PLANNING AND DEVELOPMENT ACTIVITIES
Continuous planning and development activities are
necessary in order to meet the objectives set to the central
bank. In 1998, the implementation and improvement of the
principles of strategic planning, work planning and budgeting
were actively continued in Eesti Pank.
The Strategic Development Plan was updated,
specifying the priorities for the central bank in
1999-2001 (see Appendices, pp 114-116). On the basis of
the Strategic Development Plan, the Bank’s budget, the
work plan of integrating trends, the personnel plan, the
titles of offices plan and the general training plan were
drawn up as tactical plans. Operational plans for departments
were elaborated as well.
In November, the traditional annual planning seminar was held in Rakvere. As usual, the seminar started with an
economic survey and an overview of the Strategic Development
Plan of Eesti Pank. During panel discussions the draft
integrating trends work plans were introduced as well as
priorities, problems and expectations in co-operating with
other departments were outlined. The Bank’s draft
budget, personnel plan, general training plan and titles of
offices plan were also under discussion. Besides, ideas were
exchanged on Y2000 Millennium Bug, remuneration policy and
Bank’s contribution pension, too.
The eighth annual spring development seminar was held in Otepää. The main topic was management
information system. Apart from keynote presentations
various other related subjects as well as more theoretical
ones (Eesti Pank as an organisation, corporate culture,
decision process and values, regulation and control,
technical communication and verbal communication, information
value and data quality) were discussed. The aim of the
development seminar, within the framework and against the
background of the main topic, is the formation of a common
concept of management and co-operation.
Such activities were carried out throughout the year. The
efficiency of data arrangement and management was increased,
handling of databases improved and new databases set up. The
first Communication Plan for the Bank was put together, too.
RISK MANAGEMENT
In 1998, the main development theme involved risk
management principles in Eesti Pank. The risk
management was discussed both in Bank governing bodies
and in the Development Committee. The risk management
awareness together with developing a common understanding
in the Bank was considered very important but a certain
shift in corporate culture would be necessary here. It
requires comprehensive preparatory work, including
relevant training. Last autumn a seminar was held with
foreign guest speakers, providing an introductory
approach into the subject.
Most of the work done in 1998 can be considered as
dual preparatory work: preparations for setting up a risk
management working group, involving external experts from
foreign central banks, and specification of functions for
this working group. The group has to establish concept,
methods and models for departmental risk handling. One of
the functions of the working group is putting together a
list of general risks and description of risk
significance, determination of risk control measures and
risk assessment. Parallel to setting up such a working
group, work was continued on department level where risk
management has always been dealt with.
INFORMATION SECURITY
In 1998, more attention was paid to information
security management, focusing on Y2000 Millennium
Bug. Implementation principles for Security Awareness
Programme in the Bank were defined. Employee awareness
conventions were convened. The measures should lead to
increased reliability of the automated information
system. The measures should also convince in
error-tolerance of the IT system and launch an
error-correcting programme for critical sectors of the
system. It is very important to explain the essence of
the problem and related hazards to the staff. The Bank is
planned to be ready with anti-Millennium Bug measures by
1 July 1999.
PUBLIC RELATIONS
Considering the objectives set in the Strategic
Development Plan of the Bank, Eesti Pank has emphasised
its public relations since 1998. The Communication
Plan has focused more on promoting the objectives and
functions of the central bank both in implementing
financial policy as well as in ensuring financial
stability. Herewith the necessity of
target-group-oriented understandable and exhaustive
information communication should be considered.
The revision of the structure of Eesti Pank’s
publications was commenced and the Monetary
Developments & Policy Survey was developed into a
regular economic and monetary policy publication,
actively promoted to the public. According to the plan
prepared in 1998, structural changes would be completed
in 1999. Eesti Pank’s home page was developed as
well, adding information ranging from banking legislation
to banknotes and coins. Management news conferences,
handling topical economic, monetary and banking policy
issues, have become more regular.
PERSONNEL
Since 1998 significant changes have taken place in
human resource development planning and a detailed Eesti
Pank’s Personnel Plan was drawn up. It contains
estimated need for titles of offices for the upcoming
year, input data for payroll budget and for the
employment of qualified specialists. The Personnel Plan
provides the list of necessary titles of offices and the
level of requirements set for officials.
Eesti Pank requires high professionalism in developing
its personnel, recruiting and training new staff. To
achieve improved performance and motivate staff, the
remuneration system is based on the title-of-office value
and personal commitment. The fair evaluation is based on
sustained classification of titles of offices, job
analysis and title-of-office evaluation system.
In order to recruit and motivate high quality staff
the competitive salary level is retained against
comparable titles of office in the labour market. The
Personnel Department is responsible for co-ordinating the
monitoring of the remuneration policy and evaluation
systems.
