PowerPoint Visual Guide

1
Leveraging Demographic ChangeBusiness
Strategies to deal with an Aging Workforce
FIRST PART September 2006
2
Objectives of this Presentation

• Demonstrate to you that Demographic Change is a
  key strategic issue to be taken seriously
• Illustrate how industry leaders are tackling this
  issue
• Discuss with you approaches to reacting in a
  timely manner to demographic change
  and leveraging it to your advantage

3
Aging of Societies A Global Issue
4
The crisis is looming in the West
Europe
US

• Fertility below replacement rate leading to rapid
  contraction of working-age population
• Low labor force participation 50 currently only
  4 in 10 people aged 55-64 are working
• Workers 50-64 will increase by 25 over the next
  20 years, while those 20-29 will decrease by 20
• Large countries such as Germany, France and Italy
  face a rapid rise in pension expenditures, to
  more than 15 of GDP in 2050
• Early retirement culture causes an increasing
  dependency ratio
• EU will introduce legislation in 2006 that makes
  ageism at work illegal

• US fertility of 2,1 children/ woman at
  replacement level
• US Highest workforce growth will be people aged
  55-64 51 from 2002-2012 workers aged 35-44
  will decrease 7
• By 2010, the US will have 10 million more jobs
  than workers
• By 2012, the US workforce will have reached the
  highest ever median age at 41.4
• State pension systems do relatively well due to
  limited benefits pension burden expected to peak
  below 10 of GDP between 2030 and 2050
• In US, costs of company-financed pensions
  threaten health of corporate giants

Source Statistical Offices US Labour Office
World Bank OECD Press search Team analysis
5
but also in Asia
Asia
Singapore

• Japan almost 20 of the population 65, the
  highest share in the world
• The Japanese workforce is already shrinking at a
  pace of 1 p.a., over the next three to four
  years 10 million people will retire
• Hong Kong has the lowest birthrate in the world
  at 0.8 child per woman and may follow suite to
  Japan
• South Korea is aging even more rapidly than
  Japan, albeit from a younger starting point
• China working age population to the aged is
  estimated to decline from 101 to 41 by 2030
• No pension system in the largest countries,
  India and China families generally care for
  their ageing relatives
• Combined with low income, this leads to a
  big burden for economic development

• Fertility below replacement rate leading to
  shrinking of working-age population
• 50 make up 22 of workforce
• By 2030, Singapore will have reached current
  Japanese levels 20 of the population 65
• 50 of unemployed are 40, due to lack of skills
  (esp. re. technology)
• Government measures to encourage employment and
  development of 50, e.g. lower employer pension
  contributions and training
  subsidies
• Reform of pension system underway, including
  stronger incentives for private investments into
  retirement provisions

Source Statistical Offices World Bank OECD
JARC Press search Team analysis
6
Aging of Societies A Global Issue with Local
Impacts

• Worldwide the average fertility rate decreases
  from 5 children/ woman in the 1950s to today 2,7
• Over the next half-century, OECD countries are
  set to experience a significant ageing of their
  populations. Past falls in fertility rates and
  increasing life expectancy will raise
  significantly the proportion of pensioners to
  work age population
• Increased strain on public expenditures, e. g.
  social protection systems
• Decreasing population growth leads to decreasing
  economic growth estimated decrease of European
  GDP from 22,25 today to 1,25 in 2040

7
Aging of Societies A Global Issue with Local
Impacts
Continental European Countries

• Decline in fertility rates, partly very steep,
  leads to contraction of working age population
  (EU25 1,5 children/ woman)
• Austria 1.39 children per woman
• Germany 1.32 children per woman
• Italy 1.28 children per woman
• Slovenia 1.22 children per woman
• Early retirement culture enforces effect of
  increasing dependency ratio

Sources UN World Population Prospects, 2004
Statistisches Bundesamt, 2005 Financial Times
Business Report 11.2005 The World Bank, 6.1996
OECD, 2003
8
General Aging Workforce Population Trends
Population aged 65 and over as of the
working-age population (aged 15-64) ,
2000-2050

• Ageing driven by five key factors
• Decreases in fertility below replacement rate
• Longer life expectancy
  (majority of medical expenditure and
  progress in area of longevity)
• Later entry into labor force
  (longer education duration)
• Earlier exit from labor force
  (early retirement)
• Limited immigration
• In OECD countries, starting from a current level
  of 21 of GDP in 2000, age-related spending is
  projected to increase to about 27 of GDP by
  2050, especially for public pensions and health
  care
• Decreasing population growth leads to decreasing
  economic growth estimated decrease of European
  GDP from 1.4 in 2005 to 1.25 in 2040
• About 25 countries have legislation to replace
  all or part of their traditional state pension
  systems with private defined contribution schemes

