Employees

Employer attractiveness and strategic Human Resources work

ProSiebenSat.1 was still a traditional TV group only a few years ago. Today, we are a digital media corporation with a diversified business profile, including e-commerce, international program sales and our own multi-channel network. In this context, change is a key part of our corporate culture. With our HR strategy, we promote the innovativeness of our employees and advance the digital transformation of the Group. This is why we are making targeted investments in the education and training of our employees and offering them attractive career opportunities, performance-based remuneration models, family-friendly working conditions and a wide range of social benefits.

Good positions in employer rankings are a key external tool in order to measure the success of this HR strategy. ProSiebenSat.1 Group is one of Germany’s most popular employers (Fig. 82).

Development of Employee Numbers

We are investing in new business areas and the number of employees is also growing accordingly. As of December 31, 2016, the Group had 6,565 employees (previous year: 5,584), calculated on the basis of full-time equivalents. The number of full-time equivalents averaged 6,054 in the period under review (previous year: 4,880). This increase by 1,174 average full-time equivalents or 24 % is mainly attributable to the expansion of the Digital Ventures & Commerce business (Fig. 83). The average duration of employment was 5.5 years, as in the previous year. The turnover rate was 10 .0% in the financial year 2016 (previous year: 8.8 %).

Employees by segments¹ (Fig. 83)

In 2016, ProSiebenSat.1 had an average of 4,876 employees in Germany, Austria, and Switzerland (previous year: 4,164 average full-time equivalents). This equates to growth of 17 % year-on-year and an 81 % share of the Group’s total employees (previous year: 85 %) (Fig. 84).

Employees by regions (Fig. 84)

Due to the greater number of employees, personnel expenses reported in the cost of sales, selling expenses and administrative expenses also increased to EUR 616 million in the financial year 2016. This corresponds to an increase of 29 % or EUR 139 million compared to the previous year.

Diversity Management

Our corporate culture is characterized by openness and respect. This is why ProSiebenSat.1 Group signed the Diversity Charter in 2014. By joining this initiative, we have underlined our commitment to creating a working environment free of prejudice and exclusion that promotes diversity among employees.

We value the different personality traits, interests and cultural backgrounds of our colleagues and we are convinced that diverse teams are more successful. A balanced ratio of men and women contributes towards diversity. In 2016, 49.2 % of ProSiebenSat.1 employees were women (previous year: 46.8 %) and 50.8 % of employees were men (previous year: 53.2 %) (Fig. 85).

Proportion of women and men in the Group as a whole (Fig. 85)

In the core market of Germany, the proportion of women was 48.4 % (previous year: 45.4 %) and was thus roughly on the same level as the average proportion of women at German companies (Fig. 86). This figure was recently 46.4 % according to the Federal Office of Statistics (June 2016).

Proportion of women and men in the German core market (Fig. 86)

The proportion of women at management level was 29.1 % (previous year: 29.0%). In the core market of Germany, 28.7 % of managers were women (previous year: 27.9 %). This figure also corresponds to the average figure at German enterprises (Federal Statistical Office 2015: 29 %). In order to promote this balanced ratio, the Executive Board of ProSiebenSat.1 Media SE has set targets for the proportion of women at both management levels below the Executive Board and for the Supervisory Board in September 2015. The target for first-level management is 15 % and the target for second-level management is 25 %. These targets must be achieved by June 30, 2017. We have already achieved our target for the proportion of women in first-level management. This is also correct regarding the composition of the Supervisory Board. On December 31, 2016, the Supervisory Board was made up of nine members, including three women. This means that the Supervisory Board’s current composition meets the self-determined target of 33 %. In addition, ProSiebenSat.1’s Supervisory Board set targets for the Executive Board.

However, ProSiebenSat.1 sees diversity not only as a balanced ratio of women and men, but also recruits employees at all hierarchy levels solely on the basis of skills and objective criteria. Factors such as nationality, sexual orientation and age play no role here. In 2016, ProSiebenSat.1 employed people from around 50 different nations in Germany. The average age of employees was 36.7 years, as in the previous year (Fig. 87).

Age pyramid (Fig. 87)

Recruiting und Employer Branding

In recent years, ProSiebenSat.1 Group continuously developed its recruiting and employer branding activities. For instance, this includes the development of a recruiting team that maintains an external network of people with potential. We are capable of quickly filling vacant positions and efficiently managing costs by contacting people directly. In addition, ProSiebenSat.1 established a job recommendation program called Talentry. Employees can recommend suitable candidates for vacant positions using the intranet. Over 1,000 users have now registered with Talentry and submitted around 2,500 recommendations. Employees receive a bonus if the person they recommend is eventually hired.

