RBC Financial Group 2005 Corporate Responsibility Report and Public Acountability Statement

Employment worldwide
Fiscal year (ended October 31, 2005)

	Number of employees	Full-time equivalent positions

Canada	55,179	46,401
United States	9,887	9,684
International	4,057	3,927

Total	69,123	60,012

OUR VALUES
What makes RBC different? In a word – people. It’s the excellence of our more than 69,000 employees around the world. Every day, our people bring their values, capabilities, insight and individual diversity and put them to work serving the needs of our clients and our communities.

RBC’s goal is to be an employer of choice, and we are consistently ranked as one of the top employers in Canada. We will continue to provide the leadership and policies to ensure that we are an employer of choice worldwide. This includes our investment in employee initiatives like training and career development as well as flexible working arrangements and respect for diversity.

A dedicated Human Resources Committee of the Board of Directors reviews and approves policies, programs and principles.

DIVERSITY AND EQUITY
RBC recognizes that leveraging diversity is both a sound business imperative and the right thing to do for our employees, clients and communities. Our goal is to foster an inclusive work environment that brings out the best in everyone and provides opportunities for talented employees of all backgrounds.

Structure and responsibility
At RBC, creating a diverse and inclusive work environment is a collaborative effort that engages senior leaders, managers and employees. Our Diversity Leadership Council, chaired by our President and CEO, sets diversity goals, develops strategies, establishes accountabilities and monitors progress. It is supported by Diversity Councils at the business level and functional unit level, as well as employee resource groups and advisory boards. We also have dedicated diversity recruiters and partnerships with organizations and outreach agencies to help us hire diverse candidates.

Goals
We strive to have a diverse workforce that fully reflects our clients and communities, and to meet or exceed employment equity goals in the jurisdictions where we do business, with a particular focus on increasing the representation of women and visible minorities in senior management.

Women
In 2005, RBC’s The Diversity Advantage economic report outlined a strong business case for more fully leveraging the talents and skills of women in the workforce. In 2005, women held 51 per cent of RBC’s Canadian management-level positions.

One way we attract and retain talented employees is by providing a comprehensive array of support and flexible workplace options that recognize the demands parents face as caregivers, such as resources, online tools, and access to personal consulting services. For instance:

• While on maternity, parental or adoption leave, employees have access to professional work/life resources and can return to work gradually or on an alternate work arrangement where possible.

• In 2005, nearly 500 employees in the Greater Toronto area accessed emergency backup childcare centres through RBC, and in the U.S., RBC Dain Rauscher has offered a similar service since 2003.

Visible minorities
RBC recognizes the social and business value of fully integrating and leveraging the talents of visible minorities. We invest in a number of initiatives, ranging from support of pre-employment training programs, to internships, scholarships, educational supports, classroom training in job skills, communication workshops, mentoring and networking, and these highlights from 2005:

• RBC recruiters focus on diversity hiring and our recruitment processes have been thoroughly reviewed for systemic bias. For example, we no longer require applicants to identify initially where they completed their education, enabling them to progress in the employment cycle without concern about their lack of Canadian experience;

• More than 400 employees in the U.K. attended “Building Excellence through Diversity,” and in Canada, we offered a workshop to challenge misconceptions about different cultures and promote better understanding;

• We are a founding supporter of Career Bridge, a four-month internship program that helps integrate experienced foreign trained professionals. Since its inception in 2003, RBC has placed 10 interns and we are committed to placing an additional 10 in 2006. RBC is also a founding member of the Toronto Region Immigrant Employment Council; and

• In the U.S., RBC continues to partner with the National Black MBA Association and the National Society of Hispanic MBAs. RBC Dain Rauscher supports an active Minority Employee Association while RBC Centura is piloting a mentoring initiative for minorities.

Employees with disabilities
According to the 2001 Canadian Census, 3.7 per cent of Canada’s workforce identified themselves as persons with disabilities. In Canada, 2.9 per cent of RBC employees identify themselves as such, and we are striving to increase that number to the same level as the workforce at large, through initiatives such as these in 2005:

• Partnering with community associations such as Bridge to Employment, which offers a wide range of services to assist persons with disabilities obtain competitive employment;

• Placing Ability Edge interns, a paid internship program for graduates with a disability. RBC has placed 48 interns through this program since 1996;

• Sponsoring the Skills Training Partnership Program, a joint effort with government agencies that provides specialized training for individuals with disabilities seeking work in the financial services industry; and

• Partnering with Strategic Employment Solutions in Toronto, Ontario.