Source World Population Prospects The 2004
Revision Population Database, Medium Variant
figures Team analysis
9
Aging of Societies Situation in Italy, Austria,
Slovenia- Fertility rates lead to population
decline

• Since the early 1970s fertility rates have
  declined steeply and are among the lowest in the
  OECD (1,33 children per woman)
• Italy and Slovenia face rapid process of dramatic
  population decline from 2015 on

Total population Italy, Austria, Slovenia 1000,
2000-2050
Decline 12 0,3 17
Source World Population Prospects The 2004
Revision Population Database Team analysis
10
Tenure/ age based wages as key hurdle to
employability
Employment rate and income ratio / Index, 2004

• Higher income as hurdle to employment of older
  age workers
• Main driver for higher income ratios are
  seniority principle and level of unionisation/
  rigidity of labour market
• Legal protection of older workers functions as
  tax, lowering their employability
• Performance related wage system as potential
  instrument
• Compensation and benefits framework requiring
  comprehensive performance management systems
• Age relevant elements can be integrated through
  lifestage oriented benefits package

12
UK
10
US
Denmark
Spain
8
Czech Republic
Employment rate of men aged 50 to 64 in
6
Germany
France
Norway
Italy
4
Japan
Netherlands
Luxembourg
2
0
1,0
1,1
1,3
1,5
1,7
1,8
1,2
1,4
1,6
Income Ratio of men 50 to 64 years old to men 25
to 29 years old (full time)
Source OECD Team analysis
11
Aging of Societies Situation in Italy, Austria,
Slovenia - Increased life expectancy lead to
higher average age

• The Average Age in Austria, Germany, Italy and
  Slovenia will raise

Average age of population in Italy, Austria,
Slovenia (Age 15-64) 1000, 2000-2050
Source World Population Prospects The 2004
Revision Population Database Team analysis
12
Aging of Societies Situation in Italy, Austria,
Slovenia- Working age population contracts

• Working age population will contract likewise
  decline by almost 40 until 2050
• Shortage of highly qualified people due to
  demographic change

Working age population Italy, Austria, Slovenia
(Age 15-64) 1000, 2000-2050
Decline 33 18 36
Source World Population Prospects The 2004
Revision Population Database Team analysis
13
Large country differences in exit age and
employment rates
Exit age and employment rates of older
workers Age / , 20041)

• Few exit because they feel too old for
  job
• E.g., in Switzerland 50 of early retirees state
  health or company policy as reason only 3 feel
  too old for job
• Potential impact of rise in exit age
• Increase in HR expense older employees with
  higher average salary (assuming no other changes
  in legal framework)
• In countries such as Switzerland or Sweden, only
  marginal enlargement of potential labour pool due
  to existing high employment rate3)

Sweden
Portugal
Ireland
US
UK
Netherlands
Spain
Switzerland
Finland
Germany
Denmark
Italy
Ø60.5
Czech Rep.
Luxemburg
Austria
Greece
Hungary
France
Belgium
Slovakia
Poland
Stockholm Target2)
Ø41
1) Data for US 2000 2) EU Stockholm target
increase employment rate of 55-64 year olds to
50 by 2010 3) Comparison with Italy Dualistic
structure with large majority exiting work force
at early age and small minority staying in
workforce for significant period of time Source
EU Commission BfS Avenir Suisse Murray
Gendell US Congressional Research Service Team
analysis
14
Additionally, increasing buzz on Aging Workforce
in the Press

• Key topics in the Press
• Implications for companies
• Lack of skilled labour
• Increase in popularity of early retirement
• Mass retirement wave of baby boomers
• Issue that companies haven't recognized the
  potential of talent available above retirement
  age/ dominating prejudices towards older
  employees (expensive, frequently ill, low
  interest in further education, reduced
  learning-capability)
• Implications for public policy
• Pension system crunch
• Question of the statutory retirement age
• Regional competitiveness

Press mentions E Aging WF1) 000, 2002-2006F
2)
1) Mentions in headline, lead paragraph, body
text 2) Based on press mentions YTD Source Team
analysis
15
and in Top Management
The consequences of demographic change are
currently still being underestimated. Already in
3 to 4 years we will clearly feel the impact of
the decreasing numbers of school graduates. We
stand before a new competition for the best
junior staff. Metro Group has recognized the
relevance of this topic early on and is
proactively dealing with the consequences.
Dr. Hans Joachim Körber CEO, Metro
Jack Watters European Medical VP, Pfizer
Not using the skills and the experience of older
people is a shame and from a business perspective
a waste.
The lack of younger, skilled workers -
particularly musical instrument engineers - will
be one of the biggest issues the company will
have to tackle in coming years. From last year,
we asked some employees to stay on after
retirement. The idea is that they would work with
the younger employees and pass on their knowledge
and skills to them.
Shuji Ito President,Yamaha
If we consider the statistics the challenge of
global aging may, in fact, be felt
most acutely in Asia.
Marshall N. Carter Former Chairman and CEO, State
Street Corporation
In our industry, we require a good mix of
employees from all age groups. We now stand
before the task of defining new models, processes
and team setups to enable experienced employees
to share their knowledge with younger generations
as well as to enhance the development and
employability of tenured employees.
Walter Anderau Former Member Exec. Board, Swiss Re
Source Press search Team analysis
16
Real advantages of employing an older workforce
Adecco Germany study
Other studies

