102-43 Approach to stakeholder engagement

In 2019, customer satisfaction vis-à-vis Landsbankinn was measured in three surveys: Gallup’s CE4 poll, the Icelandic Performance Satisfaction Index and EMC rannsóknir’s survey on social responsibility.

Gallup carries out a CE4 survey that measures the quality of the business relationship between customers and their main bank of business based on satisfaction, trust, loyalty and pride in the relationship. Previously called the CE11 survey, the name was changed in 2019. At year-end 2019, Landsbankinn and another bank shared the top place with the same score of 3.9, up by 0.2 since 2018.

Landsbankinn topped the list of banks in the Icelandic Performance Satisfaction Index 2019.
CE4 results - Landsbankinn

EMC rannsóknir carries out a survey in which members of the public are asked how socially responsible they consider 89 of the country’s largest companies on the scale of 1-5.

Landsbankinn scored 2.6, ranking second of the four banks included in the survey.

The below image shows the spread of scores in EMC rannsóknir’s survey. The median was published in 2018; not so in 2019.

ECM rannsóknir's survey

102-2 Activities, brands, products, and services

Landsbankinn’s Covenant of Ethical Conduct stipulates that staff is to act professionally and honestly by seeking information, abiding by law, rules, accepted work procedures and other criteria applying to their work in each instance. In addition to obeying general legislation on consumer protection and marketing, marketing personnel is subject to guiding ethics of the Society of Icelandic Advertising Agencies and the guidelines of the Consumer Spokesman and Ombudsman for Children on marketing targeting children. Furthermore, Landsbankinn takes note of the regulation on investor protection and the business conduct of financial undertakings No. 995/2007, the purpose of which is to ensure that information on investment funds is presented clearly and correctly. No comments or legal complaints were received in 2019.


401-1 New employee hires and employee turnover

At year-end 2019, Landsbankinn had 925 employees working in the equivalent of 875 full-time positions. Of that number, 58% is university educated.

New hires were 39% male, 61% female.

Trial employees are beginning their employment at Landsbankinn. They receive permanent employment after 3 to 6 months. In 2019, one permanent employee resigned.

Employee turnover in 2019 was 5.6%, as compared with 9.2% in 2018.

Total number of employees by age at year-end 2019
New employees at year-end 2019 - age
New employees at year-end 2019 - gender

401-2 Benefits provided to full-time employees that are not provided to temporary or part-time employees

Landsbankinn employees receive benefits under the collective bargaining agreement between the Confederation of Icelandic Banks and the Confederation of Icelandic Employers, from the Landsbankinn Employee Association and Landsbankinn hf. The terms vary depending on whether employment is trial or permanent. In some instances, trial employees can enjoy the same benefits as permanent employees.

All employees, both trial and permanent, have access to a consulting physician, lunch, accident insurance, parental leave as well as a sickness fund.

All permanent employees have life assurance, receive disability payments if needed and are paid a part of the difference between wages and payments from the parental leave fund.

In addition to the above, employees enjoy various benefits, such as access to summer cottages, sports grants, transportation grants, study grants and hobby grants. Further information about benefits available to employees is available on the Bank's website.

401-3 Parental leave

In 2019, the number of women who took parental leave decreased by 6% compared with the previous year while the decrease was 8% with men. Both women and men took shorter parental leave in 2019 as compared with 2018.

Three employees, all male, chose not to return to work following parental leave.

Employees on parental leave 2014 2015 2016 2017 2018 2019 YoY change
Average number of women on parental leave 16 17 16 11 14 13 -6%
Average number of men on parental leave 8 7 6 6 8 7 -8%
Average number of weeks of parental leave - women 56 59 58 37 48 43 -11%
Average number of weeks of parental leave - men 20 17 16 14 19 18 -5%

Labour/Management relations

402-1 Minimum notice periods regarding operational changes

The general notice period is as follows:

Trial employees – 2 months.

Permanent employees – 3 months.

Permanent employees with more than 10 years' work experience at a financial undertaking or at least 45 years of age - 6 months.

Processes and number of comments on human resource issues and their handling

In the event of dispute or other problems requiring attention, the proper course is for employees to turn to their immediate superior who is responsible for resolving the matter or escalating it to Human Resources if necessary. If the dispute is centred on the relationship between the employee and his/her immediate superior, the employee can turn directly to Human Resources. Landsbankinn’s contingency plan for bullying and/or sexual harassment has been updated and presented to staff.

No complaint was received in 2019 regarding bullying, sexual harassment, gender-based discrimination or violence.

An equal rights committee and an ethics committee are active within the Bank and employees can bring matters to the attention of these committees if they are concerned about potential violations of the Code of Ethical Conduct or the Bank's equality policy by other employees or the Bank itself. Neither the equal rights committee nor the ethics committee received any complaints in 2019.

