A report from The Economist Intelligence Unit TIME TO START WORRYING? The implications of an ageing workforce in The Netherlands Sponsored by Time to start worrying? The implications of an ageing workforce in The Netherlands Contents Executive summary Brace for impact Case study More cash, please Pensions? That’s your problem Case study Conclusion 10 Appendix 11 © The Economist Intelligence Unit Limited 2014 Time to start worrying? The implications of an ageing workforce in The Netherlands Executive summary A tide of demographic change is about to break over the Netherlands and its executives need to prepare Historically low birth rates and increasing life expectancy mean that Europe’s working population is ageing fast In 2012, the continent reached an inevitable demographic tipping point The percentage of the population at working age fell for the first time in 40 years It is now forecast to fall every year until 2060 This inescapable trend will have profound implications for governments, citizens and companies across Europe The demographic makeup of the Netherlands means the country has less time to adjust than the continent’s other large economies, according to European Commission forecasts Under the Commission’s bleakest forecast, population ageing could create labour supply bottlenecks for the Dutch economy as soon as next year To explore some of the issues that senior executives will have to address as they seek to adapt their organisations to this new world, The Economist Intelligence Unit, on behalf of Towers Watson, surveyed 480 senior executives at companies across Europe, with 42 in the Netherlands Some 83% of those in the Netherlands expect the number of their employees aged 60+ to increase by 2020, including 33% who expect it to increase significantly – those are among the highest results in Europe Key findings include: Workforce ageing and skills shortages move up the agenda As demographic change is likely to hurt the Netherlands sooner than most other countries, almost one in six see ageing as a priority human resource issue for their business today, and one in three expect it to be an issue by 2020 Similarly, Dutch executives are among the most concerned (21%) in Europe about the threat of skills shortages Cash is king As the brightening of Europe’s economic outlook pushes talent management up the agenda across the continent, executives in most countries plan to offer staff a wider mix of non-financial benefits The Dutch are different – they are more than twice as likely (43% compared to 20% overall) to give workers cash Perhaps this is why a significant minority (21%) think the cost of benefits as a percentage of salary will actually decrease in the years to 2020 Responsibility lies with the individual, not the employer Dutch executives are the least likely (24% compared to 42% overall) to agree that it is better for employees to get certain benefits, such as healthcare, through work than to buy them themselves They also are much more likely to believe that the individual should be the one primarily responsible for providing and/or funding healthcare provision (36% compared to 19% overall) When it comes to saving for retirement, Dutch employees are Europe’s big worriers Some 41% of executives say this is their staff’s greatest concern No other country ranks it anywhere near that high – just 20% of European executives overall rank this as a top-three concern © The Economist Intelligence Unit Limited 2014 Time to start worrying? The implications of an ageing workforce in The Netherlands Brace for impact If holding onto older workers is the way that the Netherlands will maintain its workforce, it should be no surprise that the survey found Dutch executives to be among the most concerned in Europe about the challenge of managing an ageing workforce Almost one in six see ageing as a priority human resource issue for their business today By 2020, one in three expect this to be the case The main effects of workforce ageing, they believe, will be an increase in the cost of employee benefits (43%), greater demand for benefits (31%) and a need for more flexible (% of respondents) Europe Netherlands 43 43 43 35 35 31 29 24 23 Source: The Economist Intelligence Unit Increased flexible working (to provide care for older dependents, phased retirement, etc) 19 Progression of younger workers becomes more difficult If the country can achieve what the Commission calls “an exceptionally favourable economic outlook allowing for an extremely high mobilisation of human resources”, it could stave off those shortages for eight years or so A recent report from ABN Amro offered an even more optimistic outlook, pointing to overall population growth and the increased proportion of those aged 65 to 68 remaining in work Which of the following you think is most likely to happen as a result of an ageing workforce? Higher costs of benefits In the decade to 2012, the ratio of people aged under 15 and over 65 