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Biggest survey of French companies on demographic change shows increased awareness of shrinking workforce: more French companies analyze age structures; greater willingness to hire older employees
Paris, France – March 27, 2008:
French companies have awakened to the challenge of an ageing and shrinking workforce. Almost every second French company considers demographic change as one of the most important challenges of the future (58 percent of large firms) – the second highest awareness when comparing the five biggest EU economies. This increased awareness has prompted French companies to take first measures: an increased number of companies (40 percent, up from 28 in 2006) have started to analyze their internal age structure and more companies (14 percent, up from 8) say they plan to hire more employees aged 50 and older in 2008 versus 2007. Still, a lot remains to be done: In comparison with the five biggest EU countries, France ranks last. These are the key findings of the Demographic Fitness Survey conducted among 2,506 companies in Germany, the UK, France, Italy and Spain. The French results of the study were published today in Paris.
The survey reveals that although France (alongside Germany) made the biggest progress in a year-over-year comparison, it is still trailing the other countries surveyed: on a scale of 400 points, measuring the preparedness of companies to cope with the demographic crunch, French companies averaged 174 points (Germany, UK: 186, Italy: 182, Spain 180). 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.
“Neither France nor any other of the four major EU economies has reached 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, also in France, as shown by the increase in the number of French companies that analyze their age structures, a prerequisite for successfully coping with demographic change, and the growing openness towards older employees, where France made one of the biggest leaps forward in Europe”, 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 French workforce is an irreversible fact: In less than 10 years, people over 40 will be in the majority in France for the first time in history (with that figure France will still do better than Germany and Italy, where 60 percent of all inhabitants will be over 40). The number of 50-65 year olds in France 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.
French companies recognize that this demographic evolution presents a major challenge. Of the large companies surveyed, 58 percent rank demographic change as among their top three concerns, almost equal to globalization (60 percent) and technological progress (62 percent). On an EU level, the survey reveals big differences: whereas 48 percent of all French respondents (large and medium-sized companies) 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 French firms, up from 28 percent 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.
This improved level of knowledge of the age structure has led to an increase in long-term staff planning. In France the advance planning of staffing needs has increased from 14 months in 2006 to 17 months in 2007. Although this cannot really be considered long-term planning, France does best among all five countries surveyed and has the highest average score in planning future staffing needs.
One of the most encouraging findings of the 2007 Demographic Fitness Survey is that more and more French companies are willing to hire older employees. 14 percent (up from 8 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 47 percent to 37 percent.
Another key finding is that French companies are experiencing one of the most severe skill shortages within Europe: 22 percent of all companies say they cannot fill positions with a matching candidate, and 43 percent of large companies complain about a lack of IT knowledge among job applicants. When asked about potential remedies to this problem, 65 percent of all French companies surveyed see improved school education as the most effective means to counter the growing scarcity of qualified workers. 55 percent say that the skills gap could be reduced by improving the transition from school to work.
“Overall, the second French Demographic Fitness Survey indicates that demographic change needs to be accompanied by significant changes in the French 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 more information 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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