Your SlideShare is downloading. ×
 Time to start worrying? The implications of an ageing workforce in The Netherlands
 Time to start worrying? The implications of an ageing workforce in The Netherlands
 Time to start worrying? The implications of an ageing workforce in The Netherlands
 Time to start worrying? The implications of an ageing workforce in The Netherlands
 Time to start worrying? The implications of an ageing workforce in The Netherlands
 Time to start worrying? The implications of an ageing workforce in The Netherlands
 Time to start worrying? The implications of an ageing workforce in The Netherlands
 Time to start worrying? The implications of an ageing workforce in The Netherlands
 Time to start worrying? The implications of an ageing workforce in The Netherlands
 Time to start worrying? The implications of an ageing workforce in The Netherlands
 Time to start worrying? The implications of an ageing workforce in The Netherlands
 Time to start worrying? The implications of an ageing workforce in The Netherlands
 Time to start worrying? The implications of an ageing workforce in The Netherlands
 Time to start worrying? The implications of an ageing workforce in The Netherlands
 Time to start worrying? The implications of an ageing workforce in The Netherlands
 Time to start worrying? The implications of an ageing workforce in The Netherlands
 Time to start worrying? The implications of an ageing workforce in The Netherlands
 Time to start worrying? The implications of an ageing workforce in The Netherlands
 Time to start worrying? The implications of an ageing workforce in The Netherlands
 Time to start worrying? The implications of an ageing workforce in The Netherlands
 Time to start worrying? The implications of an ageing workforce in The Netherlands
 Time to start worrying? The implications of an ageing workforce in The Netherlands
 Time to start worrying? The implications of an ageing workforce in The Netherlands
 Time to start worrying? The implications of an ageing workforce in The Netherlands
 Time to start worrying? The implications of an ageing workforce in The Netherlands
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Time to start worrying? The implications of an ageing workforce in The Netherlands

364

Published on

A tide of demographic change is about to break over the Netherlands and its executives need to prepare. …

A tide of demographic change is about to break over the Netherlands and its executives need to prepare.

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...