to the population at working age increased from 45.4% to 50.5% – one of the biggest increases in Europe Under the European Commission’s most pessimistic scenario, the Netherlands could experience labour bottlenecks as soon as 2015 – much earlier than the UK, for example, which is unlikely to feel the pain until the early 2020s Chart Greater risk of age discrimination claims The economic and business implications of Europe’s ageing workforce are huge, and the Netherlands has less time to adjust than any of the EU’s other large economies Greater employee demand for benefits (healthcare, retirement and other benefits) working, so that employees can care for older dependents (29%) Almost a quarter (24%) say workforce ageing will make it harder to promote younger workers who are ready to move on A fifth (19%) expect an increase in age discrimination claims Yet on each of these points, Dutch executives are less likely than their European rivals to think their business will be affected And for two potential trends – including demand for benefits – they are the least concerned in Europe This lack of relative alarm is reflected in their wider business priorities As the economic © The Economist Intelligence Unit Limited 2014 Time to start worrying? The implications of an ageing workforce in The Netherlands Chart What is the most important business priority for your organisation currently? In 2020? (% of respondents) Europe now Netherlands now Germany now Europe in 2020 Netherlands in 2020 Germany in 2020 63 57 55 50 49 42 39 34 38 45 36 32 27 26 48 43 42 38 34 29 29 24 23 24 26 21 21 14 14 12 11 14 11 Restructuring Cost control Expansion Innovation Talent management (HR) Risk control and management Source: The Economist Intelligence Unit outlook improves across Europe, executives in many countries expect talent management to become a far more significant issue in the years ahead But very few Dutch executives see much change here Only 21% say talent management is a top-two business priority today; that climbs to just 26% in 2020 The increase is the joint smallest in Europe, along with France By contrast, the proportion among Germans citing talent management as a top two priority leaps by 237% over the same period Does this suggest Dutch executives are complacent about the potential impact of demographic change? The European Commission data suggest that a lack of ready labour could be imminent for the Netherlands, and the survey shows Dutch executives are among Europe’s most concerned about skills shortages (21%) Yet by 2020, when the Commission believes the Dutch are very likely to be feeling the pinch, that level of concern does not rise at all Perhaps the survey respondents believe the more optimistic ABN Amro report, which states a shrinking workforce will not happen until 2027, or even 2032 In a similar vein, Dutch executives are among the least likely in Europe to be planning any changes © The Economist Intelligence Unit Limited 2014 that would prepare their organisations for an older workforce From allowing employees to select from a wider range of benefits to offering more flexible work hours, they score below the European average across a range of measures In some cases they are only marginally behind, but the pattern seems clear enough Many companies in the Netherlands are doing less in response to workforce ageing than their peers across Europe, but there are some examples of good practice Faced with making a significant number of staff redundant, Achmea, the country’s largest insurance provider, launched a program called Silver Pool The company offers temporary, flexible contracts to staff over 57.5 years who have knowledge and experience it might otherwise lose When employed under these contracts, staff receive 100% of their salary while working and they still receive 75% of their pay even when there is no work And whenever Achmea has a temporary, third-party or contractor position to fill, Silver Pool members have priority The company thus retains the knowledge and expertise of older staff, and cuts its costs Time to start worrying? The implications of an ageing workforce in The Netherlands Case study: PostNL Talent management might not be climbing up the agenda for many Dutch businesses, but it definitely is at PostNL, the Dutch mail and parcels business, says HR director Roger Muys The decline in traditional letter mail and an increase in parcels business means that the company wants to create a more flexible workforce; the ageing trend is causing it to pay more attention to the physical and mental fitness of all employees and how it engages its most talented people, says Mr Muys “Every organisation faces more or less the same HR challenges,” he believes “In practice, flexible labour means less emphasis on full-time contracts – 37 hours or more – and more space for part-timers, including students, pensioners and returners, who would like some extra money.” The days of lifetime employment