Confidence or Complacency? The implications of an ageing workforce in Germany
 

Confidence or Complacency? The implications of an ageing workforce in Germany

on

  • 398 views

Workforce ageing will hit Germany sooner than any other European country. Are the nation’s executives right to be so relaxed about the impact?

Workforce ageing will hit Germany sooner than any other European country. Are the nation’s executives right to be so relaxed about the impact?

Statistics

Views

Total Views
398
Views on SlideShare
398
Embed Views
0

Actions

Likes
1
Downloads
4
Comments
0

0 Embeds 0

No embeds

Accessibility

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

 Confidence or Complacency? The implications of an ageing workforce in Germany Confidence or Complacency? The implications of an ageing workforce in Germany Document Transcript

  • A report from the Economist Intelligence Unit. Theimplicationsofan ageingworkforceinGermany Sponsoredby Confidence or complacency?
  • 1 © The Economist Intelligence Unit Limited 2014 Confidence or Complacency? The implications of an ageing workforce in Germany Contents Executive summary 2 Leading from the front? 3 Getting the balance right 6 Keeping Germans happy 8 Case study 10 Conclusion 11 Appendix 12
  • 2 © The Economist Intelligence Unit Limited 2014 Confidence or Complacency? The implications of an ageing workforce in Germany Executive summary Workforce ageing will hit Germany sooner than any other European country. Are the nation’s executives right to be so relaxed about the impact? 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 of 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 working population is ageing fastest in Germany, and many of its companies are leading the way when it comes to adapting to demographic change. Those that have yet to act have little time for further delay, as Germany has less room for manoeuvre than the continent’s other large economies, according to the European Commission. 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, of which 56 are in Germany. Almost two-thirds (58%) of German respondents expect the number of their employees aged 60+ to increase by 2020, including 7% who expect it to increase significantly. This report explores some of the major issues that senior German executives will have to address as they seek to adapt their organisations to this new world. The key findings include the following.  German executives are leading the response to workforce ageing. Compared with their counterparts in other countries, they rank in first or second place when it comes to offering more flexible working hours or working from home (77%), changing the employee benefits they offer (55%), and making physical changes to the workplace (45%).  Early action reduces the sense of panic, possibly. Germany’s working-age population has been declining for years. Yet only 14% of its executives—the same as the average for Europe—see ageing as high-priority human resources issue today.  Talent becomes a priority, but not at the expense of cost control. In the years to 2020 German executives will pay more attention to talent management. The share of those rating it as a top two priority leaps by 237%—by far the biggest increase in Europe. But at the same time—and unlike others in Europe— German executives plan to maintain their tight grip on cost control.  German workers value financial security. Today, they worry less than anyone else in Europe about whether they might lose their jobs, according to their employers. And any fears they do have will ease further as the economy improves. But that will not stop Germans worrying about their financial security. Their worries on this point barely fall between now and 2020—41% of employers rank it is as a concern of their employees today, compared with 39% in six years’ time.
  • 3 © The Economist Intelligence Unit Limited 2014 Confidence or Complacency? The implications of an ageing workforce in Germany The economic and business implications of Europe’s ageing workforce are huge, and the demographic trends that will affect the continent as a whole are more advanced in Germany than anywhere else. In the decade to 2012 the German ratio of dependent people (those aged under 15 and over 65) to the working-age population increased from 45.6% to 51.2%—the biggest rise in Europe. The decline of the working-age population in Germany has been under way for a number of years, according to the European Commission, which predicts that the country could experience labour bottlenecks within the next two years. That is much earlier than in the UK, for example, which is unlikely to feel the pain until the early 2020s. And with unemployment relatively low, Germany faces another challenge: there is not a lot of productivity slack in its economy, so it will not have as much time to adjust as other countries. “Over the next decade Germany will find it difficult to sustain employment and its GDP growth path without recourse to much higher inflows of foreign workers and a substantial increase in its annual productivity growth,” the Commission says. To achieve annual GDP growth of just 2%, productivity growth levels would have to climb by about 3% annually—three times the level achieved before the 2008 financial crisis. Leading from the front? 