Employees

Human Capital Management (HCM) is designed to ensure that VP Bank uses the right employees at the right time in the right place. VP Bank wishes to use the knowledge and capabilities which it has in-house in an optimal manner. It wishes to match advisors and clients in such a manner that they fit together from the point of view of competencies and characters. All this must function across frontiers throughout the entire VP Bank Group. For this reason, a robust central informational basis is necessary. 

Since 2010, VP Bank has had a technical platform which is being expanded step by step and should be completed by 2015 at the latest. The personnel functions of individual locations can already undertake their HR activities using this platform. In addition, the data is available for reporting and analyses to local HR officers, management as well as on a centralised basis to Group Management with specific access rights.

As a result, it was possible, for the first time, to compute anticipated personnel costs for the entire Group in advance. In 2012, and in the locations Liechtenstein and Switzerland, the qualifications of individual client advisors necessary for cross-frontier advisory activities were recorded; they can now be monitored via HCM for topicality. The further upgrading of the platform will target the introduction of Employee Self Service which will lead to noticeable operational improvements – for instance in the management of absences and out-of-pocket expenses. The recording and ongoing maintenance of HCM employee capabilities and qualifications constitute the basis for an optimal management of human resources.

VP Bank has launched a project which is designed to give shape to and promote a career as a specialist as an alter- native to the traditional management career. The goal is to achieve transparent framework conditions and clearly defined development possibilities for specialists. The social component will also be of crucial importance, however: individuals who strive to pursue a career as a specialist should enjoy the same recognition and high regard as colleagues who pursue a management career.

In 2012, further groundwork was undertaken. Thus, in addition to tasks, competencies and responsibilities for all functions in the parent bank, ideal performance profiles were also defined. The key functions throughout VP Bank Group were documented and now serve as a basis for career planning as well as succession management. 

The high expectations of clients and the tough competition within the financial sector must be met at VP Bank with proven capabilities. In order to have employees possessing adequate professional skills and who are socially competent, VP Bank acquires the skills lacking through new appointments, on the one hand, and, on the other, by making targeted investments in the training and further education of its employees.

Again in 2012, the bank placed particular emphasis on the development of technical banking-related knowledge and on the consolidation of knowledge of international tax law. Thus, the basic vocational courses on the theme “International Tax Law in Liechtenstein, Switzerland and Germany”, designed jointly with the University of Liechtenstein, were continued. Internal training courses were held with the objective of enhancing the advisory skills of client advisors. In addition, all client advisors in the locations Liechtenstein and Switzerland received training on the subject of “cross-border services” with the goal of compliance with Cross-Border Policy. 

At the end of 2012, VP Bank provided training to 24 young people, enabling them to become qualified business administrators, as well as to a further 4 individuals as IT specialists. In addition, two young people completed their training to become qualified business administrators following their school leaving examination. VP Bank has developed a support model for students: they have the possibility of accepting 50 per cent employment at VP Bank during their studies. Primarily, economics students at the University of Liechtenstein have availed themselves of this possibility during the last ten years or more.

Many individuals share the management of human resources. In particular, these are the line managers and the local HR officers and central HR employees as well as local and Group management. It is therefore necessary to address the issue of how they appropriately interact through assigned tasks, competencies and responsibilities as well as defining processes for the most important events (such as recruitment, resignations, salary fixing, promotions, etc.).

The defined HR process with its sub-processes has been an indispensable tool for many years in joint personnel work. Even if in 2012, for the first time for many years, no maintenance audit was undertaken, the HR processes were kept up to date and optimised whenever possible. For instance, the automatic establishment of the employee headcount by Group Finance or the recording of client advisor qualifications for the carrying out of “cross-border trades” was introduced in 2012. 

In 2011, within the scope of one project in VP Bank Group, a search was already made for possible cost savings. Finally, it was necessary to reduce staff numbers in order to implement the cost-savings target which was made public in early 2012. Several approaches were used: wherever possible, vacant positions were not filled and the duties of the position were spread over existing employees. Several positions were filled internally, others were actively reduced. In certain cases, a replacement position could be offered to the employee, in other cases, a dismissal notice unfortunately had to be issued. 

Regrettably, in the current economic situation judged critical for the whole of the industry segment, the departure of employees cannot be completely avoided. It is all the more important, particularly in this difficult situation for those affected and their work colleagues, to find a fair and acceptable way. Therefore, in conjunction with employee representatives (see below), VP Bank has agreed the framework conditions which are to be followed whenever an employee loses his position through no fault of his own. In contrast to the benefits foreseen by law or as contractually agreed, in particular longer notice periods as well as a contribution to em- ployability (e.g. for training or outplacement advisory services) have been agreed upon. The additional benefits granted according to objective criteria are applied Group-wide. 

The Employee Representative Body (ANV) was established in Liechtenstein in 1998 on the basis of the then recently passed Workers’ Participation Act. At the end of 2012, the five current members of the ANV were elected. Two individuals stood for re-election and were reconfirmed in their function; the three other representatives are new and were elected for a term of office of four years. The work of the ANV is based upon the Workers‘ Participation Act, which was adopted by management. The ANV must be informed and involved whenever the general conditions of employment are modified or whenever a reduction in employee headcount is foreseen. The decision-making competence in the matter remains, however, with management.

As of 31 December 2012, VP Bank Group had 766 employees, which is 27 fewer than in the prior year. Expressed in terms of full-time equivalent employees, this is 30.7 fewer than last year, or 706.9 (see table below). 155 individuals or 20 per cent of the workforce worked on a part-time basis. The fluctuation rate of 14.1 per cent in 2012 was somewhat less than that of the prior year. It is to be noted that 5.0 per cent of the fluctuation was caused by a staff reduction programme initiated by the Bank. The share of employee resignations during the first year of employment was encouragingly on the decline with approximately one-third less than in previous years. The average length of service in VP Bank Group increased from 8.1 to 8.8 years as of the end of 2012. At VP Bank in Vaduz, the corresponding value even increased from 9.5 to 10.4 years. This reflects the relatively lower level of new recruits and resignations and also the wish of many employees to remain at VP Bank. 

From the point of view of the nationality mix, a stable number of Liechtenstein citizens and a slight reduction of Swiss citizens was observed in the workforce. As of the end of 2012, 30 per cent were Liechtenstein citizens and 35 per cent Swiss (prior year 37, see graph). There was a minor increase in the number of client advisors in the Group: the 154 client advisors represent 20 per cent of all Group employees. At the end of 2012, 73 client advisors worked at VP Bank in Liechtenstein.

Employee statistics of VP Bank Group

Headcount per company