G4-DMA

Ziraat Bank sees its highly competent and qualified workforce as one of the core components that helps it sustain a special and privileged position in the banking industry. The Bank continuously offers opportunities for professional and personal advancement to its employees - the representatives of its values - to stay ahead of the competition. As the Turkish bank with the most extensive service network, Ziraat Bank creates significant value added for the Turkish economy by offering attractive job opportunities to young professionals, as well as generating significant local employment opportunities.

Key Human Resources Indicators

• As of December 31, 2015, Ziraat Bank had 25,697 personnel on its payroll.
• Ziraat Bank recruited 3,486 new staff members in 2015.
• Some 86% of Ziraat Bank employees have a university Bachelor's degree or higher academic qualifications.
• The average age of the Bank's employees is 34.5, and average length of service is 10.5 years.
• Ziraat Bank is the corporation of the Turkish banking sector that employed the highest number of professionals holding Master's and doctoral degrees.

Transparent Recruitment Process Focused on Skills and Experience

Every year, Ziraat Bank conducts a review of its staffing requirements. Available positions and the qualifications required for them are published on the Bank's web site and in the human resources sections of national newspapers.

Candidates who fulfill the criteria for participating in recruitment exams are asked to complete the application process. Subsequently, they participate in these exams prepared in collaboration with specialist institutions. Candidates who pass the recruitment exams with success are invited to interviews; those who pass the interview are hired. Signing the Ziraat Bank Code of Ethics is one of the requirements of new recruits.

Individual Performance Management System with Corporate Targets

Ziraat Bank's Individual Performance Management System is designed to measure at regular intervals the individual success and ranking of employees based on objective, quantifiable data and previously-specified parameters. This system was developed and launched in 2013 to reward superior performance. Its primary function is to boost the effectiveness of sales personnel. The system was set up to allow personnel to be rated in two different ways based either on their numerical performance or on their competencies. Numerical performance is an expression of the degree to which an employee's performance conforms to the strategic targets as measured by objective criteria. The system assesses indicators related to customer focus, profitability, productivity and risk management.

G4-DMA

In the implementation of this system, a current bonus budget was allocated taking into account the Bank's profitability and operational results with the provison that their total amounts not exceed 8% of the Bank's aggregate monthly salary payments. This allocation is paid out to recipients as an individual performance bonus at three-month intervals along with their February, May, August, and November salaries based on objectively defined and numerically expressible specific criteria. This system has been set up to focus mainly on marketing in line with the Bank's strategies and targets. Bonuses are calculated to supplement the earnings of those who contribute more to the realization of those strategies and targets. The bonus payments are made to staff according to:

• Branch segment and scale group,
• Rankings that have been determined according to individual performance report cards in line with the numerical performance measurement results at three-month intervals,
• It is distributed on the basis of performance bonus coefficients to the employees.

Ziraat Bank aims to award employees' individual achievements in line with corporate strategies to motivate them and boost their corporate engagement. The Bank aims to expand the performance management system in place to include head office units.

Individual Performance Management System Basic Criteria

• As of fourth quarter 2015, 75.1% of all Ziraat Bank personnel participated in the Bank's individual performance evaluation and management system.
• An analysis of the field staff subject to the Bank's individual performance evaluation and management system as of fourth quarter 2015 reveals that:
• Some 52% were employed in the Marketing Group and 48% were employed in Operations Group positions; 54% of Operations Group field personnel were male and 46% were female; 63% of Marketing Group field personnel were male and 37% were female.
• Of the employees who participated in the individual performance management system as of fourth quarter 2014, 44% were male and 56% were female.

Competency-Based Performance Management

As for the numerical performance assessment process, the fields (coordinatorships, regions and branches) and personnel (portfolio and operations departments employees), as well as the Firm Analysis, Project Analysis and Operations Center Departments on the Head Office side successfully underwent individual performance measurement in 2015. Within Competency-Based Performance Management, the assessment system was shaped according to competencies on the basis of job assignment and department, and the relevant design and software development efforts were completed. Subsequently, two pilot schemes were launched in 2015. System and technical infrastructure improvement efforts will continue in 2016, according to the results of these pilot schemes and the suggestions collected through surveys with participants.

In line with its people-centered human resources policy, Ziraat Bank strives to ensure that employees are placed in positions that best suit their skills in order to reach job satisfaction. In the same vein, the Bank figures among a handful of banks which promote their managers from within their own ranks. In keeping with its horizontal organizational structure, the Bank continues with its job assignment scheme in career management. In addition to the titles, which show their professional ranking, employees are also given a job assignment according to their duty, the customer segment in question, and the distinction between marketing and operations.

