HR plays an instrumental role in securing the future success of Deutsche Bank. In doing so, the function is guided by its long-term vision of working in partnership to create an environment where employees can thrive and are enabled to deliver sustainable organizational performance. Specifically, three longer-term strategic priorities have been identified for HR:
- to apply its human capital expertise more assertively to support the business divisions and infrastructure functions in order to deliver results;
- to strengthen its role as a control function for the Bank for human capital risks;
- to build the capabilities of managers and staff.
In 2015, our HR activities were in line with these priorities, which have come into particular focus with Deutsche Bank’s Strategy 2020 and its execution over the coming years.
Applying human capital expertise in partnership with the business
The delivery of business consulting capability and professional HR services is designed to positively impact business results. This includes bringing HR’s knowledge of human capital trends to support Strategy 2020 and to provide access to the skills required. There has also been a particular focus on demographic trends and how they affect the organization.
Deutsche Bank is developing workforce management solutions to optimize the balance between supply and demand for capabilities, and to manage the cost and employee base more efficiently and effectively in the long term. One of the key aspects is enabling employees to develop the skills necessary to take up new roles within the organization, with the Bank supporting internal, cross-divisional career mobility by identifying redeployment opportunities and offering training and development. In addition to supporting the execution of strategic measures, internal mobility allows employees to have more diverse and fulfilling careers.
At the same time, Deutsche Bank seeks to add to the skills of its workforce – part of the Bank’s investment in digitalization under Strategy 2020 – and to position itself as an employer of choice: one that rewards sustainable performance and offers a comprehensive range of benefits.
Owning and managing human capital risk
As an important pillar of the Bank’s Three Lines of Defense (3LoD) program and approach, the HR function made progress in 2015 in defining and managing controls, creating a common understanding of its own role related to controls, and assigning risk owners. This important work, which impacts all activities from talent acquisition and development to disciplinary processes, will continue in 2016.
Setting the standards for disciplined management of human capital risk also entails developing incentive and reward structures that reinforce Deutsche Bank’s culture. This means employees are paid for sustainable performance within a sound risk management and governance framework and with due consideration of market factors. Performance, behavior in line with the corporate values, and compensation have already been linked more closely than before, with the Bank introducing a new framework in early 2016 that provides clear guidelines on the target proportion of fixed to variable compensation by corporate title and by division or function.
Building the capabilities of managers and staff
Investment in skills and accelerating employees’ professional and personal development are essential components of the Bank’s people agenda. Deutsche Bank is committed to strengthening the capability of managers and holding them accountable to enable employees to thrive and meet their full potential. This is reflected in the talent and development agenda, which includes a recalibrated offering that helps to develop and nurture future leaders who are accountable, who champion the Bank’s values and who inspire the best in their colleagues.
Diversity is a key enabler for long-term success. Only by building teams of people with different backgrounds, education, skills and experiences can we create sustainable value across the Bank. For example, in line with voluntary targets to raise the proportion of female managers across the organization and in implementing German gender quota legislation, Deutsche Bank has made progress in developing female senior executives through both standard and specialized programs, internal career mobility measures and succession planning.
The execution of Strategy 2020 will be the overriding theme for the Bank in 2016 and beyond. For the HR agenda, this translates into a stronger focus on change management and advising the Bank’s divisions, helping to reduce complexity, increase efficiencies and build an effective organization. Importantly, Deutsche Bank works closely with its social partners in preparing and implementing individual strategic measures.
HR’s principles and priorities have sharpened in the face of Strategy 2020. The Bank seeks to retain, develop and continue to attract people with the requisite skills to help shape a better Deutsche Bank and foster employees’ engagement and motivation throughout the implementation process.