Employee satisfaction and participation

Deutsche Telekom's goal is to become the leading telecommunications provider in Europe. A key aspect in achieving this goal is to have a high-performing organization with dedicated, healthy employees. As a responsible employer we take the concerns of our employees seriously. We want them to fully realize their personal strengths at our Group. Listening to our employees and their ideas is a key element for us in strengthening our innovative culture and in consistently improving our processes and services.

We pursue open dialog and productive exchange with our employees. A key element in this is our Telekom Social Network (TSN), which allows our managerial staff to engage in direct dialog with our employees. Our employee survey is an essential feature through which our employees have the chance to provide feedback. It also helps to identify important aspects for health and getting involved in organizations. We also conduct bi-annual "pulse surveys" to capture up-to-date Group-wide sentiment, and we work to consistently improve our group-wide ideas management efforts. We also offer our employees many different ways to get involved, e.g., in the form of corporate volunteering projects.

These projects are based on our Group-wide Guiding Principles and our Employee Relations Policy.

Our employees have been showing an ever-increasing interest in getting involved in both our Group-wide employee survey and our ideas management initiative. With a participation rate of 70 percent, the 2014 Group-wide pulse survey once again saw the number of participants rise compared to the previous year, and so did the general satisfaction level identified in the 2014 pulse survey. With a total of ten ideas per 100 employees, we also recorded the highest number of submitted ideas. With these ideas we have been able to generate 107 million euros in the form of cost reductions and increased revenues.

The opinions of our employees play a key role in the evolution and transformation of our companyl. That's why we regularly ask our employees questions about relevant issues that have an influence on motivation and health at organizations. Our most important instruments include the regular, Group-wide employee surveys and bi-annual pulse surveys that give us an idea of current sentiment. These surveys allow us to monitor the effectiveness of the follow-up measures introduced in the scope of the employee survey and to identify areas where there is still room for improvement.

Both instruments have met with great response. Around 70 percent of our employees participated in our latest pulse survey in November 2014. Overall, the results generated have been either positive or very positive. They have improved year-on-year (November 2013 - November 2014) in particular when it comes to accepting change in the Group and understanding the corporate strategy. The next Group-wide employee survey will be conducted in April/May 2015.

Ideas management plays a key role when it comes to pushing innovation efforts at our company. Many employees once again participated in 2014. In Germany alone, one out of every ten employees submitted an idea to the Group-wide ideas management program. This shows our employees' strong interest in actively playing a part in improving our products and services. The economic benefit resulting from the 13,231 ideas submitted translated into a total of 107 million euros in cost savings and tapping new business potential. We also promote our ideas management program at special events, e.g., at the second German Diversity Day held on June 3, 2014.

With our "Future needs roots" program, Deutsche Telekom plans to intensify its efforts to honor the contributions and loyalty of our more than 130,000 former employees who are now retired. We want to keep in touch with our former employees and benefit from their know-how and ideas.

In July 2014, Timotheus Höttges, CEO, called on all former Deutsche Telekom employees to sign up on a website where they can get involved in different areas, including local events with managers, expanding the online offer for former employees and participating in product launches and tests. They are also given the opportunity to subscribe to a newsletter and the employee magazine. On the basis of the feedback provided, we will work together with the participants to further advance the program and make it a perfect fit for the wishes and interests of the target group.

With around 15,000 people signed up and more than 750 questions and suggestions submitted, interest in the "Future needs roots" program is very strong. We send out our newsletter and employee magazine on a regular basis; first local networking meetings have been planned.