Time to start worrying the implications of an ageing workforce in the netherlands

A report from The Economist Intelligence Unit.

TIME TO START
WORRYING?

The implications of an ageing
workforce in The Netherlands
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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

© The Economist Intelligence Unit Limited 2014

1


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:

2

Workforce ageing and skills shortages move up the agenda.
As demographic change is likely to hurt the Netherlands sooner
than most other countries, almost one in six see ageing as a
priority human resource issue for their business today, and
one in three expect it to be an issue by 2020. Similarly, Dutch
executives are among the most concerned (21%) in Europe
about the threat of skills shortages.
Cash is king. As the brightening of Europe’s economic outlook

pushes talent management up the agenda across the continent,
executives in most countries plan to offer staff a wider mix of
non-financial benefits. The Dutch are different – they are more
than twice as likely (43% compared to 20% overall) to give
workers cash. Perhaps this is why a significant minority (21%)
think the cost of benefits as a percentage of salary will actually
decrease in the years to 2020.
Responsibility lies with the individual, not the employer.
Dutch executives are the least likely (24% compared to 42%
overall) to agree that it is better for employees to get certain
benefits, such as healthcare, through work than to buy them
themselves. They also are much more likely to believe that the
individual should be the one primarily responsible for providing
and/or funding healthcare provision (36% compared to 19%
overall).
When it comes to saving for retirement, Dutch employees are
Europe’s big worriers. Some 41% of executives say this is their
staff’s greatest concern. No other country ranks it anywhere
near that high – just 20% of European executives overall rank
this as a top-three concern

© The Economist Intelligence Unit Limited 2014


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

Brace for impact

If holding onto older workers is the way that the
Netherlands will maintain its workforce, it should

be no surprise that the survey found Dutch
executives to be among the most concerned
in Europe about the challenge of managing an
ageing workforce. Almost one in six see ageing as
a priority human resource issue for their business
today. By 2020, one in three expect this to be the
case.
The main effects of workforce ageing, they
believe, will be an increase in the cost of
employee benefits (43%), greater demand for
benefits (31%) and a need for more flexible

(% of respondents)
Europe

Netherlands

43

43

43

35

35

31

29

24

23

Source: The Economist Intelligence Unit.

Increased flexible working
(to provide care for older
dependents, phased
retirement, etc)

19

Progression of younger
workers becomes
more difficult

If the country can achieve what the Commission
calls “an exceptionally favourable economic
outlook allowing for an extremely high
mobilisation of human resources”, it could stave
off those shortages for eight years or so. A recent
report from ABN Amro offered an even more
optimistic outlook, pointing to overall population
growth and the increased proportion of those
aged 65 to 68 remaining in work.

Which of the following do you think is most likely to happen as a
result of an ageing workforce?

Higher costs
of benefits

In the decade to 2012, the ratio of people aged
under 15 and over 65 to the population at
working age increased from 45.4% to 50.5% –
one of the biggest increases in Europe. Under
the European Commission’s most pessimistic
scenario, the Netherlands could experience
labour bottlenecks as soon as 2015 – much earlier
than the UK, for example, which is unlikely to feel
the pain until the early 2020s.

Chart 1

Greater risk of age
discrimination claims

The economic and business implications of
Europe’s ageing workforce are huge, and the
Netherlands has less time to adjust than any of
the EU’s other large economies.

Greater employee
demand for benefits
(healthcare, retirement
and other benefits)

1

working, so that employees can care for older
dependents (29%). Almost a quarter (24%)
say workforce ageing will make it harder to
promote younger workers who are ready to
move on. A fifth (19%) expect an increase in age
discrimination claims.
Yet on each of these points, Dutch executives
are less likely than their European rivals to think
their business will be affected. And for two
potential trends – including demand for benefits
– they are the least concerned in Europe.
This lack of relative alarm is reflected in their
wider business priorities. As the economic
© The Economist Intelligence Unit Limited 2014

3


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

Chart 2
What is the most important business priority for your organisation currently? In 2020?
(% of respondents)
Europe now

