Gallup selects Mashreq for the Gallup Great Workplace Award 2014

What is THE GALLUP GREAT WORKPLACE AWARD? Is a prestigious award extended to the world's top-performing companies that help lead the global economy by engaging their workforces. The Gallup Great Workplace Award recognizes these excellent companies for their extraordinary ability to create an engaged workplace culture that drives real business outcomes. Gallup selects Mashreq for the Gallup Great Workplace Award 2014 Out of 36 winners across the globe, Mashreq is the only bank in the Middle East to have won the Gallup Great Workplace Award 2014 1

Structure of this Document The Global state of Workforce Engagement The Mashreq story - Driving Staff Engagement The Mashreq story - Impact of Engagement 2

A picture of the Global workforce I can t wait to get back to work My job is okay, but 15% more money & I ll Oh No, it s Sunday again ENGAGED PASSIONATE NOT ENGAGED EMPLOYEE CHECKED - OUT ACTIVELY DISENGAGED EMPLOYEE DESTRUCTIVE 2010 2012 11% 62% 27% 13% 63% 24% Source : Gallup data

engagement of employees at Mashreq stands out Mena 35% 55% 10% U.A.E 14% 60% 26% Actively Disengaged Not Engaged Mashreq 7% 26% 67% Engaged..this does really matter a leading indicator of performance. Source : Gallup data

Structure of this Document The Global state of Workforce Engagement The Mashreq story - Driving Staff Engagement The Mashreq story - Impact of Engagement 5

engagement at Mashreq was at fairly pedestrian levels only a few years ago.. Mashreq s Engagement Journey Mashreq embarked on the Employee Engagement journey with Gallup as partners in 2008. After early stagnation, engagement increased significantly in the past 3 years, and today is at world class levels. Key Demographics 2013 7% 26% 67% 2012 10% 35% 55% 2011 18% 45% 37% Actively Disengaged Not Engaged 2008 22% 53% 25% Engaged

What contributed to this evolution? Strategic use of Employee Engagement surveys Simple, focused Linked to Performance (Show me the Money) Key role played by 3 different constituencies: Leadership HR Manager and team Change in thinking : Engagement not = Money & Rewards alone, not socialisation Engagement everyday 7

GARBAGE IN GARBAGE OUT.. ENGAGEMENT AND SATISFACTION ARE DIFFERENT 8

Focus on what matters the Gallup Q12. 1. Clear expectations 2. The right materials and equipment 3. The opportunity to do what I do best every day 4. Recognition or praise for doing good work in the last seven days 5. A supervisor who cares 6. Someone at work who encourages my development 7. My opinions count 8. The mission or purpose of my company makes me feel my job is important 9. Fellow employees are committed to quality work 10. A best friend at work 11. Someone has talked to me about my progress in the last 6 months 12. Opportunities to learn and grow in the last year

Diving into Key Focus areas Enterprise Questions I plan to be working for this organization one year from now I am proud to be working for Mashreq Bank I believe the leadership at my organization makes me enthusiastic about the future I am empowered to make critical decisions while handling my customers' needs or requirements Mashreq is more customer centric today than what it was one year ago I feel that the existing systems and procedures in my organization encourage prompt service to customers At Mashreq we are constantly looking at newer and better ways to do things There is open communication throughout all levels of the organization I feel that the management actively seeks and encourages feedback from employees. There is cooperation between my department and other departments with whom I work. I am clear about the criteria on which my performance is evaluated At Mashreq Bank, performance appraisals are done in a fair and transparent manner Loyalty Pride Leadership Empowerment Customer Centricity Systems & Procedures Innovation Communication Communication Inter-department cooperation Performance Management Performance Management

2011 Tipping point Show them the Money!!!!! 2011 Business Impact In 2011, it was important to establish a business case for engagement, or to risk it dying out. Engaged Employees have a 28% better performance versus targets on personal loans than Not engaged employees Business Case presented in 2011 Engaged Employees sell 4% more credit cards than Not engaged employees Mashreq Branches with higher engagement outperform lower engaged branches on Business Metrics Attrition among employees with higher engagement (>=75th %tile) was half that of the bank as a whole. Engagement of those that left the bank was low as per the earlier surveys 17% 3.79 3.76 3.62 3.53 Engaged Employees Not Engaged Employees -11% High performers who left High performers who stayed back Engagement of those that left Rest of Mashreq Engagement