1 What are the main people (HR) issues you face as an employer currently, and employer by 2020? (% of respondents) Chart 1 Europe in 2020 Germany in 2020 UK in 2020UK nowGermany nowEurope now 21 12 16 12 41 24 21 47 49 39 32 38 34 47 44 31 30 26 39 31 25 21 31 27 26 20 28 43 34 50 54 14 16 24 20 50 41 28 32 27 14 14 28 22 9 18 8 9 11 14 11 11 14 12 12 9 9 10 8 19 9 29 13 6 9 14 Source: The Economist Intelligence Unit. Diversity of workforce Downsizing/ offshoring Regulation (state/EU) Ageing workforce Healthy workforce (health, stress and wellbeing) Cost control (compensation and benefits) Skills shortages Talent management and progression Motivation and engagement RetentionRecruitment
  • 4 © The Economist Intelligence Unit Limited 2014 Confidence or Complacency? The implications of an ageing workforce in Germany What, if anything, does your business plan to do by 2020 in order to adapt to the changing needs of your workforce? (% of respondents) Chart 2 FranceGermanyEurope Source: The Economist Intelligence Unit. Other, please specify Looking at how to address inter- generational differences in our workforce Giving employees more choice over their benefits 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 Ensuring that the skills of older employees remain up to date Offering more flexible working hours or working from home Changing the employee benefits we offer Making physical changes to the workplace 28 45 27 50 39 56 77 46 36 48 32 33 39 48 45 0 2 2 29 25 21 27 55 49 Despite these gloomy forecasts, German executives are no more concerned about the threat of an ageing workforce than their counterparts elsewhere. Some 14% say it is a priority human resources issue today, which is the same as the European average. By 2020 the level of executive concern doubles, but it leaps much further elsewhere, such as in the UK (280% increase) and Spain (160%). Likewise, German executives are not especially likely to rate skills shortages as a top three human resources problem, despite the Commission’s prediction that the country will feel the pinch sooner and harder than others. Today, 16% rate it as a top three issue, compared with a European average of 21%. By 2020 it will climb a little to 20%, but this is still below the European average (24%). German executives might be more relaxed than their European counterparts about the ageing threat because feel they have responded to it. Given a list of possible management strategies to deal with the challenge of an ageing workforce, German executives lead the way in most areas. They rank in first or second place of European countries when it comes to offering more flexible working hours or working from home (offered by 77%), changing the employee benefits they offer (55%), and making physical changes to the workplace (45%). The only two areas where they are not among the top two are giving employees more choice over their benefits (45%) and looking at how to address inter-generational differences in their workforce (25%). But even on those points they are broadly in line with the European average, and well ahead of laggards such as France and Spain.
  • 5 © The Economist Intelligence Unit Limited 2014 Confidence or Complacency? The implications of an ageing workforce in Germany Which of the following do you think is most likely to happen as a result of an ageing workforce? (% of respondents) Chart 3 GermanyEurope Source: The Economist Intelligence Unit. Increased flexible working (to provide care for older dependents, phased retirement, etc) Progression of younger workers becomes more difficult Higher costs of benefits Greater risk of age discrimination claims Greater employee demand for benefits (healthcare, retirement and other benefits) 43 46 23 23 43 38 35 3534 39
