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Employees and Demographic Change

In future, our employees will need to be more flexible in their approach to company and functional boundaries. Our traditional markets are changing. The level of political interventions is increasing and the regulated part of the market is burgeoning whereas the competitive element of the market is losing ground. We need to respond to the changes in the marketplace by shifting the core functions of employees. We are taking on the challenges of the energy transition and we want to be part of the solution.

RWE therefore needs to ensure that its personnel are in a position to meet the challenges of a tougher and more competitive world. We need to become leaner, more flexible and closer to the market. A lot of our internal processes are still too complex, not transparent enough and take up the time of too many people. If we are to increase our efficiency, we need to avoid duplicated functions and optimise interfaces. This is one of the areas for action in our ‘RWE 2015’ programme which we are using to make RWE fit for the future. Higher levels of flexibility will be required from our employees than in the past. We have to carry our employees and managers with us on this journey.

Challenges

The changed market conditions present our company and our employees with some major challenges. The core objective of the ‘RWE 2015’ programme is to achieve a further improvement in earnings amounting to € 1 billion by the end of 2014. We are also aiming to use this programme to create the platform for additional efficiency improvements after 2014. We will only succeed in our objectives if we take our employees and managers with us as we engage in future changes and we remain attractive as an employer in the process.

If the core functions shift within the Group as a result of market conditions, employees also need to be prepared to take on new activities. The long-term opportunities at RWE will increase for staff who become more flexible, both in geographical and functional terms. For example, career development of employees may also be linked to changing their location. Just as we have always done in the past, we will see what is feasible for our employees.

Over the long term, we can only secure our competitive position if cost awareness becomes a fixed element in our everyday working routine and we achieve operational excellence in the course of our cooperation between individual areas. This involves being even more careful when dealing with costs and investments. We would like to initiate rolling improvements in this area. All our employees need to contribute to the initiative and this should be a priority for them. Every employee can play their part, for example, by helping the individual Group companies to create a more flexible structure for fixed costs.

Objectives

 

We are committedKPITarge
… to ensuring the long-term availability of sufficient numbers of suitably qualified personnel.Demography Index Demography Index of at least 84 

Target attainment

Up to now, the core challenge of this area for action has been managing the demographic change. The main target was to create a balanced age structure and to achieve a high level of planning certainty. The core challenge has now been postponed. If we are to ensure that we remain fit for the future, we will have to be leaner, more flexible and closer to the market. We have not yet been able to develop an appropriate indicator (KPI) that will allow us to measure our fitness for the future.

In 2010, we established a parameter in the form of the Demography Index (DEX) in order to measure a balanced age structure as the basis for our operational capability. The age distribution improves as the DEX value approaches 100. Since 2010, the DEX has changed from 83.8 to 83.9 in 2012 and is therefore minimally below our target of 84 for 2012. Other large German companies have similar values.

Overview of the most important facts:

Demography Index stable at

83.9

points

More than

2,800

apprenticeship places at 60 locations

more than

150

nursery places in Germany

27.5 %

proportion of women in the workforce

12.3 %

of women in management positions