01 Financial Highlights 02 Management Report 03 Corporate Profile 04 Management Discussion and Analysis 05 Corporate Governance 06 Corporate Social Responsibility 07 Consolidated Financial Statements 04 Business Review Business Support Financial Review Human Resources BCA is committed to developing employees as an important asset in supporting the effective implementation of strategic initiatives and providing the highest quality service for customers. The Bank offers regular training and development programs to employees, encourages a performance-based work culture and actively provides Bank staff with career opportunities. These development programs are complemented by the Bank s efforts to promote a positive work-life balance to best enhance employee productivity and effectiveness. In recent years, the regeneration and succession of the Bank s leadership has been a priority for BCA in order to ensure a continued strong institution. The Bank maintains its commitment to be an employer of choice for jobseekers and works to build a positive and conducive work environment. BCA also consistently develops and promotes the employee value proposition which upholds the principles of continuous improvement and a friendly environment. In 2016 BCA received several awards in recognition of its commitment to create a productive work environment. These awards include the Indonesia Human Capital Award for Best Employee Engagement from Economic Review Magazine; The Platinum Champion Award for Indonesia Best Companies in Creating Leaders from Within from SWA magazine and NBO consulting group; and the Stellar Workplace Award under the Large Size Employer category from Kontan newspaper and GML Performance Consulting. Training and Development In line with the dynamic nature of the Bank s business, BCA consistently works to improve its training programs for employees at all levels of the organization. A series of tiered career development programs have also been conducted in preparation for leadership succession. In 2016 BCA delivered in-class training to 63,460 employees in 2,274 classes for a total of 387,775 training days. The Bank also developed its e-learning program, an intranet-based learning tool that offers increased learning flexibility. The e-learning modules are continuously improved and updated in line with developments in the business and trends across the banking industry. In 2016, 34,307 participants completed the Bank s e-learning courses compared to 19,653 participants in 2015. Employees are given the opportunity to join external training programs in accordance with the specific requirements of the employee s area of expertise. BCA also works with third party training providers to offer English and Mandarin language courses. 222 PT Bank Central Asia Tbk 2016 Annual Report
High quality and well trained employees are essential to maintaining BCA s competitive advantage and supporting the Bank s business strategy. BCA works to improve the capabilities of its human resources through effective development programs and by recruiting high quality employees. In keeping with technological developments, BCA seeks gallery that is designed to tell the story of the Bank s history, innovative ways to create effective and efficient remote training including its establishment, vision, mission, and corporate programs. For a more interactive training experience, the Bank values. The BCA Learning Institute highlights the use of modern offers video-based training modules for use in the classroom design and cutting edge technology. The training center also and video conference facilities for distance learning. BCA provides an energize area consisting of a gym, 3D games, and further offers Mobile Learning BCA (Morning BCA) as a cloud- soccer board games, to keep trainees motivated throughout based learning system accessible through internet-enabled their training programs. smartphones. The Bank has applied the concept of gamification into its training programs by making use of educational games BCA works to ensure that the development of employee for a fun learning process, and has also begun incorporating competencies is in line with the needs of the business units. virtual reality (VR) technology. The VR technology produces A number of the training programs are directed at improving a computer-generated three-dimensional environment that operational control and customer relationships, as well as at allows users to experience real-life situations while learning, enhancing skills and knowledge related to payment settlement such as for the introductory module to kazanah (the Bank s services, credit services, marketing and risk management. money storage space). Augmented reality technology has also been incorporated into the program, for example in training To support the Bank s strategy to enhance relationship banking, employees to identify genuine bank notes through the use of BCA conducts ongoing training for the development of staff, in a smartphone app that highlights the security features and particular those who engage in face-to-face interactions with design elements of the banknotes for an independent learning. customers, in order to train the frontliners to offer suitable and comprehensive financial solutions to customers. Through this In response to the growing training needs, in May 2016 the Bank program, the Bank specifically trains the relationship officers started the BCA Learning Institute operation. The BCA Learning and account officers on the implementation of customer Institute is equipped with training classrooms that include relationship management. To enrich communication skill, the support facilities such as a mini bank, computer suites and IT training module includes an online English Proficiency Test for labs, exam rooms, libraries, a MyBCA digital outlet and others. frontliners. BCA continuously promotes its vision, mission and Trainees may also learn more about the Bank through the BCA corporate values through the BCA Ways program, primarily for PT Bank Central Asia Tbk 2016 Annual Report 223