with one company are over, he says Ambitious, talented people are not willing to stick in one place all their career “The financial crisis has dampened that trend a little, but once the global economy recovers, and with it the labour market, employers will need to think again about how they try to hold on to their high-potential people,” he believes Mr Muys says it is no longer wise to limit career development programs such as coaching and personal development to “top potentials”; talent management investment should extend to all employees “It’s not only because people are the most important asset for any organisation, but also because it means we can fill sudden gaps in the workforce quickly and properly,” he says © The Economist Intelligence Unit Limited 2014 Time to start worrying? The implications of an ageing workforce in The Netherlands More cash, please A brightening economic outlook across Europe is likely to affect the concerns of employees, too The survey shows that in most countries, employers think employees will begin to worry less about whether or not they have a job and more about how and how much they work But the story is somewhat different in the Netherlands Today, the country has – almost – the lowest percentage of companies focused on cost control in Europe No wonder, then, that Dutch employees are much less concerned about financial or job security than workers across Europe – although this is still their main concern The big areas where Dutch executives think their staff concerns will grow are the impact and pace of technological change (which they expect to increase five-fold) and the desire for employment flexibility, in the form of job sharing, portfolio careers, part-time working and phased retirement (this will double) That growing demand for different ways of working is a common theme across Europe, but nowhere is it as pronounced as in the Netherlands How companies plan to deliver that flexibility varies by country For Europe as a whole, the most common response is to offer more adaptable working hours and the chance to work Chart What you believe to be the issues your employees see as most important today? (% of respondents) Europe now Netherlands now Europe in 2020 Netherlands in 2020 64 57 41 38 32 29 29 31 45 42 41 38 36 33 31 26 20 33 29 25 23 19 19 14 15 17 17 25 24 20 19 21 14 14 10 Financial security Job security Saving for retirement Stress and wellbeing Healthcare provision Work-life balance Source: The Economist Intelligence Unit © The Economist Intelligence Unit Limited 2014 Employment Skill New flexibility development technology (job sharing, /pace of portfolio careers, change part-time working, phased retirement) Caring for dependents (children and elderly) Time to start worrying? The implications of an ageing workforce in The Netherlands from home; just over half (52%) of the Dutch executives in the survey are considering this Whereas companies in other countries – notably the UK – also expect to make big changes to their wider benefit programs, Dutch executives see this as less of an issue Chart Which of the following statements describes your company’s attitude to benefits offered to employees: In the future, we are more likely to give employees a cash allowance and let them choose what benefits they like (% of respondents) 43 The survey data suggest an explanation for this A third of Dutch executives – slightly more than the European average – believe the benefits they offer today will still be fit for purpose by 2020 On the same theme, almost two thirds of them (62%) say they already offer a fully comprehensive benefits package to attract and retain employees – which ranks them second only to Switzerland Companies in the UK, for example, are looking to change the employee benefits they offer and to give employees more choice But in the Netherlands, 43% say in future they are more likely to give employees a cash allowance so they can choose what benefits they like – that is double the European average Dutch executives were also the least likely (24%) to agree with the statement: “It is often better for employees to get certain benefits through work than buy them themselves.” Perhaps this is why a significant minority of Dutch companies (21%) think the cost of benefits as a percentage of salary will actually decrease in the years to 2020 26 20 19 14 13 11 Europe Netherlands UK Germany France Italy Switzerland Spain Note: Chart compares the percentage of respondents from each country who selected “In future…” in answer to the question Source: The Economist Intelligence Unit The Dutch also look to the individual when it comes to healthcare Over two-thirds 68% of Dutch survey respondents believe the state will play a reduced role in providing healthcare – the highest in Europe This likely reflects reforms introduced to the Dutch healthcare system over the last decade; all citizens are now legally 43 to purchase at least a basic 43level 43of required