How did we bring in the difference? Leadership Driving engagement HR EMPLOYEE ENGAGEMENT Line Managers Enterprise + Local level action

Engagement became the platform around which to deliver on Key Strategic Initiatives Strategic Initiatives Mashreq works on a 3 year strategy with key strategic initiatives identified for the period. Engagement became the platform around which each of these Strategic initiatives was driven Driving Revenue Engagement Driving the Nationalization agenda Grow overseas contribution

Mashreq Employee Engagement (MEE) umbrella Instilling Pride Communication MEE Umbrella Sense of belonging Physical Well Being Recognition

What drives engagement at Mashreq?

Impact engagement through the year 1st Quarter 2 nd Quarter 3 rd Quarter 4 th Quarter Communication Recognition Performance Management MEE Corporate Social Responsibility OD Initiatives CA Townhall CA Townhall CEO s Townhall Engagement Survey Communication campaign Al Mashreq -Internal Magazine Skip Level meetings Al Mashreq -Internal Magazine Rewards & CEO s Club -U.A.E, Closure of R&R Recognition Budgets Qatar+ Egypt Setting MBO Mid Year Review Performance Management Internal Poll Sharing Engagement results Engagement Training Workshops Impact planning sessions Family Day Engagement - health check via internal Poll Engagement Training Workshops New managers Review of Impact Plans Health awareness camp MEE survey Blood Donation drive Summer Camp for Staff children Mashreq First Step (internship program Budgets Annual Appraisal Share Survey results with individual groups Free health checkup camps Mashreq Cares Reward staff children for their academic achievements

The catalyst to building engagement The Local Manager/Leader!! Poor Great Workplace Engagement 18

What drove the change Building culture where it is created 621 860 959 44 2011 2012 2013 2014 Get Feedback Action Planning Making Progress 63% Strongly agree that they got feedback on MEE (50% in 2012) 61% My team had an effective action planning session (48% in 2012) 61% My team made progress on goal set (47% in 2012)

Structure of this Document The Global state of Workforce Engagement The Mashreq story - Driving Staff Engagement The Mashreq story - Impact of Engagement 2 1

..employee engagement at Mashreq has indeed been a leading indicator of Mashreq s financial performance Bank Overall In the last 2 years, Mashreq s Net Profit has more than doubled This pace of growth has outstripped competition. External vindication has come from a string of prestigious international awards, including being the Best Banking group in UAE. The above illustration depicts Mashreq s financial performance compared to its peer group.

Engagement impacts Key Strategic Initiatives (2 of 3) Driving the Nationalization agenda Engagement has again helped drive this strategic agenda the Emirati engagement levels went up by 0.56 in the 2011-2013 period. Mashreq Emirati engagement is significantly higher than overall Emirati engagement in the Middle East). Given this engagement situation, it is no surprise that Emirati attrition dropped by 15% in 2013 alone, with the high engagement now a great sign for the future. 4.02 4.29 4.58 GrandMean 2011 GrandMean 2012 GrandMean 2013 UAE Nationals

The Future does Mashreq still need to focus on enhancing Employee Engagement? Is building Engagement still important? After having seen a dramatic upsurge in engagement in the last couple of years, a question that arises is whether the cost of building engagement is justified by the potential value. 2013 data tells a very clear story more engaged units continue to perform at a much higher level than others (as shown below) both the upside potential of boosting engagement and the downside potential of allowing engagement to fall are stark Engagement will stay on the radar screen for Mashreq as a key Business indicator. High Engagement levels improved customer issue resolution

[FINANCIAL IMPACT] The Engagement Journey [1] Learning, Adjustment, & Alignment [2] Performance Measurement & Accountability [3] Education & Dialogue Interested Beginner Serious Builder Accomplished Practitioner Consistent Excellence (On-going) [TIME] 25

Lessons learnt from driving Change Change takes time Leadership involvement Demonstrate the linkages to Performance Ongoing communication Create Accountability Coach managers on how to drive action Follow through to ensure continuous feedback/proper execution