The Workforce View in Europe 2015 16 - ADP · 2019. 1. 28. · Human Capital Management (HCM). As a...

The Workforce View in Europe 2015⁄16

ADP Workforce View in Europe 2015/16 3

Foreword �� 4

Introduction �� 5

Executive summary �� 6

Economic growth fuels optimism and stability �� 8

Competition extends beyond borders �� 10

Rules of engagement �� 12

The five-generation workplace �� 15

Goodbye 9–5 �� 16

Hi-tech workplaces �� 17

Legislation spotlight �� 18

Conclusion �� 19

Contents


LEON VERGNESSVP/GM EMEA, ADP ES INTERNATIONAL

The world is becoming smaller every day, as borders blur, the talent pool becomes more global, and businesses look for growth opportunities at home and overseas. It is an exciting time for organisations, but with expansion also comes the challenge of global Human Capital Management (HCM).

As a truly global business, we at ADP have the opportunity to help businesses of all sizes to respond to the changes in the world of work, in over 100 countries across the globe. Good human capital management always begins with people and recognising the human side of work.

At its heart, HCM is about helping the people who make your business grow and succeed. It’s strategies that grow your employees and your company’s unique culture. It’s workers who take pride in what they do. It’s your people’s creativity and purpose. It’s not just a better HR process – it’s a better workforce.

But as the Eurozone members will not have failed to notice over the years, reaching consensus is not always easy, with an array of economies, languages, and characters to take into account. All parties must show adaptability and compromise to build successful, long-lasting relationships. Get it right and they will achieve greater strength and success for the whole.

This is a challenge facing many of our international clients every day. 'The Workforce View in Europe 2015/16' aims to aid understanding of the workforce, both within and between different markets. We have interviewed over 11,000 employees across eight key economies in Europe, exploring their views relating to the future of work.

We believe that these findings have huge potential in understanding the trends that will move businesses forward. We hope you find it equally useful in rethinking how people work and helping you prepare for the future. And while it’s sometimes easy to forget, success is much, much sweeter when pride, purpose and people go along with it.

Foreword

Good human capital management always begins with people and recognising the human side of work


Europe has gone through a turbulent time over the past decade. The financial crisis has cast a long shadow over the continent, and organisations are adjusting to the ‘new normal’. This has inevitably impacted upon the attitudes and views of the workforce, with knock-on effects through employment levels, wages, benefits, and employee engagement.

The world of work is in flux, characterised by a demographic shift, increasing international competition and developments in technology. Meanwhile, employees demand a better work-life balance and opportunities for flexible working, and there is a call for more ‘meaningful’ work.

Introduction

'The Workforce View in Europe in 2015/16' explores the attitudes of employees toward the future of work. The findings provide important insight into business critical issues such as talent, employee engagement, and the generational shift.

The research for ADP was carried out by independent market research agency Opinion Matters in July 2015. The sample consisted of 11,257 working adults in eight territories across Europe, including France, Germany, Italy, the Netherlands, Poland, Spain, Switzerland, and the UK.

About the report

‘The Workforce View in Europe 2015/16’ explores the views and attitudes of more than 11,000 workers across the continent, including France, Germany, Italy, the Netherlands, Poland, Spain, Switzerland, and the UK. The findings offer important insights for organisations, relating to employees’ training needs, motivation, or the best use of new tools and technologies.

In the European workplace, understanding behaviours, trends and contrasts can make all the difference when developing successful HCM strategies and working with colleagues in other regions. So how well do you know your international workforce?


Executive summary

1.

3.

Optimism returns to Europe

Competition extends beyond borders

Over three quarters of European employees, (77%) are very or quite optimistic about the future of work. German workers are the most optimistic, while Italians are the least. Employees are now feeling more confident about job security (38%), growing career opportunities (27%), and having the right training and development to succeed (27%).

The UK, Spain, and Italy feel most prepared to compete internationally for business and talent, with the Netherlands the least prepared. However, employees in Spain and Italy are more worried about a talent drain to other countries than their neighbours, while Swiss and UK workers are more threatened by talent coming from overseas than their international neighbours.