We aim to provide a barrier-free workplace for employees with disabilities. In Canada, RBC partners with the Canadian Council of Rehabilitation and Work (CCRW). Their accessibility experts conduct thorough workplace assessments for individual employees with disabilities, which can include recommendations on special furniture requirements, adaptive technology or adjustments to traffic flow within buildings.

At RBC, internal usability experts examine, maintain and improve the tools and technology used by employees with disabilities, such as amplified telephones, interactive messaging on wireless devices, Braille displays and printers, and TTY text telephones. In addition, RBC continues to promote usability and accessibility through various communications media.

Aboriginal employees
RBC is a longstanding supporter of Aboriginal communities. For example, our Aboriginal Stay in School Program has provided “work and learn” opportunities for Canadian youth since 1994, and we employed 65 students in 2005.

We also provide networking opportunities for Aboriginal employees. The Royal Eagles and Royal Circle, self-governed RBC employee resource groups, support Aboriginal employees and communities by:

• Helping recruit and retain Aboriginal employees;

• Providing peer support through mentoring, coaching and networking;

• Raising awareness of Aboriginal culture within RBC Financial Group; and

• Liaising with Aboriginal communities in their home provinces and territories.

Diversity learning resources
RBC supports diversity learning through online training tools and information as well as learning activities. These include:

• Removing the Barriers, an online reference guide to creating an inclusive environment for people with disabilities; and

• Intranet resources: every month, almost 3,000 employees visit RBC’s internal diversity websites in both Canada and the United States, representing 150,000 hits per year.

Diversity leadership
At RBC, we strongly believe in the business advantage of diversity in the workplace, and believe it is our responsibility to lead positive change in this area. In 2005, we took part in a number of initiatives, such as:

• A Conference Board of Canada research study on maximizing the talents of visible minorities in Canada. The study resulted in a comprehensive “how-to” guide to help employers better leverage the expertise of visible minorities;

• The publication of The Diversity Advantage, an economic study quantifying the benefits of diversity to the Canadian economy, with our President and CEO giving three major speeches on the topic;

• Partnering with the Institute of Disability Studies at Ryerson University in Toronto on a project to discover how people with disabilities learn inside an organization. The final report is due in 2006; and

• Sponsoring a multi-year study with Catalyst to determine how to leverage the talents of visible minorities in the workplace.

THE RBC EMPLOYEE EXPERIENCE
Our people are our competitive advantage, and our clients tell us that our employees are knowledgeable and professional and act consistently in clients’ best interests. We attract, engage and retain a world-class workforce through a comprehensive total rewards program that addresses the elements of the employee experience.

Total Rewards
The Total Rewards program at RBC includes competitive compensation, flexible benefits, a positive working environment and career, and learning opportunities that reward people for their skills, knowledge and contribution to results.

RBC’s short-term incentive (STI) program rewards employees for their personal contributions to their business units’ performance and the company’s overall performance. Employees can also participate in employee savings and share ownership plans, and more than 80 per cent of eligible employees are RBC shareholders through this program.

Employees set goals and receive ongoing feedback on their progress including regular mid-year and year-end performance assessments with their managers. RBC also has a number of programs to reward and recognize employees for high performance and service tenure.

Learning and career development
Changing client needs and emerging technology are reshaping the financial services landscape. RBC provides the resources and opportunities employees need in order to adapt and grow, both personally and professionally. In 2005, we invested $116 million in training and development.

Our employees have access to a host of formal and informal career development alternatives:

• A web tool helps employees manage their careers and apply online for internal job opportunities; and

• In 2005, to support our Client First Initiative, RBC enhanced training programs for people managers and branch Client Service Representatives.

Workplace flexibility
RBC is committed to fostering a culture that responds to changes in our workforce, workplace and client base. By creating customized solutions and leveraging technology, we can help employees manage their multiple responsibilities at work, at home and in their communities.

We provide a series of formal and informal flexible work options, including part-time or reduced hours, flextime arrangements, modified work hours or weeks and where possible, the opportunity to telework (work offsite from home or a satellite office). Approximately 1,000 employees work in job-sharing arrangements. Employees have the opportunity to purchase additional time off to follow personal pursuits. For those nearing retirement, working reduced hours may be a viable approach to winding down projects and mentoring a younger generation.

Health, safety and employee wellness
RBC promotes and supports a healthy and safe work environment, and we encourage employees to lead a healthy lifestyle by:

• Facilitating access to appropriate medical and support networks;

• Promoting wellness and providing timely information; and

• Encouraging fulfilling and rewarding working relationships.