In end-1998, Eesti Pank had a total of 287
employees or two more than previous year. The
employment contract was suspended with 19 employees, 12
of them were on the maternity leave. 54% of the staff
were women and 46% men. The average age of the Eesti
Pank employees was 39 years. The youngest
employees were in Central Bank Policy Department and
Macroeconomic Research Department where the average age
was 31 years.
TRAINING
Eesti Pank considers training a significant part in
its best-performance-oriented employee development. The
objective is to ensure competent (knowledge,
skills, proficiency, attitudes) and change-oriented
innovative staff.
In 1998, most of the professional training took place
on-the-job in the Bank, elsewhere in Estonia and abroad.
The necessary skills and knowledge acquired are divided
by contents into main field (economy) and co-fields
(management and communication, foreign language, computer
skills).
In 1998, the training system in Eesti Pank was
reorganised, as the centralised training service did not
meet growing needs any more. As the first step in the
decentralisation process the training in the main area is
now the responsibility of the Macroeconomic Research
Department, in order to ensure integral management of the
knowledge. The far-reaching objective for training would
be to develop a main field research and study centre
oriented for Bank employees as well as for economists and
bank-related people from Estonia and abroad.
The major co-operation partner for Eesti Pank was the International Monetary Fund with 15 people participating in its
training courses in Washington and Vienna. Twice Bank
officials could attend efficient courses in Gerzensee
Training Centre of Schweizerische Nationalbank.
New agents offering training were Euroclear Systems and Luxembourg Banking Institute. In the second half of the year, distance learning in Estonian
Banking Association gained popularity. Good
co-operation continued with other European central banks:
Eesti Pank’s officials attended training in central
banks of Austria, England, France, Germany and Italy.
In intra-bank training IT training with Bank
officials as lecturers was of major significance. Foreign
language was learned on different levels. Mainly English
as the banking language was learned.
INNOVATIVE PENSION SYSTEM
An organised support and benefit system is a
tool of successful personnel policy. It is necessary to
recruit and retain staff with specific skills and
attributes whose merit-based work should be oriented to
achieving Bank mission and objectives. The basic
principle is to use financial benefits for sharing
responsibility with the staff, ensuring, thus, staff
interest to invest and save.
In order to create additional possibilities to
financially secure retirement, to encourage them to
participate in voluntary retirement savings plan and to
enhance the Bank’s competitiveness in the labour
market, the Board of Eesti Pank resolved to establish
Eesti Pank pension in 1998.
The Bank pension is an additional social security tool
for Bank employees and Board members implemented as Bank’s
contribution pension. Voluntary contributions to the
pension scheme are partially indemnified by the Bank.
Pension is based on the voluntary initiative and
financial contributions by employees and Board members
together with a financial contribution made by the Bank.
The Bank contribution is one third of total investments
made by the employee but not more than 5% of his/her
gross salary in a year during 20 years.
As a special Eesti Pank pension merit-based pension was introduced for employees or Board members of Eesti
Pank by paying a (supplementary) pension as an
acknowledgement rendering distinguished service to
Estonia’s monetary and banking system. This pension
is 1.6-fold average salary in Estonia, payable from the
retirement age until the beneficiary’s death. The
merit-based pension is awarded by the Board of Eesti
Pank.
LEISURE TIME AND TRADITIONS
The central bank considers it extremely necessary to
support active and meaningful leisure time activities.
On 26 February 1996, Eesti Pank’s Sports Club was established. Starting from 31 members it has reached
118 by end-1998. Any employee from Eesti Pank actively in
for sports can be a member. Most popular sports are
basketball, aerobics, swimming and squash. The first
three are dealt with together. The objective of the
Sports Club is to encourage sports among Eesti Pank
employees. Eesti Pank’s sports days are
traditionally held every winter and summer. Besides an
inter-department basketball tournament and a football
match between teams of intra-bank integrating trends were
held. The basketball team of Eesti Pank
participated in annual basketball tournament organised by
Estonian Banking Association and ranked the third.
On 1 October 1998, Eesti Pank’s Chamber Choir was set up. The choir was neither unexpected nor born
overnight. Already since 1995 different male ensembles
have sung at Pank’s festive occasions. In spring
1998, about 20 singers came together (conductor Peeter
Perens) and first performance was at the Estonian
kroon’s anniversary party. Success and warm response
encouraged to continue. In autumn, the choir started
rehearsing, the choir by-laws were adopted and a plan of
action for 1999 was put together. The aim was to perform
at the Bank’s major events, participate in the
Estonian Song Festival in 1999 and in choral festivals.
It was also decided to develop the so-called opera club
trend by visiting different opera houses and music events
in order to expand the knowledge of singers and all
employees interested in music.
On 3 May, on the anniversary of Eesti Pank,
employees who have been employed for five years are
acknowledged: women get a silver medallion, men a tie pin
and cuff-links. The kroon’s anniversary party
is traditionally held in Maardu manor-house on 19 June.
The Christmas party is held both for employees and
spouses and children. Beginning from the age 50, all
employees get a letter of acknowledgement from the
President of Eesti Pank.
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