2. The war for talent is real Retaining talent will be a key challenge for European businesses, with a third of employees planning to change jobs in less than three years. Germany has the most loyal employees, while those in the UK, Switzerland and Poland are the least likely to see a long-term future with their employer.

of European employees are optimistic about the future of work

77%


motivating factor is work-lifebalance

#1

5.

The workplace is going through a significant demographic shift, with five generations soon to be working alongside one another. Their different values and working styles are causing conflict and, in fact, more than two thirds (67%) of the workforce say they are encountering inter-generational issues at work. The problems are greatest in Italy, Poland, and Spain.

The five-generation workforce

4.

The most important factors for employee engagement and motivation across Europe are good work-life balance, the ability to work flexibly, and having a diverse and fast-moving role. However, high stress levels threaten employees' wellbeing, with more than two fifths (44%) regularly experiencing stress at work. Poland and Germany have the highest stress levels, while the Netherlands has the lowest.

Rules of engagement

6. The workplace goes hi-tech 79% of European employees now have the right technology and tools supplied to help them to do their job. Spanish workers are better equipped with technology than their European colleagues, with only one in ten (11%) in the country not receiving any. Adopting modern technology will become more important, as 33% of workers would like to adopt a totally flexible working pattern.

79% of employees are supplied the tools to do their job


Europe’s economic recovery is finally gaining strength, providing businesses and their employees with new opportunities. The findings reveal that employee optimism is significantly higher in those countries where the economy is on a more stable footing. Overall, more than three quarters (77%) of the workforce are very or quite optimistic about the future of work. But where can we find Europe’s happiest workers?

The research explored the attitudes and outlook of employees around three key measures – stability, excitement and optimism. Overall, the Netherlands emerges as the most satisfied nation, closely followed by Switzerland and then Germany. German employees are also most likely to say the future looks stable (80%), while those in the Netherlands are most likely to see the future as exciting (84%), along with their Swiss colleagues (81%).

There are a number of reasons to be cheerful, and employees are now feeling more confident about job

Economic growth fuels optimism and stability

security (38%), growing career opportunities (27%) and having the right training and development to succeed (27%).

Despite the positive outlook, many employees are still feeling pessimistic, with worries about job security (48%), worsening career opportunities (37%) and a sense that the economy is actually slowing down (30%).

Uncertainty peaks in those countries that have seen the greatest and longest economic contraction. Italy is the least upbeat of the group, being most likely to say the future looks unstable (38%), unpredictable (61%) and dull (47%).

The only exception is Poland, which has seen impressive economic growth over recent years but hasn’t experienced the associated positivity and security. However, the situation is somewhat more complicated, with other measures such as wages and unemployment, apparently dampening the mood.

Which European country has the most optimistic, stable, and exciting future ahead?


Should I stay or should I go?As employees across Europe become more optimistic, they also begin to broaden their career horizons. A third (34%) of the workforce plan to remain in their current organisation for less than three years, signalling that the war for talent is back in full force. However, there are clear contrasts between different cultures, and how they see their career developing in the future.

Employees in the UK are the least likely to see a long-term future with their current employer, with just 17% saying they expect to spend the rest of their career in their present role and 16% expecting to leave within a year. In contrast, nearly twice as many German employees (40%), think they will remain in their role until the end of their career, along with 36% of Dutch employees and 35% of Italians.

However, the least ‘loyal’ employees in Europe are the Swiss, with almost one in five (18%) saying they expect to leave their current organisation within the next six months, while 17% of Polish workers say the same. In Poland, this could be influenced by the popularity of fixed-term contracts, an issue that has recently been under EU scrutiny, with the view to increasing security for employees.

Exciting Dull

Predictable Unpredictable

Stable Unstable

How do employees see their future at work?