Employees can access an EmployeeCare program that provides confidential information on a variety of work/life issues, including professional consultants to provide confidential, personalized telephone consultations; individualized searches; as well as referrals and educational materials.

RBC maintains a supportive, safe and productive work environment. Our health and safety policy was updated in 2002 and a 12-member executive committee is responsible for both monitoring health and safety issues and setting policy for the entire organization. In addition, each business develops and monitors its own initiatives, with some 1,500 local health and safety representatives.

Managing change
Doing what is necessary doesn’t always mean doing what is easy. RBC takes great care when we embark on structural changes to minimize the negative effects on our employees. In 2004–2005, RBC restructured our operations, resulting in the reduction of some head office positions and the creation of new positions in client service. Displaced employees were provided with financial support and career counselling to find other employment.

During the transformation, our goal was to keep employees informed of changes, and we developed a number of special communications including dedicated intranet sites, conference calls and dialogues with leaders. We consulted employees through surveys, which helped guide the implementation. Surveys showed that most employees agreed the changes were necessary and that they would benefit RBC clients.

Recruitment
Building for the future is important and, in 2005, RBC hired over 6,000 new employees. Recruiting is an ongoing process to bring talented people into RBC. Some of our recruiting strategies include:

• Visits to 70 to 100 university, college and technical/business campuses each year;

• In-branch, newspaper, magazine and radio advertising in targeted areas;

• An employee referral program;

• Career intake programs that provide internships for new college and university graduates; and

• Being a founding sponsor of Career Edge, an internship program developed to provide 6- to 12-month internships to new post-secondary graduates. RBC hosted five Career Edge interns in 2005 and has hosted 88 interns since 1996.

Helping new employees succeed is critical for RBC’s success. In 2006, RBC will formally seek feedback from new employees to learn about their early impressions of RBC and help us refine the way in which we welcome and orient new employees.

EMPLOYEE FEEDBACK
Listening and responding
RBC’s goal is to continue to be one of the top performing companies in North America. A large part of this success depends on listening and responding to employee opinions. RBC has conducted employee opinion surveys since 1981, and this feedback helps us establish priorities and take action in areas where we need to improve.

In 2005, we conducted two global surveys (with 35,000 employees responding) to understand how RBC employees were responding to the Client First Initiative. In early 2006, a survey of RBC’s entire employee population will solicit feedback on a variety of measures including employee engagement and commitment to client satisfaction.

RBC has a history of acting on employee input. For example, in research undertaken in 2003, employees and managers both indicated a preference for RBC to invest in better skills and expertise for those with people management responsibilities. In 2004 and 2005, RBC continued to build on the “Managerial Excellence” program to provide people managers with tools, support, resources and development opportunities to improve leadership and managerial skills, including:

• A new resource website, Managing My Team, providing news and improved access to the resources people managers need to lead a team and manage administrative responsibilities;

• A new Managerial 360° Review Profile that allows managers to obtain the feedback of peers, employees and their manager to further advance their personal development plans; and

• Learning modules designed to provide a series of foundational skills for people managers.

RBC will continue to seek employee opinions and use this feedback to help establish priorities and take action. We will track managers’ progress in addressing these through employee-wide surveys planned for early 2006 and subsequent years.

Recourse for employee concerns
Even in the best workplaces, problems can arise. At RBC, managers are encouraged to resolve issues with their employees whenever possible, and we provide tools, such as manager and employee helplines to provide quick assistance. If concerns cannot be resolved at this level, our Employee Ombudsman, an arm of our Office of the Ombudsman, provides a confidential and objective way for employees to manage and resolve workplace conflict through coaching and mediation. In 2005, the Employee Ombudsman handled 1,100 cases, and of these almost 75 per cent were successfully resolved between the employee and their manager.

Information sharing
Keeping employees informed is part of the RBC culture. Employee communications channels include a central intranet news site, e-mail bulletins, broadcast voicemails, leader-led sessions, executive town halls, roundtables and satellite sessions with senior executives.

In addition, the CEO hosts a quarterly conference call for all employees, which covers financial and business performance, key initiatives, and updates on the employee programs. The majority of the call is fully interactive, with the CEO and senior management team answering questions that come in live from RBC employees around the world. Employees who cannot participate may access a recording of the quarterly call at their convenience.

We use a coordinated network of professional communicators, organized by business, function, region
and country.

RBC’s senior management team spends time meeting with employees to share the company’s goals, strategies and progress. Employees are encouraged to provide feedback in a variety of ways. Channels are provided to foster dialogue, not just one-way communication.

For more information, visit rbc.com/careers.