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Non-Financial Notes: Social Performance

General Information About Social Indicators

Boundaries

Our boundaries take two different perspectives: SAP as a company, which includes all our legal entities and operations and supply chain, and SAP as a solution provider enabling our customers. These boundaries are listed in detail in the GRI G4 Content Index.

Social Indicators

Data for our social indicators is collected and reported on a quarterly or annual basis and is subject to external assurance for annual reporting.

Employee Retention

We define employee retention as a ratio that puts emphasis on employee-initiated turnover – in other words, we seek to measure how many employees choose to stay with SAP. We derive our retention rate by starting with our average number of employees expressed in full-time equivalents (FTEs) in a given year and subtracting employee-initiated turnover. We then divide this figure by our average number of employees in that year to obtain our retention rate. As opposed to keeping a low turnover rate – which companies generally seek to do – we aim to keep our retention rate high. A higher retention rate signifies that fewer employees are choosing to leave SAP.

We do not differentiate between gender when we analyze retention and turnover rates.

Women in Management

We define “women in management” as the share of women in management positions as compared to the total number of managers.

At SAP, we differentiate between the following categories of managers:

  • Managers managing teams: Refers to managing teams of at least one employee or vacant positions
  • Managers managing managers: Refers to managing managers that manage teams
  • Board members

Business Health Culture Index

The Business Health Culture Index (BHCI) measures the general cultural conditions in an organization that enable employees to stay healthy and balanced. The index covers questions concerning how employees rate their personal well-being and the working conditions at SAP, including our leadership culture. The BHCI is an indicator as to what extent SAP successfully offers employees a working environment that promotes health supporting their long-term employability and their active engagement in reaching our ambitious corporate goals.

The BHCI is calculated based on the results of an employee survey (“People Survey”) conducted annually. All employees were invited to take part in the 2016 People Survey and 64,889 employees participated (response rate: 76%).

The BHCI score for 2014 was recalculated from 70% to 72% based on two updated questions in the people survey concerning work-life balance. The changes were carried out to simplify the questionnaire and to better compare with against external benchmarks.

Employee Engagement

We define employee engagement as a score for the level of employee commitment, pride, and loyalty, as well as our employees’ feeling of advocacy for SAP.

It is calculated based on the results of an employee survey that is conducted annually (see BHCI).

In 2015, we simplified our Employee Engagement Index and recalculated our score for 2015 from 81% to 82%. This calculation method has been applied moving forward.

Customer Loyalty

We measure customer loyalty using the Customer Net Promoter Score (NPS). The NPS is derived from the following survey question “How likely would you be to recommend SAP to friends or colleagues?” Customers choose from a range of 0 to 10. Customers that choose a 9 or 10 are considered Promoters. Passives answer the question with a rating of 7 or 8, and Detractors with a rating of 6 or less.

The Customer NPS is calculated using the following formula: NPS = % of Promoters – % of Detractors. Passives are not included in the calculation. The NPS can range from –100% to 100%.

We aim to include at least 70% of all eligible direct customers from all regions and industries in the annual survey. From each company, multiple roles (decision makers, influencers, end users) are invited to provide feedback. In 2016, approximately 29% of invited customers (accounts) participated in the survey.

In 2015, customers who purchased SAP Hybris and Concur solutions were included for the first time; in 2016, we also added customers of Fieldglass and Ariba to our global process. As we further harmonize processes in acquired entities, the customer segments used for customer surveys has not yet been completely harmonized across the SAP Group. Specifically, due to the nature of the business, the Concur customer sample includes a higher proportion of general business customers in comparison to other Group entities. As a result, Concur responses make up a large proportion of the total customer sample.

Our Customer NPS accounting policy helps ensure that SAP achieves a trustworthy consolidated NPS for our on-premise and cloud-based services.

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