices and microbranches (by 31 FTEs) following the optimization in the Bank’s sales network and closing unprofitable outlets. The headcount in the Bank’s head office amounted to 685 FTEs having grown by 16 FTEs.

 

FTEs							Change
	31.12.2010	31.12.2011	31.12.2012	31.12.2013	31.12.2014	31.12.2015	2015/2014
Head Office of the Bank	770	788	712	727	669	685	16
Local offices and branches	315	325	270	244	178	155	(23)
Microbranches	42	166	370	490	554	546	(8)
Subsidiaries	196	217	219	239	232	232	0
Total Capital Group	1 323	1 496	1 571	1 700	1 633	1 618	(15)

 

At the end of 2015, the Bank employed 1,405 people:

• most of the employees were female (1,017 FTEs, i.e. 72%),
• 5 years of services on average,
• the average age of an employee was 35.

In 2015 the training and development policy was aimed at supporting implementation of the business strategy of Bank Pocztowy and ensuring compliance with the supervisory requirements. The main focus was placed on implementing the new organizational culture and the new business model of Bank Pocztowy.

Training courses improving business efficiency:

• Introductory training dedicated to 378 new hires in the consumer segment, covering the Bank’s product offer, professional sales techniques on the basic level with final tests checking the knowledge of bank products, systems and processing.
• Training increasing sales skills, knowledge sharing skills and work planning for Experts, when two two-day training courses for ca. 100 participants were run.
• Training courses improving sales skills of Relationship Managers and Account Managers covering transfer of know-how and best practices, reinforcement of sales attitudes and behaviors, building long-term relations with clients, including advanced sales techniques. 185 employees finished the two-day training courses in 2015.
• Workshops aimed at implementing a new “sales wheel” model in the distribution network were carried out in June. The workshops covered the presentation of the new model, learning how to use the sales wheel, i.e. a tool for efficient sales negotiations, and how to report in the new model. The workshops were attended by 150 employees from the sales network.
• Customer Relationship Management system training courses aimed at organizing knowledge and perfecting the ability to use the sales management system. Managers and sales network Experts attended 10 workshops organized in November and December. The objective of the workshops was to prepare for cascading knowledge. The CRM system was implemented in the entire sales network on 1 January 2016.
• Training courses advancing knowledge and skills related to investment funds. The workshops were attended by 370 employees from the sales network. The Leader Club composed of top 50 investment products salesmen was created to expand knowledge and skills in selling investment products.
• Top salesmen could also develop their financial knowledge participating in the European Financial Advisor studies, and 20 persons started their course in 2015.
• Additional training regarding new products offered by the Bank and its processes and authorizing to perform specific banking transactions.

Training improving IT efficiency:

• Training courses for Managers and Leaders enhancing leadership skills – (two two-say workshops).
• Individual and group training courses for IT staff on project financing, programming languages, application development and databases.

Other training initiatives:

• Individual development. In 2015 other employees also participated in the training and development program. The staff was offered individual support in the form of training, conferences, seminars and post-graduate studies focused on new consumer banking trends, finance, risk, security, internal audit, HR and good practices in implementation of external regulations.
• Management workshops. Management workshops dedicated to the entire managerial staff of Bank Pocztowy were carried out in May 2015. Their objective was to present the new business strategy and work together on its efficient implementation based on the engaging leadership style. They gathered approx. 130 participants.
• Cascading workshops: Management by Objectives. Workshops dedicated to all Bank managers working in line with the MBO (Management by Objectives) system were held in April and May to determine objectives compliant with the Bank’s CODE, directly supporting performance of strategic goals and to agree these objectives with managers.
• A labor law workshops program was carried out in 2015 mainly for retail sales network managers. The purpose of the training was to improve knowledge regarding practical application of the labor law, also with regard to the personnel policy adopted by Bank Pocztowy.
• Workshops implementing the new competency model. In July and August the Bank organized 10 workshops on talent development planning in line with the new competency model for its Managers. The project was a part of the strategy promoting the new organizational structure. Managers had a meeting with employees, where they presented a new competency model – ADAŚ (CAN DO).
• E-learning courses for 2,016 people (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. Additionally, 18 364 employees of Poczta Polska participated in e-learning courses on Front-End system implementation and functionalities in 2015. Before the end of 2015 the total number of employees who completed e-learning courses reached 20 379.
• Obligatory training imposed by the law, e.g. by Labor Law, Banking Law, OHS, personal data protection.
• The training program for new hires entitled “Welcome to Pocztowy” 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.

In October 2015 a one-day visit in a microbranch was added to the introduction program for new hires.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.So far 22 new hires of the Bank participated in the initiative.

