Against the backdrop of digitalization and the associated changes, we must secure our future viability and competitiveness in the long term. This process is connected to complex staff restructuring. We are creating new jobs in growth fields and are training qualified personnel to fill these positions. Other areas are the focus of restructuring activities involving workforce reduction. We make sure that all restructuring measures are implemented in a socially responsible way for our employees. In doing so, we support them in the best way possible on our journey to a digitalized working world.
The personnel service provider Vivento has provided support for implementing staff restructuring at Deutsche Telekom in Germany for many years. Since 2013, Vivento has been exclusively responsible for providing support and placement services for civil servants. In 2019, the focus was primarily on transfers of civil servants to the Customs Office, the armed forces, and the Federal Central Tax Office. Employees were assisted in finding positions with federal, state, and local administrative authorities. 321 civil servants (FTE) employed at Deutsche Telekom in Germany opted for a permanent transfer to federal, state, or local authorities in 2019. Since Vivento was established 16 years ago, it has helped more than 52,000 employees (FTE; as at December 31, 2019) to gain a new role.
Surplus staff have been looked after for several years in the segments, including T-Systems or Telekom Deutschland: the segments offer a special consulting concept for professional reorientation. Employees are accompanied and supported holistically from an early stage in their change process with the aim of finding permanent new employment.
Deutsche Telekom’s systems solutions business is currently undergoing a transformation. Around 5,600 job cuts are planned between 2018 and the end of 2020. In 2019 there was a focus on topics such as the transfer of activities to nearshore sites (cost-effective production sites outside of Germany) and automation. At the same time, we were creating new positions in growth areas such as cloud and security and used the savings for investment as well as to make our prices more competitive. Job Service & Placement (JSP), our internal service provider, advises and supports employees with a comprehensive program through the necessary change processes. T-Systems is also supporting the restructuring process in a socially responsible manner by means of instruments such as phased retirement, early retirement, and severance payments.
Holistic staff restructuring and transfer management was established at Telekom Deutschland GmbH in 2017 in order to win employees over to the idea of a career change early on.
In the case of tasks which are currently or soon to be eliminated, or which will require different skills in future, the colleagues affected will be given anticipatory advice regarding opportunities for professional reorientation. Managers are also actively involved in the change process. Together with them, internal and external employment alternatives are considered and specific personal labor market profiles developed. In addition, assistance is provided for the individual application process and training is offered where necessary. Since 2018, around 600 employees nationwide received consultations in the Germany segment . Approximately two-thirds of them were able to find new options through these measures.
We continued our efforts to engage in socially acceptable staff restructuring. To this end, the Group continued to rely on the already proven tools of early retirement, severance pay and partial retirement in 2019.
You can find further information in the HR Factbook.Reporting against standards
This data is relevant for criteria 6 (Rules and Processes) and 14 (Employment Rights) of the German Sustainability Code.
The fluctuation rate in Germany increased slightly compared to 2018 and was 2.23%. Internationally, however, it has fallen compared with 2018. At Group level, it also increased slightly due to the increase in Germany and stood at 5.32% in 2019.
In combination with additional data on the number of employees, the data on the fluctuation rate fully covers the GRI 401-1 (New employee hires and employee turnover) GRI indicator.
The proportion of civil servants employed in the company fell once again in 2019. The reason for this is that Deutsche Telekom has not recruited any new civil servant staff since the company was privatized. In addition to civil servants leaving the company when they reach retirement age, others also took advantage of early retirement or moved to other agencies. This led to a continuous drop in the number of civil servants in our workforce.
In combination with additional headcount data, the data on the percentage of civil servants in the workforce fully covers the GRI 401-1 (New employee hires and employee turnover) GRI indicator.