SOUND PERSONNEL POLICIES

(a) Recruitment
A format procedure should be followed by financial intermediaries when
employing new people. A check of their previous employment and credit
references should be mandatory. Only men of competence and integrity should
staff a financial intermediary. The best safeguard for the tellers cash is the
honesty and integrity of the teller himself.
Procedures/Requirements
1. An applicant for employment should be required to submit a letter of
application with his/her bio-data and work experience if any, and
scholastic records to determine his/her potentials for employment.
2. Interview, written and practical examination (where required) should be
conducted by the Manager to find his/her capability, aptitude and
efficiency in performing the task required in the position applied for.
3. All the records of the applicants engagement should be forwarded to the
cashier, who shall maintain the new employees file.
4. Upon engagement, the new employee shall be oriented briefly on the
policies, rules and regulations, organizational structure and Company
Code on Employee Discipline before finally endorsing him to his
department head or supervisor for assignment and commencement of
duties.
(b) Knowledge of Outside Activities of Employees

It is recommended that the board of directors of a financial intermediary

maintain a strict check on the non-working activities of its officers and employees
through the control office. Any immediate sudden change in their appearance or
habits may be indicative of misconduct particularly when the change reflects
spending habits that go beyond the limits of their income.
One method of ascertaining the financial status officers and employees is
to secure periodically a statement of their assets liabilities. These statements
should be checked against credit reports and other credit information. Securing a
financial data from the officers and employees serves as a check on possible
speculation to live beyond their income and also aids in disclosing their financial
difficulties because of illness or other emergencies. A program can be set up to
help an employee solve his financial problem.

Usually close employee-customer

possible collusion or misappropriation of
officers and employees should be
employments should be watched closely
employees.

relationships should also be watched for

the bank funds. Outside employment for
discouraged. When permitted, these
to prevent a conflict of interests for the

(c) Fair Salary Scale

To attract and keep honest staff members, financial intermediaries should

pay a fair salary consistent with the earnings and growth of the financial institution
and with the ability of the individual to work according to the requirement of his
position.

ORGANIZATIONAL CHART

The positions, lines of communication and levels of authority and responsibility in

the bank are framed on the attached organizational structure.
The Board of Directors establishes banks objectives and is accountable to the
stockholders. The President/Chief Executive operates business and is accountable to the
Board of Directors. Operating Managers and other personnel are accountable to the chief
executive of the bank.

PERSONNEL POLICIES AND PROCEDURES

The banks policy on human resources is to attain maximum human efficiency throughout
the organization by considering every employees capabilities, productivity and
contribution. This can only be reached with a carefully selected, properly placed, well
trained, achievement-oriented and mission-aware personnel.
And because bank personnel are valuable assets, our bank has adopted the following
policies and procedures.

RECRUITEMENT AND SELECTION

The first requirement of the selection process with the preparation of a Job Description and
Job Specification. The Job Description contains, among others, a description of the duties
and responsibilities attached to the job while the Job Specification indicates the special
qualifications, years of experience and special training to do the job.
Management begins the recruitment process with the personnel already in the bank for
possible promotions or transfers as away of boosting their morale.
The individual/s qualifications and capacity to perform his/her job and ones honesty and
integrity are major considerations in selecting an applicant. Banking is fiduciary in nature.
It follows that pre-employment requirements should be fully complied with to ensure
Physical and mental fitness of the employees. The applicant shall be requested to submit
the following documents;
a.
b.
c.
d.
e.
f.

Clearance from previous employer

Transcript of Records and Diploma, if applicable
Physical Examination
Police/NBI Clearance
Copy of Marriage Contract, if married
Two (2) I.D. pictures

Natures and Status of Appointment

Employees of the bank are categorized as follows:

1. Probationary hired for a permanent or regular position in the bank,
required to undergo a probationary period of six (6) months reckoned
from his first day of work. A probationary employee who shall get
satisfactory performance rating shall be appointed to a regular position
and shall be notified in writing. If a probationary employees
performance is rated poor. His employment shall be terminated
before the end of the six month period.
2. Regular One who has satisfactory passed the six-month probationary
period. He shall undergo the basic rural banking course at the Bangko
Sentral Institute. He shall be included in the regular payroll and shall
assume his position directly connected with the regular operations of the
bank.
3. Contractual hired for a specific project or purpose whose
appointment shall be co-terminus with the project or for a fixed period

of time stated in the contract.