Netherlands now

Germany now

Europe in 2020

Netherlands in 2020

Germany in 2020

63
57

55
50

49
42

39
34

38

45

36

32

27 26

48
43

42

38
34
29 29
24

23 24

26
21

21
14

8

9

14

12 11

14

11

5

Restructuring

Cost control

Expansion

Innovation

Talent management
(HR)

Risk control and
management

Source: The Economist Intelligence Unit.

outlook improves across Europe, executives in
many countries expect talent management to
become a far more significant issue in the years
ahead. But very few Dutch executives see much
change here. Only 21% say talent management
is a top-two business priority today; that
climbs to just 26% in 2020. The increase is the
joint smallest in Europe, along with France. By
contrast, the proportion among Germans citing
talent management as a top two priority leaps by
237% over the same period.
Does this suggest Dutch executives are
complacent about the potential impact of
demographic change? The European Commission
data suggest that a lack of ready labour could be

imminent for the Netherlands, and the survey
shows Dutch executives are among Europe’s most
concerned about skills shortages (21%). Yet by
2020, when the Commission believes the Dutch
are very likely to be feeling the pinch, that level
of concern does not rise at all. Perhaps the survey
respondents believe the more optimistic ABN
Amro report, which states a shrinking workforce
will not happen until 2027, or even 2032.
In a similar vein, Dutch executives are among the
least likely in Europe to be planning any changes
4

© The Economist Intelligence Unit Limited 2014

that would prepare their organisations for an
older workforce. From allowing employees to
select from a wider range of benefits to offering
more flexible work hours, they score below the
European average across a range of measures. In
some cases they are only marginally behind, but
the pattern seems clear enough.
Many companies in the Netherlands are doing
less in response to workforce ageing than their
peers across Europe, but there are some examples
of good practice. Faced with making a significant
number of staff redundant, Achmea, the
country’s largest insurance provider, launched a
program called Silver Pool.
The company offers temporary, flexible contracts

to staff over 57.5 years who have knowledge
and experience it might otherwise lose. When
employed under these contracts, staff receive
100% of their salary while working and they still
receive 75% of their pay even when there is no
work. And whenever Achmea has a temporary,
third-party or contractor position to fill, Silver
Pool members have priority. The company thus
retains the knowledge and expertise of older
staff, and cuts its costs.


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

Case study: PostNL
Talent management might not be climbing up the agenda
for many Dutch businesses, but it definitely is at PostNL, the
Dutch mail and parcels business, says HR director Roger Muys.
The decline in traditional letter mail and an increase in
parcels business means that the company wants to create
a more flexible workforce; the ageing trend is causing it to
pay more attention to the physical and mental fitness of all
employees and how it engages its most talented people, says
Mr Muys.
“Every organisation faces more or less the same HR
challenges,” he believes. “In practice, flexible labour means
less emphasis on full-time contracts – 37 hours or more – and
more space for part-timers, including students, pensioners
and returners, who would like some extra money.”

The days of lifetime employment with one company are over,
he says. Ambitious, talented people are not willing to stick in
one place all their career. “The financial crisis has dampened
that trend a little, but once the global economy recovers, and
with it the labour market, employers will need to think again
about how they try to hold on to their high-potential people,”
he believes.
Mr Muys says it is no longer wise to limit career development
programs such as coaching and personal development to “top
potentials”; talent management investment should extend
to all employees. “It’s not only because people are the most
important asset for any organisation, but also because it
means we can fill sudden gaps in the workforce quickly and
properly,” he says.

© The Economist Intelligence Unit Limited 2014

5


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

2

More cash, please

A brightening economic outlook across Europe
is likely to affect the concerns of employees,
too. The survey shows that in most countries,
employers think employees will begin to worry

less about whether or not they have a job and
more about how and how much they work.
But the story is somewhat different in the
Netherlands.
Today, the country has – almost – the lowest
percentage of companies focused on cost
control in Europe. No wonder, then, that Dutch
employees are much less concerned about
financial or job security than workers across
Europe – although this is still their main concern.

