Employees

With increasing competition worldwide, attracting and retaining the best talent has never been more important. In an environment of rapid change, Deutsche Bank aims to be an attractive global employer in the financial sector. We are pursuing this goal through our strategic Human Resources agenda.

We have embedded our values and beliefs in our recruiting, interviewing, and on-boarding processes as well as development activities.

In 2014, we focused on engaging employees throughout Deutsche Bank with what these values mean in practice. We encourage visible and measurable changes in behavior as well as in policies, processes and practices. Workshops across Deutsche Bank aim to engage small groups and reinforce the need for alignment and change, while also identifying opportunities to drive business performance.

Adherence to the values and beliefs now accounts for 50 % of individual performance ratings, and is a determining factor in promotion decisions. Alongside this, additional elements of compensation have been aligned to encourage, reward and support the right behaviors as well as sanction wrong behaviors. This includes

• Adding key metrics related to the values in the year-end compensation process for members of the Management Board and employees in all divisions
• Developing a global approach to disciplinary practice
• Aligning the suspension, Red Flag and performance management processes to the disciplinary process and the year-end review

To recognize employees who achieved exceptional business outcomes while demonstrating Deutsche Bank’s values, we launched the Living the Values Awards. Out of 100 employees who were considered for an award, ten teams were ultimately honored for their work in 2014.

Seeking employee feedback

The Deutsche Bank People Survey provides valuable insights into our employees’ understanding of our culture. In 2014, we updated the People Survey to reflect our values and beliefs and to gauge adoption of our Operational Excellence (OpEx) program. Over 60,000 employees – 58 % of our workforce – responded, with Postbank participating for the first time.

Since the last survey in 2012, our employees have experienced difficult market conditions and a fluctuating share price. Against this backdrop, they have reported in the latest survey that while we are making progress in building and strengthening a shared culture, much remains to be done. Of the respondents, 82 % were familiar with our values and beliefs. Meanwhile, 35 % have experienced changes in behavior.

Commitment levels remain in line with the financial services benchmark and employees said they felt more able to use their skills and abilities (68 %, up from 64 % in 2012). These findings will continue to influence our actions directly in 2015.

Attracting and retaining employees

In 2014, we began to apply a more consistent approach to the hiring, training and management of graduates across different divisions and locations to meet Deutsche Bank’s junior talent needs. This will improve efficiency while positioning our graduates as a pool of available talent for the future.

In July 2014, 751 graduates joined Deutsche Bank across all businesses and infrastructure functions, 19 % more than in 2013. A further 522 interns joined Deutsche Bank’s summer internship programs.

By strengthening our social media presence, we have seen significant increases in engagement. For example, since March 2014, LinkedIn followers have grown by 59 % and Facebook followers more than doubled. An online employer branding campaign targeting junior professionals generated over 35,000 visits to our website. This integrated approach to building our reputation as an employer has improved the position of the brand in many global and regional rankings. Deutsche Bank was ranked 18th of the world’s 50 most attractive employers in Universum’s Ideal Employers global rankings – our best performance to date (2013: Ranked 28). We are investing in the professional and personal development of our employees and managers to motivate our people and maximize their capabilities.

Regulatory requirements

With increasing regulation, it is critical that we make the most of our existing expertise while combining this with external experts in the relevant areas. In 2014, we hired more specialists in areas such as Compliance, Legal and Risk. We have implemented a range of activities to ensure a steady pipeline of qualified candidates and successful recruitment results.

Training

A governance framework for the procurement of training services for all employees ensures expenditure on training and offers more accessible and innovative learning methods. Our total investment in training decreased by 4 % to € 82 million (2013: € 86 million), in line with targeted OpEx savings. However, no less training was delivered: training was simply delivered more cost effectively, e.g. optimizing use of vendors and the delivery of training. Despite the decrease in expenditure, attendance increased by 8.5 %. In 2014, we noted a marked increase in compliance training attendance at 74 % of total training attendance with a cost effective budget of € 500,000.

We continue to align our key flagship leadership and management programs, such as the Infrastructure Global Director Talent program and the Developing Leaders program. These programs are designed to cultivate a pool of inspirational leaders who can responsibly drive our business and execute our strategy. These are complemented by the Leading for Performance program for Managing Directors and Directors, which has been established across Deutsche Asset & Wealth Management, Global Transaction Banking, and Corporate Banking & Securities.