403 Occupational health and safety

Landsbankinn has an occupational health and safety committee as provided for in Act No. 46/1980 on Facilities, Health and Hygiene Procedures and Safety in the Workplace. The Bank appoints two persons and the employees’ association elects two other persons to the committee. The committee meets regularly and participation by representatives of the employees’ association ensures collaboration with union representatives throughout the country.

Employees can apply for a sports grant that accords with limits set by the Directorate of Internal Revenue, currently ISK 60,000 per calendar year. Every other year, all employees are offered detailed health checks by the consulting physician or at a health care centre. Further details on Landsbankinn’s human resources and health policies are available here on the Bank’s website.

Number of sick days

Employees of financial undertakings have considerably extensive rights in illness. These are linked to length of employment, based on a 12-month period and are as follows:

Trial employees have a right to full wages for 30 days and ½ wages for 30 days.

Permanent employees have a right to full wages for 3 months and ½ wages for 3 months.

After 10 years of employment the right to full wages is for 4 months and ½ wages for 4 months.

After 15 years of employment the right to full wages is for 6 months and ½ wages for 6 months.

After 20 years of employment the right is 12 months of full wages.

Work related illness is not recorded separately as such illness is most frequently musculoskeletal problems which may also be caused by factors outside the working environment.

The average number of sick days was 8.1 in 2019 and 8.7 in 2018. Long-term illness of employees (absence for more than four consecutive weeks) was 8.1% in 2019. Less long-term illness, the average number of sick days was 5.1 day in 2019.

The average number of absences to due to child sick days was 1.2 days in 2019 as compared with 1 day in 2018.

Training and education

404-1 Average hours of training per year per employee

Challenges relating to human resources

Financial undertakings will face several challenges relating to human resources in the near future and Landsbankinn is no exception. The Bank must ensure that it is a desirable workplace for coming generations and also attempt to bridge the demographic gap that may form in the workforce. Jobs are changing as a result of automation and the skills and competencies of employees must be developed to ensure appropriate qualification and expertise for each position.

Landsbankinn is focused on empowering employees to develop and grow in their work. In 2019, the Bank continued underlining the importance and benefit of pursuing knowledge. This focus was first introduced in 2018. The job environment demands increased awareness about personal job trajectories from employees and that they receive support and opportunities to seek necessary knowledge at each time. The Bank’s education programme emphasises support for a robust culture of learning. Employees have been offered work and study counselling, enabling them to analyse their own position and make plans for job development. This counselling focused on information, education and guidance about useful study courses and continuous learning.

New skills introduced through education

At Landsbankinn, employees have access to a varied education programme. The offering is based on the Bank’s strategy at any given time and the aim is to offer education and training that will help move the Bank toward set goals. Employees also have the option of studying with other continuing education providers, through courses, conferences and lectures.

In 2019, the focus was deepened by introducing and instructing on the skills that will be desirable and sought after in the changing work environment of the future. A project titled effective job development was initiated in 2019, whereby the Human Resources department advertised for up-and-coming leaders or experts interested in participating. A total of 45 applications were submitted and 18 individuals were invited to participate.

Participants receive personal executive coaching and assistance in creating a job development plan. They participate in courses and workshops designed to empower employees both professionally and personally. Participants built skills in areas classified as so-called 21st century skills. The project was a success and will be repeated.

A series of lectures titled 21st century skills was organised in 2019. The focus was on digital literacy, one of the three skills classified as 21st century skills. Digital literacy consists of information literacy, media literacy (news and social media) and technical literacy. Individuals who possess these skills should be able to identify key points and use content appropriately. Lectures in the series focused on children and the Internet, personal data on the Internet, fake news and the future of democracy, and cyber security.

21St century skills

Ability to learn and create Digital literacy Professional and personal strengths
Critical and solution-oriented thinking Information literacy Flexibility and adaptability
Creativity and innovation Media literacy Initiative and independence
Communication skills Technical literacy Social and intercultural relations
Collaboration skills
Efficiency and reliability

Leadership skills and responsibility

Online education

Electronic study channels have multiplied in recent years and a new education system makes it even easier for the Bank to offer online content. As a result, employees can take advantage of the Bank’s education offering where and whenever it suits. Employees are increasingly taking advantage of this option. In 2019, the education programme included 42 online courses which were completed by 4800 employees. Each employee completed 5 online courses on average.

In 2019, an online course, training for new employees, was added to Torgið, Landsbankinn's Internet education platform. New employees are required to complete the course that provides an overview of all key information a new employee must familiarise themselves with in the first weeks and months of employment. The course consists of 9 online sessions about general rules of procedure, the Code of Ethical Conduct and other information about the Bank’s rules. Managers have access to the system and are responsible for ensuring that new employees under them complete the entire course.