  • 6 © The Economist Intelligence Unit Limited 2014 Confidence or Complacency? The implications of an ageing workforce in Germany As Europe’s economic prospects improve, executives across Europe plan to rethink the way they balance cost control with talent management. Those in Germany are on the same journey, but they expect to arrive at a rather different destination. Today, executives in every country have a clear focus on controlling costs—57% say it is one of their top two business concerns. Talent management is a much lower priority; just one- quarter (24%) rate it as a concern. This makes sense, given recent economic history. The picture is the same in Germany, but the lines between these priorities are drawn more clearly here than anywhere else. Getting the balance right 2 The gap between how highly German executives currently rank cost control and how lowly they rank talent management is 48 percentage points—well above the European average (33 points) and second only to Switzerland (49 points). In the years to 2020 German executives will pay more attention to talent. Indeed, in 2020 the share of those who rate it as a top two priority leaps by 237%—by far the biggest increase in Europe (the average is just 73%). But the survey shows that German executives plan a more subtle rebalancing of their priorities than their counterparts in other countries. Today, those in the UK, Italy and Spain, for example, say cost is far more important than talent; and by 2020, they think talent will be far What would you say is the most important business priority for your organisation currently? (% of respondents) Chart 4 Source: The Economist Intelligence Unit. Spain2020 Switzerland2020 Netherlands2020 Italy2020 France2020 Germany2020 UK2020 Europe2020 Spainnow Switzerlandnow Netherlandsnow Italynow Francenow Germanynow UKnow Europenow Talent management (HR)Cost control 57 24 68 25 63 14 27 49 67 29 50 21 68 19 58 13 23 42 20 45 39 48 24 33 13 40 24 26 24 38 16 40
  • 7 © The Economist Intelligence Unit Limited 2014 Confidence or Complacency? The implications of an ageing workforce in Germany more important than cost. For these executives, the gap between the two concerns in 2020 will range from 24 to 27 percentage points in talent’s favour. By contrast, German executives expect a more balanced set of priorities; yes, talent will rate higher than cost in 2020, but only by a modest 9 percentage points. The desire of German executives to reach a closer balance between cost and talent management connects with another of the survey’s findings: although many of them believe that workforce ageing will increase the cost of benefits (38%), this is a greater worry for executives in every other country. Perhaps the Germans’ willingness to adapt now to demographic change offers a cost-control lesson to executives in other countries? Many German executives are looking to manage the impact of workforce ageing by designing better benefit programmes. The survey suggests there is plenty of scope for improvement here. Some 41% of them say their company has built up its benefits package over time, without any overarching strategy—by far the highest figure in Europe, where the average is 29%. And one- fifth of German executives (20%) say they have lost track of why they even offered the benefits that were in their programme—almost double the European average. Ironically, German executives are also the most likely in Europe (48%) to say it is often better for employees to get certain benefits through work rather than having to buy them themselves. If that is what they believe, a review of the benefits they offer seems in order. Sidebar: Alignment of countries in cost control and talent management (% of respondents) Chart 5 Source: The Economist Intelligence Unit. 23 19 24 % point differenceTalent management (HR)Cost control SpainSwitzerlandNetherlandsItalyFranceGermanyUKEurope 23 42 19 20 45 25 39 48 9 24 33 9 13 40 27 24 26 24 38 14 40 24 16 2
  • 8 © The Economist Intelligence Unit Limited 2014 Confidence or Complacency? The implications of an ageing workforce in Germany A brightening economic outlook across Europe is likely to affect the concerns of employees. The survey shows that in most countries employers think their staff will begin to worry less about whether or not they have a job and more about how hard they work. But the trends are different in Germany. Today, the country’s workers are the least worried in Europe when it comes to hanging on to their jobs. Only 57% of German executives say this is among their employees’ top three concerns; the average across Europe is 64%. By 2020 that figure falls by 38 percentage points in Germany, Keeping Germans happy 3 which is one of the biggest proportional drops in Europe. But the famously prudent Germans are not all smiles. Those easing job fears will not stop them worrying about their financial security. In fact, their concerns on this point barely fall between now and 2020—41% rank this is as a concern today, compared with 39% in six years’ time. Countries such as Switzerland and France, by contrast, both see proportionate falls in concern of more than 29%. Germans are also set to become much more worried about their work/life balance and What do you believe to be the issues your employees see as most important today? (% of respondents) Germany in 2020Europe in 2020Germany nowEurope Now 41 41 32 39 64 57 29 20 20 23 31 38 23 25 19 11 15 27 17 20 42 38 45 46 14 21 25 21 20 20 33 39 24 21 25 30 3 4 8 9 Source: The Economist Intelligence Unit. Caring for dependents (children and elderly) Skill development Employment flexibility (job sharing, portfolio careers, part-time working, phased retirement) New technology /pace of change Work-life balance Healthcare provision Stress and wellbeing Saving for retirement Job security Financial security Chart 6