Training for the Poczta Polska S.A. Capital Group

• Thanks to the support of internal Bank trainers in 2015 Poczta Polska staff was offered an e–learning course on product and systems (Ferry, Front End), security policy, and Front-End application in post offices. By the end of 2015, 18364 employees completed the e-learning course.
• Business Process Model and Notation training program covering tax and legal changes, Lean Management and Six Sigma organized for Centrum Operacyjne staff.
• A project carried out in Centrum Operacyjne co-funded by County Labor Office (National Training Fund) for employees aged 45+, aimed at improvement of their productivity and efficiency and covering banking, IT and process knowledge.
• Training in time management, stress management, communication skills, motivating skills, creative thinking, operational risk and coaching.

New organizational culture – Business and cultural CODE

Ambitious goals set by the Bank in the new strategy can be achieved only with strong staff commitment. Therefore, a number of initiatives have been launched to change the existing corporate culture, i.e. the way of thinking about work, attitudes, behaviors and Bank employee experience.

In 2015 the Bank changed it organizational culture to support the new strategy, introducing the new CODE of thinking and behaving.  
The CODE is based on three pillars:

SIMPLE: we offer uncomplicated banking services and make everything as simple as possible
CAN DO: we know that everything is possible, we look for solutions and make things happen
CHEAPER: we care for clients’ and the bank’s money like for our own
With our CODE we provide the value for clients, for the bank and for ourselves

The new way of thinking and behaving was implemented in key areas of the Bank's operations:

• people and communication,
• products and income drivers,
• processes,
• procedures,
• organizational structure,
• share of responsibilities as a number of initiatives.

HR management initiatives are aimed at creating a friendly workplace, which enhances commitment and improves work satisfaction. The CAN DO attitude and the new management style based on engaging leadership are highly encouraged. This strategy will enable keeping top talents, reduce unwanted turnover and improve succession, i.e. it will help prepare a group of employees willing to take managerial and expert positions following an internal promotion career path.

The CODE clearly defines employee and management competencies and job expectations, determines drivers for personal and team efficiency improvement at the same contributing to the Bank’s efficiency.

The Bank has changed its internal communication system to ensure that employees understand their individual and team goals and follow the same strategy.

Building a coherent corporate culture in Bank Pocztowy is based on:

• creating CODE-compliant experience in relations with the Bank both for clients and for employees,
• building commitment to the Bank's value delivered to clients and employees,
• pro-active approach to changing staff behaviors.

As a part of the CODE initiative the Bank organized workshops for Managers and numerous discussion meetings with a consulting firm. Managers, who participated in the workshops, subsequently cascaded CODE details to their subordinates and supervised the implementation of CODE behaviors and language in their teams.

Bank staff competencies assessment

CODE-compliant HR and communication activities transformed employees’ approach to professional development. Implementation of the CODE and its three pillars, an ambitious business strategy for 2015-2018 and continuous efforts to create an engaging work environment required that all Bank’s staff change their attitudes, behaviors and develop their skills. The HR function and the Management Board selected competencies which will considerably contribute to continuous growth of the Bank and to building a performance-oriented corporate culture.

Managers pay a particularly important role in fostering the new organizational culture of the Bank, hence their target competencies were defined first, to efficiently manage the supervised area in accordance with the engaging leadership style. Nine competencies of CAN DO Manager have been determined, out of which four directly define the expected leadership style applied to managing teams and supervised areas. These competencies are particularly important for developing efficient, committed teams and promoting the engaging leadership style.

CAN DO Manager of Bank Pocztowy should be:

• Thinking strategically,
• Operation focused,
• Talent focused,
• Target oriented,
• Take initiative,
• Business accountable,
• Action oriented,
• Cooperating,
• Eager to learn.

Mangers’ performance is reviewed annually with the analysis of their 360° evaluation. Consequently, managers can receive feedback from various groups: supervisors, subordinates and peers. The 360° evaluation is an excellent source of information for analysis, reflection, future action steps and further development.

The Bank has also defined skills and attitudes of the staff which drive their work commitment, increase business accountability and commit to performing the Bank’s business strategy.

CAN DO Employee of Bank Pocztowy should be:

• Initiative-oriented
• Business accountable,
• Action oriented,
• Cooperating,
• Eager to learn.

Employees’ performance is reviewed annually along with their 270° evaluation. CAN DO Employee has a chance to get valuable feedback not only from his immediate supervisor, but also from his peers.

