Cyprus
At 31 December 2005, the Group's staff numbers totalled 3.335 in Cyprus, compared with 3.368 in 2004. This slight drop results from the maintenance of our policy of keeping recruitment costs down.
Staff are assessed once a year through an annual assessment system, the basic aim of which is to improve staff performance, increase their productivity and facilitate their personal and professional development.
The Bank has made a number of changes and improvements to the annual staff assessment system. These changes will take effect at the beginning of 2006.
The basic parameters taken into account when implementing the changes were:
- the need to improve the way in which the Bank's targets and strategic objectives are achieved;
- the need to provide all supervisors and managers with simple, non-bureaucratic procedures to give them maximum
- help and support in the difficult job of managing staff performance, and
- the need to satisfy the staff's personal objectives and bring them into line with the Bank's objectives.
The system is basically designed to:
- assess staff performance against their work targets for the past year and set work targets for the following year. Work targets are derived from employees' job descriptions and focus on their main area of activity. Work targets are discussed and agreed between the assessor and the employee during an assessment interview and must be as specific and quantifiable as possible and have a timetable for completion;
- assess staff performance against certain basic parameters which the Bank considers important for all staff at all levels, as reflected in its strategic objectives. Staff performance is assessed in terms of parameters such as job expertise, business development, customer guidance, results, cooperation with team members, adaptability, flexibility, etc.;
- allow a personal development programme to be prepared for each employee on the basis of the staff performance assessment. The programme includes specific actions to improve the employee's personal and professional development and must be completed by the end of the year.
The success of the assessment system depends to a large extent on the assessors; as a result, all of them are required to complete a specially devised training programme before the annual assessment process begins.
Assessment centres are attended every year by a large number of office staff who consistently perform well in their job and show the potential for taking on additional duties and responsibilities as team managers.
Assessment Centres primarily assess the managerial skills of participants through a series of exercises that simulate the working environment of a team manager of the Bank.
Participants are assessed using a variety of techniques in order to ensure that as many of their skills as possible are covered, thereby enhancing the reliability of the results. A personal development programme is prepared on the basis of the candidate's results at the Assessment Centre.
Over the last five years, Bank of Cyprus has used a 360o assessment method to assess its managers. Initially this method was used to assess senior managers, but the procedure has been extended over the last two years to include middle management. This method involves collecting information on each person from various sources, such as superiors, subordinates and other colleagues and using the results to prepare a development programme.
The most important benefits of 360o assessment include:
- a more complete picture of management staff skills compared with standard assessment systems based on only one source of information (superior), and
- staff development based on feedback from colleagues.
Various studies have shown that feedback from colleagues and subordinates is more effective in motivating employees who are being assessed to improve their performance and is considered by employees to be fairer and more reliable than feedback from superiors.
The purpose of the promotions system is to meet the operational needs of the Group and provide it with suitable employees who are able to help the Group achieve its targets and objectives. Candidates for promotion are examined at the recommendation of their superiors. Recommendations and final assessment of candidates are based on specific criteria aimed at ensuring that the employees with the best skills and potential are promoted.
These criteria are graded as follows:
- performance at work
- academic and vocational skills
- experience in the Group
- potential banking background
The promotions system is due to be revised in 2006 in order to make some of the procedures used to examine and assess candidates for promotion less time-consuming and less bureaucratic, without of course compromising their validity and effectiveness.
The Training and Development Division of the Human Resources Division in Cyprus was reorganised in the course of 2005 and moved to the Group Training Centre under new management. The Division's objectives were set so that seminars can be scheduled more flexibly and to meet the staff's different training requirements. As always, a large number of seminars were arranged both in-house and with external associates, covering both technical and personal development topics.
Greece
Bank of Cyprus Greece recruited 353 new employees between 1 January and 31 December 2005, while 144 employees left the company and its subsidiaries. Bank of Cyprus Greece and its subsidiaries had a total of 2.419 employees at 31 December 2005.
Training provided for all members of staff is divided into main seminars for office staff and skills development seminars for managerial staff. 340 seminars totalling 1.563 hours were attended by 4.040 employees. 39 skills development seminars totalling 128 hours were attended by 608 managerial employees.
Bank of Cyprus Greece continued to use its well structured annual assessment system in 2005. The main criteria of this system are the qualities shown by the employee being assessed and the Group's overall culture. Assessment is designed primarily for development purposes; the potential of each employee assessed and the areas for improvement are identified on the basis of extensive discussions with the immediate superior and then the manager. The ultimate objective of the assessment system is to help employees develop their skills and guide them towards a successful career with the Bank.
The Bank also uses Development Centres as another staff assessment tool for those with the qualifications to assume positions of responsibility in the future. The Development Centre procedure is applied at regular intervals to both office and managerial staff, with a view to identifying and promoting new officers.
The promotions procedure is based primarily on the criteria of performance, skills, academic and professional qualifications, banking background and seniority. The Group places particular emphasis on by performance and output, in keeping with the more general approach to staff assessment at the Bank of Cyprus.
The employee incentive, motivation and satisfaction system in place at Bank of Cyprus Greece now includes mentoring arrangements, which were introduced during the year as an additional tool for motivating and developing staff and confirm the Bank's intention to invest in its staff over the long term. In addition, the healthy working environment, civilised working hours, library, sporting and social events and gymnasium provided by the Bank and the annual spending budget for each division, together with the Group's flexible, employee-oriented approach, motivate the staff to be creative and innovative in their work.
Finally, the system of annual pay increases is based on performance and output. This acts as a strong incentive which rewards effort and gives even very recent recruits the chance to earn a salary commensurate with their performance. The health care plan, pension scheme, company cars, mobile phones, parental leave and study leave all form part of the general staff policy applied by Bank of Cyprus Greece.