The big areas where Dutch executives think
their staff concerns will grow are the impact
and pace of technological change (which they
expect to increase five-fold) and the desire
for employment flexibility, in the form of job
sharing, portfolio careers, part-time working
and phased retirement (this will double). That
growing demand for different ways of working is
a common theme across Europe, but nowhere is it
as pronounced as in the Netherlands.
How companies plan to deliver that flexibility
varies by country. For Europe as a whole,
the most common response is to offer more
adaptable working hours and the chance to work

Chart 3
What do you believe to be the issues your employees see as most important today?
(% of respondents)
Europe now

Netherlands now

Europe in 2020

Netherlands in 2020

64
57

41

38
32

29

29

31

45

42

41

38

36

33

31
26
20

33
29

25

23
19 19
14

15

17 17

25

24
20

19

21

14

14

10
5

Financial
security

Job
security

Saving for
retirement

Stress and
wellbeing

Healthcare
provision

Work-life
balance

Source: The Economist Intelligence Unit.

6

© The Economist Intelligence Unit Limited 2014

Employment
Skill
New
flexibility
development
technology
(job sharing,
/pace of
portfolio careers,
change
part-time working,
phased retirement)

8
3

5

0

Caring for
dependents
(children and
elderly)


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

from home; just over half (52%) of the Dutch
executives in the survey are considering this.

Whereas companies in other countries – notably
the UK – also expect to make big changes to their
wider benefit programs, Dutch executives see this
as less of an issue.

Chart 4
Which of the following statements describes your company’s
attitude to benefits offered to employees: In the future, we are
more likely to give employees a cash allowance and let them
choose what benefits they like
(% of respondents)
43

The survey data suggest an explanation for this.
A third of Dutch executives – slightly more than
the European average – believe the benefits they
offer today will still be fit for purpose by 2020. On
the same theme, almost two thirds of them (62%)
say they already offer a fully comprehensive
benefits package to attract and retain employees
– which ranks them second only to Switzerland.
Companies in the UK, for example, are looking
to change the employee benefits they offer
and to give employees more choice. But in the
Netherlands, 43% say in future they are more
likely to give employees a cash allowance so
they can choose what benefits they like – that is
double the European average. Dutch executives
were also the least likely (24%) to agree with the
statement: “It is often better for employees to

get certain benefits through work than buy them
themselves.” Perhaps this is why a significant
minority of Dutch companies (21%) think the
cost of benefits as a percentage of salary will
actually decrease in the years to 2020.

26
20

19
14

13

11

9

Europe Netherlands

UK

Germany

France

Italy

Switzerland

Spain

Note: Chart compares the percentage of respondents from each country who selected “In future…” in answer to
the question.
Source: The Economist Intelligence Unit.

The Dutch also look to the individual when it
comes to healthcare. Over two-thirds 68% of
Dutch survey respondents believe the state will
play a reduced role in providing healthcare – the
highest in Europe. This likely reflects reforms
introduced to the Dutch healthcare system
over the last decade; all citizens are now legally
43 to purchase at least a basic
43level
43of
required
insurance.
35

35

31

29
24

23
19

© The Economist Intelligence Unit Limited 2014

7


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

3

Pensions? That’s your problem

With demographic change hitting the
Netherlands sooner that anywhere else, it is
no wonder that Dutch employees are worried
about their ability to save for retirement. Today,
according to their bosses, this is their second
biggest concern (41%). No other country in
Europe ranks it anything like as highly; the next
nearest country is France on 24%.
Yet, perhaps remarkably, executives expect
this concern to evaporate in the years to 2020.
Everywhere else in Europe, executives think
retirement saving will become far more important
to employees. The proportion of those in the UK
who say it will be a top-three issue for employees
leaps by 150%. The increase is just about as high
in Spain. But the Netherlands is the only country

Chart 5
What do you believe to be the issues your employees see as most

important today: Saving for retirement
(% of respondents)
44

41
35

33

20

27

26

24
20

24

22
18

Spain 2020

Switzerland 2020

Italy 2020

France 2020

Germany 2020

UK 2020

Netherlands 2020

Europe 2020

Spain now

Switzerland now

Italy now

France now

Germany now

UK now

Netherlands now

Europe now

14

Note: Chart compares the percentage of respondents from each country who selected “saving for retirement” in
answer to the question.
Source: The Economist Intelligence Unit.