  • 9 © The Economist Intelligence Unit Limited 2014 Confidence or Complacency? The implications of an ageing workforce in Germany whether they are saving enough for their retirement. Here workers can expect their employers to help them out. The country’s executives are the most likely in Europe to say that the employer should provide or fund retirement savings (64% agree, compared with 41% across Europe). But that generosity has limits: only one-third (36%) of German executives feel that the employer should help employees have a “comfortable” living in retirement—below the European average of 43%. Like their counterparts across Europe, German executives question whether their country’s system of pension provision is sustainable. About one-quarter (26%) believe demographic change is the biggest threat. They also worry about the high cost to businesses of providing pensions (16%), stretched government finances (13%) and a lack of sufficient savings made by individuals (13%). When they look to adapt their pension provision to the reality of workforce ageing, executives across Europe see excessive regulation as a barrier. But those in Germany worry about this the least. Instead, their big concern is cost— whether that relates to making changes to provision (43%) or funding (also 43%). German executives have a different perspective on healthcare, too. Many of them agree with their counterparts across Europe that the responsibility of employers for their workers’ wellbeing and their share of the social welfare burden will only grow. But this trend is less pronounced in Germany. Less than half (40%) of German executives expect the state to play a reduced role in providing healthcare, compared with 54% across Europe. Even if state health provision were not under pressure, the health and welfare of employees would logically become a growing human resources concern, as workforce ageing will require companies to rely more on older workers. However, German executives are less likely than their European counterparts to believe that the health and wellbeing of their workforce will be an increasingly important issue for them as an employer (56% in Germany, compared with 70% across Europe). They are also the least likely to agree that healthcare costs will increasingly fall on employers (42% in Germany, compared with 55% across Europe.) Why do Germans not fear increasing costs in this area? Perhaps the answer is that many of them have been adapting their working practices for years. “There has been a noticeable change in our business culture as a result of better awareness of health issues and prevention,” says Ralf Urlinger, vice president for corporate health management at BMW. “It’s difficult to quantify the benefits in a few years because most of the results will be in the long term. But what we see and hear is that it impacts the motivation of the workforce and their dedication.”
  • 10 © The Economist Intelligence Unit Limited 2014 Confidence or Complacency? The implications of an ageing workforce in Germany Bosch and Siemens Home Appliances Group (BSH) is Europe’s largest manufacturer of home appliances. It has six main factories in Germany making products under a range of brands. Just under one-third (30%) of its workers are aged over 50, with 10% under 30. Over the last five years their average age has increased from 42 to 43. “There is no doubt our workforce is ageing, and this creates a lot of challenges,” says Carlito Voss. The company has not been slow to adapt. BSH has been improving the ergonomics of its production lines and adapting shift patterns to suit older workers since 2006, says Mr Voss. In 2010 it opened a new assembly line especially designed for older employees. One of its most important challenges has been to make each individual employee aware of his or her own responsibilities with regard to the changing workplace—a project Mr Voss is leading. “We want to continuously invest in the qualifications of our employees, but there needs to be an interest from the employees to improve themselves,” he explains. To help, BSH has built a new training centre, where all employees can learn not only about technical issues but also about ergonomics and health and safety. Mr Voss believes it is important to invest in the health of employees now, so that they are able to work for longer, rather than taking corrective action later in life. “We are all getting older and working longer, so we have to ask: what is each person’s responsibility, and not only what the company or the government will do about it.” As an employer, BSH’s role is to invest in ways that will make demographic change easier to manage. “It is a matter of our company culture. We believe it is better to work on prevention; this is the same for younger workers as well as older ones. This is the way to prevent costs and have success in the future.” Case study