The Group pursues a holistic recruiting strategy. This also involves contacting candidates based on the relevant target group using various communication channels, such as social media channels which complement our career portal at www.fascinating-people.de/en. The Group also focuses on graduates and was represented at a total of twelve university fairs in 2016. An indicator for the success of this strategy is the number of applications. In 2016, the number of applications in Germany rose by around 11 % to 41,800 applications (previous year: 37,700).

Education and Training

ProSiebenSat.1 trains junior staff for the Group through various apprenticeships. In 2016, a total of 171 apprentices worked in Germany at ProSiebenSat.1 (previous year: 190). This includes management trainees, trainees in TV, Online and PR, as well as apprentices in the following courses: audiovisual media, events, video and sound media design and IT system integration. The Group also offers dual study programs in media and communications business, as well as accounting and controlling. Since 2016, graduates have been given the opportunity to apply for a new IT traineeship with a focus on software development, data analysis or IT management. In addition, the Group took on most of its apprentices, management trainees and trainees as employees (Fig. 88).

Retention rate of apprentices, trainees and management trainees in Germany (Fig. 88)

The Company offers its employees a wide range of training opportunities throughout their career. In this conetxt, the courses offered by the ProSiebenSat.1 Academy are a key tool. There were 558 events at the Academy in 2016 (previous year: 750 events), with 5,963 participants (previous year: 6,945 participants). The decline in the number of events, participants and investment is also due to the fact that the Academy offered a special range of events last year in order to introduce a new software.

ProSiebenSat.1 promotes networking between employees with the aim to create universal specialist knowledge and leverage synergies. Managers who have an entrepreneurial spirit and encourage employees to be innovative are also important for the Group’s development. ProSiebenSat.1 supports this with a management development program. All new managers complete the “New Leader,” “Performance,” “Team,” “Self-Management” and “Digital Leader” modules. In 2016, a total of 370 managers took part in the development programs offered here (previous year: 451). Overall, ProSiebenSat.1 Group’s investments in education and training programs amounted to EUR 3.3 million (previous year: EUR 3.6 million); ProSiebenSat.1 Academy programs account for most of this amount.

Performance-Based Compensation System

Our employees are managed in line with the principle of “Management by Objectives,” drawing on a system of targets that puts higher-level corporate objectives into more specific terms for both staff and management by systematically breaking down targets into segment, departmental and individual goals. At annual assessment interviews, employees and their supervisors define personal targets for the financial year. This system of targets is tied to a bonus plan calculated on the basis of individual target attainment and the EBITDA generated by the Company. Employees can achieve up to 200 % of their individual target bonus.

ProSiebenSat.1 lets its employees participate appropriately in the Company’s success with performance-based compensation. For managers, the Company introduced the “Performance Development” program in 2010. The objective is to assess functional performance, manager conduct and business activity. The program is linked to a bonus system, and also entitles managers to receive a one-time payment of up to 200 % of the individual target bonus. A share-based payment plan (Group Share Plan) was initiated in 2012 as another incentive system in which selected managers participate.

In order to strengthen organizational identification among employees, ProSiebenSat.1 also launched a share program for employees, MyShares, in June 2016. Employees can purchase shares worth between EUR 120 and EUR 1,000 every year. They receive additional tax-free shares worth EUR 360 from the Company, regardless of the amount. Once these have been held for three years, they also receive a free share for every three shares. Over 1,800 employees invested in MyShares in 2016, corresponding to nearly 50 % of all eligible employees.

Work-Life Package

For over ten years, we have offered our employees an in-house child day-care center that currently has 64 places. In 2016, the Group’s investments in childcare amounted to EUR 1.2 million (previous year: EUR 1.2 million). EUR 0.3 million went to the company child day-care center, EUR 0.9 million to care subsidies, which are paid to all employees whose pre-school age children receive care outside the home. We also collaborate with an external partner that offers childcare and support for family members.

In addition, we support our employees with flexible working hours models, teleworking jobs, sabbatical models and part-time work. The new working hours model (FlexTime) has been in place since 2015, offering employees a generous flexitime arrangement as well as various opportunities for compensatory time off. In addition, the model governs mobile work at home and while traveling.

In 2016, the share of part-time employees at ProSiebenSat.1 in Germany rose to 17.4 % (previous year: 16.8 %) (Fig. 89). According to the Federal Employment Agency, an average of 27 % of employees worked part-time at German companies in 2016. The fact that there are fewer part-time employees at ProSiebenSat.1 compared to the average number at German companies is largely due to the high number of young employees at ProSiebenSat.1.

Part-time and full-time employees in Germany (Fig. 89)

ProSiebenSat.1’s human resources work also focuses on health and sport. With an in-house restaurant, gym and company doctor at the headquarters in Unterföhring, we cover a wide range of work-life standards for modern employers. In addition, ProSiebenSat.1 intends to build a new campus at the headquarters in Unterföhring, which some employees will move to. This is aimed at creating a modern campus with open structures that promotes cooperation beyond the confines of departments and hierarchies.