Secret Customer Program

The Secret Customer Program was introduced in 2014 and is now repeated every year in order to obtain additional performance evaluation input. This is achieved by determining such issues as the degree to which employees comply with business targets and standards, the adequacy of the staff's efforts to acquire new customers for the Bank, and how effective personnel are in imparting their product knowledge to customers. The results of the four coordinated quarterly (three-monthly) Secret Customer Program performance evaluations that were conducted during 2015 were compiled in reports. These were sent out to appropriate units of the Bank for their information. The program is scheduled to continue until year-end 2016.

G4-DMA, G4-52, G4-53, G4-DMA, G4-LA3

Management Trainee Program

The Bank continued to cultivate future managers with training seminars held as part of the Management Trainee Program, which is designed to help meet Ziraat Bank's demand for managers. Personnel who have reached the authorized job assignment level and whose participation in the Ziraat Bank Management Trainee Program in 2016 is deemed successful will continue to be appointed to branch and Head Office manager positions as needs arise.

Under the promotions program in 2015, 20% of Ziraat Bank employees took part in written examinations and/or interviews to be promoted to a higher position. A total of 3,196 employees were successful at these exams; over 3,300 staff members in total received a promotion to a higher position in 2015. The Bank will continue to enrich the career opportunities of employees through promotions in titles as well as job assignments.

Remuneration Committee

The Ziraat Bank Remuneration Committee is responsible for monitoring and supervising remuneration practices on behalf of the Bank's Board of Directors. The committee reviews remuneration policies and practices in order to determine their compatibility with the Bank's code of ethics, strategic objectives, and risk management principles. It makes recommendations concerning these areas to the Board of Directors at regular intervals.

The remuneration paid to the Bank's CEO and Board Members is decided upon at each year's General Assembly Meeting. Such payments are determined in line with a proposal that is made by the representative of the Undersecretariat of Treasury.

Remuneration Practices

Ziraat Bank reviews the remuneration of staff and managers at the end of each year for the coming year. The salary system was designed according to the new work model and implemented in 2013. It has continued with various revisions.

At Ziraat Bank, employees' rights and salaries are determined according to their title and job assignment, and no discrimination is made based on gender.

G4-DMA, G4-11, G4-EC3, G4-DMA, G4-LA4

Collective Bargaining Agreement

A 2-year collective bargaining agreement reached with the Öz Finans-İş trade union went into effect as of January 1, 2015. Members of the Öz Finans-İş trade union enjoy a number of additional rights that include supplementary payments in their monthly salary and leave time. The contract also specifies notice periods that must be complied with when work agreements are to be terminated by the employer or by an employee.

Some 83.9% of Ziraat Bank personnel are union members and the salary increases for 2015 were in line with the Collective Bargaining Agreement.

Comprehensive Employee Rights

Private Pension Scheme

A group pension scheme to which the employer also contributes went into effect for Ziraat Bank personnel as of January 1, 2013. This scheme is managed by Ziraat Hayat ve Emeklilik A.Ş. Under the original terms of the agreement, Ziraat Bank agreed to pay an employer's contribution of not more than 3% of a participating employee's gross monthly salary, provided that the employee did the same, except that in neither case could the contributions be less than TL 100 a month.

As of January 1, 2014, the employer's monthly contribution was fixed at a flat-rate of TL 50 while the matching employee contribution requirement was abolished. The employer's contribution was increased to TL 100 per month as of January 1, 2015. Under the terms of the same pension scheme, Bank personnel and their relatives who sign up for the plan do not have to pay entrance or administrative fees; in addition, they qualify for a management fee discount.

Overtime

In principle, staff members are expected to complete a regular day's work within regular working hours. In 2014, a system was introduced at the Bank that enables the overtime that branch and regional unit personnel log to be tracked methodically; the system continued in 2015. The Bank has started to monitor units and personnel who perform overtime work in order to minimize overtime.

Healthcare and Benefits

Ziraat Bank employees who are not civil servants and their family members qualify for regular Social Security Agency healthcare and benefits. In addition:

• Principles and procedures have also been laid out that allow additional healthcare benefits to be paid to them out of Ziraat Bank's budget subject to allocations authorized by the Board of Directors,
• Bank personnel who are members of the TZH Vakfı Health & Pension Fund receive healthcare payments from the budget in line with the fund's rules and principles.

