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The HR Report 2011/2012.

25 Competitive workforceHR Big 4 and Group strategy Service culture Talent agenda HR@2012 With all these decisions, the HR Business Partner naturally in- volves the employee representatives. In addition to various indi- cators on productivity, skills, age structure and availability of human resources, the HR Business Partner also keeps an eye on key health indicators. At the end of 2010, we conducted a detailed employee survey to identify any health issues and imple- mented extensive measures during the reporting period to pro- mote health among the workforce. 2. Enable Transformation. We intend to be a highly regarded service company and in this respect see the necessary changes as an opportunity for the corporate culture as well as each and every individual. We promote the service mindset of customer- facing employees through service training and service careers. Due to their particular importance for improving service and crea- ting a service culture we train thousands of executives in the Ser- vice Academy. A large, constantly changing enterprise with numerous locations in many different countries and with many different tasks must – in addition to professional change management – build on a shared value system enshrined in the corporate culture. To this end we have implemented our Guiding Principles worldwide and con- stantly invigorate them through specific campaigns. We also con- tribute to culture change by systematically increasing the pro- portion of female executives. Increasing global networking of individuals is a compelling proposition not just in light of the busi- ness opportunities, but also on account of the new opportunities for collaboration and communication externally and internally. The HR department must create the cultural conditions to posi- tively leverage virtual networking with colleagues from all coun- tries. 3. Best People. As an attractive employer we aim to develop our experts and executives internally on a broad scale and supple- ment these with capable employees from outside. We have con- tinually made ourselves more attractive as an employer over the past few years by means of a creative, target group-specific pres- ence in the new media, along with outstanding initiatives in the talent market. Our workforce is made aware of just how attractive their employer is through a wide range of options for part-time study, work-life balance and comprehensive measures that pro- mote a motivating working environment. Each employee should receive a realistic appraisal of their strengths, areas for development and prospects. We support ex- ecutives accordingly with targeted HR promotion. That is why we systematically use tools for assessment, promotion and succes- sion planning purposes. At least once a year, all superiors take the time to provide each individual employee with personal feed- back on their performance and discuss future development op- portunities with them. In this respect, transfers between various units are actively encouraged as an opportunity to gain a dif- ferent perspective. Executives single out employees with great potential for talent programs, thus raising the visibility of these individuals. At the same time, the business benefits from trans- parency in terms of the quality of HR resources. 4. HR Excellence through HR@2012. Again, we worked to make the HR unit even more effective and more customer-friendly in 2011. We have further honed the three HR roles (in particular the Business Partner role, but also those of Competence Centers and Shared Services) which helped us improve customer satisfaction ratings by our employees, along with the productivity of Shared Services. In all business units, Business Partners are involved in business strategy tasks and provide support through specific HR planning. We have simplified self-service for all administrative tasks. Both employees and executives receive a rapid response via chat or telephone. Through the Group-wide harmonization of the HR product port- folio, we have reduced the variety of products yet nonetheless aligned ourselves more closely to the requirements of the busi- ness as well as employees and their line managers. We aim to achieve the necessary international standardization of HR ser- vices while leaving sensible leeway for local implementation by professionalizing HR product management with a standardized and systematic portfolio. Roll-out of a globally standardized HR IT system got underway in the Netherlands – paving the way for an IT system with standardized structures and a user-friendly interface. HR IT will become much more customer-friendly and efficient as a result. @ Detailed information about our Group-strategy can be found in the Annual Report 2011 on the Internet at www.annualreport.telekom.com.

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