HR responsibility.

We are pursuing the ambitious goal of delighting our customers and making things simpler. Our goal is to create the best customer experience possible—in everything we do. This is what our employees worldwide strive to put into practice every single day. Our responsible HR policy is a key factor behind our success. With our new HR strategy adopted in 2013 we have initiated a comprehensive process to update our corporate culture in order to increase the Group's competitive edge, innovative strength and ability to transform the Group on a long-term basis. Just like our Group-wide Employee Relations Policy and our Social Charter, our new HR strategy is a perfect example of how seriously we take the responsibility we bear toward our employees.

The strategic context.

"Seamless connectivity for the Gigabit Society," "More innovation by cooperation," "Secure cloud solutions," and "Best-in-class customer experience"—these are the four action areas of Deutsche Telekom's Group strategy. Their implementation is defined by the call to "Compete—Transform—Innovate" which, in turn, provides the framework for our human resources strategy. We have also incorporated any external factors that could influence the focus of our personnel strategy, including megatrends such as globalization, individualization, sustainability and demographic change, as well as Deutsche Telekom's competitive environment. Our mission is to permanently support and accelerate the success of our company and our employees.

Productivity, Performance, Power—the three main drivers of our HR strategy.

In early 2013, Telekom introduced a new human resources (HR) strategy and laid the framework for its implementation. Our strategic principles are clearly formulated: HR's role is to accelerate the success of the company and its employees. Through these principles, we promise to develop processes and products with a measurable influence on the success of our company and its employees. Our HR work is therefore clearly centered around the three strategic thrusts of Productivity, Performance and Power.

  • Productivity means deploying employees with the right skills and attitude, in the right place, and at an appropriate cost in relation to capacity. This is one of our fundamental tasks.
  • Performance means systematically focusing on performance and establishing a leadership concept that supports and rewards achievement transparently and appropriately.
  • Power means our company's agility, flexibility and capacity to innovate. We create the framework conditions to inspire and motivate our workforce.

These three strategic drivers make a decisive contribution towards Deutsche Telekom's corporate success.

Four strategic cornerstones: “HR BIG 4“.

We have defined the following four focal areas for 2013:

HR BIG 1: We manage our internal and external employee structure to maximize productivity. This means

HR BIG 2: We embrace inspiring leadership principles to encourage and reward top performance. To this end, in 2013 we are

  • Preparing to roll out a new performance management system for our executives to inspire even more entrepreneurial ideas and actions, and
  • Introducing Group-wide leadership principles for the first time.

HR BIG 3: We create modern work environments where professional experience and knowledge can be shared and enhanced.

We achieve this by

  • Applying work models that reflect the different lifecycles of our employees in line with the demographic structure of our workforce,
  • Introducing modern workplace concepts and new worktime models.

HR BIG 4: We are committed to clear and simple processes.

HR MOVES!–eight strategic initiatives drive the implementation of our HR BIG 4.

We are speeding up the implementation of the HR BIG 4 in 2013 with the HR MOVES! program. We bring together eight strategic initiatives that address our most important topics in our HR MOVES! program:

Demography, work environments, collaboration, efficiency, leadership, performance and costs. These initiatives will maximize the effect of the HR BIG 4 in Deutsche Telekom's operational business. Here is an overview of the initiatives:

  • Demography as an opportunity: We identify the challenges associated with demographic change, and develop appropriate solutions. The priorities are lifelong learning, health, concepts for greater flexibility of working hours, and cultural change.
  • Future Workplace: In an initial pilot project, we have developed a workplace concept which incorporates architectural requirements and the necessary IT infrastructure, whilst also accommodating the culture of collaboration. Our office space is carefully designed to create a modern working atmosphere and encourage close collaboration between employees. This concept will become our standard for optimizing the Deutsche Telekom Group's property portfolio.
  • Global Collaboration: We support international cooperation within the Group. This means encouraging the use of English in day-to-day operations. We are also developing technical solutions to make virtual collaboration even easier.
  • Fix the Basics: We are scaling back the complexity of our HR products and processes, and streamlining the entire HR portfolio. We are also working on an integrated, customer-centric HR process landscape with extensive automation.
  • Deutsche Telekom leadership principles: For the first time, we are developing uniform Group-wide leadership principles, and integrating them into our leadership processes and systems.
  • New Performance Management: This initiative will simplify existing performance management tools for our executives, with an emphasis on rewarding strategy implementation and initiative.
  • External Workforce Management: Our aim is to reduce the cost of outsourced work using efficient control mechanisms. To this end, we are introducing uniform quality criteria that will affect the volume, price and skills structure of our external workforce.
  • The Way We Work: We are implementing methods and work processes in the HR unit to make our day-to-day working practices even simpler, more customer-centric and result-focused.
Realizing HR projects with transparency and efficiency.

HR at Deutsche Telekom has positioned itself as a partner and recognized consultant for operational business in the Group. We fill this role best by consistently focusing our activities on the needs of our internal customers, namely the employees at Telekom, who give their best every day to satisfy the Group's customers. That is the reason why we critically evaluate our product and service portfolio, along with our processes, at regular intervals. We keep three principles in mind:

  • We tailor our offerings in response to the current needs of the various business areas in the Group.
  • We speak the language of our customers and draft our offers in their language.
  • We provide our products and services throughout the Group in line with consistent and standardized categories.

