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  • 2016 Corporate Responsibility Report
2016 Corporate Responsibility Report

Financial personnel indicators

Personnel costs and personnel cost ratio

By personnel costs we mean basic personnel costs (salaries) and incidental personnel expenses – where applicable including, or 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. This performance indicator has fallen continually Group-wide since 2012 from 23.2 to today’s figure of 20.3 percent. The key driver of the Group’s adjusted personnel cost ratio, which fell by 0.9 percentage points, is the significant rise in revenue. It more than compensated for the rise in personnel costs in the Group.

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.

HR EBITDA (Ratio)

The so-called „HR EBITDA“ puts into ratio the calculated earnings per employee with the investments in training per employee.

Reporting against standards

This data is relevant for the G4-LA9 (Average hours of training per year per employee) and G4-LA10 (Skills management and lifelong learning) GRI indicators as well as the S02-02 (Training expenses per employee) EFFAS indicator. This data also covers criterion 16 (Steps taken to promote the general employability of all employees) of the German Sustainability Code.

HR ROI

The so-called "Human Capital Return on Invest (ROI)" illustrates the company’s return on investment in human capital by building a ratio between revenue, OPEX and the costs of our internal workforce (IWC).

Reporting against standards

This data is relevant for the G4-LA9 (Average hours of training per year per employee) and G4-LA10 (Skills management and lifelong learning) GRI indicators as well as the S02-02 (Training expenses per employee) EFFAS indicator. This data also covers criterion 16 (Steps taken to promote the general employability of all employees) of the German Sustainability Code.

Total Workforce Costs

Total Workforce Quota

Total workforce management allows HR to be managed in a holistic manner, enabling qualitative and quantitative personnel planning over the long term. The total workforce quota describes the relationship between all personnel expenditure and revenue. This means: if the quota has fallen in comparison with the previous year, either revenue has remained constant while total workforce costs have gone down, or revenue has increased.

The quota has dropped continually since 2014 in the overall Group: from 24.6 percent in 2014 to 23 percent in 2016. It has also dropped internationally: from 16.6 percent in 2014 and 2015 to 16.2 percent in 2016. In Germany, by contrast, the quota has been constant at 35.9 percent since 2014.