Deutsche Bank

Annual Report 2016

Employees

As of December 31, 2016, we employed a total of 99,744 staff members as compared to 101,104 as of December 31, 2015. 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, 2016, 2015 and 2014.

Employees1

Dec 31, 2016

Dec 31, 2015

Dec 31, 2014

1

Full-time equivalent employees.

2

Primarily the United States.

Germany

44,600

45,757

45,392

Europe (outside Germany), Middle East and Africa

24,062

23,767

23,063

Asia/Pacific

20,099

20,144

19,023

North America2

10,611

10,842

10,054

Latin America

373

595

606

Total employees

99,744

101,104

98,138

The number of our employees decreased in 2016 by 1,360 or 1.3 % driven by implementation of our targets originally announced in October 2015:

  • Germany (–1,157; –2.5 %) driven by the implementation of restructuring measures, primarily in Private, Wealth and Commercial Clients and by reductions related to Postbank;
  • North America (–230; –2.1 %) mainly related to the divestment of Private Client Services;
  • Latin America (–222; –37.3 %) as a result of the implementation of our footprint strategy;
  • EMEA ex Germany (+295; +1.2 %) mainly driven by UK primarily related to the insourcing of external roles predominantly in COO and due to strengthening of control functions, e.g. Compliance, Anti-Financial Crime, Risk and Audit.

Employees

Dec 31, 2016

Dec 31, 2015

Dec 31, 2014

Global Markets

4.7 %

4.9 %

5.2 %

Corporate & Investment Banking

7.1 %

7.3 %

7.4 %

Private, Wealth & Commercial Clients

24.6 %

25.4 %

26.2 %

Deutsche Asset Management

2.6 %

2.7 %

2.6 %

Postbank

18.2 %

18.5 %

19.1 %

Non-Core Operations Unit

0.1 %

0.1 %

0.2 %

Infrastructure / Regional Management

42.7 %

41.1 %

39.3 %

  • Global Markets (–185; –3.8 %) due to reduced engagements primarily in India, in the US, in Latin America and in the Russian Federation;
  • Corporate & Investment Banking (–244; –3.3 %) driven by Corporate Finance (–161; –5.2 %) and by Global Transaction Banking (–84; –2.0 %);
  • Private, Wealth & Commercial Clients (–1,156; –4.5 %) driven by reductions primarily in Germany and by the divestment of Private Client Services in the US;
  • Deutsche Asset Management (–157; –5.8 %) particularly a result of the development in the US, in UK and the divestment of Deutsche Asset Management (India);
  • Postbank (–547; –2.9 %) primarily due to reductions in the branch network;
  • Non-Core Operations Unit (–25; –17.4 %) primarily due to investment banking related Non-Core Operations;
  • Infrastructure functions (+953; +2.3 %) mainly driven by insourcing of external roles primarily in COO and due to strengthening of control functions, e.g. Compliance, Anti-Financial Crime, Risk and Audit.

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 July 2016 includes the period from May 2016 onwards. After five months without any pay raise, a first pay raise of 1.5 % takes place from October 2016 on, a second pay rise of 1.1 % from January 2018 on, and a third pay raise of 1.1 % from November 2018 on. The existing collective bargaining agreement will last until January 31, 2019.

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 traditionally has 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, 2016, 32 % of Postbank staff members in Germany are civil servants (full-time equivalent basis), compared to 33 % as of December 31, 2015.

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 36 “Employee Benefits” to our consolidated financial statements.

Restructuring as part of our strategy

Deutsche Bank’s people agenda and HR activities in 2016 were characterized by the bank’s transformation and restructuring measures that form part of our targets originally announced in October 2015. To make the organization more cost-efficient, a reduction of staff by 9,000 individual jobs as measured in FTE worldwide, with 4,000 located in Germany, had been announced in 2015. During 2016, the bank conducted a transparent and constructive dialogue with employee representatives in Germany and elsewhere. The multi-stage negotiation process in Germany included an initial round of negotiations for a framework balance of interest agreement and a framework social plan. This was followed by three rounds of negotiations on specific balance of interest agreements for all impacted business divisions and infrastructure functions in the home market, which concluded in 2016.

Internationally, Deutsche Bank has also made progress in rationalizing its footprint and reducing its workforce. Among the measures initiated in 2016 are the sale of bank subsidiaries in Argentina, Mexico, the US and the UK as well as the closing of country representative offices.