The bank may hire contractual
employees for the following reasons:
a.
b.
c.
d.

For completion of a specific task or project for a specific period;

As reliever to regular employees on leave of absence;
When the need arises for additional workforce during peak season; and
For jobs that are seasonal in nature.

Job Security
The bank commits to provide continuous employment to all its permanent employees.
This can only be achieved with the employees competence and satisfactory job
performance to ensure personnels security to tenure.

Cessation from Employment

a. Resignation An employee who shall resign from his position notify the bank
in writing through his immediate superior his intention to resign, stating
among others the reasons for his resignation and the proposed effective date of
resignation. The resigning employee shall be required to secure clearance of all
property and money accountabilities. Bank properties include cash
accountabilities, working papers, documents and equipment. The resigning
employee shall be entitled to the commutation of all accumulated vacation and
sick leaves to his credit. It shall be managements prerogative to allow the
personnel to go early or at a later date depending on the sensitivity of the
position to the vacated.
b. Retirement It shall be compulsory and automatic for bank employees who
shall reach the age of 65 years to retire from the position, except as otherwise
provided for under existing laws. An employee who shall have rendered Ten
(10) years of continuous services to the bank may be allowed to retire. The
retiree shall be required to secure clearance of money and property
accountabilities and shall also be entitled to commutation of accumulated
vacation and/or sick leaves to his credit. The retiring employee shall be entitled
to one (1) month pay (basic and cola) for every year of service based on his
most recent monthly salary.

TRAINING AND CAREER DEVELOPMENT

Management shall continue training of its employees to ensure maximum efficiency in

their performance of duties and responsibilities. Each employee shall be responsible to
improve himself to become more useful to the organization.

Promotion, Transfer and Job Rotation

It is the policy of the bank to promote from within, whenever possible, qualified and
deserving employees to higher positions.
Employees may also be transferred to positions where their talents could be utilized.
The bank may also reshuffle personnel to enable employees to become familiar with
variety of operations, thus, making them versatile.
Recognition and Rewards
The bank gives special recognition to outstanding and deserving employees whose
performances are above par. Recognized employees shall be given incentives and awards.
Personnel Files
The 201-file serves as the administrations records of an employees employment personal
data and other information. Bank personnel shall be required to report any change in their
data, which include the following:
a. Change in status or change in name;
b. Transfer of residence or change in address;
c. Change in telephone number;
d. Birth or Death in the family;
e. Additions of change in beneficiaries;
f. Change in income tax exemptions;
g. Educational attainment advancement; and
h. Seminars, workshops, conferences and government or private examinations
passed
The updating of data is needed to ensure that the employees shall be given the benefits due
them.

Office Decorum
Behavior and Conduct
Bank employees shall conduct themselves in proper and courteous manner. Bank
personnel shall develop a deep sense of loyalty to the bank. Utmost courtesy shall be
observed in dealing with bank clients. As much as possible, employees should exercise
extreme patience in dealing with argument-provoking situations. All employees shall
observed proper decorum in dealing with senior officers and other personnel of the bank.
In addition, the following activities are strictly prohibited and non-compliance thereof shall
be dealt with the corresponding penalties/reprimands.

