our people April 2015

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We worked hard in 2014 to further implement our Top Class Employer strategy, and we moved forward in various areas. Employee engagement and our employer ranking improved, reflecting the bank’s clearly recognisable corporate identity. As part of our drive to create a culture of excellence, we specifically devoted attention to leadership and talent management in 2014. We also made strides in the area of diversity, focusing mainly on gender, cultural diversity and disability. In addition, as part of ourefforts to create the ‘best place to work’, the bank reached agreement with the trade unions on a new collective labour agreement, which includes a future-proof pension scheme in the Netherlands.

our peopleoverview

3Our people April 2015

Our workforce at a glance

Visual workforce figures:

Total FTEs by segment Total FTEs by geography

2014 2013 Change

2014 2013 Change Netherlands 18.250 18.550 -2%

Retail Banking 6.258 6.503 -4% Rest of Europe 2.622 2.456 7%

Private Banking 3.599 3.442 5% Asia 854 751 14%

Corporate Banking 4.995 5.022 -1% Verenigde Staten 364 341 7%

Group Functions 7.362 7.321 1% Rest of the world 125 191 -35%

Total / Totaal 22.215 22.289 0% Total / Totaal 22.215 22.289 0%

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Top Class Employer strategy

We want to make a difference for our customers now and in the future, so we need a talented and committed workforce. Our Top Class Employer strategy aims to inspire employees to develop continuously and to make their own, unique contribution to the bank’s sustainable growth. Employees who take ownership of these goals are our most valuable asset. They are at the heart of our ability to build long-lasting relationships with our clients. Our Top Class Employer strategy is designed to attract, retain and motivate the best people.

To engage employees with ABN AMRO and its purpose, we have defined a corporate identity that projects a clearly recognisable image of the bank to employees, customers and other stakeholders.

To help our people develop continuously and to keep our organization agile, we strive to create a climate in which employees are given the opportunity to continuously improve their expertise and skill: a culture of excellence.

We give employees the autonomy they need to personalise their working conditions and create their best place to work. Allowing them to take control of their working lives will result in a mature employment relationship.

We offer Next Generation Professionals, a highly acclaimed trainee programme in the Netherlands. Trainees can design their own programme while getting to know various areas of the bank. They receive broad, international training while being exposed to head office.

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Our corporate identity

We want to attract and retain the best people in the industry – people who are proud to work for ABN AMRO and who are ambassadors of the bank. We are shaping our identity based on our core values and business principles.

Engaged professionals drive sustainable business performanceAt ABN AMRO, we understand that our employees are key to forging and growing lasting relationships with our clients. Our annual Employee Engagement Survey helps us to engage employees with ABN AMRO and its purpose because it gives us the information we need to strengthen engagement and, consequently, improve performance.

In 2014, two areas received specific attention in teams throughout the bank: Sustainability and Leadership. As a result, we saw a sharp increase in the scores for these elements. The introduction of the bank’s new approach to leadership (see the Leadership section in this chapter) is already paying off: scores for ‘My manager leads by example’ and ‘My manager encourages me to invest in my employability’ rose by 10% and 8% respectively.

Eighty-two per cent of the workforce (an increase of 6% compared with 2013) completed the Employee Engagement Survey in 2014. The overall employee engagement score improved 2 percentage points in 2014 compared with 2013. This puts us almost at par with our financial services benchmark. The 2014 survey revealed a number of focus areas which we will address in 2015: communicating our vision for the future and facilitating collaboration across the bank so we can respond quickly to our clients’ changing needs.

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Doing the right thing: our values and principlesOur core values are Trusted, Professional and Ambitious. We also have a set of business principles, shown below, which guide us in how we engage with each other and with our clients. We promote our core values and business principles every day. With the values and principles now part of our performance management cycle, we hold every employee accountable for doing the right thing. We define ‘doing the right thing’ as committing to our mission and strategy, living our core values and business principles, and complying with internal and external rules and regulations.

This approach and our commitment to client centricity play an important role throughout the performance cycle and in our Human Resources (HR) policies. All Dutch bank employees will take the Banker’s Oath in 2015. This oath is a logical extension of our core values and business principles. If an employee violates the Banker’s Oath, he or she may be held accountable by an external disciplinary institute. This is in addition to our own measures.

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Building a competitive workforceWe want to attract employees who continuously want to grow their expertise and skills in order to master their profession. This starts with offering an attractive employee proposition and selecting employees who are passionate about their work and have a strong moral sense.

We recruit staff through campaigns (including on social media) that target trainees, starters and experienced professionals. The annual Dutch Intermediair Image Survey rated us the number 7 employer in the Netherlands, rising from number 8 in 2013. Our goal is to rank among the top 5 for university and higher education graduates by 2017. In 2014 we mounted a series of campaigns targeting professionals, the first of this kind since 2009. We want to promote the bank among two key target groups: risk and IT professionals. We offer Next Generation Professionals, a highly acclaimed trainee programme in the Netherlands. Trainees can design their own programme while getting to know various areas of the bank. They receive broad, international training while being exposed to head office.

