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The Human Resources area has transformed our model of employee interaction through collaborative work with leaders of the organization. Its purpose is to develop initiatives to help our employees identify their potential and improve their individual performance. These initiatives touch on various processes, like succession planning, performance evaluation, and development of new learning models, providing continuous feedback for enabling individual development and motivating employees to take on new challenges.

We are confident in our capacity to support the comprehensive growth of our employees, and we provide them opportunities for ongoing personal and professional advancement in a healthy, safe en ethical working environment.

Number of employees as of December 31, 2019

Company	Total
	2018	2019
Banking sector	23,140	24,124
- Bank	20,158	21,118
- Warehousing	46	39
Leasing and Factoring	149	235
Aspe	2,787	2,731
Companies in the US	184	179
- Uniteller	162	153
- Banorte Securities	22	26
Savings and Annuities	7,224	5,864
- AFORE	5,221	4,180
- Insurance	1,849	1,556
- Annuities	154	128
Total	30,548	30,167

Data on permanent employees in the Afores, insurance and pensions include outsourcing employees as permanent employees.

Diversity and equal opportunities

Our human resource policies are based on equitability. We do not discriminate against anyone for any reason, and we offer the same development and growth opportunities to every one of our employees.

We have a diverse and balanced work force in terms of age and gender.

Work force by range and gender

Gender	Age Range	Total
		2018	2019
Women	< 30 years	7,131	6,660
	30 - 50 years	7,107	7,297
	> 51 years	1,026	1,143
Total women		15,264	15,100
Men	< 30 years	6,828	6,285
	30 - 50 years	6,482	6,567
	> 51 years	1,485	1,697
Total men		14,795	14,549
Total		30,059	29,649

Not including outsourcing personnel

Work force by job category and gender

Not including outsourcing personnel

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Training and career development

We provide technical and leadership training to all our personnel in order to make sure we can meet specific detected needs.

Through our “Success Factors” technological platform, we introduced Training Needs Diagnosis technical training, which enables us to plan learning programs.

Average hours of training by job category

Category	GFNorte
	2018	2019
Senior management	34	28
Junior management	29	29
Managers	26	35
Administrative	13	26
Average	26	30

Average hours of training by gender

Category	Bank
	2018	2019
Women	16	33
Men	20	28
Average	18	30

Investment in training and development (Bank)

Item	2018	2019	Change 2019 vs. 2018
Scholarships	$10	$15	54.5
Travel expenses for training	$42	$35	-16.3
Courses and conferences	$121	$186	53.1
Total	$173	$236	36.5

Figures in millions of pesos

Leadership training

We provide leadership training programs for middle and senior management, aligned with the new model of competencies, covering more than 1,000 employees.

Based on our training needs, more than 3,000 employees received training, equivalent to more than 80,000 hours assigned to different programs.

Program	Total hours
Leadership skills	56,276
Technical (master’s, doctorates, etc.)	25,348
Total hours	81,624

Almost all of our personnel received training in money-laundering prevention.

• A course entitled Internal Work Regulation and a quick guide to the Internal Regulations and Code of Conduct provided all new hires with training in human rights issues, along with 170 employees from the Department of Protection, Security and Intelligence.
• All of our employees received training in the Law on Protection of Personal Data.
• We defined the operating and governance model of the Corporate University; around 10 curricular design workshops were held in preparation of the first roll-out in 2020, and the first HR class graduated the program.

With regard to succession plans for senior management, we worked with an external consultant to evaluate and conduct guided interviews of more than 40 senior executives. We have ongoing mentoring programs for women and initiatives to encourage their growth in executive positions.

We created an internal mentoring program for women directors and assistant directors at Banorte to create a structured at network of assistance by which they can share experiences, transmit knowledge, and give and receive advice on issues close to their professional and personal needs and aspirations. Three workshops were held on management skills, executive image and gender equity context in the corporate world.