Published in: Business, News & Politics
0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
364
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
6
Comments
0
Likes
2
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. A report from The Economist Intelligence Unit. Theimplicationsofanageing workforceinThe Netherlands Sponsoredby TIME TO START WORRYING?
  • 2. 1© The Economist Intelligence Unit Limited 2014 Time to start worrying? The implications of an ageing workforce in The Netherlands Contents Executive summary 2 Brace for impact 3 Case study 5 More cash, please 6 Pensions? That’s your problem 8 Case study 9 Conclusion 10 Appendix 11
  • 3. 2 © 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
  • 4. 3© The Economist Intelligence Unit Limited 2014 Time to start worrying? The implications of an ageing workforce in The Netherlands 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. 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. 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. 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 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 Brace for impact 1 Which of the following do you think is most likely to happen as a result of an ageing workforce? (% of respondents) Chart 1 NetherlandsEurope Source: The Economist Intelligence Unit. Increasedflexibleworking (toprovidecareforolder dependents,phased retirement,etc) Progressionofyounger workersbecomes moredifficult Highercosts ofbenefits Greaterriskofage discriminationclaims Greateremployee demandforbenefits (healthcare,retirement andotherbenefits) 43 31 23 19 43 43 35 35 24 29
  • 5. 4 © The Economist Intelligence Unit Limited 2014 Time to start worrying? The implications of an ageing workforce in The Netherlands 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 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. What is the most important business priority for your organisation currently? In 2020? (% of respondents) Chart 2 Europe in 2020 Netherlands in 2020 Germany in 2020Germany nowNetherlands nowEurope now 27 34 26 8 5 9 63 50 57 23 24 39 32 38 36 42 45 38 29 29 34 49 55 43 24 21 14 48 42 26 11 21 14 1112 14 Source: The Economist Intelligence Unit. Risk control and management Talent management (HR) InnovationExpansionCost controlRestructuring
  • 6. 5© The Economist Intelligence Unit Limited 2014 Time to start worrying? The implications of an ageing workforce in The Netherlands 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. Case study: PostNL
  • 7. 6 © The Economist Intelligence Unit Limited 2014 Time to start worrying? The implications of an ageing workforce in The Netherlands 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. More cash, please 2 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 What do you believe to be the issues your employees see as most important today? (% of respondents) Chart 3 Netherlands in 2020Europe in 2020Netherlands nowEurope now 41 38 32 29 64 57 29 31 20 41 31 26 23 19 19 14 15 17 17 14 42 38 45 36 14 5 25 33 20 10 33 29 24 19 25 21 3 0 8 5 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
  • 8. 7© The Economist Intelligence Unit Limited 2014 Time to start worrying? The implications of an ageing workforce in The Netherlands 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 required to purchase at least a basic level of insurance. 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. 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. 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) Chart 4 Note: Chart compares the percentage of respondents from each country who selected “In future…” in answer to the question. Source: The Economist Intelligence Unit. 43 31 23 19 43 43 35 35 24 29 SpainSwitzerlandNetherlands ItalyFranceGermanyUKEurope 20 26 14 9 13 19 11 43
  • 9. 8 © The Economist Intelligence Unit Limited 2014 Time to start worrying? The implications of an ageing workforce in The Netherlands 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 Pensions? That’s your problem 3 where executives think employees will actually become less concerned about their finances in old age. In fact, the proportion rating it as a top- three issue falls by a third. 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. 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 What do you believe to be the issues your employees see as most important today: Saving for retirement (% of respondents) Chart 5 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. Spain2020 Switzerland2020 Netherlands2020 Italy2020 France2020 Germany2020 UK2020 Europe2020 Spainnow Switzerlandnow Netherlandsnow Italynow Francenow Germanynow UKnow Europenow 20 14 23 24 20 41 22 18 31 35 38 27 33 26 24 44
  • 10. 9© The Economist Intelligence Unit Limited 2014 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 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. Case study: KLM 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.
  • 11. 10 © The Economist Intelligence Unit Limited 2014 Time to start worrying? The implications of an ageing workforce in The Netherlands 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 Conclusion 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 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.
  • 12. 11© The Economist Intelligence Unit Limited 2014 Time to start worrying? The implications of an ageing workforce in The Netherlands Appendix: Survey results Cost control Expansion Innovation Restructuring Talent management (HR) Risk control and management 50 38 29 26 21 12 (% respondents) What would you say is the most important business priority for your organisation currently? Select up to two Innovation Expansion Talent management (HR) Cost control Risk control and management Restructuring 55 45 26 24 21 5 (% respondents) What would you say will be the most important business priority for your organisation by 2020? Select up to two
  • 13. 12 © The Economist Intelligence Unit Limited 2014 Time to start worrying? The implications of an ageing workforce in The Netherlands Global competition Technology Talent/people management Ageing Changing size and role of the state Offshoring/outsourcing Other (please specify) 55 55 38 14 10 2 7 (% respondents) By 2020, what will be the main drivers of change for your business? Select up to two Cost control (compensation and benefits) Talent management and progression Motivation and engagement Recruitment Retention Skills shortages Ageing workforce Downsizing / offshoring Healthy workforce (health, stress and wellbeing) Regulation (state/EU) Diversity of workforce Other (please specify) 41 33 31 29 21 21 17 12 10 7 5 2 (% respondents) What are the main people (HR) issues you face as an employer currently? Select up to three