The Bank has also entered into special agreements with healthcare providers, such as hospitals, medical imaging centers, and doctors' offices, where its employees qualify for discounts. Information about such locations is accessible to all staff via the Bank's internal communications channels.

Employee Leave

Ziraat Bank employees' paid annual leave entitlements are subject to the general provisions of the Labor Law governing such matters. Union-member employees who have worked for the Bank for less than five years qualify for 14 rather than 16 days of paid annual leave. The Bank duly revises its Human Resources Regulations in line with the legislation in effect. Union-member employees who have worked for the Bank for less than five years qualify for 16 rather than 14 days of paid annual leave. Ten days of this leave must be taken as a single, uninterrupted block of time and announcements concerning this rule are made regularly. Staff use of their leave time is tracked closely.

G4-LA9, G4-LA10, G4-LA11, G4-DMA, G4-HR2

Continuous Employee Training Programs

Offering its staff members continuous personal and professional development opportunities, Ziraat Bank provided average in-class training of 22.97 hours per employee to a total of 24,460 personnel in 2015.

Ziraat Bank conducted training activities in the following categories in 2015:

• "Banking School & Orientation Training," which is given to newly-recruited personnel to introduce them to the Bank, to help them adapt to the corporate culture, and to equip them with basic knowledge and skills;
• "Management Trainee Program Training (YÖNAP)," which is given to personnel who have reached the authorized level in order to prepare them for management-level positions;
• "Development Training," which is offered to employees to satisfy the training requirements of the Bank's goals and strategies or to inform them about new products and services or about changes in the legal framework;
• "Mandatory Training," which is provided to employees as mandated by law;
• "Licensing & Certification Training," which is provided to employees to help them prepare for national and international licensing and certification examinations.

Detailed information about the training programs in 2015 is provided in the chart below.

"Training Person": In the statistics above, in the case that a person participates in three different training programs, then it is assumed that there are three training persons, although the number of real persons is in fact one.

G4-DMA, G4-LA5, G4-LA7, G4-LA8

An Innovative Learning Method: E-Training

Closely monitoring evolving training technology, Ziraat Bank makes use of e-training, which makes it possible to provide more training to more people in less time, at lower costs, and without interrupting work schedules. Some 136,423 employees took part in the Bank's e-training programs in 2015. The Bank also successfully expanded its new Training Management App, which was opened to access from within and outside the organization. E-training schemes are accessible via mobile devices.

Internships for Future Bankers

In every accounting period, the Bank offers internship opportunities to numerous high school and university students to cultivate the bankers of the future. Professional skills training were provided to 921 vocational high school and 24 university students during the 2015-2016 academic years. In addition, 2,513 university students received training under the Bank's internship program in the same period.

Vocational Training Mandated by Law

Ziraat Bank shapes all its operations in line with the principle of full compliance with international regulations and domestic laws. For this purpose, the Bank conducts systematic employee training on prevention of money laundering and terrorism financing. These training programs, which are conducted under the supervision and coordination of the Compliance Officer, were attended by 99.85% of Ziraat Bank employees in 2015.

Employee Health & Safety

As a bank, Ziraat Bank facilities are classified as a "workplace of limited hazard risk." The Bank manages its business operations in keeping with Law No. 6331 on Occupational Health and Safety. As required by that law, a Ziraat Bank Occupational Health & Safety Coordination Committee has been set up under the Assistant General Manager for Financial Coordination. Members of the committee include department heads and the occupational physician. In addition, an Occupational Health & Safety Council was established, consisting of an employer's representative, occupational physician, occupational safety expert, employee representative and head of administrative affairs.

At the committee meetings, participants discuss issues related to their duties and authorities such as Bank employee health & safety training, first aid training, regular health checkups, periodic testing and healthcare, risk assessment reporting, drills and evacuation procedures, and issues involving subcontractors. As mandated by law, the Ziraat Bank Occupational Health & Safety Coordination Committee convenes regularly, at least once every three months. During 2015, 5,977 persons were provided with occupational health & safety training at Ziraat Bank. The Bank does not have staff members who work in areas with high risk of accident or occupational disease.

