New salary model in Danske Bank
Get insights into the new salary model in Danske Bank and how to position yourself for a discussion about your place within the pay range.
In a significant step towards increased salary transparency, Danske Bank and Finansforbundet in Danske Bank have agreed on a new salary model.
The agreement includes the salary model itself as well as provisions for handling various circumstances and situations.
The job architecture is common across the entire group, while some agreements are determined at country level depending on legislation and collective agreements.
The agreements that apply to employees working in Denmark - except those employed on individual contracts - are set out in the local salary agreement (K22), which is an addendum to the company collective agreement.
Read the local agreement K22 (accessible from a Danske Bank device only)
The agreement introduces a structured job architecture in which roles are classified into job families and subfamilies. Each role is assessed based on two main parameters:
- Responsibility
- Complexity
This assessment system makes it possible to define a clear salary level, indicated by a letter (A–L). For each level, a pay range is defined with an upper and lower limit.
The second part of the valuation system focuses on individual employees. Three parameters are evaluated:
Performance
Experience
Competencies
Each employee is assessed based on these criteria to determine where they should be placed within the salary range for their role.
In this way, salary is based not only on job requirements but also on the individual employee's contribution to the group.
It is important that we as employees focus on the three evaluation parameters:
- Performance
- Experience
- Competencies
This focus should not only apply to annual salary dialogue, but also to day-to-day work. The annual salary dialogue provide an opportunity to discuss performance, obtain feedback, and align expectations. The focus should be on how the individual contribution aligns with the assessment criteria.
Performance
Performance is not only about achieving goals, but also about actively contributing to the overall success of the team. By demonstrating accountability, initiative, and results, employees can position themselves more strongly in their roles.
Experience
Experience can be built through daily tasks as well as by taking responsibility for new projects or initiatives. Stepping out of your comfort zone and taking on new challenges helps build not only experience, but also visibility and value within the Group.
Competencies
Skills are essential to meet current and future requirements. It is important to actively develop both professional and personal competencies, whether through courses, workshops, or collaboration with colleagues.
By focusing on these three parameters in both daily work and salary dialogues, employees can, over time, position themselves in the best possible way to gain recognition and establish a strong foundation for discussions about salary distribution.
What you need to know about the new salary model
In connection with the implementation of the new salary model, consideration has been given to employees who fall outside the defined pay range, as well as those currently at salary step 1.
According to the agreement, employees whose salary exceeds the agreed range for their roles will not receive adjustments related to collective salary increases until they fall within the salary scale. This corresponds to the previously known practice regarding system allowances.
Employees whose salary is below the salary range for their current role will work with their immediate leader to prepare an individual plan outlining how they can move into the applicable salary range within a maximum period of three years.
In this way, we ensure that salaries that are too low are addressed in current roles. Although this does not happen immediately, it represents a process that was not previously in place.
According to the new agreement, employees in Denmark who are currently at salary step 1 under the previous salary model will receive a salary increase corresponding to salary step 2 within the first year.
Finansforbundet in Danske Bank has contributed to establishing the framework for salary grading and access to information.
However, the implementation of this framework lies with the immediate leader and HR. Therefore, any questions regarding specific salary grading or access to information on the HR platform should be directed to the immediate leader.