8

This may be because the Netherlands has a high
savings rate and reforms to the pensions system
currently underway are expected to strengthen
it. However, the changes being made will not
necessarily benefit employees, transferring more
responsibility for risk from the employer to the
individual.
One explanation for this could be that Dutch
employers plan to give their workers more cash
rather than non-financial benefits (see above),
which they can then invest in their own pensions
if that is what worries them most. Today, 22%
of Dutch executives say the main reason they
provide retirement benefits is so that employees
can have an adequate income when they stop
working; by 2020 that climbs to 35%, the highest
level in Europe.

38

31
23

where executives think employees will actually
become less concerned about their finances in
old age. In fact, the proportion rating it as a topthree issue falls by a third.

© The Economist Intelligence Unit Limited 2014

What is more, Dutch citizens are particularly keen
to keep working past their normal retirement
date, according to European Commission
research. Some 84% of them would like to take
a partial pension while working part time,
compared to two thirds of all Europeans. If
employees think that is something their employer
will offer in future, then it makes sense that their
anxiety about retirement planning might abate.
The signs here are positive. Like their peers in
other countries, many Dutch executives (33%)
are concerned about the cost of making changes
to their pension provision, but the level of


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

concern they report is lower than in any other
country, except Italy (29%). Moreover, Dutch
executives are the most likely in Europe (45%) to
believe that individual employees should provide
or fund their own pensions benefit. In France, by
contrast, only 19% of executives had that view.
This view is reflected in the reforms currently
working their way through the Dutch pensions
system, which continue to shift responsibility
and risk from the employer (as in traditional
defined benefit schemes) by, for example,

limiting employer contributions to underfunded
schemes. At the same time, the Dutch system
already has seen a definite move by companies

to utilising a halfway house between DB and
fully individualised DC schemes – collective
defined contribution (CDC) – which also reduces
an employer’s pension risk, while not fully
transferring it to individual employees. This
type of pooled risk pension scheme is being
considered in other countries such as the UK.
The picture that emerges is this: a large number
of Dutch executives believe that companies have
a responsibility to help their employees to plan
for old age, but they feel the best way of doing
that is to give them the cash and access they need
to make their own arrangements.

Case study: KLM
At KLM Royal Dutch Airlines workforce ageing is a reality
today. The age profile of its 32,000 employees has changed
significantly over the last five years. The proportion aged 50
or older has increased from 18% to 29% while those aged 30
or less has fallen from 10% to 6%.
This is likely due to economics as much as demographics:
since the 2008 financial crisis, the company has tried to avoid
hiring new people into the business. But the challenges it
creates are the same.
The main one is what Maarten Stienen, Vice President
Industrial Relations and Strategic Human Resources, calls

“sustainable employability” – taking care of the workforce
in a rounded way, so they remain employable for as long as
possible.
This requires flexibility from the staff and investment from
the business. “To keep our workforce healthy and employable
we put a lot of emphasis on health policies,” says Mr Stienen.
“Our vision for the next three years centres around promoting
and furthering a healthy lifestyle and work-life balance.”
But he does not expect the greater focus on health to increase
the cost of benefits in this area. “This is not really a concern,”
he says.

© The Economist Intelligence Unit Limited 2014

9


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

Conclusion

Dutch executives are right to be worried
about workforce ageing. A tide of unavoidable
demographic change is on its way, and will break
over the Netherlands sooner than any other
European country surveyed. Some big employers
– such as KLM and PostNL – are looking at ways
to extend the employability of their current
workforce and rethink their approach to talent

management. But the survey suggests they may
be the exceptions rather than the rule.
The financial crisis of recent years has sucked

10

© The Economist Intelligence Unit Limited 2014

much of the urgency out of this issue. With
employees worrying about whether they can
simply keep their jobs – or in the Dutch case, save
for retirement – employers do not have to think
too hard about talent management. But as the
recovery gains traction, this will change.

