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.
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%|
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.
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.
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.
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.
|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|
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.
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.
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.
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.
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.
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.
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.
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.
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:
|Has the company adopted an environmental policy?||57%
|Has the company adopted a CSR policy?||48%
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.