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The HR Report 2011/2012.

Enhancing growth, productivity and skills.

26 Competitive workforceHR Big 4 and Group strategy Service culture Talent agenda HR@2012 Competitive workforce. Enhancing growth, productivity and skills. To keep Deutsche Telekom on course in an extremely dynamic industry and with keen price pressures, 2011 saw us focus on three key areas. Our qualitative HR planning, with Total Workforce Management (TWM) at its core, has been established Group-wide. In addition we have continued the indispensable workforce restructuring and structural realignment in Germany and Europe. At the same time we have also pressed ahead with the expansion of our exemplary occupational health and safety scheme. Group-wide qualitative HR planning with Total Workforce Management. Trailblazing Total Workforce Management: Global resource transparency plus systematic planning, management, develop- ment and control of personnel resources. At Deutsche Telekom we examine not only employee numbers but also aspects such as skills, age structure, costs and productivity. We include these parameters in our annual HR planning, identifying action points which we manage and monitor throughout the year. ƒƒ We started piloting TWM back in 2008/2009 and used it for qualitative HR planning in Germany. One of our main aims was to look at the current skills profiles of the workforce and to compare it with future business demands. ƒƒ In 2010 and 2011 we broadened our approach considerably, so as to be able to tackle strategic HR challenges with even greater focus. For example, we have tools to plan the demo- graphic and skills-specific composition of the workforce, and tools for optimizing the training budget and training policy. We have also introduced Group-wide Labor Cost Management. ƒƒ In parallel to this, TWM was established worldwide. Most na- tional companies – for example in Brazil, Malaysia, Mexico, Poland, Slovakia, South Africa, the Czech Republic and Hun- gary – now rely on defined TWM procedures for strategic, integrated HR planning. ƒƒ We have introduced TWM in more units since the beginning of 2012, e.g., in the OTE Group (Greece), HT (Croatia) and in our central innovation unit Products & Innovation. So we are on the way to our goal of global coverage and consolidation of TWM know-how in all countries. Tackling challenges with TWM. In our Total Workforce Man- agement we have one of the world’s best HR planning and man- agement tools. Most HR units only make plans for quantitative aspects, if at all. Deutsche Telekom, a Group active and integrat- ed worldwide, is faced with numerous HR challenges of a quali- tative nature. For example, keen price pressures in the ICT mar- ket demand a highly flexible workforce. TWM helps build flexible and cost-effective performance capabilities within the Group, not least through global-sourcing measures with a near and offshore mix resulting from qualitative HR planning. Innovation cycles are getting shorter all the time and require a workforce to be contin- ually retrained and upskilled. TWM helps us face up to these and many other challenges. Even in difficult times, therefore, we have been able to reduce the workforce in a socially responsible way, keep our staff costs competitive and our age structure balanced, offer apprentice- ships to many thousands of young people, manage our training budget for tens of thousands of employees in line with demand, and make substantial improvements to our recruitment policy through skills-oriented planning.