  • 14. 13© The Economist Intelligence Unit Limited 2014 Time to start worrying? The implications of an ageing workforce in The Netherlands Talent management and progression Ageing workforce Cost control (compensation and benefits) Retention Recruitment Motivation and engagement Skills shortages Healthy workforce (health, stress and wellbeing) Downsizing / offshoring Regulation (state/EU) Diversity of workforce Other (please specify) 33 33 31 26 24 24 21 19 10 7 7 0 (% respondents) What will be the main people (HR) issues you face as an employer by 2020? Select up to three Job security Saving for retirement Financial security Work-life balance Stress and wellbeing Skill development Healthcare provision Employment flexibility (job sharing, portfolio careers, part-time working, phased retirement) New technology/pace of change Caring for dependents (children and elderly) Other (please specify) 57 41 38 38 19 19 17 10 5 0 2 (% respondents) What do you believe to be the issues your employees see as most important today? Select up to three
  • 15. 14 © The Economist Intelligence Unit Limited 2014 Time to start worrying? The implications of an ageing workforce in The Netherlands Work-life balance New technology/pace of change Job security Financial security Employment flexibility (job sharing, portfolio careers, part-time working, phased retirement) Saving for retirement Skill development Stress and wellbeing Healthcare provision Caring for dependents (children and elderly) Other (please specify) 36 33 31 29 29 26 21 14 14 5 2 (% respondents) What do you believe to be the issues your employees see as most important by 2020? Select up to three 52 48 45 43 33 26 21 5 (% 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. 15© The Economist Intelligence Unit Limited 2014 Time to start worrying? The implications of an ageing workforce in The Netherlands Very unlikely Unlikely Neither/neutral Likely Very likely Don’t know 14 19 29 26 10 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 14 45 19 21 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 offer a fully comprehensive benefits package to attract and retain employees We make sure we’re offering what’s normal for our industry, to keep up with competitors In the future, we are more likely to give employees a cash allowance and let them choose what benefits they like 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’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 62 60 43 26 24 24 21 14 12 7 (% respondents) Which of the following statements describes your company’s attitude to benefits offered to employees? Select all that apply
  • 17. 16 © The Economist Intelligence Unit Limited 2014 Time to start worrying? The implications of an ageing workforce in The Netherlands 2 13 3 5 27 20 25 28 3734 48 1838 20 18 3533 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 (% respondents) 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 Retirement provision Savings scheme Healthcare provision Life insurance Disability protection Critical illness protection End of life care 17 15 28 8 28 33 44 3359 3845 1868 3636 5121 3631 1046 (% respondents) Who should be primarily responsible for providing and/or funding the following benefits? Individual Employer State Attracting talent Employee retention Wanting employees to have an adequate income in retirement Workforce planning (managing when employees retire) Compliance 32 22 22 15 10 (% respondents) What is your company’s main objective in offering retirement benefits now? Wanting employees to have an adequate income in retirement Employee retention Attracting talent Compliance Workforce planning (managing when employees retire) 35 28 20 10 8 (% respondents) What will be your company’s main objective in offering retirement benefits by 2020?
  • 18. 17© The Economist Intelligence Unit Limited 2014 Time to start worrying? The implications of an ageing workforce in The Netherlands Excessive regulation Cost of implementing changes Growing costs (defined benefit plans) Managing the risk posed to the business (defined benefit plans) Lack of tools to measure ROI to justify the costs Low levels of appreciation for retirement benefits among employees Low levels of financial literacy/understanding amongst employers Lack of bottom line benefit makes change hard to justify Lack of tax incentives Staff do not have time or resources to manage retirement plans 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 36 33 33 33 26 21 19 12 12 10 10 5 0 (% respondents) What challenges are employers facing in making changes to their retirement benefits? Select up to three Demographic changes (ageing population) Insufficient savings being made by individuals Unrealistic expectations of individuals Government deficits/debt (impact of austerity measures) High costs for businesses providing pensions. Regulatory and legislative changes 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 29 15 12 10 10 10 7 2 2 0 2 (% respondents) What is the biggest challenge facing the system for retirement savings in the country in which you are based?
  • 19. 18 © The Economist Intelligence Unit Limited 2014 Time to start worrying? The implications of an ageing workforce in The Netherlands 542 2025 1315 27 25 33 27 25 30 5 10 (% respondents) 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 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 Increase significantly Increase Remain the same Decrease Decrease significantly 33 50 15 3 0 (% respondents) How do you expect the number of employees aged 60+ to change by 2020? 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 28 5 33 13 23 182828 18482010 253013 205018 203523 (% respondents) 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 Higher costs of benefits Greater employee demand for benefits (healthcare, retirement and other benefits) Increased flexible working (to provide care for older dependents, phased retirement, etc) Progression of younger workers becomes more difficult Greater risk of age discrimination claims 43 31 29 24 19 (% 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. 19© The Economist Intelligence Unit Limited 2014 Time to start worrying? The implications of an ageing workforce in The Netherlands 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 0 14 26 7 0 12 5 12 24 (% respondents) Which of the following best describes your title? Human resources General management Finance IT Information and research Operations and production Procurement Risk 43 21 19 7 2 2 2 2 (% respondents) What is your primary job function?
  • 21. 20 © The Economist Intelligence Unit Limited 2014 Time to start worrying? The implications of an ageing workforce in The Netherlands 500-1,999 2,000+ 21 79 (% respondents) How many employees does your company have globally?
  • 22. 21© The Economist Intelligence Unit Limited 2014 Time to start worrying? The implications of an ageing workforce in The Netherlands 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 5 0 0 10 0 10 0 5 2 2 7 7 2 2 0 14 10 0 2 2 12 0 2 2 2 0 0 0 0 (% respondents) What is your industry?
  • 23. 22 © The Economist Intelligence Unit Limited 2014 Time to start worrying? The implications of an ageing workforce in The Netherlands Publicly listed Other privately owned (partnership, limited liability, etc) Family owned Government/State owned enterprise Private Equity portfolio company 57 29 10 5 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 0 19 26 12 43 (% respondents) What are your organisation's global annual revenues?
  • 24. 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.
  • 25. 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

×