By personnel costs we mean basic personnel costs (salaries) and incidental personnel expenses. The indicator is adjusted for special factors in conjunction with personnel restructuring measures (individual downsizing instruments). The personnel cost ratio represents personnel costs as a proportion of revenue. The development of this rate serves as a benchmark for company business. In the Group, the personnel expense ratio fell once again this year. Following a record low last year, the ratio last year, the ratio fell again this year by 0.3 percentage points to 15.8 percent. The significant increase in Group sales is only one reason, alongside the proportionally lower rise in personnel expenses.
The disadvantage of the personnel cost ratio is that it ignores external personnel costs. Therefore the total workforce costs ratio is more meaningful for the management of personnel costs at Deutsche Telekom.
By personnel costs we mean basic personnel costs (salaries) and incidental personnel expenses. The indicator is adjusted for special factors in conjunction with personnel restructuring measures (individual downsizing instruments). The personnel cost ratio represents personnel costs as a proportion of revenue. The development of this rate serves as a benchmark for company business. In the Group, the personnel expense ratio fell once again this year. Following a record low last year, the ratio last year, the ratio fell again this year by 0.3 percentage points to 15.8 percent. The significant increase in Group sales is only one reason, alongside the proportionally lower rise in personnel expenses.
The disadvantage of the personnel cost ratio is that it ignores external personnel costs. Therefore the total workforce costs ratio is more meaningful for the management of personnel costs at Deutsche Telekom.