01 Financial Highlights 02 Management Report 03 Corporate Profile 04 Management Discussion and Analysis 05 Corporate Governance 06 Corporate Social Responsibility 07 Consolidated Financial Statements Business Support Human Resources the benefit of new employees so that they can better understand and conform to the Bank s strategy. For improving employee quality and retention, managers are encouraged to commit to developing the competencies of their teams. Improvement of staff quality is one of the key performance indicators for BCA managers through the assessment of individual development plans, coaching process, and learning culture. Recruitment and Career Development Regeneration and succession are primary areas of focus in preparing a competent workforce. The Bank aims to be an employer of choice and works to create a comfortable work environment to attract job seekers and ultimately, hire the highest quality employees. BCA actively visits universities to introduce the Bank to the best prospective graduates. The Bank also participates in job fairs and works in collaboration with the country s leading universities in the recruitment process. BCA works with external specialists to fulfill the evolving staffing needs of the business. The Bank regularly updates its career website as a source of information for job seekers. The website also facilitates submission of job applications. In 2016, BCA has recruited 2,149 new employees, and acquired 3,721 new tellers and customer service staff through the Magang Bakti BCA program. These new recruits undergo a thorough and intensive training regime with a series of educational programs before being placed in their respective work units. The Bank also offers opportunities for top university students to participate in internship programs at BCA where they can learn about the banking sector first hand. In 2016, BCA initiated a new management trainee program, the BCA Banker Program, to develop potential candidates and assign them to management positions upon completion of the program. The BCA Banker program relies heavily on the active participation of the trainee in seeking knowledge, information and other prerequisite competencies, and is built around the job assignment model (on the job training, coaching and mentoring) to provide actual workplace experience to trainees. In line with the development of the specific needs of the organization, BCA also recruits employees to be placed directly in specialized training programs, such as the Account Officer, Relationship Officer, Junior Business Analyst, Internal Audit, Credit Analyst, Frontliner, Information Technology Officer, and Operation Support Staff Programs. BCA ensures that all employee development programs are designed to assist in preparing employees for leadership succession. In recent years, BCA has organized a career advancement program to prepare leading succession candidates for career development over the next five years. The Bank develops these candidates and supports them to earn strategic positions and advance their careers. BCA uses a system of joint work unit - Human Capital Management Division assessment panels to identify the best quality employees for promotion. Selected employees will be enrolled in special educational programs and, upon completion, the employee s performance will be evaluated in preparation for continuing selfdevelopment programs and targeted promotion. In 2016, 970 employees completed the BCA career development program. In an effort to retain staff as well as to broaden their competencies, the Bank offers scholarships and opportunities to join overseas training programs for selected employees. BCA consistently conducts enrichment programs for leaders to enable them to adapt to the changes in the banking business. This program is made available for all work unit heads and is also designed to provide senior management with the flexibility to occupy various positions within the organization. At the branch level, there are loan-related enrichment program for Heads of Branch Operations who have yet to possess the necessary lending expertise, and operational enrichment program for Heads of Branch Business Development who are not yet sufficiently experienced in the operational field. Through these exchange programs, Bank officials will be well prepared to become the heads of strategic branches, positions that require comprehensive management and credit skills. In the head office, more specific enrichment programs cater directly to the needs of each individual work units. For example, treasury products and services enrichment program ensures that Corporate Business Group officials understand the business relationship between corporate banking and treasury. To enhance employee satisfaction, and in recognition of their contribution to the Bank s performance, BCA offers competitive remuneration based on the achievement of predetermined 224 PT Bank Central Asia Tbk 2016 Annual Report
targets. Since 2012, a portion of employees annual bonuses has been paid in the form of BCA shares acquired through the Indonesian Stock Exchange. The bonus shares have a three year lock-up period before the employee has the right to sell them. This additional bonus scheme is intended to enhance the sense of belonging to the BCA family in the hope of maintaining employee loyalty throughout the Bank. Learning Organization In 2016 BCA remained focused in cultivating a learning culture amongst employees and becoming a leading learning organization. BCA realizes the importance of quality employees who are able to adapt to changes in the external environment, the direction and development of the Bank s business and the increasingly complex needs of the customers. BCA continually develops and strengthens the learning culture through various programs such as the Community of Practice (COP) program that enhances informal learning culture, coaching mechanism with direct superiors, as well as through formal training programs. Learning tools are also enhanced to improve accessibility and effectiveness. The COP program facilitates knowledge and skill sharing amongst co-workers for the benefit of employees at all work units. COP is also made available for senior leaders of the Bank, by inviting external speakers and experts to share their views on various topics and management best practices. It is expected that this approach can provide insight to the necessary knowledge and skills required by the senior management. COP has also become a vehicle for the dissemination of the latest developments that the leaders and staffs of