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The Demographic Fitness Survey is an annual study conducted by the Adecco Institute to evaluate how companies are preparing for the impact of demographic changes in the population. Interviews were conducted with HR decision makers in 501 Dutch companies to discern their practices in the areas of Career Management, Lifelong Learning, Knowledge Management, Health Management and Diversity Management. Our Demographic Fitness Index (DFX) assigns each firm a score, on an index of 100-400 points, based on their performance in each of these areas. From specific company scores, we derive a country-wide score. Dutch firms scored 183 points out of a possible score of 400 in the 2008 Demographic Fitness Survey, just behind Germany and the UK (186 each) and ahead of Italy (182), Spain (180) and France (174). These scores, in general, indicate that companies have significant work to do to increase their ability to attract and retain workers in an era characterised by a shrinking pool of young people entering the workforce, and a growing pool of older workers. In this white paper, we present a detailed analysis of the Dutch survey results. In general, the results indicate that the challenges associated with demographic change remain largely unaddressed in Dutch companies, despite the growing difficulties Dutch firms are experiencing in finding qualified talent to fill job openings. 23% of Dutch companies report having difficulty finding employees with the right qualifications, while 28% are having difficulty finding the number of people they want to hire. Notably, we’re seeing a growing awareness that the demographics of the workforce are changing. 38% of Dutch companies have conducted a full and complete analysis of the age structure of their workforce, the first critical step that companies need to take to determine how workforce aging will impact them in their particular circumstances. Fully 45% of service companies (up from 36% a year ago) have conducted this analysis, and one third (34%) of large companies, and those in services and in industry have conducted this analysis down to the department level. These results indicate that these companies are taking the threat of aging seriously; the follow through activity down to the department level indicates that the aging workforce is a reality for many firms. The issue of population aging is real. In less than ten years’ time, people over 40 will, for the first time in history, form the demographic majority in Europe. In The Netherlands, the average age today is 40. People over 35, who comprised 49% of the population in 1990, will comprise 58% of the population in 2010, and 61% by 2030.1 More people are leaving the workforce than entering it. In order to combat the impact of a shrinking workforce, companies must proactively address the issue of workforce retention. Every employee who leaves a firm, at any stage of their career, drains much needed expertise from the firm. Proactive companies will recognize this threat and act today to put policies and practices in place to retain workers and encourage them to continue to contribute through, and when possible, past the official retirement age. Older workers are the only growing segment of the Dutch workforce. In 1990, workers over 50 comprised just 27% of the workforce; in 2030, workers over 50 will comprise 60% of the workforce. While the official age of retirement in The Netherlands is 65, the average age at which people leave the workforce is 61.5. The concentration of workers in the 50+ age group, combined with a shrinking younger population, will encourage employers to look for more ways to attract and retain – not only these workers, but all productive workers. Some say that employers will turn to immigration, productivity improvements and outsourcing to meet their workforce demands, and these will undoubtedly come into play as the world adjusts to the demographic changes that are underway. Yet, employers cannot afford to ignore the rich source of talent and experience embedded in their local populations. The Demographic Fitness Survey evaluates the extent to which Dutch employers are preparing for the onset of an aging workforce. The survey focuses on workforce practices in Career Management, Lifelong Learning, Knowledge Management, Health Management, and Age Diversity; factors that impact the entire workforce. Companies that excel on these dimensions will be effective at attracting and retaining employees across the age spectrum.
1 US Census Data, International Division,
http://www.census.gov/cgi-bin/ipc/idbsprd
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