The duties and authorities of the Ziraat Bank Occupational Health & Safety Coordination Committee include:

• Preparing internal occupational health & safety directives appropriate to the workplace environment; submitting these for the consideration and approval of employer and employee representatives; monitoring compliance with directives; reporting the results of such monitoring; identifying issues and bringing them to the attention of the Committee; ensuring that employees are provided with occupational health & safety guidance when they are in need of it; assessing workplace occupational health & safety risks and the effectiveness of measures to counter them; identifying measures that need to be taken and notifying employer/employee representatives accordingly,
• Investigating and analyzing every workplace accident, any potentially harmful incident even if it is not treated as a workplace accident, any instance of work-related illness, and any threat to workplace health and safety; identifying and reporting on measures that need to be taken and notifying employer/employee representatives accordingly,
• Planning workplace occupational health & safety training and instruction; preparing programs related to such issues and the rules applicable to them; submitting these for the consideration and approval of employer and/or employee representatives as appropriate; monitoring compliance and reporting infractions,
• Planning safety measures that need to be taken during the conduct of workplace maintenance and repairs; checking that such measures are properly taken,
• Observing the adequacy and effectiveness of measures and teams for dealing with workplace risks arising from fire, natural disasters, sabotage, and the like,
• Preparing annual reports related to workplace occupational health & safety issues; assessing each year's occupational health and safety performance; identifying issues based on experience that need to be addressed in the next year's program; submitting these to the employer,
• Urgently convening and deciding what to do whenever employees exercise their right to refrain from work on the grounds of Article 13 of Law No. 6331 on Occupational Health & Safety,
• Developing a coherent and comprehensive occupational health and safety policy that embraces and deals with all aspects of workplace technology, organization, conditions, social interactions, and environment.

During 2015, no workdays were lost at the Bank for such reasons as workplace-related injuries, occupational illnesses, strikes, lockouts, natural disasters, or building destruction or collapse. Similarly, there were no fatal workplace accidents at Ziraat Bank in 2014. The collective bargaining agreement between Ziraat Bank and the trade union also contains occupational health & safety provisions governed by Law No. 6331 and its applicable regulations and directives.

Ziraat Bank Suggestion System

Committed to developing a relationship with its staff based on mutual communication, Ziraat Bank set up the Employee Suggestion System in 2014. With this system, the Bank strives to involve personnel in decision-making mechanisms, benefit from employees' knowledge and experience, encourage staff members to come up with improvements, and thereby constantly enhance service quality and efficiency. During 2015, some 6,118 suggestions were sent through the system and necessary follow-up actions were taken.

Transfer Request System

Ziraat Bank employees seeking to be reassigned to a different location may forward their request to the head office at designated times of the year and with the approval of their supervisor. This system includes a scoring module that allows these requests to be evaluated objectively. Another feature of this system allows managers to contribute to the employee career progression process by recommending changes in a staff member's job assignment based on their own assessment of the individual's abilities.

The Transfer Request process takes place twice a year. In the December-January period, 742 of the 1,223 valid requests were fulfilled; meanwhile, in June-July, 708 of the 1,096 valid requests were carried out.

Employee Engagement Survey

Closely monitoring staff demands and expectations, Ziraat Bank initiated efforts to conduct an Employee Satisfaction and Engagement Survey via an independent research company. Due action will be taken once feedback from the survey is received, scheduled for January 2016.

G4-DMA, G4-10, G4-LA1, G4-LA12

Key Human Resources Indicators

Table 1 (Breakdown by Gender)

Below is a breakdown by gender, age and education level of Ziraat Bank employees in key positions.

POSITION	MALE (%)	FEMALE (%)	Sum Total (persons)
ASSISTANT GENERAL MANAGER	100		10
GROUP HEAD	91.67	8.33	12
DEPARTMENT HEAD	95.74	4.26	47
REGIONAL COORDINATOR	100		8
REGIONAL MANAGER	100		37
Total	97.37	2.63	114

Table 2 (Breakdown by Age)

POSITION	31-40	41-50	51+	Sum Total
ASSISTANT GENERAL MANAGER		8	2	10
GROUP HEAD	1	8	3	12
DEPARTMENT HEAD	15	29	3	47
REGIONAL COORDINATOR		3	5	8
REGIONAL MANAGER	1	29	7	37
Total	17	77	20	114

Table 3 (Breakdown by Education)

G4-11, G4- LA1

Below is a breakdown by gender, age and education level of the Ziraat Bank workforce.

Table 1 (Breakdown by Gender)

Table 2 (Breakdown by Age)

Table 3 (Breakdown by Education)

G4-10, G4-LA1, G4-LA3

Table 4 (Breakdown by Head Office/Region/Branch)

Employee assignments to positions in Ziraat Bank's organizational structure and broken down by gender are shown below.

*Excluding Money Group Center and security personnel.

G4-10, G4-LA1

The breakdown of employees who took part in exams (written or oral) to be promoted to a higher position in 2015 at Ziraat Bank is as follows: