Workforce of the future How strategic workforce planning

Workforce of the future How strategic workforce planning can help companies today, tomorrow and beyond?

Key trends shaping the future role of HR People Analytics Entering Organization Structures HR departments realize that their future depends on the ability to properly use employee data and from creating forecasts and data-based- analyses, which will enable better understanding of business challenges and will facilitate the process of making strategic decisions Shift from Employee Engagement to Employee Experience “Employee Experience” consisting of three core dimensions: engagement, culture and performance management ceases to be a strategic advantage and becomes a necessity 60% of CEOs of financial institutions believe that by 2020 the greatest talents will want to work for organizations whose value system is consistent with their own 97% of CEOs agree or strongly agree that their companies need to strengthen soft skills alongside digital skills The ‘Gig Economy’ Redefining the Workplace The changing labour market will result in much more competition for talents and will force organizations to develop the ability to quickly acquire competences depending on the project/task they will undertake 72% Race to Digitalize HR The rapid development of new technologies allows their use in the HR area right now. In the future, HR digitization will only get deeper Pw. C's 21 st CEO Survey, Pw. C: Zarządzanie kapitałem ludzkim coraz większym wyzwaniem dla firm z sektora finansowego; Forbes of CEOs are concerned about availability of talents wtih required skills

What does workforce planning mean to you?

The missing link between strategy and people Pw. C works with financial services suggests that many insitutions have neglected workforce planning relying instead on short-term tactical maneuvers that react to maket needs. Results: • Organizations have very little insight into how they wil be impacted be demographic changes, such as retirement. Workers with specialized skills are walking out the door without clear sucessors. • Hiring and firing decissions are reactive and based on gut instinct, rather than a fact- based analysis of what makes employees successful. Turnover is high in some areas, while others are saddled with employees who keeps the organization afloat –but don’t much to move it forward. • Employees are frustrated by expectations to achive targets without the experience or capabilities they need to suceed. As a result, projects falter and emloyees leave, taking years of institutional knowledge with them

The starting point for a discussion on the Workforce planning is understanding of the company's business strategy… ING strategy Purpose Customer Promise Clear and easy Over 54 000 employees Empowering people to stay a step ahead in life and in business Anytime, anywhere Enablers Creating a differentiating customer experience 1 Earn the primary relationship 2 Develop analytics skills to understand our customer better 3 Increase the pace of innovation to serve changing customer needs 4 Think beyond traditional banking to develop new services and business models Empower Keep getting better 40 countries Strategic Priorities Simplify & Streamline Operational Excellence Performance Culture Lending Capabilities

…and make a link between business challanges and workforce strategy Value in Value out Platform thinking • 98% of interactions with retail customers via digital channels Our people 54, 000+ employees worldwide Agile, engaged and empowered • EUR 76 million spent on • ING received top employer recognition in training and development • Strong belief in diversity Financial Think Forward Leadership Experience to support strategy roll-out entrust us with their payments and deposits • EUR 50. 4 billion shareholders’ equity and EUR 148. 9 billion debt securities in issue, bank deposits and subordinated loans Move fast, fail fast • Launch of ING Ventures, a EUR 300 million venture capital fund for fintechs 7 countries • ING in the healthiest 25% of organisations in the Organisational Health Index Providing payments & transaction services Trusted financial partner • Over 37 million customers Innovation • 1, 500 managers trained on • Over 4, 600 employees trained on PACE, ING’s new way to innovate Empowering people to stay a step ahead in life and in business Facilitating Differentiating savings & customer lending experience Sustainable Development Goals • ESR Framework applied to WB corporate loans Netherlands and Belgium of 99. 7% Ⓐ Our people • Jobs may be impacted by the acceleration of the Think Forward strategy • 39% of women in management positions Financial • Leverage ratio of 4. 7% - 2020 target is >4% • Cost/income ratio 55. 5% - 2020 target is 50 -52% • Common equity Tier 1 ratio fully loaded of 14. 7% Beyond traditional banking • 139 Active fintech partnerships and investments • Joined circular economy platform Innovation • EUR 800 million in digital transformation investments • 786 ideas submitted to Innovation Bootcamp Empowering customers Sustainable development • ING supports the UN • Retail system availability for the Strong financial position Madaster Our planet Products & services • ING is an RE 100 member and a Circular Economy 100 (CE 100) corporate member of the Ellen Mac. Arthur Foundation Social & network • Increase in primary relationships to almost • 25. 4 million customers feel financially 11 million • Customers in 7 out of 13 countries rank empowered by ING Ⓐ • EUR 574 billion in customer loans ING #1 in terms of NPS Ⓐ Enabling a low-carbon society • EUR 14. 6 billion in Climate finance • EUR 5. 5 billion in finance to Industry ESG leaders Our planet • ING launches sustainable improvement loan, rewarding corporate clients for their sustainability achievements

Key business challenges - the foundation for creating a coherent workforce strategy Fundaments of ING Workforce Strategy ORANGE CODE ING Values The non-negotiable promises we make to the world no matter what. We are honest We are responsible We are prudent ING Behaviours The commitments we make to each other and the standards by which we measure each other’s performance: People planning for the future You take it on and make it happen You help others to be successful You are a step ahead Creating a differentiating employee experience Creating greater leaders and better managers

In Pw. C we understand this, that is why we follow set of shared values, which help us guide employee behaviours and build trust Living our Purpose and values • • At each level and dimension of the Pw. C Professional, expectations on ethical behaviour are defined In how we do business With each other In our communities In how we use information When working with our clients and our colleagues to build trust in society and solve important problems, we… Whole leadership Act with integrity Make a difference Care Work together Reimagine the possible • Speak up for what is • Collaborate and • Dare to challenge the right, especially when it feels difficult • Expect and deliver the highest quality outcomes • Make decisions and act as if our personal reputation were at stake • Stay informed and ask questions about the future of the world we live in • Create impact with our colleagues, our clients and society through our actions • Respond with agility to the ever changing enviromnment in which we operate • Make the effort to understand every individual and what matters to them • Recognise the value that each person contributes • Support others to grow and work in the way that brings out their best share relationships ideas and knowledge beyond boundaries • Seek and integrate a diverse range of perspectives, people and ideas • Give and ask for feedback to improve ourselves and others status quo and try new things • Innovate, test and learn from failure • Have an open mind to the possibilities in every idea The most innovative solutions come from working together with colleagues and clients. Effective collaboration enables innnovation

M. A. I. A. Matching Artificial Intelligence Assistant Modern recruitment Boosting engagement Finding the right successor

M. A. I. A. Matching Artificial Intelligence Assistant Today, advanced technology can help companies respond to the challenges in terms of future workforce Check how your human capital potential fits to challenging time, identify the biggest gaps and suggest the best development plans Reveal hidden talents at different levels and teams (objectively eliminating the impact of individual opinions and intuition) Define profile of future hires based on top performers and future business needs. Automatically identify candidates best matching required profile Show loyalty level of top performers and suggest the best retention strategy Analyse company organisational culture vs expectations/needs and advise the direction of change to prevent not wanted turnover and attract top talents

75% of CEOs believe that HR strategy should be based on conclusions from the analysis of company’s operational data Pw. C's 21 st CEO Survey logy Tec hno cture Stru HR Function Transformation oc es s Involving HR in strategy development and strategic decision making as well as creating a CHRO position that will have the same importance in the Board as the CFO Development of dynamic models of employment planning, enabling proper allocation of diverse employees Using modern technologies in communication with candidates in order to better match them to the company’s needs and organizational culture Improvement of work efficiency through introduction of digital solutions Strategy Pr Strategic role of Human Capital Department pl eo e Use of HR analysis in business decision-making processes in order to predict outcomes and diagnose problems Creation of work and remuneration systems supporting the implementation of the company's strategic objectives Development of employee competencies adapted to market challenges and upcoming changes P Support leader in shaping organizational culture Sources: Pw. C's 21 st CEO Survey; HBR

Thank you Agnieszka Batkiewicz Pw. C Poland, People&Change Tel. : +48 519 507 222 agnieszka. batkiewicz@pwc. com