Focus on internal career mobility

As part of the targets originally announced in October 2015 Deutsche Bank is committed to filling vacant positions – at all levels of seniority – with suitable internal candidates, whenever possible. In accordance with its Hiring Policy, all open positions are advertised to internal staff first and exclusively for at least two weeks before any external candidates can be sought. In 2016, more than one in three open roles, or 39 %, were filled with an internal candidate. An even higher ratio of 71 % (2015: 60 %) was seen in Germany. During the year, 9,715 employees – or 11.1 % of the entire workforce – changed roles within the organization, with cross-divisional moves increasing by 6 % from 2015.

Balanced approach to talent acquisition

In the fourth quarter of 2016, the bank implemented hiring restrictions to focus external hiring on business critical roles – provided there are no suitable internal candidates – and junior pipeline hires only. During the year, around 5,300 officers and 4,200 non-officers were hired, primarily in the areas of technology and digitization as well as in control functions. In 2016, 813 new graduates (2015: 766) joined globally, while 741 new apprentices were hired in Germany (2015: 863).

Maintaining a strong focus on corporate culture: results of the 2016 Spotlight People Survey

Underpinning the Deutsche Bank’s HR efforts is a continued commitment to embedding its corporate culture and values in all people-related activities and processes. The HR function provides clear frameworks to help managers be accountable for making the right people-related decisions, sets the standards and tone for those decisions and intervenes when those standards and corporate values are not followed and there is a risk to the bank.

Through an annual employee survey, employees are regularly asked for their feedback to provide insight into levels of engagement, commitment and enablement across the organization. In May 2016, Deutsche Bank surveyed a representative, random sample of its employees, equivalent to 22.7 % of its workforce. The response rate stood at 47 %. Of the survey participants, 76 % said they actively engage with Deutsche Bank’s corporate values, and more than 70 % are convinced that the values will have a positive impact on reaching the bank’s strategic aspirations. More than 60 % now observe changes in behavior. These are significantly positive developments compared to previous years.

The commitment level among employees in 2016 declined to 58 % (2015: 63 %) amid the ongoing transformation of the businesses and resulting job cuts, which represented a source of concern and uncertainty among employees. In terms of engagement and identification with their work, 86 % of employees (2015: 87 %) signaled they are ready to go above and beyond what is expected in their role, with the vast majority perceiving their jobs to be challenging and interesting, allowing them to make good use of their abilities. The enablement index stood at 62 % in 2016 (2015: 68 %).

Developing performance

Committed and capable leaders, along with a skilled and motivated workforce, are critical for Deutsche Bank – even more so during times of significant change. This is why the bank is committed to building leadership skills and investing in future leaders as well as supporting the professional and personal development of all employees. A third priority is the ongoing focus on learning and mandatory Compliance and Anti-Financial Crime training for all staff against the backdrop of increasing regulation.

First introduced in 2015, Deutsche Bank runs two “Management Fundamentals” programs which are mandatory for new managers. A core program is designed for new managers up to Vice President level who are taking on people management responsibilities at the bank for the first time. An executive program is tailored to the needs of Managing Directors and Directors. Both programs are built around three key areas: leading people, driving business and shaping culture. Management Fundamentals aims to help participants grow and develop as people managers. In 2016, more than 1,000 employees attended the cross-divisional Management Fundamentals programs in over 20 locations around the world.

Furthermore, a new cross-divisional program for managers of managers – Leadership Fundamentals – was designed and piloted in 2016. The focus is to strengthen participants’ leadership skills so that they are better placed to deliver the bank’s strategy commitments. In 2016, more than 180 employees attended the cross-divisional Leadership Fundamentals program in four locations around the world.

Deutsche Bank’s cross-divisional Vice President Acceleration Program was launched in May 2016, with the development journey for participants spanning six months and training methods including interactive business simulations. In 2016, 482 Vice Presidents from across the bank started the program, which is held in various regional centers. Furthermore, the 2016 Infrastructure Director Program was launched in April 2016, spanning a 12-month journey with 61 participants. Focus themes are: building talent capability, functional expertise and leadership capability.