Unruly behavior,
Drinking liquor
Gambling
Fighting and other disorderly conduct

First Offense
Second Offense
Third Offense
Fourth Offense
Fifth Offense

Verbal Reprimand
Verbal Reprimand
3 Days Suspension
1 Week Suspension
Termination

Telephone Usage
Phone calls and/or radio communication messages, which are personal in nature, must be
kept to a minimum. The following communication ethics should be observed at all times:
a. Answer the telephone or radio communication promptly when it rings/signals
b. When answering, state your name, the name of the bank and offer your
assistance;
c. When answering for another employee who is not around, get the message
clearly in writing so that the person called may respond correctly; and
d. When you are temporarily leaving your post, always leave your whereabouts to
your co-employees and the time you are expected to be back.
Ethical Standard
Bank personnel are thus required to conduct business in an ethical and legal manner both
inside and outside the bank. It is stressed that employees activities or dealings outside the
bank should as far as practicable, not involved conflict of interests of the bank.
Open Interaction
The bank realizes the need for a two-way communication between management and the
employees. There shall be a monthly meeting attended by the principal officers and other
bank personnel to discuss issued of vital importance to banks operations.
OFFICE CONTROL AND SECURITY MEASURES

Uniforms and Attire

The bank shall provide the employees with complete set of uniforms free of charge every
year. Once the uniforms are issued, each employee is required to wear this according to the
schedule. Employees shall wear business attires during non-uniformed days. Failure to do
so shall penalize the offender as follows:

First Offense
Second Offense
Third Offense
Fourth Offense
Fifth Offense

- Verbal Reprimand
- Written notice
- Suspension 3 days
- Suspension 1 week
- Suspension 15 days

The employee violator shall submit a written explanation for failure to comply with this
requirement.
ID Cards
The bank Identification Card serves as the employees membership in the banks working
team. All personnel are required to wear it while on official duty and, in the event of loss,
to report this to management.

Disclosure of Information
Bank transactions are confidential information requiring protection. Employees shall not
make any public or private discussion of bank affairs of the customers except with coemployees who need to know as part of banking operations.

Working Hours and Attendance

Working Schedule
Employees are required to render eight (8) hours work in the bank from Monday to Friday
are from 8:00AM to 5:00PM with one (1) hour lunch break from 12:00 NN to 1:00 PM.
There shall be a 15-minute coffee break in the morning and another in the afternoon. The
work schedule may be revised subject to operational requirements and to Bangko Sentral
ng Pilipinas regulations.
Operating managers who occupy position of trust in the bank may be required to render
longer hours of service without overtime pay.
Records of Attendance

All personnel shall use their electronic Daily Time Records in the bank may be required to
render arrival, lunch break and departure.

Absences
Each employee is indispensable in the smooth flow of transactions. The absences of one
surely cause delay. Employees are, thus, required to notify management at least three days
in advance of any planned absence or leave except in case of emergency.
Employees are required to accomplish the prescribed Leave Form. However, in cases of
emergency, the employee concerned should immediately notify his supervisor within the
first hour of his inability to report to work. Any unjustified absence of more than two (2)
working days shall be considered an Absence without Leave (AWOL), an offense meted
with appropriate sanctions. The employees on emergency leave shall accomplish the Leave
Form within two days when he reports to the office, otherwise, such absence shall be
considered as Leave without Pay.

Tardiness
Tardiness of 15 minutes per day shall be allowed to each employee. A fraction of any hour
after 8:15 a.m. shall be computed as one (1) hour late and such shall be deducted the
commensurate amount from his salary. Habitual tardiness for more than five days in a
month will be meted with corresponding administrative sanction.
First Offense
Second Offense
Third Offense
Fourth Offense
Fifth Offense
Sixth Offense

- Oral reprimand
- Written reprimand
- Suspension 3 days
- Suspension 1 week
- Suspension 15 days
- Termination

WAGE AND SALARY ADMINISTRATION

It shall be the policy of the bank to maintain wage and salary standards and keep the pay or
salary scales in favorable comparison with those prevailing in its peers in the industry in
the region. The bank shall motivate and reward deserving employees under the review of
the compensation committee.
Competitive Salaries

The bank recognizes the need to commensurate the services of its employees with
compensation package that is competitive in the industry.
a. Basic Salary All employees, except those occupying contractual positions
shall be paid semi-monthly every 15th and 30th of the month. Employees pay is
indicated in the payroll sheet, to be signed by the personnel upon receipt of the
correct amount.
b. Overtime Pay All employees rendering services the regular working hours
shall be paid the corresponding overtime pay, computed as follows.
Rest Days
Rest Days or Working special Holidays
Rest Days (Non-Working Special Holidays)
Legal (Regular) Holidays
Legal Holidays falling on employees rest days

