Complete care of its employees, from the planning process and the search for the right personnel, through to the career development, is left to human resources experts. The core HR functions, on which a special attention is given, are the organization's needs for an efficient organizational structure, analyzing the need for each position, planning, selection and recruitment of employees that will best fit into organization with their competences and qualities, tracking success and career development, developing and implementing remuneration, as well as developing and shaping organizational culture and internal communications. All the functions in the following chapters are explained on the example of J&T bank d.d., a small bank based in Varaždin, also, a comparison with similar competing banks in Croatia was done, where on the basis of published data, certain conclusions about average salaries and other benefits that these institutions give to their employees were made. In Croatia, banks are limited by additional legal regulations prescribed by the Croatian National Bank, especially in respect of the benefits that the bank can give to its employees. The limitations mentioned are mostly related to income based on the employee success i.e. variable pay, refering to the maximum allowed level of variable pay, defined period of evaluation, the specificities of the approval procedure for these payments etc. What are the advantages and disadvantages of small banks versus the large ones, from the standpoint of employees, is also concluded in this graduate paper.