A third of the workforce only plan to remain in their current organisation for less than three years

2015 2018

70%

53%

72%

30%

47%

28%


Global competitiveness is crucial to ensure an economy is able to attract the best talent, investment and customers, not only from its own country but also from abroad. When asked how prepared their organisation is to compete for business and talent with other countries, exactly half of the sample responded that they are very or quite prepared to compete. However, the country-by-country analysis highlights some interesting contrasts.

The UK has established its position in the global economy, with almost 6 in 10 British employees feeling that their organisation is prepared to compete for business and talent against other countries. However, Spanish and Italian employees appear to have been buoyed by recent positive economic results, appearing second and third in the ranking.

More unexpectedly, the Netherlands trails behind quite significantly, with only 42% of Dutch employees believing their organisation is prepared to compete internationally. This is despite the Netherlands recording strong results for optimism elsewhere in the survey.

Competition extends beyond borders

Talent threatsA crucial factor for organisational competitiveness is the ability to attract and retain top talent. Concerns around recruitment and loss of good people are therefore front-of-mind for European workers, who identify a number of top talent threats:

• A lack of fresh talent entering the organisation (51%)• A talent gap due to cuts/lack of recruitment (47%)• A talent drain to other organisations (46%)

However, there are some stark contrasts from one country to another, with employees in Spain and Italy significantly more worried about a talent drain to other countries (49% and 47% respectively). Meanwhile, Swiss employees are more threatened than their international neighbours by talent coming from overseas (36% vs. an average of 21%), as are employees in the UK (32%).

58% 58%

42%46% 47% 47%

49%51%

How prepared are countries to compete internationally for business, and talent?

DE ITPLNL CH FR UKES


Which country has the skills and training to succeed?

Learning and Development Alongside recruitment and retention, investment in Learning and Development is central to maintaining competitiveness. It is positive to see that 89% of the European workforce are confident that they have the skills and training to succeed in their role, although this confidence does vary slightly by territory.

However, learning is a lifelong process, and the general positivity does not necessarily mean that employees no longer require development. In fact, employees identify some clear areas of training they would most like to receive:

• Technical, job specific skills 26%• Using technology and new devices 25%• Verbal communication 22%

While employees across Europe are generally in agreement in relation to their professional development requirements, there are some notable exceptions. For example, German and Swiss employees both list verbal communication (26% and 30% respectively) as their top training need, while Polish employees would like more help with stress management (28%).

Learning is a lifelong process Investment in learning and development opportunities is central to maintaining competitiveness and building a satisfied workplace.

93%

92%

92%

91%

89%

88%

86%

82%


Employee engagement has made its way firmly into the business language over the last few years. Its benefits are numerous, including improved recruitment and retention, productivity and ultimately profitability, with research showing that companies with highly engaged employees produce 26% higher revenue per employee1.

Organisations across the world are trying to find an edge through ensuring their employees are as happy, healthy and productive as possible. According to the workforce, European employers have truly succeeded on this front, with over half of employees (56%) feeling highly engaged in their organisations.

The Netherlands and Germany − also the most optimistic nations − come out on top, suggesting a strong economy along with job opportunities, have played a role in engagement. Perhaps surprisingly, UK employees are among the least engaged, despite expressing high levels of optimism elsewhere. British employers may therefore need a greater focus on ensuring staff are able to find meaning at work and feel truly aligned with the vision and mission of the business.

Rules of engagement

Motivating employeesStrong employee engagement rates should not be taken for granted, especially as a considerable proportion of workers remain undecided or disengaged in their position. But what can businesses do to build a highly engaged workforce? For employees, there are three key motivators:

• Good work-life balance (29%)• The ability to work when and where I want (26%)• Diverse and fast-moving role (24%)

Again, there are some clear contrasts and exceptions amongst the countries. German employees go completely against the grain, ranking work-life balance in fourth place (24%), behind having a diverse and fast-moving role (34%), praise and recognition from management (27%) and the ability to work when and where they want (26%).

Similarly, in the Netherlands, workers place work-life balance in only third place (32%), behind praise and recognition from management (37%) and having a diverse and fast-moving role (36%), suggesting Dutch workers also have slightly differing priorities to their European neighbours.