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Culture of excellenceWe define a culture of excellence as a culture in which employees strive to excel at all times on behalf of the client and to constantly maximise their performance. We take our responsibility as an employer seriously by setting clear targets for every employee and helping our people get the best out of themselves. A culture that nurtures professionalism, creativity and accountability is the best way to get the most out of our talented and diverse workforce.

Sustainable management of talentWe recognise that it is the bank’s responsibility to support every employee’s professional development, so we now offer talent development programmes to all employees bank-wide rather than exclusively to a small group. But simply possessing talent is not enough: it is every employee’s responsibility to use their talent. To promote an open dialogue between managers and staff, we have developed a method to facilitate this conversation (Talent Identification Tool), which will be introduced in 2015. As part of our commitment to continuous learning and development, we encourage employees to gain insight into their talents by offering self-assessments, exercises and workshops. Not all development takes place at the office: we help our staff learn on the job (70%), from colleagues (20%) and in a traditional classroom setting (10%).

Beyond that, our employees are required to complete various e-learning courses, some general and some job-specific, in a wide range of areas. Our total training budget was EUR 47 million in 2014. Our Learning department offers staff a total of 2,100 courses. New courses in 2014 included Trainingsveld, designed to help employees develop their customer contact skills, and various mandatory compliance and risk courses. Under our sustainability programme, employees are given the opportunity to work at a charitable organisation alongside their job at the bank, allowing them to give back to the community while developing their personal leadership skills.

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Despite our efforts to promote sustainable employability, staff reductions are sometimes inevitable during a reorganisation. We are committed to helping redundant staff find another job. Our Employability Centre in the Netherlands, for example, offers staff the services of a job coach to find work either within or outside the bank. Almost all job vacancies in the Netherlands are open first to ABN AMRO employees only, with redundant staff having priority.

A total of 878 employees were given notice of redundancy in 2014. Approximately 13% (12% in 2013) of these employees were placed in internal jobs and 30% (30% in 2013) were placed in temporary jobs within the bank. A total of 144 employees (155 in 2013) sought coaching from the bank’s Employability Centre, 20% (25% in 2013) of whom found permanent internal or external jobs.

Succession managementOur succession management efforts are aimed at ensuring business continuity for key positions. We have had succession planning in place for senior management positions for several years. As from 2014, all positions directly under senior management and all country management teams are also in scope for succession management. Based on our talent identification method, appropriate development propositions are offered to potential successors to groom them to become ‘ready now’ successors.

A diverse and inclusive workforceA diverse workforce that reflects the communities we serve helps us to create the best solutions and customer experience while fostering innovation, respect and creativity. We want to create an environment in which all employees – regardless of race, gender, cultural background, age, sexual orientation or physical disability – feel free to be themselves. Inclusion is measured by the Fair Treatment Index, part of the Employee Engagement Survey and one of the most important aspects of engagement. In 2014, 79% of respondents gave this aspect a positive score, compared with 74% in 2013.

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We focused mainly on three areas in 2014: gender, cultural diversity and disability. With respect to gender, we achieved our target of placing women in 20% of senior management positions by 2014, in accordance with the Talent to the Top charter. Despite a sharp rise of 1.7%, we did not meet our target for upper middle managers (23.9% end of 2014 vs. target of 25%). At both levels, however, the percentage of women in management posts has been on a rising trend over the past three years. We will continue to target women graduates and trainees in the years ahead. We promote bank-wide awareness by tracking progress, organising conferences and training programmes, and liaising with other companies on diversity issues.

AccountabilityA key aspect of our culture of excellence is the willingness of staff to take responsibility for their performance and the ability of managers to promote accountability and commitment to the bank’s goals. Every employee needs clear goals to know what is expected of him or her. They need access to tools, information and other resources to be able to deliver, and they must also be able to measure results. Our performance management framework aims to achieve a balance between financial and non-financial targets, quantitative and qualitative targets, and behavioural aspects to help us pursue our strategy and comply with internal standards and external regulations. We intensified our focus on accountability for performance in 2014, and will expand this in 2015. In preparation of the performance management cycle in 2015, we started to use our business principles as performance criteria for part of the workforce in 2014. We will extend this to all staff in 2015. In 2014, we also developed tools to improve the quality of performance dialogues and feedback. Leaders as catalysts for change

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?More information about our remuneration policy can be found in our annual report (link)

Leaders as catalysts for changeManagers at every level of the company play a pivotal role in motivating employees to realise ABN AMRO’s goals. They are the catalysts for change. Our leadership programmes help managers execute the strategy and develop an inspiring leadership style. We introduced three Leadership Qualities in 2014 to clarify what we expect of our managers:

People leadership: Unleash the full potential of our workforce; Performance management: Clarify direction and manage based on individual and team performance; Personal leadership: Act as a role model for employees.

