Deutsche Bank

Annual Report 2015

Employees

Group Headcount

As of December 31, 2015, we employed a total of 101,104 staff members as compared to 98,138 as of December 31, 2014. We calculate our employee figures on a full-time equivalent basis, meaning we include proportionate numbers of part-time employees.

The following table shows our numbers of full-time equivalent employees as of December 31, 2015, 2014 and 2013.

Employees1

Dec 31, 2015

Dec 31, 2014

Dec 31, 2013

1

Full-time equivalent employees; in 2014, the employees of Mauritius previously shown in Europe (outside Germany), Middle East and Africa were assigned to Asia/Pacific; numbers for 2013 (186 employees) have been reclassified to reflect this.

2

Primarily the United States.

3

The Cosmopolitan of Las Vegas was sold in 2014. The nominal headcount of The Cosmopolitan of Las Vegas was 4,393 as of December 31, 2013. This headcount number was composed of full time and part time employees and is not part of the Group’s full time equivalent employees figures.

Germany

45,757

45,392

46,377

Europe (outside Germany), Middle East and Africa

23,767

23,063

23,186

Asia/Pacific

20,144

19,023

18,361

North America2,3

10,842

10,054

9,752

Latin America

595

606

578

Total employees3

101,104

98,138

98,254

The number of our employees increased in 2015 by 2,966 or 3.0 % due to the following factors:

  • In Corporate Banking & Securities (CB&S), the number of staff went down by 245 primarily due to adjustments related to the market development.
  • In Global Transaction Banking (GTB), the number of employees increased by 143 mostly driven by the development in Institutional Cash & Securities Services.
  • The number of staff in Deutsche Asset & Wealth Management (Deutsche AWM) increased by 157. This was particularly a result of the development in the UK and in the US.
  • Total staff in Private & Business Clients (PBC) decreased by 265 driven by reductions primarily in Germany and in Italy.
  • In the Non-Core Operations Unit (NCOU), the number of employees decreased by 58 primarily due to CB&S related Non-Core Operations.
  • In our Infrastructure functions, staff numbers increased by 3,234, mainly due to further build out of our captive operative platforms and due to strengthening of control functions, e.g. Compliance, Risk and Audit.
Employees
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Employees (bar chart)

Labor Relations

In Germany, labor unions and employers’ associations generally negotiate collective bargaining agreements on salaries and benefits for employees below the management level. Many companies in Germany, including ourselves and our material German subsidiaries, are members of employers’ associations and are bound by collective bargaining agreements.

Each year, our employers’ association, the Arbeitgeberverband des privaten Bankgewerbes e.V., ordinarily renegotiates the collective bargaining agreements that cover many of our employees. The current agreement reached in June 2014 includes a pay raise of 2.4 % from July 2014 and a second pay rise of 2.1 % from July 2015 on, plus a single payment of € 150 in January 2015. The existing collective bargaining agreement regarding early retirement has not been extended and ends April 2016.

Our employers’ association negotiates with the following unions:

  • ver.di (Vereinigte Dienstleistungsgewerkschaft), a union formed in July 2001 resulting from the merger of five unions, including the former bank unions Deutsche Angestellten Gewerkschaft and Gewerkschaft Handel, Banken und Versicherungen;
  • Deutscher Bankangestellten Verband (DBV – Gewerkschaft der Finanzdienstleister);
  • Deutscher Handels- und Industrieangestellten Verband (DHV – Die Berufsgewerkschaft);
  • Komba Gewerkschaft (public service union, only relevant for Postbank);
  • DPVKom – Die Kommunikationsgewerkschaft (only relevant for Postbank).

German law prohibits us from asking our employees whether they are members of labor unions. Therefore, we do not know how many of our employees are union members. Approximately 15 % of the employees in the German banking industry are unionized. We estimate that less than 15 % of our employees in Germany are unionized (excluding Postbank, which itself has traditionally had a significantly higher unionization rate of approximately 60 %). On a worldwide basis, we estimate that approximately 15 % of our employees are members of labor unions (including Postbank, less than 25 %).

As of December 31, 2015, 33 % of Postbank staff members in Germany are civil servants (full-time equivalent basis), compared to 34 % as of December 31, 2014.