  • 11 © The Economist Intelligence Unit Limited 2014 Confidence or Complacency? The implications of an ageing workforce in Germany Germany has a rapidly ageing workforce, an imminent shortage of potential employees and less scope for manoeuvre than other countries in Europe. Yet its executives are no more worried about demographic change than their counterparts in other countries. This might sound like complacency. But Germany reached its demographic tipping point before other countries and has been making the necessary adjustments for years. Companies such as BMW and BSH have already made impressive changes to the way they operate. More importantly, they have begun the Conclusion essential process of cultural change, whereby workers are thinking harder about how to make themselves employable for longer. So perhaps the relative lack of concern is explained by the simple fact that German executives understand the challenges of demographic change; they have tried to do something about it and are learning from what in their experience works.
  • 12 © The Economist Intelligence Unit Limited 2014 Confidence or Complacency? The implications of an ageing workforce in Germany Appendix: Survey results Cost control Expansion Restructuring Innovation Talent management (HR) Risk control and management 63 36 34 34 14 11 (% respondents) What would you say is the most important business priority for your organisation currently? Select up to two Talent management (HR) Innovation Cost control Expansion Risk control and management Restructuring 48 43 39 38 11 9 (% respondents) What would you say will be the most important business priority for your organisation by 2020? Select up to two
  • 13 © The Economist Intelligence Unit Limited 2014 Confidence or Complacency? The implications of an ageing workforce in Germany Talent/people management Global competition Technology Ageing Offshoring/outsourcing Changing size and role of the state Other (please specify) 55 54 50 20 16 4 0 (% respondents) By 2020, what will be the main drivers of change for your business? Select up to two Cost control (compensation and benefits) Motivation and engagement Retention Talent management and progression Recruitment Regulation (state/EU) Skills shortages Healthy workforce (health, stress and wellbeing) Ageing workforce Downsizing/offshoring Diversity of workforce Other (please specify) 50 43 39 39 27 18 16 14 14 9 9 0 (% respondents) What are the main people (HR) issues you face as an employer currently? Select up to three
  • 14 © The Economist Intelligence Unit Limited 2014 Confidence or Complacency? The implications of an ageing workforce in Germany Talent management and progression Motivation and engagement Cost control (compensation and benefits) Retention Ageing workforce Recruitment Healthy workforce (health, stress and wellbeing) Skills shortages Downsizing / offshoring Diversity of workforce Regulation (state/EU) Other (please specify) 50 32 32 30 29 21 21 20 11 11 9 0 (% respondents) What will be the main people (HR) issues you face as an employer by 2020? Select up to three Job security Financial security Work-life balance Healthcare provision Stress and wellbeing Saving for retirement New technology/pace of change Skill development Employment flexibility (job sharing, portfolio careers, part-time working, phased retirement) Caring for dependents (children and elderly) Other (please specify) 57 41 38 27 25 23 21 21 20 4 0 (% respondents) What do you believe to be the issues your employees see as most important today? Select up to three
  • 15 © The Economist Intelligence Unit Limited 2014 Confidence or Complacency? The implications of an ageing workforce in Germany Work-life balance Financial security Employment flexibility (job sharing, portfolio careers, part-time working, phased retirement) Saving for retirement Skill development New technology/pace of change Job security Healthcare provision Stress and wellbeing Caring for dependents (children and elderly) Other (please specify) 46 39 39 38 30 21 20 20 11 9 0 (% respondents) What do you believe to be the issues your employees see as most important by 2020? Select up to three 77 55 48 45 45 39 25 2 (% respondents) What, if anything, does your business plan to do by 2020 in order to adapt to the changing needs of your workforce? Select all that apply Changing the employee benefits we offer Giving employees more choice over their benefits Offering more flexible working hours or working from home Ensuring that the skills of older employees remain up to date Looking at how to address inter-generational differences in our workforce Making physical changes to the workplace 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 Other, please specify