Leadership model and skills

We developed and communicated Banorte’s new leadership model, which incorporates competencies in the performance evaluation scheme, aligned with potential and educational offering metrics on this new reference framework.

Ethics and integrity

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Our Code of Conduct* establishes the guidelines for conduct by GFNorte employees, inside and outside of the institution. Every year we ask our employees to sign a commitment to abide by the code.

GFNorte prohibits all forms of discrimination.

To report any conflict of interest, improper practice or violation of the standards, values and conduct promoted at GFNorte, we have an anonymous institutional tool open to all executives and employees. Complaints are fielded and researched by the Human Resource, Comptroller’s and Internal Audit areas. During the year more than 200 complaints were received, 85% relating to Human Resource issues and 15% relating to matters of Internal Control.

• *https://investors.banorte.com/~/media/Files/B/Banorte-IR/documents/policies-and-documents/en/Code%20of%20Conduct_NF_260219.pdf

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For GFNorte, the working environment incorporates relationships between the employees and the company, as well as all variables that affect teamwork and internal communications, along with talent attraction and retention.

The average employee turnover in the Bank was 19% for women and 22% for men, while in Insurance and Pensions it is about 13% for both genders.

Organizational climate model

We optimized the process of delivery and communication of results and improved the organizational climate intervention model with model 2.0 Banorte Escucha survey, and also conducted pilot surveys of the new model.

The survey was conducted in September, with the following results:

• General result for the Bank in 2019: 81%

Working environment satisfaction survey

This is evaluated according to the model developed by the Great Place to Work (GPTW) Institute, which measures five dimensions:

Results by dimension

Dimension	%
Credibility	82
Respect	77
Impartiality	79
Pride	86
Camaraderie	84

At GFNorte, we know how important it is to encourage a positive working environment, and to generate and constantly strengthen our employees’ commitment. With this in mind, and based on the GPTW evaluation for this year, we defined some key aspects to develop in 2020.

• Informing every CEO and his group of Associate CEOs of the results of the study, pointing out areas of opportunity and recommendations for drawing up an improvement plan if necessary.
• Promoting best practices in the organization and specifically in departments where some result was below the Bank’s average.
• Encourage the participation of everyone who works at Banorte in maintaining a healthy working environment that contributes to our professional growth; this through a strategy of communication.
• In 2020, to begin conducting internal surveys in areas that are working on some improvement plan, considering the size of their commitment.

Value proposition for the employee

We communicate the central features of this proposition through digital media, we carry out profile segmentation and we launched and positioned “Banorte Vale.” We also held on-site value proposition activations and explored synergies with Talent Attraction for assessing attributes and changing publications in social media.

Banorte Experiences

We redesigned institutional experiences and events to benefit our employees.

¡Hola! Onboarding program

A program to welcome new employees to Banorte.

Youth Building the Future

We participate in this federal government program, whose purpose is to provide job training to youth between 18 and 25 years of age. More than 300 youth entered internships at Banorte, and some of these were hired.

“Talento Fuerte” Program

A program that seeks out high-potential youth to meet Banorte’s needs for talent by providing an accelerated development of experience, know-how and skills in various business areas.

Hackathon Monterrey and CDMX

Last year was the first time we participated in this technology event, organized by the Tec de Monterrey, benefiting more than 800 students and professionals. We were the only Mexican bank present, and we gathered 600 profiles from technology candidates. The members of the winning team were invited to join Banorte through its internship programs.

Talent Management Platform (Success Factors)

We completed the optimization of workflows for recruitment, selection and onboarding processes, expediting activities and ensuring greater traceability, measurement and efficiency for all participants in this process.

Promotion system

In coordination with Banorte’s workers’ union and the Commercial area, we created a new technological tool for filling vacancies in union positions in the branch network of the Northern Territory. This enables us to place the best talent in the Commercial network in positions of greater responsibility, through a standardized, transparent, agile and meritocracy-based process. Soon we will be rolling out this system and promotion process on a nationwide basis.