Post-Employment Benefit Plans

We sponsor a number of post-employment benefit plans on behalf of our employees, both defined contribution plans and defined benefit plans.

In our globally coordinated accounting process covering defined benefit plans with a defined benefit obligation exceeding € 2 million our global actuary reviews the valuations provided by locally appointed actuaries in each country.

By applying our global principles for determining the financial and demographic assumptions we ensure that the assumptions are best-estimate, unbiased and mutually compatible, and that they are globally consistent.

For a further discussion on our employee benefit plans see Note 35 “Employee Benefits” to our consolidated financial statements.

The strategic Human Resources agenda

Delivering Strategy 2020 depends in part on our ability to retain, motivate, develop and continue to attract employees with the skills and experience that will help master challenges and make the most of opportunities. Deutsche Bank’s people agenda therefore plays an instrumental role in securing the future success of the Bank. This is reflected in its strategic HR priorities, which cover aspects from organizational culture, diversity and inclusion, talent development and acquisition to compensation and benefits.

Strengthening our culture

A strong corporate culture remains essential for Deutsche Bank’s long-term success and its stakeholder relationships – and since 2013, the approach to strengthening our culture has been multi-pronged. In addition to a clear tone from the top, the Bank has actively engaged employees, anchored its values and beliefs in all people processes, and embedded the values in business processes, practices and policies. This has also gone hand in hand with an increased focus on robust controls and greater personal accountability.

Against this backdrop, Deutsche Bank places increasing importance on managing and developing employee performance holistically and regularly giving feedback and taking appropriate actions. For instance, all talent development programs have a strong culture component as part of their curriculum. When employees are being considered for promotion, it is now standard for managers to assess how candidates demonstrate the values and beliefs in their daily business. Also, for the second consecutive year, the annual performance management cycle focused as much on how employees go about their work as on the results they achieve.

Effective consequence management as well as escalation and sanctioning mechanisms are basic conditions for cultural change. The Bank has improved its processes and practices and installed clear escalation mechanisms to ensure compliance and investigate misconduct and take disciplinary action as required.

In 2015, recruitment and referral processes and policies were strengthened to ensure new employees fulfill the Bank’s requirements on conduct and living the corporate values. In close cooperation with Compliance, Deutsche Bank also rolled out a new mandatory training for all employees on its Code of Conduct and Business Ethics.

People Survey

Conducted in June, Deutsche Bank’s 2015 People Survey provided a detailed understanding of how employees experience the Bank and their immediate working environment, as well as how they engage with their managers and peers. Almost 57,000 employees, or 63 % of the total workforce, defined as all permanent employees, including Postbank colleagues who are part of PBC Banking Services, participated – an increase of 4.5 % on 2014.

Since the survey was updated in 2014 to capture aspects of the Bank’s culture, results have shown progress in both familiarity and engagement with the corporate values and beliefs: Employees’ awareness rose to 93 % (2014: 85 %), while engagement was at 61 %, up 5 percentage points from the previous year. However, although employees witnessed an increase in behavioral changes, they said they require more tangible evidence that living the values has a positive impact on achieving Deutsche Bank’s strategic objectives. For this reason, the focus will shift from building awareness to putting the values and beliefs into practice and creating clearer links between culture, conduct and achieving business results.

The commitment level declined to 62 % in 2015, as Deutsche Bank continued to face a number of challenges. While the personal motivation of employees remained stable and at high levels, commitment to working at Deutsche Bank decreased as measured in June 2015. Enablement was stable at 68 %, with staff experiencing a working environment that allows them to make good use of their skills and fulfill interesting tasks. However, they also identified some barriers to effectiveness, such as some inefficient processes, which need to be overcome.

Strong commitment to diversity

Deutsche Bank is committed to an inclusive culture that respects and embraces the diversity of employees, clients and communities. The Bank aims to attract, develop and retain the most capable employees from all cultures and countries, and of all ethnicities, races, genders, sexual orientations, abilities, beliefs, backgrounds and experiences.

