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2018 Financial and Social Report

Significant risks related to the employee area

A significant risk factor in the employee area is the employee turnover ratio and the prospective loss of competences of importance to the Bank’s development. To prevent this from transpiring the Bank regularly monitors the level of the employee turnover ratio and it analyzes the reasons for employees to leave. The level of base salaries is also analyzed from time to time. The composition of compensation and its level compared to market benchmarks are subject to assessment. The review of the composition of compensation in the Bank’s various units is performed semi-annually.

The Bank does its best for variable compensation systems not to advance work results that in the long-run may prove to be unsatisfactory from the perspective of the Bank and its clients.  It strengthens the monitoring of ratios concerning the quality of transactions executed and the quality of client relations. Where justified, longer assessment periods have been introduced.

The Bank has consistently been raising the quality of management and strengthening an organizational culture based on values, trusting that good leadership supports not just financial results but a good climate in the organization. The M#leaders leadership competence development program serves this purpose.

Another group of employee-related issues pertains to the risks related to potential mobbing or discrimination. The Bank bans all activities exhibiting the attributes of mobbing and discrimination and it treats such activities as a severe violation of employee obligations. Any employee who believes he or she is a victim of discriminatory practices or mobbing may notify any manager about this fact. Managers go through mandatory training on mobbing and discrimination. [GRI 102-11, 102-30]