ING Direct 2009 Annual Report Download - page 52

PERFORMANCE MANAGEMENT FOR SENIOR EXECUTIVES
ING introduced a new performance management approach for
its senior leadership – a significant step forward in our existing
performance management practices and is part of building a
stronger performance culture at ING. It balances financial and
non-financial objectives (‘what’) against leadership behaviours
(‘how’), and includes an increased emphasis on risk management
and leadership integrity in how we achieve our business results
and lead our people. As we work to separate our operations, it is
critical that we continue to deliver superior performance in both
our banking and insurance businesses. The new performance
management approach will help us achieve our short-term goals
as well as build our businesses for the long-term, recognising our
high standards for integrity and accountability. It also provides
increased transparency and reporting capabilities for both internal
and external stakeholders, in line with increasing stringent
regulatory requirements.
INTERNATIONAL COMPENSATION STANDARDS
ING conducted a thorough review of our remuneration policy
as part of the agreements with the Dutch State. We revised
our remuneration policy accordingly, taking into account new
international standards and recommendations, as well as the Dutch
Banking Code. We carefully and diligently managed a complex set
of external and internal factors that helped define this policy.
Given the globally changing views on remuneration policies and the
increased call upon financial institutions to develop more moderate
remuneration policies, we considered it our responsibility to reduce
focus on variable compensation, further enhance long-term value
creation and the alignment of risk and reward and put a higher
weight on non-financial performance indicators.
CONCLUSIONS AND AMBITIONS
2009 was a unique year in many respects. We prepared for the
separation process by laying a solid foundation for the people
issues involved in any major organisational change process covering
components such as relations with Works Councils, employee
communication and executive leadership support. The global HR
function will carefully manage the separation in a way that will
support the success of our businesses in the interests of our
employees and our leaders. We will continue to instill people-
oriented leadership, as the organisational changes we face can
only be achieved through our people.
In 2010, development and alignment of new people strategies for
the banking and insurance organisations is a priority where talent
management plays a significant role in ensuring that key positions
are staffed by our best people and the number of women in
leadership positions is increased. Moreover, employee and
leadership engagement as well as strengthening our diverse
and inclusive culture in addition to the new remuneration policy
and the implementation of the new performance management
approach will be significant focal areas.
EMPLOYEE ENGAGEMENT SURVEY
ING continues to measure employee engagement across the
organisation. Since 2008 all ING employees are invited to
participate in the annual survey. This year more than 78,000
employees (74% of all those invited) completed the survey in
September 2009 – a record response rate. Overall employee
engagement decreased by 6% over the last year to 65%, above
industry trends and in line with internal expectations as employees
dealt with the impact of the transformation programme and the
challenging market circumstances. Engagement levels in financial
services companies that experienced layoffs this past year, versus
those that did not, were 10% lower on average.
Despite the challenges employees faced, some of the positive
findings were that ING provides a stimulating work environment,
and employees retain pride in the Company. Reported areas for
improvement included leadership engagement and opportunities
for career development. All eligible managers received the WPC
Survey results for their own business unit and are supported by
HR to interpret the results, relate them to their own business
challenges and develop an action plan against the backdrop of
ING’s new organisational reality. Again this year, diversity was
comprehensively integrated into the WPC survey to measure
employee perceptions around diversity, confirming WPC results
from 2008 as well as external benchmark studies which show that
diverse employee segments experience engagement differently.
DIVERSITY
Diversity is about creating an inclusive culture that embraces the
differences of our employees. We believe that a diverse and
inclusive working environment where an employee is valued for
who he/she is, where one’s diverse perspective is recognised,
makes our employees feel more engaged and gives them the
possibility to be better at what they do. This leads to better
business results and, ultimately, helps us to better connect with our
current and potential customers.
Enhanced focus on strengthening our diverse and inclusive culture
was highlighted at the successful Diversity Conference hosted by
CEO Jan Hommen with participation of business and HR leaders
from across ING. ING’s Global Diversity Office supported the
Executive Board and the Management Boards Banking and
Insurance by setting the tone for diversity across the Company.
ING established targets for the number of women in senior
leadership positions, and is implementing customised business
plans Company-wide. These plans help businesses set targets
for diverse groups of employees, e.g. those of different ethnic
background or sexual orientation, while helping leaders measure
and meet their progress in placing women in leadership positions.
A global leadership programme with focus on accelerating the
development track for our high-potential senior women executives
is being developed and will be run by our Business School. The
Global Diversity Council, chaired by Jan Hommen with business
leaders as members, continued to support and coordinate the
strategic direction of our diversity objectives.
Human resources (continued)
1.2 Report of the Executive Board
ING Group Annual Report 2009
50