the Bank need to be aware of, such as developments in the economy, various industries, the banking sector, and information on newly launched products and services. In 2016 BCA once again hosted the Indonesia Knowledge Forum (IKF), which has been held annually since 2012. The theme for the 2016 IKF was Moving Our Nation to the Next Level Optimizing Knowledge and Creativity to Ride the Wave of the New Generation in Accelerating Indonesia Economy. The forum included discussions on the topic of supporting economic growth in Indonesia through the creative and knowledge-based industries. Around 1,100 participants were in attendance from various circles of society, including business owners, students as well as customers and employees of BCA and other banks. As part of BCA s ongoing innovation and continuous improvement (Kaizen) efforts, the Bank held the BCA Innovation Award (BIA) as a platform for employees to be creative and to encourage innovation both in developing banking services and solutions as well as in improving internal processes. The innovation concepts were first delivered in a COP group discussion format for participants to receive input from colleagues prior to submission of the innovation proposal to an independent jury for assessment. Work Life Balance BCA understands the value of balance in supporting productivity. Thus, the Bank stresses the importance of a work-life balance to all employees. To establish this balance, BCA conducts a number of programs, such as employee financial management, child care and retirement preparation programs. The Bank also supports recreational activities and hobbies through extracurricular activities, including sporting activities, choirs, photography, dance classes, fishing and preservation of wayang. For employee health, in addition to sporting events, BCA promotes a healthy lifestyle through workshops and seminars. The Bank offers nursing facilities in many of its offices to support its employees efforts to maintain a routine of breastfeeding their children. BCA also has spiritual guidance programs and a counselling service to help employees who are facing personal difficulties. In an effort to provide a comfortable and flexible work environment, in 2016, BCA conducted a pilot program to implement a flexi-time scheme in the IT work unit. This initiative allows employees to customize their working hours within a certain range of hours per day that varies from the Bank s standard. It is hoped that this pilot program will help promote a more productive and efficient workforce. The work-life balance program provides additional comfort for employees to increase their productivity while balancing the different aspects of their lives. Efforts to promote engagement culture support the achievement of an engaged workforce as evidenced by the results of the team engagement survey. PT Bank Central Asia Tbk 2016 Annual Report 225
01 Financial Highlights 02 Management Report 03 Corporate Profile 04 Management Discussion and Analysis 05 Corporate Governance 06 Corporate Social Responsibility 07 Consolidated Financial Statements Business Support Human Resources Looking Ahead BCA will continue to enhance its human resources development programs in accordance with changes in the Bank s operating environment and the Bank s needs. The Bank will carefully observe its human resource requirements and carry forward its recruitment and development efforts to prepare the next generation of leaders for effective management succession planning. In response to the needs of the business for competent human resources, the Bank will regularly upgrade the quality of its training programs. BCA will also continue to innovate and take advantage of technological advancements in order to improve employee training effectiveness. In particular, BCA will continue upgrading and refining the BCA Mobile Learning, Video Learning and other digital learning platforms. In the future, training programs will be further intensified by involving the employees of the Bank s subsidiaries. The BCA Innovation Award will continue to encourage innovative ideas for new digital banking service and effectively implement those ideas in collaboration with the IT work unit. Speeding up the development of human resources, staff training and organizational restructuring will be directed towards supporting the performance of the Bank and anticipating the changing needs of the business. The Employee Value Proposition (EVP), which incorporates the ideas of continuous improvement and a friendly work environment, will be consistently promoted throughout the organization to increase employee awareness and as a differentiating factor that sets BCA apart from other employers. The efforts made to develop human resources will secure the Bank s position as the employer of choice in Indonesia and enable BCA to maintain an excellent workforce. Employee by Organization Level Non Staff 1,337 1,522 Staff 19,661 18,548 Managers 4,000 3,840 Senior Officers (Including the Board of Commissioners and Directors) 75 72 Employee by Seniority 1 Year 2,052 2,755 > 1 5 Year 6,286 4,360 > 5 10 Years 1,348 1,040 > 10 15 Years 668 937 > 15 20 Years 4,754 6,047 > 20 Years 9,965 8,843 226 PT Bank Central Asia Tbk 2016 Annual Report
Employee by Age 25 Years 3,067 2,960 > 25 30 Years 5,163 4,066 > 30 35 Years 1,490 1,211 > 35 40 Years 1,868 2,435 > 40 45 Years 4,563 5,071 > 45 50 Years 5,471 5,285 > 50 Years 3,451 2,954 Employee by Education Level Up to Senior High School 5,232 5,399 Diploma and Undergraduate 19,099 17,871 Graduate and Doctorate 742 712 Employee by Status Permanent 23,817 22,430 Non Permanent* 1,256 1,552 * including contract employee, probationary and trainee Employee Training Classes Days Participants Classes Days Participants Managerial Leadership & Personal Development 843 73,032 27,566 838 129,219 25,737 Credit Management 113 14,890 2,794 72 9,549 3,356 Risk Management Certification Program 16 404 342 18 808 404 Sales 166 81,231 2,651 62 8,017 2,841 Service 70 5,234 3,099 19 2,179 742 Operations & Information Technology 926 205,670 22,802 803 91,183 23,531 Other 140 7,314 4,206 93 7,413 3,652 Total 2,274 387,775 63,460 1,905 248,368 60,263 Employee Training Expenses (in million Rupiah) Total Employee Training Expenses 242,987 256,472 PT Bank Central Asia Tbk 2016 Annual Report 227