In the Netherlands, that change could happen
especially quickly. Here the complacency of many
Dutch executives – especially with regards to the
supply of skilled workers – is worrying indeed.


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

Appendix:
Survey results

What would you say is the most important business priority for your organisation currently? Select up to two
(% respondents)
Cost control
50

Expansion
38

Innovation
29

Restructuring
26

Talent management (HR)
21

Risk control and management
12

What would you say will be the most important business priority for your organisation by 2020? Select up to two
(% respondents)
Innovation
55

Expansion
45

Talent management (HR)
26

Cost control
24

Risk control and management
21

Restructuring
5

© The Economist Intelligence Unit Limited 2014

11


Time to start worrying? The implications of an ageing workforce in The Netherlands
By 2020, what will be the main drivers of change for your business? Select up to two
(% respondents)
Global competition
55

Technology
55

Talent/people management
38

Ageing
14

Changing size and role of the state
10

Offshoring/outsourcing

2

Other (please specify)
7

What are the main people (HR) issues you face as an employer currently? Select up to three
(% respondents)
Cost control (compensation and benefits)
41

Talent management and progression
33

Motivation and engagement
31

Recruitment
29

Retention
21

Skills shortages
21

Ageing workforce
17

Downsizing / offshoring
12

Healthy workforce (health, stress and wellbeing)
10

Regulation (state/EU)
7

Diversity of workforce
5

Other (please specify)
2

12

© The Economist Intelligence Unit Limited 2014


Time to start worrying? The implications of an ageing workforce in The Netherlands
What will be the main people (HR) issues you face as an employer by 2020? Select up to three
(% respondents)
Talent management and progression
33

Ageing workforce
33

Cost control (compensation and benefits)
31

Retention
26

Recruitment
24

Motivation and engagement
24

Skills shortages
21

Healthy workforce (health, stress and wellbeing)
19

Downsizing / offshoring
10

Regulation (state/EU)
7

Diversity of workforce
7

Other (please specify)
0

What do you believe to be the issues your employees see as most important today? Select up to three
(% respondents)
Job security

57

Saving for retirement
41

Financial security
38

Work-life balance
38

Stress and wellbeing
19

Skill development
19

Healthcare provision
17

Employment flexibility (job sharing, portfolio careers, part-time working, phased retirement)
10

New technology/pace of change
5

Caring for dependents (children and elderly)
0

Other (please specify)

2

© The Economist Intelligence Unit Limited 2014

13


Time to start worrying? The implications of an ageing workforce in The Netherlands
What do you believe to be the issues your employees see as most important by 2020? Select up to three
(% respondents)
Work-life balance
36

New technology/pace of change
33

Job security
31

Financial security
29

Employment flexibility (job sharing, portfolio careers, part-time working, phased retirement)
29

Saving for retirement
26

Skill development
21

Stress and wellbeing
14

Healthcare provision
14

Caring for dependents (children and elderly)
5

Other (please specify)
2

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
(% respondents)
Offering more flexible working hours or working from home
52

Changing the employee benefits we offer
48

Ensuring that the skills of older employees remain up to date
45

Giving employees more choice over their benefits
43

Adapting our structure to ensure that older workers who reduce work hours or responsibilities retain their status within the company and continue
to feel valued

33

Making physical changes to the workplace
26

Looking at how to address inter-generational differences in our workforce
21

Other, please specify
5

14

© The Economist Intelligence Unit Limited 2014


Time to start worrying? The implications of an ageing workforce in The Netherlands
How likely is it that the benefit programmes you have in place now will remain fit-for-purpose in 2020?
(% respondents)
Very unlikely
14

Unlikely
19

Neither/neutral
29

Likely
26

Very likely
10

Don’t know
2

By 2020, for the typical employee at your company, do you believe that the costs of benefits as a percentage of salary will:
(% respondents)
Increase significantly
14