  • 16 © The Economist Intelligence Unit Limited 2014 Confidence or Complacency? The implications of an ageing workforce in Germany Very unlikely Unlikely Neither/neutral Likely Very likely Don’t know 5 29 32 25 7 2 (% respondents) How likely is it that the benefit programmes you have in place now will remain fit-for-purpose in 2020? Increase significantly Increase Stay the same Decrease Decrease significantly 7 39 46 7 0 (% respondents) By 2020, for the typical employee at your company, do you believe that the costs of benefits as a percentage of salary will: We make sure we’re offering what’s normal for our industry, to keep up with competitors We think it’s right to look after our staff, and our benefits reflect that It’s often better for employees to get certain benefits through work than buy them themselves We offer a fully comprehensive benefits package to attract and retain employees We’ve built up benefits over time, without an overarching strategy for choosing them We have a carefully selected set of benefits suitable for our employees’ lifestyles It is difficult to reduce elements of our current benefits package so any change results in an increase in overall costs Due to historic reasons /changes we have lost track of why we have the benefits we have We only offer the minimum benefits that are legally required, and otherwise just pay cash In the future, we are more likely to give employees a cash allowance and let them choose what benefits they like Other, please specify 61 50 48 48 41 36 21 20 20 14 0 (% respondents) Which of the following statements describes your company’s attitude to benefits offered to employees? Select all that apply
  • 17 © The Economist Intelligence Unit Limited 2014 Confidence or Complacency? The implications of an ageing workforce in Germany 15 7 6 4 29 15 15 9 42 38 38 22 15 337 366 5313 (% respondents) 1 Strongly agree 2 Somewhat agree 3 Neither agree nor disagree 4 Somewhat disagree 5 Strongly disagree The health and wellbeing of our workforce will be an increasingly important issue for us as an employer The state will play a reduced role in providing healthcare Healthcare costs will increasingly fall on employers Healthcare benefits will be increasingly important to employees 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 1 to 5 where 1 is strongly agree and 5 is strongly disagree 13 16 24 26 46 39 33 64 26 60 37 37 44 28 24 58 16 37 17 17 39 (% respondents) Individual Employer State Retirement provision Savings scheme Healthcare provision Life insurance Disability protection Critical illness protection End of life care Who should be primarily responsible for providing and/or funding the following benefits? Employee retention Attracting talent Compliance Workforce planning (managing when employees retire) Wanting employees to have an adequate income in retirement Other (please specify) 38 24 16 15 6 2 (% respondents) What will be your company’s main objective in offering retirement benefits by 2020? Employee retention Attracting talent Wanting employees to have an adequate income in retirement Workforce planning (managing when employees retire) Compliance Other (please specify) 32 24 17 15 11 2 (% respondents) What will be your company’s main objective in offering retirement benefits by 2020?
  • 18 © The Economist Intelligence Unit Limited 2014 Confidence or Complacency? The implications of an ageing workforce in Germany Cost of implementing changes Growing costs (defined benefit plans) Excessive regulation Lack of bottom line benefit makes change hard to justify Low levels of financial literacy/understanding amongst employers Lack of tools to measure ROI to justify the costs Managing the risk posed to the business (defined benefit plans) Staff do not have time or resources to manage retirement plans Lack of tax incentives Low levels of appreciation for retirement benefits among employees Low levels of trust amongst employees for financial products Other, please specify Staff haven’t requested any changes so employers do not need to make any 43 43 32 25 23 21 20 16 14 13 9 0 2 (% respondents) What challenges are employers facing in making changes to their retirement benefits? Select up to three Demographic changes (ageing population) High costs for businesses providing pensions. Insufficient savings being made by individuals Government deficits/debt (impact of austerity measures) Unrealistic government entitlements (State pension, pension age) Employers underestimating the future cost of promised benefits Unrealistic expectations of individuals Too many people not working to or past the state retirement age Regulatory and legislative changes Not relevant for my country, our retirement system is sustainable Other, please specify 26 16 13 13 11 11 6 2 0 4 0 (% respondents) What is the biggest challenge facing the system for retirement savings in the country in which you are based?