Highlights of the 2019 education programme

  • Effective job development
  • Online training for new employees
  • 21St century skills
  • Digital literacy
  • Collaboration with Mímir - Adult learning on work and study counselling
  • Increased supply of electronic learning tools
  • Emphasis on the importance of actively seeking knowledge and building skills

Education programme in numbers

In 2019, the Bank’s education programme included around 166 educational events which were attended by around 3139 participants. Each employee attended an average of 3 events on the programme.

Dividing the courses into categories reveals that most offerings fall under job-related skills. This refers to education directly or indirectly linked to the Bank’s operation. The prominence of this category is explained by emphasis on EKKO instruction (bullying, sexual harassment, gender-based violence and violence) and on 21st century skills.

Breakdown of education by category in 2019
Education programme by category in 2019

Participation in education

The education programme includes courses that are obligatory for employees. Not counting obligatory instruction, 89% of employees attended some job-related instruction offered by the Bank.

Participation rate by division

There is a high degree of participation in education across all divisions. Participation is highest at the CEO’s Office (96%), Risk Management (94%) and in Corporate Banking (93%). The participation rate was lowest in Markets (84%) and in Personal Banking (83%). The participation rate reflects education and electronic instruction that is not mandatory yet on the Bank’s education programme. It also includes outside education paid for by the Bank.

Participation rate by division

Employees eligible to participate in the education programme: Permanent employees who have worked for 9 months continuously each year and summer employees. Employees eligible to participate in the Bank’s education programme and/or participate in outside programmes at the Bank’s expense. Active in education: Employees who have taken advantage of the aforementioned options to participate in education in the past 12 months.

Equal education opportunities

Participation in education by job title and gender

The Bank endeavours to ensure that men and women enjoy equal education opportunities. The table below shows participation in education by job title and gender. The number of employees with the option of participating in education in 2019 shows that women are more active than men. The participation rate is highest among women who are managers in the main office and with women managers in branches. Male managers of branches are equally active in education as are women with the same job title. Considering all managers within the Bank, women are more active in education than are men.

Participation in education by job title and gender

404-2 Programs for upgrading employee skills and transition assistance programs

Management training

Education and training for management is a large part of the Bank’s education programme. In recent years, managers have participated in extensive training with follow-up. Managers are offered individually-oriented executive training with personal coaches as well as tailored courses.

Training of new employees

Employees beginning work for the Bank are required to complete certain training and instruction. New employees complete an online mandatory course within eight weeks of commencing work. Otherwise, training takes place on the job. Summer employees who have not previously worked for the Bank attend a full-day training seminar that reviews all key aspects of the Bank’s operation and focuses on encouragement, team building and team work. The education programme also contains some courses aimed at summer employees.

Education for front-line employees

The job of front-line employees has changed alongside the increase in digital service solutions for the Bank’s customers. Instruction and training for front-line employees emphasises the Bank’s products, new work procedures and processes and changes in the regulatory environment. Workplace has become an important tool for the Bank to share new information, especially to front-line staff. In recent years, there has been an increase in organised group study sessions and meetings where front-line employees learn and share knowledge on a peer basis. Employees in rural areas can participate via weblink.

Study and continuing education grants

Landsbankinn’s employees can apply for grants to fund their studies or continuing education. There are grants for longer courses of study, such as university entrance diplomas, university diplomas or legal certification, as well as shorter courses attended outside of work hours. A total of 64 employees received financial support to study alongside work in 2019, a similar number as in 2018. 480 employees received grants to attend shorter courses, double as many as in 2018.

Increased awareness of the importance of preparing for retirement

Course about retirement and pension issues

Every year, employees planning to go into retirement in the next two years are offered the opportunity to attend a retirement course. The aim is to assist employees in preparing for a turning point in their lives, contributing to better health, satisfaction and well-being after retirement. Attendance has increased between years, with demand in 2019 high enough to warrant two courses, one in spring and another in fall. A total of 35 employees attended a retirement course in 2019 as compared with 12 in 2018. The education programme includes regular courses on pension issues, open to all employees. In 2019, 107 employees participated in the course Pension for Personnel, held eight times in 2019 in response to demand. The same course was held twice in 2018 for a total of 18 participants.

Quality certification of education programme

Landsbankinn’s education programme is certified under the European Quality Mark (EQM), a quality assurance mark for all providers of non-formal learning throughout Europe. Landsbankinn is the only financial undertaking in Iceland to receive quality certification of its education programme. Certification supports the Bank’s aim for its education programme to be as effective as possible.

Landsbankinn has for several years offered temporary summer employees coming to work for the Bank for the first time a full-day training seminar at the Bank’s education centre in Selvík, Áltavatn.