Increase
45

Stay the same
19

Decrease
21

Decrease significantly
0

Which of the following statements describes your company’s attitude to benefits offered to employees? Select all that apply
(% respondents)
We offer a fully comprehensive benefits package to attract and retain employees
62

We make sure we’re offering what’s normal for our industry, to keep up with competitors

60

In the future, we are more likely to give employees a cash allowance and let them choose what benefits they like
43

We think it’s right to look after our staff, and our benefits reflect that
26

It’s often better for employees to get certain benefits through work than buy them themselves
24

We’ve built up benefits over time, without an overarching strategy for choosing them
24

We have a carefully selected set of benefits suitable for our employees’ lifestyles
21

It is difficult to reduce elements of our current benefits package so any change results in an increase in overall costs
14

Due to historic reasons /changes we have lost track of why we have the benefits we have
12

We only offer the minimum benefits that are legally required, and otherwise just pay cash
7

© The Economist Intelligence Unit Limited 2014

15

Time to start worrying? The implications of an ageing workforce in The Netherlands
Who should be primarily responsible for providing and/or funding the following benefits?
(% respondents)

Individual

Employer

State

Retirement provision
45

38

17

Savings scheme
68

18

15

Healthcare provision
36

36

28

Life insurance
59

33

8

Disability protection
21

51

28

Critical illness protection
31

36

33

End of life care
46

10

44

Do you agree or disagree with the following statements about health and wellbeing of your workforce in the future (to 2020)?
Rate on a scale of 1 to 5 where 1 is strongly agree and 5 is strongly disagree
(% respondents)

1 Strongly agree

2 Somewhat agree

3 Neither agree nor disagree

4 Somewhat disagree

5 Strongly disagree

The health and wellbeing of our workforce will be an increasingly important issue for us as an employer
34

37

27 2

The state will play a reduced role in providing healthcare
20

48

20

13

Healthcare costs will increasingly fall on employers
18

38

18

25

3

Healthcare benefits will be increasingly important to employees
33

35

28

5

What is your company’s main objective in offering retirement benefits now?
(% respondents)
Attracting talent
32

Employee retention
22

Wanting employees to have an adequate income in retirement
22

Workforce planning (managing when employees retire)
15

Compliance
10

What will be your company’s main objective in offering retirement benefits by 2020?
(% respondents)
Wanting employees to have an adequate income in retirement
35

Employee retention
28

Attracting talent
20

Compliance
10

Workforce planning (managing when employees retire)
8

16

© The Economist Intelligence Unit Limited 2014


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

What challenges are employers facing in making changes to their retirement benefits? Select up to three
(% respondents)
Excessive regulation
36

Cost of implementing changes
33

Growing costs (defined benefit plans)
33

Managing the risk posed to the business (defined benefit plans)
33

Lack of tools to measure ROI to justify the costs
26

Low levels of appreciation for retirement benefits among employees
21

Low levels of financial literacy/understanding amongst employers
19

Lack of bottom line benefit makes change hard to justify
12

Lack of tax incentives
12

Staff do not have time or resources to manage retirement plans

10

Low levels of trust amongst employees for financial products
10

Other, please specify
5

Staff haven’t requested any changes so employers do not need to make any
0

What is the biggest challenge facing the system for retirement savings in the country in which you are based?
(% respondents)
Demographic changes (ageing population)
29

Insufficient savings being made by individuals
15

Unrealistic expectations of individuals
12

Government deficits/debt (impact of austerity measures)
10

High costs for businesses providing pensions.
10

Regulatory and legislative changes
10

Too many people not working to or past the state retirement age
7

Unrealistic government entitlements (State pension, pension age)
2

Not relevant for my country, our retirement system is sustainable
2

Employers underestimating the future cost of promised benefits
0

Other, please specify
2

© The Economist Intelligence Unit Limited 2014

17


Time to start worrying? The implications of an ageing workforce in The Netherlands
Do you agree or disagree regarding the following statements about retirement provision in the future?
Rate on a scale of 1 to 5 where 1 is strongly agree and 5 is strongly disagree
(% respondents)

