Deutsche Bank

Annual Report 2017

Employees

Group Headcount

As of December 31, 2017, we employed a total of 97,535 staff members compared to 99,744 as of December 31, 2016. 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, 2017, 2016 and 2015.

Employees1

Dec 31, 2017

Dec 31, 2016

Dec 31, 2015

1

Full-time equivalent employees.

2

Primarily the United States.

Germany

42,526

44,600

45,757

Europe (outside Germany), Middle East and Africa

23,543

24,062

23,767

Asia/Pacific

20,861

20,099

20,144

North America2

10,358

10,611

10,842

Latin America

247

373

595

Total employees

97,535

99,744

101,104

The number of our employees decreased in 2017 by 2,209 or 2.2 % driven by implementation of our targets originally announced in October 2015:

  • Germany (−2,073; −4.6 %) driven by the implementation of restructuring measures, primarily in Private & Commercial Bank and in infrastructure functions;
  • North America (−254; −2.4 %) driven by reductions mostly in COO/GTO and in Finance;
  • Latin America (−126; −33.7 %) as a result of the implementation of our footprint strategy;
  • EMEA ex Germany (−518; −2.2 %) driven by reductions mainly in Italy, Poland, Luxembourg, the Netherlands and Spain;
  • Asia/Pacific primarily (+762; +3.8 %) due to insourcing of business critical external roles, primarily in COO, and due to strengthening CIB related infrastructure functions.

Employees

Dec 31, 2017

Dec 31, 2016

Dec 31, 2015

Corporate & Investment Bank

17.7 %

17.2 %

17.0 %

Private & Commercial Bank

44.5 %

45.2 %

46.1 %

Deutsche Asset Management

3.9 %

3.9 %

3.9 %

Non-Core Operations Unit

0.0 %

0.1 %

0.1 %

Infrastructure / Regional Management

33.9 %

33.6 %

32.9 %

  • Corporate & Investment Bank (+122; +0.7 %) driven by CIB related infrastructure functions partly related to insourcing of business critical external roles;
  • Private & Commercial Bank (−1,584; −3.5 %) driven by reductions primarily in Germany and in western European countries;
  • Deutsche Asset Management (−86; −2.2 %) particularly a result of the divestment of Sal Oppenheim in Luxembourg;
  • Non-Core Operations Unit (−116; −100.0 %) has been closed;
  • Infrastructure functions (−545; −1.6 %) mainly driven by reductions in most functions partly offset by insourcing of business critical external roles (primarily in COO) and due to strengthening of regulatory functions, predominantly Anti-Financial Crime 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, 2017, 32 % of Postbank staff members in Germany are civil servants (full-time equivalent basis), compared to 32 % as of December 31, 2016.

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.

Restructuring

The bank’s regions were impacted by different measures. Germany saw the largest decline in employee numbers (2,073 FTE), largely driven by the restructuring of its Private, Wealth & Commercial Clients business division. In Asia-Pacific, the number of employees increased due to the insourcing of business-critical external roles, especially in IT.

Talent acquisition

The voluntary staff turnover rate was at 7.8 % in 2017 (2016: 7.2 %). The slight increase of 0.6 percentage points is due to a higher fluctuation in the operations centers in the US and Romania. However, this fluctuation remains at a normal level.

As a result, filling open positions in front-office roles and operations centers was a main priority in 2017, along with hiring in line with the growing demand in regulatory roles (e.g. Anti-Financial Crime, Audit and Compliance). In addition, talent acquisition was focused on insourcing external roles (1,446 employees), particularly in IT, and hiring 1,235 young talents, therein 619 graduates (2016: 813) and 616 apprentices in Germany (2016: 741).

Promoting internal career mobility

Internal mobility plays a vital role for Deutsche Bank to retain qualified and talented employees and to keep their expertise and experience within the organization. Therefore, the bank continued to develop and embed its internal mobility strategy. 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. Once this process is completed, external candidates may be sought.

Prioritizing internal candidates for vacant positions is designed to help employees affected by restructuring measures to find new roles within the organization. The bank also seeks to promote cross-divisional moves to enable employees to expand their skills and experience in order to have more rounded careers. Furthermore, internal mobility contributes to savings on redundancy and recruitment costs.

In 2017, 10,479 employees (excluding Postbank), or 13.1 % of the workforce, changed roles within the bank. As part of this, 4,731 officers (Managing Directors, Directors, Vice Presidents, Assistant Vice Presidents, Associates) and 3,042 non-officers (employees without corporate title) changed roles within their respective division, while 1,762 officers and 944 non-officers moved to another division. The number of cross-divisional job moves increased by 21 % compared to prior year.

Performance Management

Deutsche Bank’s approach to performance management comprises three main steps: (1) defining expectations and setting objectives at the beginning of the year, (2) holding regular feedback conversations throughout, and (3) reviewing performance at the end.