The Leadership Qualities were launched during the 2014 Leadership Days in the Netherlands, the United States, Hong Kong and Belgium. Almost all of the bank’s managers participated (3,000 managers attended). The Leadership Qualities have also been incorporated into recruitment, performance criteria and other HR processes, and the bank’s Customer Excellence tools and methods. In the Employee Engagement Survey, we specifically ask employees to evaluate the leadership qualities of their managers, allowing us to track progress. We carry out a mandatory Leadership Qualities E-survey (360 degrees) to measure the effectiveness of our managers’ leadership style.

Disputes and mistreatmentWe aim to have a culture in which employees communicate openly, hold each other to account and interact with each other respectfully. However, in the event of a labour-related dispute between employees or between an employee and the bank, we offer staff the services of independent, confidential counsellors. For disputes related to inappropriate behaviour, employees can also contact the confidential counsellors of our health and safety service provider, Beter.

A total of 282 cases were handled by a confidential counsellor in 2014, an increase of 4% compared with 2013. Only 6 of these cases were brought before the Banking Disputes Committee. The Banking Disputes Committee mediates in disputes concerning issues such as the collective labour agreement, labour conditions and job grading. Approximately 63 disputes were submitted to the Banking Disputes Committee in 2014.

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Best place to workOur business is all about people – and our people are our most valuable assets. So we offer them a challenging and rewarding environment in which they do meaningful work and add value for clients. Employees have opportunities to develop their talent and the freedom to customise their fringe benefits, work schedules and work location. These advantages are designed to keep our organisation agile and our people engaged.

Flexible working environmentThe New World of Work is a series of measures designed to empower employees to work flexibly and remotely. We believe a healthy work/life balance, a smaller environmental footprint and greater efficiency are all ingredients of the best place to work. We drew up our vision of the New World of Work at ABN AMRO this past year and will implement it in the coming years. Part of this entails expanding and improving possibilities for working remotely. Around 11,000 of our Dutch employees (up from 1,000 in early 2012) and 1,150 employees based outside the Netherlands, or approximately 55% of our workforce, have the resources to work wherever and whenever they want. We also offer our people a voice and data subscription on their own mobile devices, and laptops are gradually replacing desktops. And we have satellite locations in 16 locations throughout the Netherlands to allow staff to work at an office closer to home.

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Collective labour agreementFollowing lengthy negotiations, the bank reached agreement with the trade unions on a new collective labour agreement on 2 April 2014 in the Netherlands (ending on 1 January 2016). The new agreement includes a freeze on salaries during the term of this agreement, adjustments to employee benefits and a future-proof pension scheme. We now comply with amended tax provisions as from 1 January 2014 and 1 January 2015. The bank’s pension scheme was converted in mid-2014 from a defined benefit plan into a collective defined contribution plan. We also have collective labour agreements and/or social plans (redundancy schemes) in place in Australia, Belgium, France, Germany, Japan, Luxembourg, the UK and Spain.

Personalised benefitsABN AMRO offers its employees around the world a wide range of different benefits, including pensions, product discounts and leave schemes. In 2015, we will continue to explore how synergies in benefits can be achieved andwhat best practices can be shared internationally. Our goal is to offer all staff the freedom to compose their benefits packages geared to their own individual situation.

Health and SafetyABN AMRO has a sound health and safety policy in place and encourages vitality among staff. This ties in nicely with our Top Class Employer strategy and our ambition to be ‘Your best place to work’. To this end, we offer our employees a range of facilities to support their physical, mental, emotional and spiritual well-being. ABN AMRO strives to create a safe and healthy working environment by providing the right conditions and by actively informing staff how best to prevent health risks. A key initiative in this respect is our LEEFVitaal! programme in the Netherlands, which promotes awareness of the benefits of a healthy lifestyle to help staff keep fit and healthy. Employees are invited once every three years for a free, comprehensive health check, in which an online questionnaire and physical examination are used to keep track of health risks and biological age. Where necessary, wethen coach our staff to help them improve their lifestyle.

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Other initiatives include a dedicated intranet site on health and vitality and our LEEFVitaal! ‘markets’, where employees can get more information and a free health check. Employees are also given the opportunity to take part in mindfulness courses and to order books on health and lifestyle using their personal Sustainable Employability Budget. Once every three years, employees receive an online questionnaire, the ‘Balansmeter’. Using the results of this survey, employees who are at risk of sickness absence are identified and offered assistance. The bank regularly takes stock of the health and safety risks and evaluates its plans in this area every year. Absenteeism declined from 3.52% in 2013 to 3.27% in 2014.

Notifying staff of organisational changesThe markets in the Netherlands and abroad are constantly changing, so the bank and its employees must anticipate changes in the future. Under ABN AMRO’s Social Plan (redundancy scheme), employees are informed about changes regarding their terms of employment due to a reorganisation as quickly as possible.

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