  • 19 © The Economist Intelligence Unit Limited 2014 Confidence or Complacency? The implications of an ageing workforce in Germany 23544 11956 41752 119 24 226 (% respondents) It is not an employer’s role to help their employees to have a comfortable standard of living in retirement Employers should bear the risk of providing for their retirement As an employer, we are concerned about the reputational risk of workers reaching old age and not being able to retire 1 Strongly agree 2 Somewhat agree 3 Neither agree nor disagree 4 Somewhat disagree 5 Strongly disagree Do you agree or disagree regarding the following statements about retirement provision in the future? Rate on a scale of 1 to 5 where 1 is strongly agree and 5 is strongly disagree Increase significantly Increase Remain the same Decrease Decrease significantly 7 51 36 6 0 (% respondents) How do you expect the number of employees aged 60+ to change by 2020? 7 6 4 4 4 29 26 27 31 18 47 42 47 49 42 152 262 22 16 352 (% respondents) Older workers are less productive than younger workers are Older workers have greater skills than younger workers do Older workers are less motivated than younger workers are Older workers are easier to manage than younger workers are Older workers take more time off for health reasons than younger workers Do you agree or disagree with the following statements about older workers? Rate on a scale of 1 to 5 where 1 is strongly agree and 5 is strongly disagree 1 Strongly agree 2 Somewhat agree 3 Neither agree nor disagree 4 Somewhat disagree 5 Strongly disagree Greater employee demand for benefits (healthcare, retirement and other benefits) Increased flexible working (to provide care for older dependents, phased retirement, etc) Higher costs of benefits Progression of younger workers becomes more difficult Greater risk of age discrimination claims 46 39 38 34 23 (% respondents) Which of the following do you think is most likely to happen as a result of an ageing workforce? Select up to two
  • 20 © The Economist Intelligence Unit Limited 2014 Confidence or Complacency? The implications of an ageing workforce in Germany Board member CEO/President/Managing director CFO/Treasurer/Comptroller CIO/Technology director Other C-level executive SVP/VP/Director Head of business unit Head of department Manager Other, please specify 2 32 16 9 2 9 5 9 16 0 (% respondents) Which of the following best describes your title? General management Finance Human resources IT Operations and production Information and research Risk Strategy and business development Customer service Legal Marketing and sales Procurement R&D Supply-chain management Other 36 23 18 7 7 5 2 2 0 0 0 0 0 0 0 (% respondents) What is your primary job function?
  • 21 © The Economist Intelligence Unit Limited 2014 Confidence or Complacency? The implications of an ageing workforce in Germany Less than 250 250-499 500-1,999 2,000+ 0 0 7 93 (% respondents) How many employees does your company have globally?
  • 22 © The Economist Intelligence Unit Limited 2014 Confidence or Complacency? The implications of an ageing workforce in Germany Aerospace and Defence Automotive and Transportation Equipment Charities and Non-Profit Chemicals Communications Consumer goods 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 Manufacturing Natural Resources Oil & gas Pharmaceuticals Professional and Business Services Property and Construction Publishing and printing Retail Telecommunications Transportation Utilities Wholesale Other, please specify 0 7 0 4 0 4 2 2 13 0 0 0 0 0 2 13 20 0 4 4 9 2 2 0 5 7 4 0 0 (% respondents) What is your industry?
  • 23 © The Economist Intelligence Unit Limited 2014 Confidence or Complacency? The implications of an ageing workforce in Germany Publicly listed Government/State owned enterprise Private Equity portfolio company Other privately owned (partnership, limited liability, etc) Family owned 46 23 20 11 0 (% respondents) Please state which of the following best describes your company? Less than €500m €500m to €1bn €1bn to €5bn €5bn to €10bn More than €10bn 34 63 36 34 14 (% respondents) What are your organisation's global annual revenues?
  • 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