Leadership and talent management

The role of leaders in inspiring and engaging their employees has never been more important. In 2014, Deutsche Bank developed a new framework for senior leadership development. This is designed to strengthen Deutsche Bank’s leadership capabilities and support career mobility, succession planning and development activity.

The suitability of current and future employees in what regulators consider to be “key risk positions” is of increasing importance. We have taken proactive measures to ensure we have a pool of senior executives prepared to lead in the future. This included the development of a new Leadership Capability Model, which defines our expectations for such roles. Our Leadership Diagnostic tool provides rigorous developmental feedback to our Senior Leadership Cadre and is aligned to the Leadership Capability Model. In 2014, 69 senior leaders took part.

Senior appointments are centrally coordinated to ensure the most qualified and suitable talent is readily identified for critical positions. This is closely linked to the succession planning approach, and supports cross-divisional mobility, career development, retention of key talent and greater progress for women in leadership. Half of top management internal appointments were cross-divisional moves and around 63 % of internal candidates were sourced from Deutsche Bank’s succession plans. Furthermore, 25 % of all Senior Leadership Cadre appointments were female Managing Directors.

The internal career mobility awareness campaign, launched in 2013, saw positive results in the Asia Pacific region with rate of internal fill increasing from 27 % in 2013 to 36 % in 2014. This trend is mirrored globally.

Fostering a diverse and inclusive workplace

Deutsche Bank recognizes the value of a diverse and inclusive organization. We aim to instill this culture within our organization through Diversity Strategy 2.0.

Deutsche Bank’s Group People Committee, led by our Co-CEOs, was formed in 2013 to steer and govern Bank-wide strategic talent practices. In 2014, the Committee’s remit expanded to provide guidance on diversity objectives for business units. These objectives aim to increase the accountability of regional Diversity Councils. In 2014, we expanded coverage by creating a UK Diversity Council comprised of senior leaders. Diversity Councils are now established in all regions.

We have increased female representation in senior management positions across Deutsche Bank. Notably, we have appointed two female executives to the Group Executive Committee (GEC). Since 2010, the number of female Managing Directors and Directors has increased by 260 (17 %), comprising 19.4 % of all employees with those corporate titles. Similarly, the number of female officers has grown by about 2,200 (18 %), now accounting for 31.7 % of all officer positions.

Programs to support women in leadership positions continue to thrive. Since its launch in 2009, 42 women have participated in the award-winning Accomplished Top Leaders Advancement Strategy (ATLAS) program for female Managing Directors: 56 % of the active alumni have been promoted at least once and 13 participants are now members of global or regional business Executive Committees. In June 2014, 37 female Directors participated in the fifth Deutsche Bank Women Global Leaders program for female Directors at the INSEAD Business School. In 2014, we extended the workshop Managing Unconscious Bias for Managing Directors and Directors in more regions of Germany, so that senior leaders have greater opportunity to take part. We have also placed a renewed focus on our global e-learning program, Great Minds Don’t Think Alike – The power of different perspectives. More than 6,000 employees have already participated in the e-learning program. Both programs will be continued.

There has been no increase of the percentage of female executives on Supervisory Boards. In 2014, the proportion of female membership on Regional Advisory Boards increased to 8.5 % and the proportion of women has therefore doubled since the launch of the initiative in 2011.

Fostering awareness

Diversity and inclusion are embedded in our people processes. For example, diversity objectives for managers were formulated to ensure investment in diverse talents and to foster diversity awareness and inclusive leadership. Diversity and inclusion related questions were integrated into the Deutsche Bank People Survey.

Our efforts to implement the Diversity Strategy 2.0 are regularly communicated to all employees. Every year we celebrate a global diversity week – the focus in 2014 was about creating A Culture of Inclusion. During the event, GEC members and senior managers from different businesses shared experiences and demonstrated their contribution to a culture of inclusion. Participation in 2014 increased considerably with 20,000 employees taking part in 250 events around the world, up from just 6,000 employees in 2011.

Rewarding our employees

With an increased focus in our industry on risks and rewards stemming from regulatory changes, public scrutiny and our own cultural change initiative, Deutsche Bank has implemented a clearly defined and documented reward strategy which embodies Deutsche Bank’s values and beliefs. In 2014, cultural and control elements have been integrated more comprehensively into the compensation systems, putting a greater emphasis on the link between pay and performance.