insurance 35 35 31 29 24 23 19 © The Economist Intelligence Unit Limited 2014 Time to start worrying? The implications of an ageing workforce in The Netherlands Pensions? That’s your problem With demographic change hitting the Netherlands sooner that anywhere else, it is no wonder that Dutch employees are worried about their ability to save for retirement Today, according to their bosses, this is their second biggest concern (41%) No other country in Europe ranks it anything like as highly; the next nearest country is France on 24% Yet, perhaps remarkably, executives expect this concern to evaporate in the years to 2020 Everywhere else in Europe, executives think retirement saving will become far more important to employees The proportion of those in the UK who say it will be a top-three issue for employees leaps by 150% The increase is just about as high in Spain But the Netherlands is the only country Chart What you believe to be the issues your employees see as most important today: Saving for retirement (% of respondents) 44 41 35 33 20 27 26 24 20 24 22 18 Spain 2020 Switzerland 2020 Italy 2020 France 2020 Germany 2020 UK 2020 Netherlands 2020 Europe 2020 Spain now Switzerland now Italy now France now Germany now UK now Netherlands now Europe now 14 Note: Chart compares the percentage of respondents from each country who selected “saving for retirement” in answer to the question Source: The Economist Intelligence Unit This may be because the Netherlands has a high savings rate and reforms to the pensions system currently underway are expected to strengthen it However, the changes being made will not necessarily benefit employees, transferring more responsibility for risk from the employer to the individual One explanation for this could be that Dutch employers plan to give their workers more cash rather than non-financial benefits (see above), which they can then invest in their own pensions if that is what worries them most Today, 22% of Dutch executives say the main reason they provide retirement benefits is so that employees can have an adequate income when they stop working; by 2020 that climbs to 35%, the highest level in Europe 38 31 23 where executives think employees will actually become less concerned about their finances in old age In fact, the proportion rating it as a topthree issue falls by a third © The Economist Intelligence Unit Limited 2014 What is more, Dutch citizens are particularly keen to keep working past their normal retirement date, according to European Commission research Some 84% of them would like to take a partial pension while working part time, compared to two thirds of all Europeans If employees think that is something their employer will offer in future, then it makes sense that their anxiety about retirement planning might abate The signs here are positive Like their peers in other countries, many Dutch executives (33%) are concerned about the cost of making changes to their pension provision, but the level of Time to start worrying? The implications of an ageing workforce in The Netherlands concern they report is lower than in any other country, except Italy (29%) Moreover, Dutch executives are the most likely in Europe (45%) to believe that individual employees should provide or fund their own pensions benefit In France, by contrast, only 19% of executives had that view This view is reflected in the reforms currently working their way through the Dutch pensions system, which continue to shift responsibility and risk from the employer (as in traditional defined benefit schemes) by, for example, limiting employer contributions to underfunded schemes At the same time, the Dutch system already has seen a definite move by companies to utilising a halfway house between DB and fully individualised DC schemes – collective defined contribution (CDC) – which also reduces an employer’s pension risk, while not fully transferring it to individual employees This type of pooled risk pension scheme is being considered in other countries such as the UK The picture that emerges is this: a large number of Dutch executives believe that companies have a responsibility to help their employees to plan for old age, but they feel the best way of doing that is to give them the cash and access they need to make their own arrangements Case study: KLM At KLM Royal Dutch Airlines workforce ageing is a reality today The age profile of its 32,000 employees has changed significantly over the last five years The proportion aged 50 or older has increased from 18% to 29% while those aged 30 or less has fallen from 10% to 6% This is likely due to economics as much as demographics: since the 2008 financial crisis, the company has tried to avoid hiring new people into the business But the challenges it creates are the same The main one is what Maarten Stienen, Vice President Industrial Relations and Strategic Human Resources, calls “sustainable employability” – taking care of the workforce