“Total Performance” represents a more holistic approach to developing and managing our people and their performance. In March 2017, the new approach was rolled out across all business divisions and infrastructure functions. The focus is on continuous and constructive conversations between employees and their managers. This comes as a response to the results of external studies and internal people surveys. Employees have expressed a demand for more frequent, less formal conversations to discuss the performance and development with their managers. Furthermore, employees feel more motivated if they have a better understanding of expectations and their personal contribution to the bank’s strategy and business performance.

In 2017, 71.3 % of the individual variable compensation (IVC) eligible employees set their objectives and 93 % of all employees confirmed that they are aware of the expectations of their role. 99 % of in-scope employees completed the IVC relevant considerations at the end of the cycle.

Diversity and Inclusion

Deutsche Bank continued its efforts to advance women in the workplace throughout 2017. The percentage of women on the Supervisory Board stood at 35 % at the end of the year, above the statutory requirement of 30 % for listed and co-determined German companies under gender quota legislation introduced in 2015.

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 two female executives to the Management Board. As of year-end 2017, 18.0 % of positions at the first management level below the Management Board of Deutsche Bank were held by female executives (2016: 15.7 %). At the second level below the Management Board, this percentage stood at 19.6 % (2016: 19.5 %). The bank had set ambitious targets for 2017 of 17 % and 21 %, respectively, in accordance with legal requirements in Germany.

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 2017, the percentage of female Managing Directors and Directors stood at 21.9 % (2016: 21.3 %). Since 2011, the number of women at this level has increased by 15 %. The share of female officers was 33.3 % at the end of 2017 (2016: 32.8 %).

Deutsche Bank has been included in the Bloomberg Financial Services Gender-Equality Index (BFGEI) since the benchmark’s inception in May 2016. The benchmark includes firms that have made strong commitments to gender equality and provides investors and organizations with standardized aggregate data across company gender statistics, HR policies, gender-conscious product offerings, as well as their external community support and engagement. Deutsche Bank is one of only two DAX companies to be included in this global index.

Deutsche Bank actively supports LGBTI (Lesbian, Gay, Bisexual, Transgender, Trans- and Intersexual) causes. As one of the first companies, the bank is dedicated to the application of the UN Code of Conduct tackling discrimination of LGBTI people. In Germany, we also explicitly expressed our support of the law giving same-sex marriages the same rights as heterosexual couples, thus officially recognizing same-sex marriage.

Honoring its commitment, Deutsche Bank has been awarded a perfect score of 100 points in the annual Human Rights Campaign’s Corporate Equality Index for the 15th year in a row.

Digitalization

As a key element of its strategy, Deutsche Bank is investing in digitalization. This is not only applicable to the bank’s client-facing businesses – it also has a significant impact on how the organization operates and, more specifically, how its employees work. Accordingly, digitalization 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.

Reflecting the various aspects and opportunities of digital change, Deutsche Bank’s HR function introduced a new series entitled “Enabling the Bank‘s Digital Transformation” in August 2017. A number of WebEx sessions helped create a common understanding of what digitalization means for HR and the bank overall. With an audio-visual library, which will continue to grow over time, the new series provides an overview of trends, technologies and digital challenges in HR policy.

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 2017.

 

Dec 31, 2017

Dec 31, 2016

Dec 31, 2015

1

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

2

Excluding Postbank.

3

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

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

 

 

 

Female Managing Directors and Directors

21.9 %

21.3 %

20.5 %

Female officers

33.3 %

32.8 %

32.5 %

Female non-officers

55.8 %

55.6 %

55.5 %

Total female staff

41.6 %

41.5 %

41.7 %

Age (in %, headcount)

 

 

 

up to 29 years

16.2 %

17.1 %

18.4 %

30 - 39 years

30.1 %

29.9 %

29.7 %

40 - 49 years

27.7 %

28.2 %

28.6 %

Over 49 years

26.0 %

24.8 %

23.3 %

Part-time employment (in % of total staff)

 

 

 

Germany

24.4 %

23.7 %

23.9 %

Europe (outside Germany), Middle East and Africa

6.5 %

6.2 %

6.1 %

Americas

0.4 %

0.4 %

0.3 %

Asia/Pacific

0.2 %

0.2 %

0.2 %

Total part-time employment

13.0 %

12.9 %

13.1 %

Apprentices ratio in Germany

3.6 %

3.9 %

4.0 %

 

 

 

 

 

2017

2016

2015

Commitment index2

 

 

 

Germany

51 %

52 %

53 %

Europe (outside Germany), Middle East and Africa

55 %

59 %

63 %

Americas

54 %

61 %

67 %

Asia/Pacific

67 %

68 %

75 %

Total Commitment Index

57 %

58 %

63 %

Voluntary staff turnover rate

 

 

 

Germany

2.0 %

1.8 %

1.6 %

Europe (outside Germany), Middle East and Africa

8.5 %

7.0 %

7.5 %

Americas

13.0 %

11.3 %

11.2 %

Asia/Pacific

16.8 %

17.1 %

18.3 %

Total voluntary staff turnover rate

7.8 %

7.2 %

7.3 %

Health rate (in %)3

94.2 %

94.3 %

94.8 %