The Capital Requirements Directive IV (CRD IV) that came into effect on January 1, 2014 is applicable to EU-headquartered institutions globally. The headline measure, limiting fixed to variable compensation ratios to 1:1 (1:2 with shareholder approval), is applicable to compensation in performance for the year 2014. While CRD IV applies the maximum ratio to so-called material risk takers only, the “Institutsvergütungsverordnung” (InstitutsVergV) and the German Banking Act extend this to all employees globally. Deutsche Bank is fully cognizant of the regulatory changes and is fully compliant with the new requirements. At our Annual General Meeting on May 22, 2014, shareholder approval was granted to increase the ratio to 1:2 (individuals within defined control functions are treated at 1:1). To ensure that total compensation levels remain competitive, we have adjusted the compensation structure of individual cases, for example, through rebalancing from variable to fixed compensation.

Variable compensation governance

For many years, Deutsche Bank has used variable compensation to incentivize, reward and retain high-performing employees. At a senior level, Deutsche Bank is committed to ensuring that a large portion of any variable compensation award is linked to the long-term development and performance of the Bank. A structured deferral of a minimum of three years, with robust performance conditions and forfeiture provisions is used. As of February 2014 a number of enhancements to these provisions were made for deferred awards, which have been maintained for February 2015 awards. A robust and effective governance structure ensures that Deutsche Bank operates within the clear parameters of its compensation strategy and policy. In 2014, improvements to the governance structure focused on the remit and work of the Group Compensation Oversight Committee (GCOC), and delivered a strengthened and streamlined governance process. A key achievement is the improvement of the documentation of individual variable compensation allocation decisions and increased emphasis on the importance of culture considerations.

Employee benefits

We provide a comprehensive range of benefits that add value for our employees and support their personal and professional development, including around 900 employee benefit programs.

Approximately 20,000 employees from 31 countries participated in Deutsche Bank’s Global Share Purchase Plan in 2014. In Germany, 56 % of the eligible workforce took part, along with more than 36 % in other countries where the plan operates. The plan provides employees with the opportunity to purchase Deutsche Bank shares in monthly installments. At the end of the purchase cycle, Deutsche Bank matches the acquired shares up to a maximum of ten free shares.

We honor our loyal employees through Long-Term Service Awards, which were globally harmonized in 2014. The new scheme is applicable for new joiners and provides grandfathering to existing staff. In Germany, a voluntary buy-out was offered to approximately 22,000 staff of whom 33 % accepted. Those who took up the offer received the discounted value of their grandfathered service awards in advance while Deutsche Bank was able to lower provisions for this benefit and reduce exposure to revaluation of these provisions due to changing discount rates.

Balancing work and non-work commitments

A good work-life balance as well as physical and mental well-being ensures employees can effectively contribute their skills and competencies and deliver exceptional performance. Where possible, we provide flexible working arrangements that include opportunities to work from home, part-time, and in job-shares.

In Germany, about 90 % of employees return to work after parental leave and an increasing number of male employees are now taking paternity leave.

Deutsche Bank continues to be certified as a family-friendly company by the Hertie Foundation. In 2014, we increased the number of childcare places worldwide near workplaces to 475, from 400 in 2013. In Germany, the UK and the US we provide more than 5,600 emergency care days for children every year. For parents returning from maternity or paternity leave, we fund workshops and other advisory services in many locations.

Partnering with employee and employer representatives

Following the elections of works council and the committee of executive employees, we continue to cooperate on the basis of neutral trust. Our business is changing and so are roles and responsibilities across Deutsche Bank. As a result, some positions may no longer exist. In such cases, we support the affected employees in finding a new position within Deutsche Bank or on the external labor market.

We maintain a constructive dialog with all our employee representatives and trade unions and interact in partnership and in a spirit of trust. Together with employee representatives, we seek solutions that best align the interests of employees possibly affected by labor-law measures and Deutsche Bank, while ensuring full transparency. This includes adhering to all local statutory and regulatory requirements as a matter of course.