Annual performance progress reviews of CAN DO Managers and CAN DO Employees enable assessing their development potential and plan action steps to increase competencies of key importance from the Bank's business strategy perspective. The objective of the evaluation is that every employee receives an annual development plan based on a 70/20/10 model[1] to be carried out in cooperation with his supervisor with the support of the HR Department.

The process is aimed at providing CAN DO Managers and CAN DO Employees with as much relevant feedback as possible to enable them to work better and more efficiently.  

The main objective of the evaluation is to drive professional development and to direct employees and managers in developing competencies determined in the model. Moreover, in the evaluation process development potential is determined for every employee to provide the basis for detailed planning of development activities and possible horizontal or vertical promotions. 

The annual performance progress review results provide guidelines for action steps fostering competencies of key importance for the Bank’s business strategy, so that every employee could achieve his business goals set by the organization and develop own competencies.

The competence profile and assessment based on the CAN DO approach are important for the organization, because:

• Employees know what kind of attitudes and behaviors is expected of them to achieve their business objectives.
• Employees can develop and grow on the job, immediately apply their knowledge and skills in everyday work and see the effects of their commitment to the Bank.
• They take responsibility for their own development.
• New hires can quickly become fully efficient team members.
• Employees can see their performance improve and can measure it.
• All employees know who has achieved the CAN DO standards and can follow their role models.

The staff know that straightforward communication is encouraged in the Bank and that they will receive constructive feedback. They also feel comfortable when giving feedback.

Incentive scheme

The Bank has 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. The MBO-based incentive scheme was implemented in the Bank in 2011. Linking individual’s remuneration with his performance and achievement of goals agreed on with the employee for a given period the Bank has reinforced the variable portion of the remuneration, being an additional inventive for work. The system focuses on determining goals/tasks which contribute to the overall development structure of the organization.

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 2015 were determined based on:

• Bank Pocztowy strategy,
• initiative of the Bank's business lines developed during management workshops, including projects built around CODE compliant way of thinking,
• pending business initiatives.

In 2015, during MBO process, special focus was placed on aligning the planned objectives with the expected Bank’s performance. Workshops dedicated to all managers of Bank Pocztowy working in line with the MBO (Management by Objectives) system were held in April and May

The objective of the workshops was to set CODE - compliant directly supporting performance of measurable strategic objectives. If the goal performance does not reach the required level, the goal is considered unachieved. The business aspect was stressed also for other initiatives expressed in the form of objectives.

With the view to streamlining the MBO goal setting and assessment process, a new IT platform has been implemented in the KARO HR system.

Under the incentive program introduced in 2012 for sales network employees, in 2015 the staff was consistently encouraged to improve sales performance in specific product groups. Each product included in the sales plan has been assigned specific weight. Depending on the performance vs. plan, individual product weights are translated into the monthly commission amount.

In April 2015 the Bank introduced a new remuneration system in which the base pay of the sales network managers was increased. The system was linked with the professional development path applicable to all sales network staff since 2014. 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

Management remuneration policy

In 2015 Bank Pocztowy maintained the previous management remuneration policy based on the existing internal regulations, i.e. Principles of Remunerating Employees of Bank Pocztowy S.A. and in case of the variable portion of compensation, Principles of Granting Bonuses to Management of Bank Pocztowy S.A. according to MBO methodology and evaluation system.

Adjusting its policy to the requirements of PFSA Resolution no. 258/2011, the Bank applies the principles of determining variable compensation components of individuals holding managerial positions in the Bank.

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.

Determination of the variable compensation portion includes also a non-financial criterion, i.e. assessment of compliance of attitudes and behavior of an employee with the values adopted by the Bank. The performance assessment underlying the entitlement to the variable compensation covers three years, to cover the Bank’s business cycle and risk related to its business operations. According to the Policy, the variable compensation is deferred and at least 50% of its amount is paid in phantom stock entitling to cash receipt. 40% of the variable pay (annual bonus) was deferred. In 2015, upon a decision of the Supervisory Board, the second portion of the deferred variable compensation was paid out.

IT in HR processes

In 2015 the works related to digital HR under the project IT tool supporting HR management processes was continued. The Bank's system operates under the name KARO HR. So far a number of HR processes, in particular those related to HR services, training and recruitment have been streamlined and staff evaluation and MBO goals assessment have been simplified considerably.

Replacing printed versions of HR documents (e.g. annual leave application, personnel progress review forms, training requests and pay slips) with their electronic equivalents significantly improved access and data flow among employees, managers and HR Department with regard to personnel data management.

In 2015, KARO HR was extended with new functionalities. A new IT Platform managing the MBO goal setting and assessment process, a 360° evaluation and staff attendance has been implemented. New modules introduced allowed for liquidating paper documents and replacing them with soft copies.