For more simplicity: the HR portfolio under review.
In 2013 we are striving to achieve more simplicity through a number of concrete measures:

  • The strategic HR initiative Fix the Basics helps us focus our attention on the simplicity of current HR products. That also means reducing the complexity of our product portfolio. Obsolete or inadequate products need to be upgraded or discontinued.
  • HR Category & Product Management is an initiative for 2013 that is specially designed to sharpen the profiles of HR roles and establish clearly defined responsibilities in the Group. These roles have been defined according to the three-pronged model adopted by Telekom HR: Management and controlling tasks are the responsibility of our HR Competence Centers, while our HR Business Partners  provide consulting for strategic HR topics, and Group HR Services take care of our operational business matters. This structured approach enables us to constantly improve our cross-segment HR performance and facilitate smooth interaction among the various HR roles.
  • In addition, the Lean HR initiative provides the Group with a market-conform rate in terms of HR support for the business side. This means that we continually improve our HR functions at all levels to achieve more efficiency. HR support should be available to management and employees in a quality that is in line with industry standards, with a consulting ratio comparable to that of similar ICT enterprises.

By accepting responsibility, by taking customer feedback seriously and by responding to key issues with consistent action, HR clearly focuses its efforts on meeting the requirements of the business side.

Employee Relations Policy.

Group-wide standards regarding employee relations as well as working with trade unions and employee representatives are developed by a department that was set up at Deutsche Telekom especially for this purpose. The department also encourages the different countries to exchange information about employee relations.

The Employee Relations Policy, which was rolled out throughout the Group by late 2012, defines the core elements of Deutsche Telekom's human resources policy and describes what we stand for in our relationships to our employees around the globe. These relationships are characterized by our shared values and are derived from our five Guiding Principles as well as from additional Group policies. Our Employee Relations Policy also addresses the following topics:

  • Employee development
  • Handling change responsibly
  • Healthcare and sustainability
  • Fair pay
  • Achieving a good life balance
  • Leadership
  • Diversity
  • Ban on discrimination
  • Communication
  • Collaboration with employee representatives

We began using indicators to monitor the Employee Relations Policy in 2013. We are also planning to conduct reviews in different countries over the course of the year. We will be monitoring the Employee Relations Policy and conducting related measures on a continual basis.

Accompanying measures for the Employee Relations Policy.

We developed various accompanying measures for Group-wide introduction and implementation of the Employee Relations Policy in 2012:

T-Mobile USA: The Best Place to Perform and Grow initiative was founded at T-Mobile USA to improve employee satisfaction. A project team is collecting feedback from employees as well as from exit interviews. The results of the employee survey will also be used. The team is also developing measures in the customer service area that will help to communicate information more effectively, improve the employees' growth options and motivate them to work even harder.

The company also continues to promote an open-door policy so that any accusations of harassment or discrimination can be thoroughly and fairly investigated as quickly as possible. This communication initiative informs employees of their rights and gives them contact information for submitting complaints, concerns or similar.

T-Systems South Africa: Our activities at T-Systems South Africa exceed local standards and legal regulations. Regular dialog takes place between management and employees even though no labor union is represented at the company. This is known as "Employee consensus seeking approach" and helps take account of employee interests in the corporate decision-making process at an early stage.

T-Systems Malaysia: In early 2012, T-Systems Malaysia developed a new hiring procedure for managers based on the Guiding Principles and the Employees Relations Policy. The procedure defines who should participate in the selection process, the various steps to be taken and the required qualifications. The plan is to integrate the procedure into the company as a standard process with clear role assignment and responsibilities and, on a long-term basis, as a measurement system based on KPIs that will make sure that managers act as role models in terms of the Deutsche Telekom Group's Guiding Principles.

Social Charter: Complying with minimum standards.

We passed our Group-wide Social Charter  (Download) in 2003. The Charter is based on the principles of the Global Compact , the OECD guidelines and the core labor standards set out by the ILO. It specifies compliance with international standards. The Social Charter  addresses key topics such as the ban on child labor, equal opportunity, occupational health and safety and the right to form and join a trade union (the right of free association). Our suppliers are obligated to comply with these policies as well.

We publish an annual social performance report in which we assess our Group companies' compliance with the principles set forth in the Social Charter . In 2012, we added two detailed questions on the topics of freedom of association and collective bargaining to our annual survey. The responses we received show that our Group companies are complying reliably with the principles contained in our Social Charter . That means that all of Telekom's consolidated units both in Germany and abroad conducted their business in compliance with our Social Charter  in 2012. You will find a summary of our 2012 Social Performance Report on the Deutsche Telekom website.

The head of Group Relations Management is responsible for all matters dealing with human rights issues at Deutsche Telekom. The topic was assigned to this function in November 2012.

First collective agreement at T-Mobile USA.

T-Mobile USA is a good example of our high international standards when it comes to employee rights. Contrary to some statements made, the international subsidiary complies with U.S. labor law without exception, including policies and legally specified processes regarding the right to set up and join a trade union. T-Mobile USA does not prevent any of its employees from setting up or joining a union and does not discriminate against those who do. On October 23, 2012, T-Mobile USA signed a collective agreement with the US Communications Workers of America (CWA) trade union. The agreement concerns 16 employees in Connecticut who voted for union representation on July 19, 2011.

Some features of the collective agreement particularly worth mentioning are the performance-based pay system, health insurance benefits, disability insurance, life insurance, accident insurance, paid leave, employee benefits, advisory services and reimbursement of work-related education and training fees.