Finally, and most worryingly, almost a quarter of Polish workers (23%) say that nothing at work motivates them except for pay – the second most popular choice in this region and significantly higher than the pan-European average of 15%. This supports earlier findings showing that workers in Poland are perhaps feeling less satisfied with their working lives than their fellow European citizens.

Highly engaged employees produce26% higher revenue

1 Watson Wyatt, 2008/2009 WorkUSA Report


Stress and work-life balanceStress comes part and parcel of most jobs, and is not always a bad thing. Some level of stress can be dynamic and productive, while showing that employees are engaged and motivated to do a job well. However, too much stress can have profound effect on individuals and businesses, if it is not managed correctly.

Work-related stress, and the associated health problems are currently high on the corporate agenda – and with good reason. Of the pan-European sample, only 9% say that they are never stressed in their job, while the majority (47%) agree stress affects them at work every now and then.

However, more alarming is the 44% who say they experience stress often, very often or too often. At the extreme end of the scale, 5%, say that they are

considering leaving their job as a result. Poland has the highest stress levels, with 54% saying they experience stress often, very often, or too often. German and Italian workers are also more stressed than the average.

Worryingly, it seems that businesses are failing to help their staff better manage stress, with a quarter of European employees stating that their employer does not help them to do so at all, rising to 35% in Poland where stress levels are the highest. A further 19% say that their employer is not even aware of their stress levels, again peaking at 24% in Poland.

Considering the potential implications stress can have on productivity, satisfaction, and staff turnover, the findings indicate that there is more that employers can, and should be, doing to monitor and manage stress amongst their staff.

Increasing stress levels are becoming a key threat to employee wellbeing.

How stressed are European workers?

54%

50%

44%

43.8%

43%

41%

35%

38%


Workplaces have always had multiple generations working side by side, but for the first time in history, five generations will soon be working alongside one another. An increasingly ageing workforce now seems inevitable across Europe, as better healthcare improves life expectancy and birth rates continue to fall. As more baby boomers’ are working past retirement age, and millennials gradually enter the workforce, the clear differences in the working styles and values of each generation are becoming more pronounced.

The findings suggest that these demographic changes are having a profound impact in the workplace, with more than two thirds (67%) saying they are encountering inter-generational issues at work. The top concerns are:

• Younger and older employees having conflicting views on how things should be done (19%)

• Older workers working for longer leaving less room for new talent (18%)

• Differing approaches to organisational values and corporate responsibility (18%)

While some employees are finding it difficult to cope with greater age diversity in the workplace, many appreciate the value that age and experience can bring. 39% of European employees say their organisation is concerned about losing talent and knowledge as older workers retire. However, only one in ten (11%) have plans to employ retired employees as consultants.

The five-generation workplace

In which country are inter-generational issues most common?

55%

60%

62%

66%

73%73%

71%

77%


While an increasing number of employees now prefer some form of flexible working, the norm across Europe is still to work in a fixed location such as an office or a factory, with more than half (56%) saying this is the case for them. In fact, only in one country − the UK − does this fall below fifty per cent (49%).

However, with both work-life balance and flexibility as key motivators for employees across Europe, it is perhaps unsurprising that one in three (33%) of our sample would like to adopt a totally flexible working pattern. Meanwhile a further third (34%) would like a mixture of flexible and fixed hours.

The greatest desire for flexibility is in Italy (39%), closely followed by Switzerland (38%). While Polish employees are most likely to work from one fixed work location (64%), they are also most likely to want fixed hours (51%).

Given the growing popularity of flexible and mobile working, having the right tools and technology is also growing in importance, particularly as the majority of employees are now accustomed to having the most innovative gadgets to manage their lives outside of work.

Goodbye 9–5

Technologyhas blurred the line between work and home life


Workplace technology has developed in leaps and bounds, with a growing number of businesses rethinking how they use the new tools. In fact, nearly eight in ten (79%) European employees have now been supplied with tools and technologies to help them to do their job more effectively. The most common workplace tools include a laptop (47%), specialist software (36%), and mobile or smartphone (27%), while just slightly fewer (23%), also use file sharing or collaboration tools.

