Ziraat Bankası 2012 Annual Report

Human Resources Practices

Activities in 2012

Within the frame of operating principles built on sustainable profitability, productivity and customer-focus, our Bank recognizes that the human resource is the key element that makes a difference in competition, and continued to implement and further build on the modern human resources management system it has adopted in line with the principles of transparency and compliance with banking ethics.

Aiming to fulfill the requirements of banking and international competition and to provide modern and reliable banking service, Ziraat Bank had 23,153 employees on its payroll at the end of 2012. 82% of the employee body holds undergraduate and graduate degrees; average age of employees is 38 and average tenure is 14 years.

Offering young people the chance to advance in their banking careers through its transparent approach to career management, our Bank continued to open its doors to numerous new graduates in 2012 following suit of previous years. A test was given for employing 3,265 people in different positions. The recruitment test and announcements asked the candidates to specify their preferred city for working in, in line with the principle of hiring locally.

Our Bank espoused a clearly defined career management concept. Within the scope of this concept, our Bank aims to fill managerial positions through promotion from within and gives the young people the chance to advance in their banking careers.

Under the promotions made in 2012, 1,860 employees successfully passed the promotion tests, whereas 412 employees succeeded in the qualification/interview system and were entitled to advance to the higher position.

Major innovations were made also in the human resources practices within the scope of the Bank Customer Service Model concept formulated upon the principles of customer-focus, rapid service delivery, and efficient communication.

In line with the customer segmentation the Bank carried out, “job position” implementation was introduced in career management. In addition to the title designation that indicates the professional level of employees, a “job position” is determined for each employee in accordance with the job performed, the customer segment addressed, and the distinction between marketing versus operations functions.

As at year-end 2012, 857 branches switched to the new business model and 16,976 employees have been appointed to their new job positions.

For branch employees who switched/will switch to their new job positions, certification training programs were organized covering all the skills and knowledge required by the relevant position of each employee, in addition to the Bank Customer Service Model training sessions.

During 2012, a total of 1,926 programs were given to 17,229 employees and average training time per person was 23 hours. In addition, 27 e-learning programs were made available to Bank employees within the frame of distant learning, from which 16,025 employees benefited.

In the reporting period, the Bank provided internship to 1,022 vocational high school students and 2,060 university students, thereby contributing to vocational training and also enhancing brand awareness as an “employer”.

As of year-end, the Bank moved to the new remuneration system based on the titles and job positions of employees.

Our Bank implements Branch Performance System; according to the results of this system, Performance Bonuses are paid as a separate element apart from the salaries and compensations paid on the basis of salary determination principles. In this framework, employees are paid performance bonuses at quarterly intervals in February, May, August and November.

Performance Bonuses are distributed to employees under the name “General Performance Bonus” and do not exceed 7% of an employee’s total monthly salary. “General Performance Bonus” payments are determined according to branch rankings based on scales announced quarterly. Ranked among their peers in each scale, branches are divided into six Performance Groups according to percentage tranches; while each Performance Group receives payments calculated using different coefficients, the branches that fall under the final 6th group do not qualify for the General Performance Bonus payment.

On the other hand, employees of regional offices receive performance bonus payments based on the average General Performance Bonus coefficients of affiliated branches, whereas head office employees are paid performance bonuses on the basis of the average General Performance Bonus coefficients of regional offices. Employees who have left the Bank or are on unpaid leave receive the performance bonus amount that they have become entitled to for the period of time they have actively worked. However, employees who have been given disciplinary punishment may not benefit from the performance bonus payments for the period of time determined depending on the punishment given.

In 2013, Individual Performance System will be introduced at our Bank.

2013 Projections

In 2013, our Bank will continue to provide its employees with constant training, career opportunities aligned with their respective job positions, and modern working conditions.

Within the frame of the efforts to switch to the Bank Customer Service Model, the transition of all employees to new job positions will be completed.

Certification training will continue for employees who have already switched to their job positions, and orientation training will be organized for a total of 3,265 newcomers to the Bank.

Having become a trademark in the banking industry since its inception in 1989, the “School of Banking”, which educates qualified staff for the entire banking and financial services sector, and represents a first in Turkey as a comprehensive training program that offers various information in a single package needed by banking professionals, will be vested in even higher quality in 2013 thanks to the collaboration with a university. In the year ahead, the program will keep training and cultivating the prospective managers who will drive our Bank to its goals in line with its vision and strategies.

The Bank will make continued use of advancing technology in all of its human resources practices and training systems, and new systems will be introduced in training management and e-learning programs.