in a rounded way, so they remain employable for as long as possible This requires flexibility from the staff and investment from the business “To keep our workforce healthy and employable we put a lot of emphasis on health policies,” says Mr Stienen “Our vision for the next three years centres around promoting and furthering a healthy lifestyle and work-life balance.” But he does not expect the greater focus on health to increase the cost of benefits in this area “This is not really a concern,” he says © The Economist Intelligence Unit Limited 2014 Time to start worrying? The implications of an ageing workforce in The Netherlands Conclusion Dutch executives are right to be worried about workforce ageing A tide of unavoidable demographic change is on its way, and will break over the Netherlands sooner than any other European country surveyed Some big employers – such as KLM and PostNL – are looking at ways to extend the employability of their current workforce and rethink their approach to talent management But the survey suggests they may be the exceptions rather than the rule The financial crisis of recent years has sucked 10 © The Economist Intelligence Unit Limited 2014 much of the urgency out of this issue With employees worrying about whether they can simply keep their jobs – or in the Dutch case, save for retirement – employers not have to think too hard about talent management But as the recovery gains traction, this will change In the Netherlands, that change could happen especially quickly Here the complacency of many Dutch executives – especially with regards to the supply of skilled workers – is worrying indeed Time to start worrying? The implications of an ageing workforce in The Netherlands Appendix: Survey results What would you say is the most important business priority for your organisation currently? Select up to two (% respondents) Cost control 50 Expansion 38 Innovation 29 Restructuring 26 Talent management (HR) 21 Risk control and management 12 What would you say will be the most important business priority for your organisation by 2020? Select up to two (% respondents) Innovation 55 Expansion 45 Talent management (HR) 26 Cost control 24 Risk control and management 21 Restructuring © The Economist Intelligence Unit Limited 2014 11 Time to start worrying? The implications of an ageing workforce in The Netherlands By 2020, what will be the main drivers of change for your business? Select up to two (% respondents) Global competition 55 Technology 55 Talent/people management 38 Ageing 14 Changing size and role of the state 10 Offshoring/outsourcing Other (please specify) What are the main people (HR) issues you face as an employer currently? Select up to three (% respondents) Cost control (compensation and benefits) 41 Talent management and progression 33 Motivation and engagement 31 Recruitment 29 Retention 21 Skills shortages 21 Ageing workforce 17 Downsizing / offshoring 12 Healthy workforce (health, stress and wellbeing) 10 Regulation (state/EU) Diversity of workforce Other (please specify) 12 © The Economist Intelligence Unit Limited 2014 Time to start worrying? The implications of an ageing workforce in The Netherlands What will be the main people (HR) issues you face as an employer by 2020? Select up to three (% respondents) Talent management and progression 33 Ageing workforce 33 Cost control (compensation and benefits) 31 Retention 26 Recruitment 24 Motivation and engagement 24 Skills shortages 21 Healthy workforce (health, stress and wellbeing) 19 Downsizing / offshoring 10 Regulation (state/EU) Diversity of workforce Other (please specify) What you believe to be the issues your employees see as most important today? Select up to three (% respondents) Job security 57 Saving for retirement 41 Financial security 38 Work-life balance 38 Stress and wellbeing 19 Skill development 19 Healthcare provision 17 Employment flexibility (job sharing, portfolio careers, part-time working, phased retirement) 10 New technology/pace of change Caring for dependents (children and elderly) Other (please specify) © The Economist Intelligence Unit Limited 2014 13 Time to start worrying? The implications of an ageing workforce in The Netherlands What you believe to be the issues your employees see as most important by 2020? Select up to three (% respondents) Work-life balance 36 New technology/pace of change 33 Job security 31 Financial security 29 Employment flexibility (job sharing, portfolio careers, part-time working, phased retirement) 29 Saving for retirement 26 Skill development 21 Stress and wellbeing 14 Healthcare provision 14 Caring for dependents (children and elderly) Other (please specify) What, if anything, does your business plan to by 2020 in order to adapt to the changing needs of your workforce? Select all that apply (% respondents) Offering more flexible working hours or working from home 52 Changing the employee benefits we offer 48 Ensuring that the skills of older