-125%/hour
-150%/hour
-175%/hour
-200%/hour
-300%/hour

c. Night Differential Pay This is generally given to employees working

through the night from 10:00PM to 6:00AM. In such case, a 25% of hourly rate
is added on to overtime pay.
d. Out-of-Town Allowances Bank personnel who may be assigned to undergo
out-of-town assignment (beyond a 50-km radius) shall be granted per diems of
P500/day for all employees in general. This is given to compensate for the
added inconvenience and extra grooming requirements that go with the job.
Management may increase the stated per diem on a case-to-case basis
depending on the location and the assignment to be undertaken. A copy of the
travel assignment order shall be submitted and attached to the corresponding
voucher.
e. Incentive Bonus Incentive bonuses may be granted by management for
operations reaching the level of performance beyond its target such as:
a. collection of past due loans
b. sale of acquired assets
c. deposit general campaign

Salary Increase
Salary upward adjustment shall be made when necessary and shall include among
others the following:

a. Permanency Increase granted at the end of the six-month probationary

period to employees below the managerial level who satisfactorily passed the
observation period, to raise their salaries to the minimum.
b. Merit Increase granted to employees with exemplary performance above par
with others.
c. Promotional Increase granted to employees promoted to higher positions
with corresponding higher pay.
d. General/Across-the-board Increase - is a fixed or percentage amount given
to all employees or to all members of a designated group without reference to
individual differences in performance. This is dependent on managements
discretion.
e. Government-mandated Increase is based on wage increases declared by
labor regulations. Unless the financial condition of the bank dictates, otherwise,
the bank shall grant government-declared increases.

PERFORMANCE APPRAISAL

Appraisal Policy
No two employees are alike. Employees have varied talents, personalities, abilities and
potentials, which should be considered in assessing their performance. The performance
appraisal system to be done per semester aims to:
a. provide feedback on employees performance;
b. measure employees potential value, his capacity for growth and his
possibilities for advances; and
c. improve supervision and attainment of specific targets agreed upon in the
effective performance of duties.
Goal Setting and Standards
The bank shall set pre-determined targets for every position. The supervisor shall discuss
these performance targets and the key result areas, which shall serve as the basis in the
evaluation of ones performance.
Periodic Progress Review
The supervisor shall review and assess the performance of the subordinate and compare
achievements against standards, identify the variances and determine reasons of occurrence
at least every semester or when so requires.
Written Performance Evaluation

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The results of evaluation shall be documented in the Performance Appraisal Report and
discussed with the subordinate. The employees strong and weak points shall be identified
and commendations/recommendations shall be made, if necessary.

EMPLOYEE BENEFITS AND SERVICES

It is the policy of the bank to motivate employees by granting supplemental compensation

facilities and assistance aside from their direct wages incentive pays.
Management
realizes that these benefits help gain the employees loyalty, cooperation and goodwill and
inspire them to work efficiently. The additional fringe benefits include the following:
Vacation, Sick and Maternity Leaves
Vacation Leave
Employees as human being need to take occasional respite from their day-to-day work.
Regular employees are allowed to make use of their vacation leave set at 15 days/year
(1.25 days/month).
Necessary vacation leave with pay can be substituted by
accomplishing the prescribed form and have this approved at least one week in advance.
Unused days of vacation leave within the calendar year, brought about by the exigency of
the services, may be carried over and accumulated in the succeeding year or converted into
cash at the end of the year. Resigned personnel or those separated without cause may, on a
case to case basis, be entitled to conversion into cash of all earned vacation leave at the
discretion of the Board of Directors.
Sick Leave
The bank grants sick leave with pay to all regular employees to compensate for the loss of
potential earnings due to illness or injury, this can be availed of by accomplishing the
prescribed leave form and attaching a medical certificate thereto, should the leave exceeds
a period for two consecutive days. Every employee is entitled to 15 days/year (1.25
days/month) of sick leave with pay. Unused days of sick leave at the end of the year are
converted into cash. Sick leave in excess of 15 days may be charged to vacation leave only
in cases of prolonged illness or contagious disease as certified to by a physician acceptable
to or to be designated by the bank.
Maternity Leave
The bank grants maternity leave to females employee to prepare her for child delivery and
give them ample time for post-partum recuperation. The leave shall be 60 consecutive
days for normal delivery and 78 days for cesarean operations. The bank advances her full
60-or-78-day salary and later recovers the same from the SSS. The leave can be taken 2
weeks prior to expected date of delivery and another four weeks thereafter.

