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Biggest survey among European companies on demographic change shows increased awareness for shrinking workforce: more companies analyze age structures; greater willingness to hire older employees
Brussels, Belgium – January 31, 2008:
European companies have woken up to the demographic challenge of an ageing and shrinking workforce. An increased number of companies have started to analyze their internal age structure and more large companies say they plan to hire more employees aged 50 and older in 2008 versus 2007. These are the key findings of the Demographic Fitness Survey conducted among 2,506 companies in Germany, the UK, France, Italy and Spain. The study was published today in Brussels.
The survey also reveals that much remains to be done: on a scale of 100 to 400 points, measuring the preparedness of companies to cope with the demographic crunch, European companies averaged 182 points. This "Demographic Fitness Index (DFX)", is the result of the second Demographic Fitness Survey, which was first established by the Adecco Institute in 2006 to help companies adapt to the ageing of their workforce.
When comparing country results of the DFX, Germany and the UK lead the group with 186 index points each, followed by Italy (182), Spain (180) and France (174). A year-over-year comparison shows an improvement for Germany and France.
“None of the five major EU economies reaches a satisfactory Demographic Fitness Index, yet. But that does not come as a surprise: the goal of establishing the DFX is to raise companies’ awareness for the demographic challenges. And this is clearly happening, as shown by the better analyses of age structures, the growing openness towards older employees and a strong commitment to improved education and training”, commented Wolfgang Clement, Chairman of the Adecco Institute and former German Minister of Economics and Labor.
The DFX measures five factors that influence a firm’s ability to successfully cope with an ageing workforce: career management, lifelong learning, knowledge management, health management, and diversity management. The indices are calculated based on the answers given by the firms interviewed.
The ageing of the European workforce is an irreversible fact: In less than 10 years, people over 40 will be in the majority across Europe for the first time in history. In Germany and Italy, 60 percent of all inhabitants will be over 40. The number of 50-65 year olds in the five biggest EU economies will rise by 16 percent and those in their 20s to 40s will decline by nearly 10 percent. By 2050, the share of people over 65 will have doubled and will make up around 30 percent of the total population.
European companies recognize that this demographic evolution presents a major challenge. Of the large companies surveyed, 54 percent rank demographic change as among their top three concerns, almost equal to globalization (55 percent) and technological progress (58 percent). On a country level, the survey reveals big differences: whereas 70 percent of German respondents identified demographic change as one of their major challenges, only 32 percent of UK firms ranked it as a major concern.
The increase in the number of companies analyzing age structures indicates an increased awareness of the issue: 40 percent of all European firms, up from one third a year ago, have conducted an analysis of the overall age structure of their organizations. Medium-sized firms have demonstrated the most significant improvement over the past year.
However, only in France and the UK has this improved level of knowledge of the age structure, so far, led to an increase in long-term staff planning. In the survey, no European company planned their overall staff needs more than 18 months ahead. One of the most encouraging findings of the 2007 Demographic Fitness Survey is that more and more of the large European companies are willing to hire older employees. 16 percent intend to hire more older employees in 2008 than in 2007, and the share of companies who plan to hire fewer people over 50 has decreased from 42 percent to 34 percent.
Another key finding is that European companies are putting increased emphasis on the importance of education. 69 percent of all companies surveyed see improved school education as the most effective means to counter the growing scarcity of qualified workers. 59 percent say that the skills gap could be reduced by improving the transition from school to work.
“Overall, the second Demographic Fitness Survey indicates that demographic change needs to be accompanied by significant changes in the European corporate culture. The Demographic Fitness Index offers the yardstick. With it, companies can measure their ability to innovate and compete by focusing on their secret weapon – an experienced, focused and dedicated workforce”, concluded Donna M. Murphy, Managing Director of the Adecco Institute.
For the full version of the study please visit:
http://www.adeccoinstitute.com/
About the Adecco Institute
The Adecco Institute, founded in 2006 and based in London, is a think tank on the future of work; it is committed to facilitating discussions on the topic of work. Through primary and secondary research as well as white papers and forums for discussion, the Adecco Institute provides forward-looking approaches to help companies and economies raise employability, productivity and employee satisfaction at work. The Institute is chaired by Wolfgang Clement, former German Minister of Economics and Labor; its Managing Director is Donna M. Murphy.
Media Contact:
Shepard Fox Communications
Axel.Schafmeister@shepard-fox.com, Telephone: +41 78 714 8010
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