In order to remain competitive, we need to incorporate future developments into our HR planning activities. We need to be able to identify upcoming challenges as early and reliably as possible, whether these be changes on the market, technological advancements or the effects of demographic change.
We need to be able to judge whether we have the right personnel for our business activities—the right number of employees at the right time with the skills and abilities needed for the job. Personnel costs need to be acceptable as well. To this end, we have set up qualitative and quantitative HR planning. Its core element, Total Workforce Management (TWM), gives us one of the world's best methods for HR planning and management. The first step was to standardize the SAP-based data basis. We are now able to determine how many employees with which skills we need by simulating and analyzing various estimates relating to factors such as demographic developments and future business demands. This will help us make sure that we have the experts we need at the right time. It also means that we can find alternative work options for our specialists as needed. And Total Workforce Management helps us meet our responsibility of providing long-term employment and creating interesting development opportunities for our employees. We can make decisions regarding HR development, the vocational training structure and the number of trainees and direct hires we will need in upcoming years as well as whether and how we can best realize new business models. Moreover, we also incorporate services procured from freelancers or external service providers, through offshoring for instance. Of course, we involve employee representatives when making all of these decisions.
We began working with the Total Workforce Management approach in 2008/2009 in pilot areas at Telekom, for example for HR planning activities 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. We expanded the method in 2010 and 2011 by adding planning tools for the demographic and skill-specific workforce structure, for example, in order to optimize our continuing education budget and training policy. We also introduced Group-wide Labor Cost Management . At the same time, we embraced the TWM approach in the entire Group worldwide. Most international subsidiaries—for example in Brazil, Malaysia, Mexico, Poland, Slovakia, South Africa, the Czech Republic and Hungary—now rely on defined TWM procedures for strategic, integrated HR planning. We have introduced TWM at more units since the beginning of 2012, e.g., in the OTE Group (Greece), T-HT Hrvatski Telekom (Croatia) and at our central innovation unit Products & Innovation.
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