Shortages of employees with specific competences in the labor market and competition in acquiring specialized employees might give rise to a temporary risk of deciding to recruit employees at higher rates than those applicable in the organization. Consequently, disproportions in compensations on similar positions could occur. The Bank takes measures to prevent this undesirable phenomenon, in particular by setting recommended levels of compensation in the recruitment process and periodic reviews of compensations.
Another risk related to the compensation policy could be the applied incentive mechanisms, which encourage employees to assume a task-based approach to work, thus potentially leading to a conflict of interest. This concerns the situations where, in order to protect the well-understood long-term interest of a client or the Bank, an employee should abandon a task aimed to bring a bonus. The risk of an excessively one-sided activity on the part of employees as a result of incentive mechanisms oriented towards generating higher sales, and hence a bonus, is mitigated by taking also qualitative criteria into account when appraising performance.
Moreover, consistent implementation of the adopted Compensation Policy has allowed us to minimize risks, among others by keeping the appropriate ratio of fixed to variable compensation, by using a formal appraisal system featuring criteria matching the character and the specific nature of the job and by taking a long-term perspective when evaluating business performance, a variable compensation pool management mechanism conditioned on the financial standing of the Bank.
The Bank has also consistently been raising the quality of management and strengthening an organizational culture based on values. This goal is achieved through management training. Its purpose is to support the actions of leaders not just to generate performance but also to build trust and relations with employees.
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.
It must be emphasized that, in 2020, the epidemic risk was added to the list of standard risks. What became a priority for the Bank was to ensure safety to people and maintain business and service continuity. A range of measures were taken immediately to mitigate the risk of employees being infected with coronavirus in the Bank’s head offices and branches. A detailed description can be found in Chapter II. MILLENNIUM IN THE AGE OF CORONAVIRUS. At the same time, the Bank was unable to perform many of the actions planned in the development & training and social areas. The M#leaders manager training, student internship, employee trips or meetings as part of the Yes to Parenting and MilleClub were canceled.