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 19.9 percent. The key driver of the Group’s adjusted personnel cost ratio, which fell by 0.4 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.