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Leave Without Pay

In exceptional cases, the bank allows leave without pay for a maximum period of 30
consecutive days. This can be availed of only in cases where an employee needs to study
for a board examination and/or settle a pressing personal problem requiring extended leave
of absence. He is required to file a formal application and obtain a written approval from
management.

Non-Working Holiday
The following regular holidays mandated by law shall be observed at no less in pay to
eligible employees:
New Years Day
Maundy Thursday
Good Friday
Araw ng Kagitingan
Labor Day
Town Fiesta-Head Branch -Butuan Branch -Cagayan Branch-Gingoog MBO Independence Day
National Heroes Day
Bonifacio Day
Christmas Day
Rizal Day
-

January 1
Movable
Movable
April 9
May 1
February 2
May 19
August 28
June 12
August 26
November 30
December 25
December 30

Thirteenth Month Pay

The bank shall pay the mandated 13th month pay of all employees
Longevity Pay
The bank shall grant longevity pay equivalent to __________________ for every year of
service up to a period of five years, payable after the third year of services.
Salary Loan
The bank shall grant salary loans to its permanent employees at preferential rates as may
be determined from time to time by the Board. The loan shall be equivalent to

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_____________ months salary amortized in __________ consecutive monthly payments

and shall be for the following:
a.
b.
c.
d.
e.
f.
g.

Hospitalization or medical expenses

Educational expenses of spouse and children
Emergencies due to calamities
Purchase of household equipment and appliances
Repair/renovation of house
Purchase of vehicle
Other justified purposes

A Fringe Benefit Program showing the details of implementation of this Financing

Program is filed separately.

Retirement Plan
The bank provides for a retirement plan fir its personnel. Upon retirement, whether for
normal early or late retirement, an employee shall be entitled to receive amounts stipulated
in the terms of the retirement plan. In the event of the death of the employee, his
designated beneficiaries shall get the retirement benefits.
A Retirement Program approved by Bangko Sentral showing the details of implementation
of this scheme is file separately

EMPLOYEE DISCIPLINE
Bank employees should always conduct themselves in a manner befitting for good
employees serving a bank reposed with trust by the banking public. To maintain the good
image of the bank, management shall set rules and regulations to instill discipline among
its managers and employees and to conform to basic social norms.

Responsibility for Discipline

The immediate supervisor shall be responsible to instill discipline. On a minor infraction,
the first approach shall be a problem-solving arrangement with the employee. However,
major violations of bank rules and regulations shall warrant disciplinary actions such
as suspension or termination. In these cases, due process, proper investigation and
appropriate action shall be immediately taken for the best interest of the service and in
maintaining the banks integrity.
No officer or employee of the bank shall be removed or suspended except for justifiable
cause as provided by law and after due process. In meeting out punishment, light

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penalties shall be imposed for light offences and only one penalty shall be imposed in each
case. Any admonition or warning shall not be considered penalty.
Action to be taken
Disciplinary interview A one-on-one meeting between the supervisor and the
employee to identify and to discuss the problem agree on the solution and analyze the
consequences should the problem recur.
Written reprimand A written notice to the employee indicating the offense
made with stern warning that commission of a similar offense will be dealt with
accordingly.
Suspension temporary debarment of an employee from work without pay.

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