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  • 2019 Corporate Responsibility Report

Personnel costs and personnel cost ratio KPI

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 as a whole, the personnel expenses ratio in 2019 fell slightly compared with 2018. One driver for the 0.6 percentage point improvement in the adjusted personnel expenses ratio in the Group is the significant increase in Group revenues.

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.