In line with its voluntary commitment – made in 2011 together with the other DAX 30 companies – to substantially raise the proportion of female managers by the end of 2018, the Bank has focused on building a steady pipeline of female executives for broader and more senior positions. In 2015, the percentage of women at Managing Director and Director level rose to 20.5 % from 19.4 % in 2014. The share of female officers increased to 32.5 % (2014: 31.7 %). Furthermore, the Bank’s Accomplished Top Leaders Advancement Strategy (ATLAS) and Women Global Leaders (WGL) programs have continued with success. Since its launch in 2009, 56 women (2015: 15) have participated in the award-winning ATLAS program, with around 50 % having taken on more responsibility since completion. In 2015, 37 female Directors from across Deutsche Bank participated in the WGL program, designed and delivered in partnership with INSEAD business school. Since inception in 2010, one in two participants has been promoted within three years of completion.

Deutsche Bank will continue its efforts to advance women in the workplace under new gender quota legislation introduced in Germany in 2015. The percentage of women on Deutsche Bank’s Supervisory Board stood at 35 % at the end of 2015, above the new statutory requirement of 30 % for listed and co-determined German companies. The Supervisory Board set a target of at least one female member of the Management Board by June 30, 2017. The target was met with the appointment of Sylvie Matherat, Chief Regulatory Officer, to the Management Board on November 1, 2015. It is planned that another female executive, Chief Operating Officer Kim Hammonds, will join the Management Board in the course of 2016. Deutsche Bank has also set itself targets for the first two management levels below the Management Board of 17 % and 21 %, respectively, by June 30, 2017.

Among a wide range of diversity topics, we actively support LGBTI (lesbian, gay, bisexual, transgender, intersexual) initiatives around the world and take part in several events every year. Deutsche Bank has received various accolades honoring its commitment to LGBTI causes. For example, it was awarded the maximum score of 100 in the Human Rights Campaign’s annual Corporate Equality Index for the 13th consecutive year.

Diversity is embedded in our people processes – from recruitment to leadership development – and reflected in all HR-related offerings, including parental leave coaching and part-time job schemes. Managers are responsible to ensure they foster diverse capabilities and lead inclusively, with hiring and promotion programs also reflecting key aspects of the Bank’s diversity principles.

Developing employees and creating future leaders

The Bank seeks to build the capabilities of managers and staff to help them develop both professionally and personally and to position the organization for future success. Talent and development activities are aligned to three priorities: building leadership capabilities and developing future leaders; fostering an environment that supports sustainable performance; and promoting continual professional and personal development for all employees.

To help managers settle into and grow within their roles, Deutsche Bank offers two new “Management Fundamentals” programs, with a core version addressing new managers up to Vice President level who are taking on people management responsibilities at the Bank for the first time, and an executive version for Directors and Managing Directors. In 2015, around 750 staff attended the core version, with 1,500 in more than 15 locations expected to participate in 2016. The program is built around three key areas: leading people, driving business and shaping culture. There are also a number of “Acceleration Programs“ for individuals who have the potential to be future leaders, preparing them for the next stage of their development and ensuring they gather the right skills and experience to accelerate their careers.

A balanced approach to talent acquisition

Against the backdrop of strategic repositioning, Deutsche Bank has adopted a balanced approach to talent acquisition. It relies both on leveraging the skills and experience already available within the organization, while bringing in the necessary capabilities that will help position the Bank for long-term sustainable performance.

Throughout the year, more than one-third of open roles were filled internally at a global level, with a much higher ratio seen in Germany (60 %). Together with other development moves, more than 10,000 full-time employees assumed new roles in the Bank in 2015. The year also saw more than 750 graduates hired, one of the largest classes ever, joining the Bank across all business divisions and infrastructure functions. During a joint induction and orientation program in the summer, the graduates were introduced to the Bank’s business and culture, trained in relevant technical skills, and afforded an opportunity to build a network upon joining.

Furthermore, Deutsche Bank hired 863 new apprentices in 2015, an increase of 3.7 % from the previous year amid greater demand for dual students and apprentices in office administration. In turn, 475 young people who had completed their training were awarded employment.

For further details on Deutsche Bank’s strategic HR priorities and achievements, please refer to the Bank’s 2015 HR Report.