employees remain up to date 45 Giving employees more choice over their benefits 43 Adapting our structure to ensure that older workers who reduce work hours or responsibilities retain their status within the company and continue to feel valued 33 Making physical changes to the workplace 26 Looking at how to address inter-generational differences in our workforce 21 Other, please specify 14 © The Economist Intelligence Unit Limited 2014 Time to start worrying? The implications of an ageing workforce in The Netherlands How likely is it that the benefit programmes you have in place now will remain fit-for-purpose in 2020? (% respondents) Very unlikely 14 Unlikely 19 Neither/neutral 29 Likely 26 Very likely 10 Don’t know By 2020, for the typical employee at your company, you believe that the costs of benefits as a percentage of salary will: (% respondents) Increase significantly 14 Increase 45 Stay the same 19 Decrease 21 Decrease significantly Which of the following statements describes your company’s attitude to benefits offered to employees? Select all that apply (% respondents) We offer a fully comprehensive benefits package to attract and retain employees 62 We make sure we’re offering what’s normal for our industry, to keep up with competitors 60 In the future, we are more likely to give employees a cash allowance and let them choose what benefits they like 43 We think it’s right to look after our staff, and our benefits reflect that 26 It’s often better for employees to get certain benefits through work than buy them themselves 24 We’ve built up benefits over time, without an overarching strategy for choosing them 24 We have a carefully selected set of benefits suitable for our employees’ lifestyles 21 It is difficult to reduce elements of our current benefits package so any change results in an increase in overall costs 14 Due to historic reasons /changes we have lost track of why we have the benefits we have 12 We only offer the minimum benefits that are legally required, and otherwise just pay cash © The Economist Intelligence Unit Limited 2014 15 Time to start worrying? The implications of an ageing workforce in The Netherlands Who should be primarily responsible for providing and/or funding the following benefits? (% respondents) Individual Employer State Retirement provision 45 38 17 Savings scheme 68 18 15 Healthcare provision 36 36 28 Life insurance 59 33 Disability protection 21 51 28 Critical illness protection 31 36 33 End of life care 46 10 44 Do you agree or disagree with the following statements about health and wellbeing of your workforce in the future (to 2020)? Rate on a scale of to where is strongly agree and is strongly disagree (% respondents) Strongly agree Somewhat agree Neither agree nor disagree Somewhat disagree Strongly disagree The health and wellbeing of our workforce will be an increasingly important issue for us as an employer 34 37 27 The state will play a reduced role in providing healthcare 20 48 20 13 Healthcare costs will increasingly fall on employers 18 38 18 25 Healthcare benefits will be increasingly important to employees 33 35 28 What is your company’s main objective in offering retirement benefits now? (% respondents) Attracting talent 32 Employee retention 22 Wanting employees to have an adequate income in retirement 22 Workforce planning (managing when employees retire) 15 Compliance 10 What will be your company’s main objective in offering retirement benefits by 2020? (% respondents) Wanting employees to have an adequate income in retirement 35 Employee retention 28 Attracting talent 20 Compliance 10 Workforce planning (managing when employees retire) 16 © The Economist Intelligence Unit Limited 2014 Time to start worrying? The implications of an ageing workforce in The Netherlands What challenges are employers facing in making changes to their retirement benefits? Select up to three (% respondents) Excessive regulation 36 Cost of implementing changes 33 Growing costs (defined benefit plans) 33 Managing the risk posed to the business (defined benefit plans) 33 Lack of tools to measure ROI to justify the costs 26 Low levels of appreciation for retirement benefits among employees 21 Low levels of financial literacy/understanding amongst employers 19 Lack of bottom line benefit makes change hard to justify 12 Lack of tax incentives 12 Staff not have time or resources to manage retirement plans 10 Low levels of trust amongst employees for financial products 10 Other, please specify Staff haven’t requested any changes so employers not need to make any What is the biggest challenge facing the system for retirement savings in the country in which you are based? (% respondents) Demographic changes (ageing population) 29 Insufficient savings being made by individuals 15 Unrealistic expectations of individuals 12 Government deficits/debt (impact of austerity measures) 10 High costs for businesses providing pensions 10 Regulatory and legislative changes 10 Too