Engaging employees

Corporate volunteering improves employee morale, increases motivation and enhances job satisfaction. A recent study commissioned by the City of London even underpins that volunteering is a hugely valuable way to develop skills. Learning through experience sets this method apart from more traditional approaches to training. Deutsche Bank has actively supported employee volunteering and charitable fundraising for more than 20 years. Employee engagement has become firmly embedded in our corporate culture. In 2014, almost 17,000 employees (21 % of global staff) volunteered over 190,000 hours of their time. 94 % of current volunteers say they are likely to get involved again. 55 % of employees who do not currently volunteer say they intend to do so in the future. Staff loyalty among corporate volunteers is 11 % higher than the average. (See Impact monitoring)

Increasingly, the focus of our volunteering agenda is to leverage employees’ skills and knowledge, and to make them available to community organizations. In 2014, Deutsche Bank mentors, coaches or consultants offered over 62,500 hours of skills-based volunteering around the world.

The Engagement im Gallus initiative has enabled the first upper high school grades in this Frankfurt district. Patenschaftsmodell Offenbach celebrated its tenth anniversary: to date, 260 students have been matched with 80 mentors, including 24 Deutsche Bank employees. A role-model initiative in the UK is STEMettes, which was set-up by one of our employees in 2013. It addresses the issue of declining numbers of women working in science, technology, engineering, and mathematics (STEM) by organizing events, webinars, exhibitions, and mentoring for girls in elementary and secondary schools. 30 female Deutsche Bank employees have been matched with students aged 16 and over through a new initiative called Student to STEMette where they share their experience, personal networks, industry knowledge, and journey to employment. Together with I’mPOSSIBLE, a social enterprise supporting women from ethnic minorities, we developed this initiative further by offering six work experience placements within our Group Technology & Operations function.

Leveraging skills and networks to support non-profits

We encourage our employees to make their professional skills available to charitable organizations, microfinance institutions, social businesses, academic institutions, and foundations. Through the global Corporate Community Partnership (CCP) program, Deutsche Bank managers are matched with non-profits in developing and emerging countries. Since 2008, the program has sent 79 employees to assist in 25 initiatives in Africa, Latin America, and Asia. In Germany, the Partners in Leadership initiative matches our managers with school administrators who are increasingly facing challenges of human resources and project management, among others. We have supported the program since 2006, and 25 employees have become part of a one-year tandem in 2014, thus contributing to promoting the quality of education.

Deutsche Bank also started the first joint capacity development activities with the Gesellschaft für Internationale Zusammenarbeit (German Development Agency) in Myanmar. And from 2015 onwards, Deutsche Bank employees will support NGOs in South Africa within the Alternate Income Generation project that we developed in close cooperation with TSiBA.

Rising to the challenge

Our Team Challenge program encourages employees to offer hands-on support to drive tangible progress in their local community. In 2014, 7,933 employees made a difference in more than 1,100 projects worldwide. The team challenges are an integral part of the curriculum of our apprentice and internship programs. Employees can also propose their own project ideas through the Initiative Plus scheme. The second annual Deutsche Bank’s India Volunteering Week saw more than 950 employees get involved with 50 initiatives, contributing over 5,000 volunteering hours. The global Group Technology & Operations (GTO) initiative, GTO Cares: Be the Change, mobilized 1,731 employees to give over 10,000 hours of their time. In Frankfurt, around 300 employees volunteered for eight consecutive weeks in two local soup kitchens.

Fundraising for charities

Deutsche Bank employees are equally committed to raising funds for non-profit organizations. Our established Matched Giving programs in the US, the UK, South Africa, and Australia generated a total of more than € 12.5 million in 2014. The employee-chosen Charities of the Year programs in the UK and Australia, and the Donate One Day program in Singapore rally colleagues to provide small charities with unrestricted funding. For the first time in 2014, the UK and Australian programs were aligned with the Deutsche Bank’s Born to Be mission: to help young people fulfill their potential. (See Corporate citizenship)

In our largest sporting fundraising event, DeutscheBike, 160 employees challenged themselves to tackle up to a 300 mile stretch of the 2014 Tour de France UK route. An incredible £250,000 was raised to support the two UK Charities of the Year – Rainbow Trust Children’s Charity and Malaria No More UK. In Australia, employees and clients supported the crowdfunding project Females for Finance of Australia’s Charity of the Year, The Smith Family, which helps young people. Deutsche Bank colleagues in Dubai raised funds to support the international medical charity Operation Smile.

Towards 2015

In 2015, we will build on our achievements and launch the RestCent initiative, which will enable employees in Germany to round down their net salary to the nearest euro and donate the extra cents to charitable projects. The first proceeds will go towards scholarships for disadvantaged students, thus supporting the Born to Be agenda.