However, there is a great deal of variation between how different countries are using technology and tools within the workplace. Spanish workers appear to be significantly better equipped with technology than their European neighbours, with 89% receiving tools to do their job.

Reflecting this trend, almost half of Spanish employees (47%) also say they can now fulfil their role more easily because of technology, again the highest number of those asked, to have this view.

Hi-tech workplaces

On the contrary, British workers appear to be lagging behind, with over a quarter (28%) having no technology provided by their employer. German employees seem sceptical of the potential benefits of technology, with a quarter (25%) saying their role is becoming more challenging because of it, significantly higher than the average of 16%.

New technology can be both a help and a hindrance for employees, on one hand giving increased flexibility, while on the other potentially encouraging an ‘always on’ culture amongst staff.

Almost one in five (19%) respondents say that technology has blurred the line between their work and home life in the past year. German workers are the most likely to feel this way (21%), again showing they are perhaps struggling with increased technology so more than their European neighbours.

How has technology changed the way people work?

40% can fulfil their role more easily thanks to technology

40%

19% think technology has blurred the line between work & home life

19%

16% find it easier to work with remote colleagues

16%


Employment law is constantly changing, making it difficult for both employees and employers to keep abreast of their rights and responsibilities. This challenge is particularly felt by German employees, with 30% saying they are not informed of employment laws affecting them. Polish employees are the most up-to-date, with 83% familiar with their rights.

In France, the recent changes to professional training legislation has seen the introduction of regular career development sessions, to be held once every two years, independently from annual performance reviews. While 51% are knowledgable about of the changes, the findings worryingly indicate that almost half are not fully aware.

In Italy, the new Jobs Act aims to create a more dynamic, flexible and competitive employment sector. Almost a third (31%) feel optimistic about the new legislation – either having already seen positive impacts, or believing it will boost the labour market. However, 43% remain unconvinced of its effectiveness.

In the Netherlands, wages, benefits, and other conditions of employment are often arranged collectively (CAOs). While 25% of Dutch employees are happy with the system, this is by no means unanimous. For example, a fifth (21%) would like to decide how their pension is arranged and by whom.

The UK minimum wage is set to rise to £6.70 per hour in 2015, with further plans to increase the level of ‘living wage’ to £9 by 2020. 43% of UK employees think the minimum wage should be between £7 and £8. However, only 6% think it should be set at the 2020 target of £9 or higher.

Legislation spotlight


'The Workforce View in Europe 2015/16' paints a picture of a Europe that is undoubtedly getting its strength back. Nevertheless, there is evidence of mixed fortunes across the group as the impact of macro-economic events is felt by both businesses and their employees. Strong political, economic, demographic and cultural differences exist across the continent – all playing a part in influencing the employee views and opinions we see here.

Organisations must be ready to tackle workplace issues head on, but solving them requires a new way of thinking. At ADP, we believe that innovation is the force that moves the world forward, enabling organisations to build resilient and engaged workforces that are ready to adapt, and evolve in a changing environment.

For HR teams and business leaders, this means reaching out and listening to employees. Each business should consider how they can add value through their workforce, and invest in initiatives that will arm their talent with the skills and tools to fulfil their potential for the business.

Only through further collaboration, mutual understanding, and continuous learning and development, will businesses across Europe continue to build one of the most innovative, forward thinking and competitive workforces in the world.

What are the implications?

Innovation is the force that moves the world forward and enables organisations to build a resilient and engaged workforce

20

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About ADP (NASDAQ-ADP)Powerful technology plus a human touch. Companies of all types and sizes around the world rely on ADP’s cloud software and expert insights to help unlock the potential of their people. HR. Talent. Benefits. Payroll. Compliance. Working together to build a better workforce. For more information, visit ADP.co.uk.

For additional resources on The Workforce View in Europe 2015/16, please visit www.adp.co.uk/workforceview

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