many people not working to or past the state retirement age Unrealistic government entitlements (State pension, pension age) Not relevant for my country, our retirement system is sustainable Employers underestimating the future cost of promised benefits Other, please specify © The Economist Intelligence Unit Limited 2014 17 Time to start worrying? The implications of an ageing workforce in The Netherlands Do you agree or disagree regarding the following statements about retirement provision in the future? Rate on a scale of to where is strongly agree and is strongly disagree (% respondents) Strongly agree Somewhat agree Neither agree nor disagree Somewhat disagree Strongly disagree It is not an employer’s role to help their employees to have a comfortable standard of living in retirement 27 27 42 Employers should bear the risk of providing for their retirement 25 25 25 20 As an employer, we are concerned about the reputational risk of workers reaching old age and not being able to retire 10 30 33 15 13 How you expect the number of employees aged 60+ to change by 2020? (% respondents) Increase significantly 33 Increase 50 Remain the same 15 Decrease Decrease significantly Do you agree or disagree with the following statements about older workers? Rate on a scale of to where is strongly agree and is strongly disagree (% respondents) Strongly agree Somewhat agree Neither agree nor disagree Somewhat disagree Strongly disagree Older workers are less productive than younger workers are 28 28 18 28 Older workers have greater skills than younger workers 10 20 48 18 Older workers are less motivated than younger workers are 13 30 25 33 Older workers are easier to manage than younger workers are 18 50 20 13 Older workers take more time off for health reasons than younger workers 23 35 20 23 Which of the following you think is most likely to happen as a result of an ageing workforce? Select up to two (% respondents) Higher costs of benefits 43 Greater employee demand for benefits (healthcare, retirement and other benefits) 31 Increased flexible working (to provide care for older dependents, phased retirement, etc) 29 Progression of younger workers becomes more difficult 24 Greater risk of age discrimination claims 19 18 © The Economist Intelligence Unit Limited 2014 Time to start worrying? The implications of an ageing workforce in The Netherlands Which of the following best describes your title? (% respondents) Board member CEO/President/Managing director 14 CFO/Treasurer/Comptroller 26 CIO/Technology director Other C-level executive SVP/VP/Director 12 Head of business unit Head of department 12 Manager 24 What is your primary job function? (% respondents) Human resources 43 General management 21 Finance 19 IT Information and research Operations and production Procurement Risk © The Economist Intelligence Unit Limited 2014 19 Time to start worrying? The implications of an ageing workforce in The Netherlands How many employees does your company have globally? (% respondents) 500-1,999 21 2,000+ 79 20 © The Economist Intelligence Unit Limited 2014 Time to start worrying? The implications of an ageing workforce in The Netherlands What is your industry? (% respondents) Aerospace and Defence Automotive and Transportation Equipment Charities and Non-Profit Chemicals 10 Communications Consumer goods 10 Education Entertainment and media Financial Services: Banking Financial Services: Insurance Financial Services: Other financial services Food and Beverage Government/Public sector Health Care Hospitality (Restaurant, Hotel/Lodging, Tourism and Leisure) IT and High Tech 14 Manufacturing 10 Natural Resources Oil & gas Pharmaceuticals Professional and Business Services 12 Property and Construction Publishing and printing Retail Telecommunications Transportation Utilities Wholesale Other, please specify © The Economist Intelligence Unit Limited 2014 21 Time to start worrying? The implications of an ageing workforce in The Netherlands Please state which of the following best describes your company? (% respondents) Publicly listed 57 Other privately owned (partnership, limited liability, etc) 29 Family owned 10 Government/State owned enterprise Private Equity portfolio company What are your organisation's global annual revenues? (% respondents) Less than €500m €500m to €1bn 19 €1bn to €5bn 26 €5bn to €10bn 12 More than €10bn 43 22 © The Economist Intelligence Unit Limited 2014 While every effort has been taken to verify the accuracy of this information, The Economist Intelligence Unit Ltd cannot accept any responsibility or liability for reliance by any person on this report or any of the information, opinions or conclusions set out in this report LONDON 20 Cabot Square London E14 4QW United Kingdom Tel: (44.20) 7576 8000 Fax: (44.20) 7576 8500 E-mail: london@eiu.com NEW YORK 750 Third Avenue 5th Floor New York, NY 10017 United States Tel: (1.212) 554 0600 Fax: (1.212) 586 1181/2 E-mail: newyork@eiu.com HONG KONG 6001, Central Plaza 18 Harbour Road Wanchai Hong Kong Tel: (852) 2585 3888 Fax: (852) 2802 7638 E-mail: hongkong@eiu.com GENEVA Rue de l’Athénée 32 1206 Geneva Switzerland Tel: (41) 22 566 2470 Fax: (41) 22 346 93 47 E-mail: geneva@eiu.com [...]