Percentage of unionized employees (Bank)

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Employee benefits

We are continuously working to offer our employees a comprehensive package of pay and benefits that is competitive in our industry. Employee compensation includes a series of benefits all of which are equal to or above those required by law.

Banorte’s employee compensation strategy is designed to maintain a strong competitive position in the market in terms of total compensation, with an appropriate mix of fixed and variable compensation.

One mechanism for retaining talent in key positions is our executive stock plan, which gives employees more incentive to achieve the company’s financial goals. We have an annual bonus scheme and retention plan with differentiated features.

The annual bonus is paid out in keeping with certain goals and the performance of risk and human resource metrics, including compliance. Forty percent of the bonus is variable, and payment is deferred over a three-year period.

Employee compensation (GFNorte)

	2018	2019	Change 2019 vs. 2018
Sr. Executives	$3,346	$3,750	12.07
Employees	$2,139	$2,291	7.11
Total	$5,485	$6,041	10.14

Figures in millions of pesos

Average salary by job category and gender (GFNorte)

	Women		Men
	2018	2019	2018	2019
Senior management	$124,887	$132,785	$140,196	$156,614
Middle management	$32,915	$35,027	$35,904	$39,157
Operations	$10,470	$11,269	$10,506	$11,389

Figures in pesos

Employee Services Contact Center

As part of our transformation process in Human Resources, we introduced a new model of employee service in 2019 by creating a centralized area that will provide better service and experiences to Banorte employees in the use of their benefits.

The primary features of this contact center are the following:

	Specialized team devoted totally to resolving employees’ needs in terms of loans, proof-of-work certificates, credentials, inquiries and questions, and others.
	One-stop point of contact with multichannel attention, including a phone line, chat, institutional e-mail and human resources intranet.
	Expanded service hours, open 10 continuous hours.

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Health and wellness

The goal of the Health and Wellness Program for employees and their dependents is to create a philosophy of health self-care, mitigating risk factors in order to create a balance between physical and psycho-social wellness.

To this end we have taken a number of actions, such as:

1. Program to detect cardio-metabolic risk, applied to group employees in order to detect factors or health conditions relating to chronic degenerative diseases. This past year studies were taken of more than 6,000 corporate employees; the goal is to increase participation by 10% each year.
2. Health promotion program, which relies on our first-contact family medicine physicians. One of the most important programs was the flu vaccine campaign, in which around 7,000 vaccines were applied, 6% more than the year before. And in order to protect employees over the age of 60, for the first time last year we held a pneumonia vaccination program, distributing close to 800 doses.
3. Cancer detection program, where for the second year in a row we ran a campaign for detection of breast, colon, lung, prostate and cervical-uterine cancer, this time focused on our two main corporate offices, with more than 60% of our staff participating. The plan is to integrate all corporate offices into this program in a single event.
4. Balanced nutrition in corporate dining rooms and physical activations, to complement the cardio-metabolic risk factor detection program. We introduced nutrition and physical activation programs into our corporate offices, in addition to the family medicine team. We are working to lower the overweight and obesity rate at GFNorte, currently at 60%, which is below the national average bur remains a source of concern to our institution.

Program support

We have health tools designed by the Mayo Clinic, which enables users to self-evaluate their state of health. We have a hotline for employees experiencing emotional crises or seeking nutritional counseling, open 365 days a year.

During the year 440 employees applied for maternity leave, and another 359 for paternity leave. Out of the 440 women who requested this benefit, 435 came back to work at the end of their leave and had access to nursing rooms in some of the group´s corporates.

The Safety and Health area will be incorporated into the Comprehensive Health System Department, in order to create a program to detect risk factors that threaten the physical and mental health of our employees and can affect the institution’s productivity. This program also complies with the official standards of the Ministry of Labor and Social Planning.

A control module will be released based on indicators on absenteeism, disability, occupational risk and partial and permanent disability, which will enable us to measure the impact and benefits of our operating programs.