HR Report 2010/2011 - Deutsche Telekom AG

Integrated, efficient and elastic corporate and workforce structures are required if we are to offer our customers an outstanding portfolio of products and services. The basis for this is maximum workforce efficiency and effectiveness.

Competitive workforceHR Big 4 and Group strategy Service culture Talent agenda HR@2012 12 Software-supported and KPI-based. TWM creates global transparency on all internal and external staff, capacities and resources, and does so in terms of quantity and quality, skills, age structure, costs and productivity. The external resources include freelancers, consultants and employees in outsourced work areas. Global Labor Cost Management: Database in our integrated Total Work- force Management. The Global Labor Cost Management (LCM) project was launched in summer 2010 and is one component within Telekom’s Total Workforce Management. It not only supports HR planning but also helps to achieve fair market pay. LCM supports planning and management of per- sonnel costs. The object of the project is to make personnel costs and re- muneration structures in the national companies transparent for the entire Group. Once established, this transparency makes it possible to steer the necessary adjustments to economic, industry-related and local corner- stones in the national companies. So-called LCM reports, documents that summarize the key results per legal entity, were developed and are made available to the companies as a management instrument. Focused skills management. Lean, flexible workforce structures coupled with sustainable know-how are the two goals we have set our sights on with our sustainable skills management based on qualitative human resources planning through which we will be ascertaining skills that will be required in future. Ascertaining skills and comparing them with the skills base in the individual job families within the current workforce provides the basis for skills management that is a perfect fit and not a random process. In our CAMPUS training programs we provide lacking skills to all our employees Group-wide. Furthermore, T-Systems set up a service agency for the entire organization on July 1, 2010 in order to implement its skills-shift measures. It coordinates and manages skills (re)development for employees in order to equip them with the know-how they will need to satisfy future market re- quirements. Parallel to this, our People Empowerment project at Systems Integration is driving skills (re)development for some 1,100 employees. The aim is to build success-critical know-how within the company itself. T-Systems manages its staffing – assigning the right people to the right jobs – for customer projects primarily through a skills database, which currently holds over 20,000 skills profiles. Personnel costs. 2007 to 2010. Deutsche Telekom Group worldwide. In billion 1 2007 2008 2009 2010 Personnel costs in the Group 15.4 14.1 14.3 15.1 of which: Germany 11.3 9.8 9.0 9.2 Special factors 2.0 d 1.1 c 0.5 b 1.0 a Personnel costs in the Group adjusted for special factors 13.4 13.0 13.8 14.1 Net revenue 62.5 61.7 64.6 62.4 of which: Germany 31.5 29.7 28.4 28.1 Adjusted personnel cost ratio (%) 21.5 21.1 21.4 22.5 Adjusted personnel cost ratio, Germany (%) 30.2 29.9 30.1 30.4 Special factors (in billion 3) Calculated and rounded on the basis of millions for greater precision. a Expenses for staff-related measures (early retirement arrangements, severance and voluntary redundancy payments, compensation payments, etc.) primarily in the Germany (- 0.4), Europe (- 0.2) and Systems Solutions (- 0.1) operating segments, as well as at Group Headquarters & Shared Services (- 0.1). b Expenses for staff-related measures (early retirement arrangements, severance and voluntary redundancy payments, compensation payments, etc.) primarily in the Germany (- 0.3) and Systems Solutions (- 0.1) operating segments, as well as at Group Headquarters & Shared Services (- 0.1). c Expenses for staff-related measures (early retirement arrangements, severance and voluntary redundancy payments, compensation payments, etc.) primarily in the Germany (- 0.8) and Systems Solutions (- 0.3) operating segments. d Expenses for staff-related measures (early retirement arrangements, severance and voluntary redundancy payments, compensation payments, etc.) primarily in the Germany (- 1.1), Southern and Eastern Europe (- 0.1), and Systems Solutions (- 0.2) operating segments, as well as at Group Headquarters & Shared Services (- 0.5). Personnel costs and EBITDA per employee. Full year 2009 and 2010, per FTE. In thousand 1 Adjusted personnel costs 2009 Adjusted personnel costs 2010 EBITDA 2009 EBITDA 2010 Germany 65.6 67.3 74.5 72.1 International 41.3 43.9 86.1 82.2 Group as a whole 53.6 55.7 80.2 77.1 Total workforce ratio at Deutsche Telekom. in 2010. in billion 1 Adjusted PC1 EWC2 TWC3 Revenue Adjusted TWR4 Group as a whole 14,1 2,9 17,0 62,4 27,2 % Germany 8,5 1,6 10,2 28,1 36,3 % International 5,5 1,3 6,8 34,3 19,8 % 1 Personnel costs 2 External workforce costs: cost of leased and temporary staff + + cost of contractors and consultants 3 Total workforce costs: external workforce costs + personnel costs adjusted for special factors 4 Total workforce ratio = TWC/revenue