... 2014 19 Time to start worrying? The implications of an ageing workforce in The Netherlands How many employees does your company have globally? (% respondents) 500-1,999 21 2,000+ 79 20 © The Economist Intelligence Unit Limited 2014 Time to start worrying? The implications of an ageing workforce in The Netherlands What is your industry? (% respondents) Aerospace and Defence 5 Automotive and Transportation... and management 21 Restructuring 5 © The Economist Intelligence Unit Limited 2014 11 Time to start worrying? The implications of an ageing workforce in The Netherlands By 2020, what will be the main drivers of change for your business? Select up to two (% respondents) Global competition 55 Technology 55 Talent/people management 38 Ageing 14 Changing size and role of the state 10 Offshoring/outsourcing... employers do not have to think too hard about talent management But as the recovery gains traction, this will change In the Netherlands, that change could happen especially quickly Here the complacency of many Dutch executives – especially with regards to the supply of skilled workers – is worrying indeed Time to start worrying? The implications of an ageing workforce in The Netherlands Appendix: Survey.. .Time to start worrying? The implications of an ageing workforce in The Netherlands Conclusion Dutch executives are right to be worried about workforce ageing A tide of unavoidable demographic change is on its way, and will break over the Netherlands sooner than any other European country surveyed Some big employers – such as KLM and PostNL – are looking at ways to extend the employability of their... Compliance 10 What will be your company’s main objective in offering retirement benefits by 2020? (% respondents) Wanting employees to have an adequate income in retirement 35 Employee retention 28 Attracting talent 20 Compliance 10 Workforce planning (managing when employees retire) 8 16 © The Economist Intelligence Unit Limited 2014 Time to start worrying? The implications of an ageing workforce in The. .. Pharmaceuticals 2 Professional and Business Services 12 Property and Construction 0 Publishing and printing 2 Retail 2 Telecommunications 2 Transportation 0 Utilities 0 Wholesale 0 Other, please specify 0 © The Economist Intelligence Unit Limited 2014 21 Time to start worrying? The implications of an ageing workforce in The Netherlands Please state which of the following best describes your company? (% respondents)... difficult to reduce elements of our current benefits package so any change results in an increase in overall costs 14 Due to historic reasons /changes we have lost track of why we have the benefits we have 12 We only offer the minimum benefits that are legally required, and otherwise just pay cash 7 © The Economist Intelligence Unit Limited 2014 15 Time to start worrying? The implications of an ageing workforce. .. (state/EU) 7 Diversity of workforce 5 Other (please specify) 2 12 © The Economist Intelligence Unit Limited 2014 Time to start worrying? The implications of an ageing workforce in The Netherlands What will be the main people (HR) issues you face as an employer by 2020? Select up to three (% respondents) Talent management and progression 33 Ageing workforce 33 Cost control (compensation and benefits) 31 Retention... Adapting our structure to ensure that older workers who reduce work hours or responsibilities retain their status within the company and continue to feel valued 33 Making physical changes to the workplace 26 Looking at how to address inter-generational differences in our workforce 21 Other, please specify 5 14 © The Economist Intelligence Unit Limited 2014 Time to start worrying? The implications of an. .. (healthcare, retirement and other benefits) 31 Increased flexible working (to provide care for older dependents, phased retirement, etc) 29 Progression of younger workers becomes more difficult 24 Greater risk of age discrimination claims 19 18 © The Economist Intelligence Unit Limited 2014 Time to start worrying? The implications of an ageing workforce in The Netherlands Which of the following best describes ... about the cost of making changes to their pension provision, but the level of Time to start worrying? The implications of an ageing workforce in The Netherlands concern they report is lower than in. .. Economist Intelligence Unit Limited 2014 Time to start worrying? The implications of an ageing workforce in The Netherlands Brace for impact If holding onto older workers is the way that the Netherlands. .. Economist Intelligence Unit Limited 2014 Time to start worrying? The implications of an ageing workforce in The Netherlands Pensions? That’s your problem With demographic change hitting the Netherlands