Investing in digitization

Increasing digitization has a significant impact on how the bank operates and, more specifically, how its employees work. Accordingly, it is an important element of Deutsche Bank’s strategic HR agenda, resulting in people processes being automated increasingly and employees being encouraged and required to develop the necessary digital skills. New digital offerings launched in 2016 include “Connect2Learn”, an online learning platform for all employees which consolidates all training offerings in one place. Another example is the “Internal Mobility Tool” designed to facilitate redeployment and promote cross-divisional moves.

To address new and emerging trends proactively – including digitization and demographic change – in today’s working environment and society at large, HR started its “Arbeiten@DB 4.0” (Working@DB 4.0) initiative in Germany at the end of 2015. Its main focus has been on identifying more flexible approaches to career and leadership issues, accounting for the needs and requirements of people at all employment stages, including those transitioning into retirement.

Fostering diversity and inclusion: visible progress in gender equality

Throughout 2016, Deutsche Bank continued its efforts to advance women in the workplace under new gender quota legislation introduced in Germany in 2015. The percentage of women on the Supervisory Board stood at 35 % at the end of 2016, above the statutory requirement of 30 % for listed and co-determined German companies. The Supervisory Board’s target for the Management Board was set in 2015 as at least one female member by June 30, 2017. This target has been met with the appointments of Chief Regulatory Officer Sylvie Matherat and Chief Operating Officer Kimberly Hammonds to the Management Board in 2015 and 2016, respectively. As of year-end 2016, 15.7 % of positions at the first management level below the Management Board of Deutsche Bank were held by female executives. At the second level below the Management Board, this percentage stood at 19.5 %. The bank has set itself targets in accordance with legal requirements in Germany, and it is on track to reach its 2017 targets of 17 % and 21 %, respectively, as the underlying group of senior managers on those levels is relatively small and every appointment or change has a significant impact on percentages.

In 2011, Deutsche Bank signed a voluntary declaration to substantially raise the proportion of all female managers globally by the end of 2018. As of year-end 2016, the number of female Managing Directors and Directors has increased by 16 % since 2011. In 2016, the percentage of women at this level stood at 21.3 % (December 31, 2015: 20.5 %). The share of female officers was at 32.8 % (December 31, 2015: 32.5 %). In May 2016, Deutsche Bank was included in the inaugural Bloomberg Financial Services Gender-Equality Index (BFGEI), which recognizes firms that have made strong commitments to gender equality. The bank is one of only two DAX companies to have been included in this global index.

Amid a wide range of causes, Deutsche Bank actively supports generational diversity and LGBTI (Lesbian, Gay, Bisexual, Transgender, Trans- and Intersexual) initiatives around the world. The 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 14th consecutive year.

Key employee figures

A few selected employee figures and KPIs are set forth below. For full details on Deutsche Bank’s people metrics, as well as its strategic HR priorities and achievements, please refer to the bank’s Human Resources Report 2016.

 

Dec 31, 2016

Dec 31, 2015

Dec 31, 2014

1

Excluding legal entities outside of DB Corporate Title system, primarily Postbank. DB Investment Services integrated in 2016, Sal. Oppenheim integrated in 2015.

2

2016 and 2015 scores exclude total Postbank; 2014 scores exclude Postbank with the exception of its Banking Services entities (i.e. 5 % of total population in scope for survey).

3

Health rate: 100 - ((total sickness days x 100)/total regular working days); Germany excluding primarily Postbank; DB Investment Services integrated in 2016, Sal. Oppenheim integrated in 2015.

Female staff (based upon global corporate titles, in FTE)1

 

 

 

Female Managing Directors and Directors

21.3 %

20.5 %

19.4 %

Female officers

32.8 %

32.5 %

31.7 %

Female non-officers

55.6 %

55.5 %

55.4 %

Total female staff

41.5 %

41.7 %

41.7 %

Age (in %, headcount)

 

 

 

up to 29 years

17.1 %

18.4 %

18.8 %

30 - 39 years

29.9 %

29.7 %

29.3 %

40 - 49 years

28.2 %

28.6 %

29.6 %

Over 49 years

24.8 %

23.3 %

22.3 %

Part-time employment (in % of total staff)

12.9 %

13.1 %

13.2 %

Apprentices ratio in Germany

3.9 %

4.0 %

3.8 %

 

 

 

 

 

2016

2015

2014

Commitment index2

58 %

63 %

68 %

Voluntary staff turnover rate

7.2 %

7.3 %

6.6 %

Health rate (in %)3

94.3 %

94.8 %

94.9 %