1 Strongly agree

2 Somewhat agree

3 Neither agree nor disagree

4 Somewhat disagree

5 Strongly disagree

It is not an employer’s role to help their employees to have a comfortable standard of living in retirement
27

27

42

5

Employers should bear the risk of providing for their retirement
5

25

25

25

20

As an employer, we are concerned about the reputational risk of workers reaching old age and not being able to retire
10

30

33

15

13

How do you expect the number of employees aged 60+ to change by 2020?
(% respondents)
Increase significantly
33

Increase
50

Remain the same
15

Decrease
3

Decrease significantly
0

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
(% respondents)

1 Strongly agree

2 Somewhat agree

3 Neither agree nor disagree

4 Somewhat disagree

5 Strongly disagree

Older workers are less productive than younger workers are
28

28

18

28

Older workers have greater skills than younger workers do
10

20

48

18

5

Older workers are less motivated than younger workers are
13

30

25

33

Older workers are easier to manage than younger workers are
18

50

20

13

Older workers take more time off for health reasons than younger workers
23

35

20

23

Which of the following do you think is most likely to happen as a result of an ageing workforce? Select up to two
(% respondents)
Higher costs of benefits
43

Greater employee demand for benefits (healthcare, retirement and other benefits)
31

Increased flexible working (to provide care for older dependents, phased retirement, etc)
29

Progression of younger workers becomes more difficult
24

Greater risk of age discrimination claims
19

18

© The Economist Intelligence Unit Limited 2014


Time to start worrying? The implications of an ageing workforce in The Netherlands
Which of the following best describes your title?
(% respondents)
Board member
0

CEO/President/Managing director
14

CFO/Treasurer/Comptroller
26

CIO/Technology director

7

Other C-level executive
0

SVP/VP/Director
12

Head of business unit
5

Head of department
12

Manager
24

What is your primary job function?
(% respondents)
Human resources
43

General management
21

Finance
19

IT
7

Information and research
2

Operations and production
2

Procurement
2

Risk
2

© The Economist Intelligence Unit Limited 2014

19


Time to start worrying? The implications of an ageing workforce in The Netherlands
How many employees does your company have globally?
(% respondents)
500-1,999
21

2,000+
79

20

© The Economist Intelligence Unit Limited 2014

Time to start worrying? The implications of an ageing workforce in The Netherlands
What is your industry?
(% respondents)
Aerospace and Defence
5

Automotive and Transportation Equipment
0

Charities and Non-Profit
0

Chemicals
10

Communications
0

Consumer goods
10

Education
0

Entertainment and media
5

Financial Services: Banking

2

Financial Services: Insurance
2

Financial Services: Other financial services
7

Food and Beverage
7

Government/Public sector
2

Health Care
2

Hospitality (Restaurant, Hotel/Lodging, Tourism and Leisure)
0

IT and High Tech
14

Manufacturing
10

Natural Resources
0

Oil & gas

2

Pharmaceuticals
2

Professional and Business Services
12

Property and Construction
0

Publishing and printing
2

Retail
2

Telecommunications
2

Transportation
0

Utilities
0

Wholesale
0

Other, please specify

0

© The Economist Intelligence Unit Limited 2014

21


Time to start worrying? The implications of an ageing workforce in The Netherlands
Please state which of the following best describes your company?
(% respondents)
Publicly listed
57

Other privately owned (partnership, limited liability, etc)
29

Family owned
10

Government/State owned enterprise
5

Private Equity portfolio company
0

What are your organisation's global annual revenues?
(% respondents)
Less than €500m
0

€500m to €1bn
19

€1bn to €5bn
26

€5bn to €10bn
12

More than €10bn
43

22

© The Economist Intelligence Unit Limited 2014


While every effort has been taken to verify the accuracy
of this information, The Economist Intelligence Unit
Ltd. cannot accept any responsibility or liability
for reliance by any person on this report or any of
the information, opinions or conclusions set out
in this report.


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