404-3 Percentage of employees receiving regular performance and career development reviews

Performance interviews at Landsbankinn are carried out by individual managers in line with the Bank’s policy of boosting management independence. Performance interviews are carried out by each employee’s immediate superior who is the responsible party. As a general rule, there are three performance interviews per annum, each focusing on a different area. The number and focus of interviews may vary depending on the manager and job in question and may be combined in one comprehensive annual interview. The Bank does not have information about how many employees participated in performance interviews in 2019.

Diversity and equal opportunity

405-1 Diversity of governance bodies and employees

These figures represent Landsbankinn only. The ESG report for 2018 included the CEO in figures for the Executive Board for the first time and this year, the Managing Director of Landsbréf is no longer included in the figures. The reason for this change is that other figures in the chapter apply to Landsbankinn’s employees only. As the rest of the chapter does not reflect the Group, merely the parent, it was natural to remove the Managing Director of Landsbréf from the figures.

Gender balance of management and employees of Landsbankinn 2019

Executive board
Dept. heads
Branch managers
Middle managers
Experts/analysts with university degree
Service managers
Service representatives and tellers
Other employees

405-2 Ratio of basic salary and remuneration of women to men

The figures show a comparison of salaries paid to males and females in 2019 by job title. No regard is had for duration of employment, experience, education or other factors.

Comparison of salaries paid to males and females

414-1 New suppliers that were screened using social criteria

The Bank distributes a security and quality survey to main suppliers at 18-month intervals. The survey is in the form of a questionnaire divided into categories, such as governance, security and social issues. When a supplier has responded to the questionnaire, the Bank evaluates the answers against pre-determined parameters. If the Bank deems the supplier’s responses insufficient, either in a particular category or overall, the Bank’s liaison to the supplier is informed of the results. The liaison contacts the supplier, both to seek clarification and to communicate requests for improvement, if deemed necessary. The Operational Risk department is then informed of the results of such follow-up and the information communicated to the Operational Risk committee. There is currently no requirement for suppliers to respond positively to questions about sustainability and ESG. That being said, Landsbankinn considers questions about the issues and the conversation with suppliers who fail to pass muster in the category to strongly indicate that this is an area the Bank emphasises. The process is still under development, and the procedure Security and quality appraisal of suppliers sets out rules on the scope of the survey. Several suppliers have received the questionnaire annually since it was first sent out in 2016. The questionnaire was sent to international suppliers for the first time in 2019, leading to a rather large number of first-time respondents.

All new suppliers are required to complete Landsbankinn’s security and quality appraisal before a business relationship is established.

In 2019, 23 suppliers responded to Landsbankinn’s security and quality appraisal, with the following results from ESG questions:

Yes No
Has the company adopted an environmental policy? 57%
Has the company adopted a CSR policy? 48%

417-3 Incidents of non-compliance concerning marketing communications

The Environment and Food Agency monitors promotional goods and found that reflectors handed out by Landsbankinn contained certain dangerous chemicals subject to restriction under regulation No. 888/2015, on the registration, evaluation, authorisation and restriction (REACH) of chemicals, and regulation No. 945/2013, on persistent organic pollutants (POP). Landsbankinn responded to this finding by recalling the reflectors with an announcement to media and on its website, in Icelandic, English and Polish. Parents and guardians of children who received the reflectors were asked to cease use of the product and return them to a recycling station as plastic or to a local Landsbankinn branch. The Environment and Food Agency saw no reason to take further action and closed the case on 24 May 2019.

Customer privacy


In recent years, all complaints received by Landsbankinn have been disclosed under the GRI 418-1 indicator. It would be more accurate to publish statistics for:

1. The total number of complaints involving confirmed exceptions from customers’ privacy, broken down to:

a. Complaints from external parties, confirmed by the Bank.
b. Complaints from authorities.

2. Total number of confirmed data leeks, theft or loss of business data.

The aim of 418-1 is to elucidate at which point customers’ privacy is violated or loss of control of personal data occurs. In order to provide as accurate an image as possible, complaints will in future be disclosed in accordance with these definitions.

In 2019, Landsbankinn received 43 complaints from customers regarding searches for their Id. Nos. All searches were for natural business reasons except one, which was in breach of the Bank’s rules. The employee in question received a reprimand. Two customers submitted complaints about handling of their personal data to the Data Protection Authority. Landsbankinn awaits the Authority’s conclusion in both cases.

Six personal data breaches were recorded, whereby customer information was transmitted to unconnected parties. The Data Protection Authority was informed of all six instances, in accordance with the Act on Data Protection and the Processing of Personal Data. The Authority did not remark on the reports. Neither data leeks nor theft of customer data occurred in 2019.

The aim of goal 418-1 is to elucidate at which point customers’ privacy is violated or loss of control of personal data occurs.