A report from The Economist Intelligence Unit.
The implications of an ageing workforce in The Netherlands
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TIME TO STARTWORRYING?
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
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 fi rst 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 signifi cantly – those are among the highest results in Europe.
Key fi ndings 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-fi nancial benefi ts. 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 signifi cant minority (21%) think the cost of benefi ts 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 benefi ts, 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
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 benefi ts (43%), greater demand for benefi ts (31%) and a need for more fl exible
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 fi fth (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 benefi ts – they are the least concerned in Europe.
This lack of relative alarm is refl ected in their wider business priorities. As the economic
Brace for impact1Which of the following do you think is most likely to happen as aresult of an ageing workforce?(% of respondents)
Chart 1
NetherlandsEurope
Source: The Economist Intelligence Unit.In
crea
sed
flex
ible
wor
king
(to
prov
ide
care
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lder
depe
nden
ts, p
hase
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men
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Prog
ress
ion
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oung
erw
orke
rs b
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ore
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icul
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Hig
her c
osts
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its
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ter r
isk
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ent
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efit
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43
31
23
19
43 43
35 35
24
29
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 signifi cant 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 benefi ts to offering more fl exible 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 signifi cant number of staff redundant, Achmea, the country’s largest insurance provider, launched a program called Silver Pool.
The company offers temporary, fl exible 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 fi ll, 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
85
9
63
50
57
23 24
39
32
3836
4245
38
29 29
34
49
55
43
2421
14
48
42
26
11
21
141112
14
Source: The Economist Intelligence Unit.
Risk control andmanagement
Talent management(HR)
InnovationExpansionCost controlRestructuring
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 defi nitely 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 fl exible workforce; the ageing trend is causing it to pay more attention to the physical and mental fi tness 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, fl exible 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 fi nancial 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 fi ll sudden gaps in the workforce quickly and properly,” he says.
Case study: PostNL
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 fi nancial or job security than workers across Europe – although this is still their main concern.
More cash, please2The big areas where Dutch executives think their staff concerns will grow are the impact and pace of technological change (which they expect to increase fi ve-fold) and the desire for employment fl exibility, 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 fl exibility 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
4138
3229
64
57
2931
20
41
31
2623
19 19
14 1517 17
14
4238
45
36
14
5
25
33
20
10
3329
24
19
2521
30
85
Source: The Economist Intelligence Unit.
Caring fordependents
(children andelderly)
Skilldevelopment
Employmentflexibility
(job sharing,portfolio careers,
part-time working,phased retirement)
Newtechnology
/pace ofchange
Work-lifebalance
Healthcareprovision
Stress andwellbeing
Saving forretirement
Jobsecurity
Financialsecurity
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 refl ects 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 benefi t 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 benefi ts they offer today will still be fi t for purpose by 2020. On the same theme, almost two thirds of them (62%) say they already offer a fully comprehensive benefi ts 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 benefi ts 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 benefi ts 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 benefi ts through work than buy them themselves.” Perhaps this is why a signifi cant minority of Dutch companies (21%) think the cost of benefi ts as a percentage of salary will actually decrease in the years to 2020.
Which of the following statements describes your company’sattitude to benefits offered to employees: In the future, we aremore likely to give employees a cash allowance and let themchoose what benefits they like(% of respondents)
Chart 4
Note: Chart compares the percentage of respondents from each country who selected “In future…” in answer tothe question.Source: The Economist Intelligence Unit.
43
31
23
19
43 43
35 35
24
29
Spain SwitzerlandNetherlands Italy FranceGermany UKEurope
20
26
14
913
19
11
43
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 problem3where executives think employees will actually become less concerned about their fi nances 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 benefi t 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-fi nancial benefi ts (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 benefi ts 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 mostimportant today: Saving for retirement(% of respondents)
Chart 5
Note: Chart compares the percentage of respondents from each country who selected “saving for retirement” inanswer to the question.Source: The Economist Intelligence Unit.
23
19
24
29
Spai
n 20
20
Swit
zerl
and
2020
Neth
erla
nds
2020
Ital
y 20
20
Fran
ce 2
020
Germ
any
2020
UK
2020
Euro
pe 2
020
Spai
n no
w
Swit
zerl
and
now
Neth
erla
nds
now
Ital
y no
w
Fran
ce n
ow
Germ
any
now
UK
now
Euro
pe n
ow
20
14
23 2420
41
2218
3135
38
27
33
2624
44
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 benefi t. In France, by contrast, only 19% of executives had that view.
This view is refl ected 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 defi ned benefi t schemes) by, for example, limiting employer contributions to underfunded schemes. At the same time, the Dutch system already has seen a defi nite move by companies
At KLM Royal Dutch Airlines workforce ageing is a reality today. The age profi le of its 32,000 employees has changed signifi cantly over the last fi ve 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 fi nancial 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 fl exibility 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 benefi ts 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 defi ned 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.
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 fi nancial 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.
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
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
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
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 continueto feel valued
Other, please specify
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
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?
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?
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 agreeand 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
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?
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?
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?
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?
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.
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