• More willing to work different schedules (72)
• Serve as mentors (72)
• Invaluable experience (72)
• Stronger work ethic (69)
• More reliable (68)
• Add diversity of thought/approach (61)
• More loyal (58)
• Take work more seriously (58)
• Have established networks (51)
• Higher retention rates (44)
• Commitment to doing quality work (5.4)
• Someone you can count on in a crisis (5.3)
• Get along with co-workers (5.1)

• Significant advantages of older employees
• Longer working hours
• Stress resistance
• Commitment to employer
• No difference between younger
  and older employees
• Health level
• Sick days
• Performance
• Motivation
• Significant advantages of younger employees
• Education level
• Employability

Source AARP SHRM Press search Team analysis
17
Lifelong Learning and Personnel development

Age
Age-differentiated
Age-integrated
Leasure time/ Retirement
Education
Work
Leisure/ Retirement
Old
Work
Middle
Education
Young
Riley, M. W. Riley, J. W. (1992) Individuelles
und gesellschaftliches Potenzial des Alterns, in
Baltes, P. B. Mittelstraß, J (Hrsg.) Zukunft
des Alterns und gesellschaftliche Entwicklung,
Berlin.
18
This is already having immediate effects
Main impact
Data points
Skill shortage

• In aerospace and defense as much as 40 of the
  workforce in key companies will be eligible to
  retire by 20111)
• The number of engineering graduates in developed
  countries is in steep decline (ca. 20 in US
  since 1996 and 30 in Germany since 1994), while
  the number of jobs requiring engineering skills
  jumped by between 15 (US) and 30 (Europe,
  Asia-Pacific)
• 58 of HR managers surveyed in the US said it was
  more difficult in 2005 than it was in 2000 to
  find qualified applicants

Productivity loss

• Inadequate knowledge transfer (esp. of tacit
  i.e. intuitive or experienced-based knowledge)
  has lead to significantly higher costs in
  maintenance of aircraft in the travel industry
• Physical impairments can lead to 20 lower
  productivity on assembly lines

Direct cost increase

• Rising health care costs for current and retired
  employees, e.g. over
  30 in Japan and the US since 1990
• Ramifications of hiring back retirees, can be as
  high as one times annual salary

1) In 2011, first wave of baby boomers will turn
65 Source Company information OECD AARP (2005
survey) Press search Team analysis
19
but most Employers have not reacted yet
Recruiting

• 85 of employers do not have recruiting of older
  workers on their radar screen
• 67 of employers have not conducted workforce
  planning studies to understand where they will be
  facing skill shortages in the future

Development

• 95 of employers do not have specific training
  for older employees
• 90 of 55 employees do not take part in employer
  sponsored training
• 64 of employers have not increased spend/
  adapted their training measures in regard to
  demographic change

Retention

• 85 of employers do not lay a focus on retention
  of older workers
• 80 do not offer special provisions such as
  flexible work arrangements to appeal to mature
  workers

Exit

• 90 do not have instituted phased/ gradual
  retirement
• 82 of employers do not capture institutional
  knowledge
• 71 do not have succession plans or replacement
  charts

Source SHRM (2003 US Survey) AARP (2005 US
Survey) Conference Board Press search Team
analysis
20
But what is then the right approach to the key
questions?

• Do I have an issue with my workforce?
• If yes, how big is the issue?
• What are the key elements of a solution?

Knowledge Management
Career Management
Lifelong Learning
Health Management
Diversity Management

• How can I support a culture of respect towards
  experience and age, minimizing ageism/
  discrimination?
• How do I develop the skills of younger managers
  to lead older employees?
• How can I mitigate legal risks associated with
  anti-discrimination legislation?

• How can I ensure ongoing employa-bility of my
  emplo-yees in all age groups (35)?
• How can I continuously develop their skills in
  line with business strategy?
• How can I restart development of older employees
  (or increase training participation) in light of
  a later exit from their job?
• ...

• How can I ensure an ongoing workability of my
  older employees?
• How can I ensure varying task portfolios and
  stress levels for different employee groups?
• How can I limit absenteeism and sick leave costs?
• ....

• How do I recruit (younger and older employees) in
  a more competitive labor market?
• How do I engage and retain older employees to
  ensure high levels of motivation?
• How can I ideally (re-)deploy or offer horizontal
  mobility to older employees?
• ...

• How can I retain knowledge before the backdrop of
  mass retirement waves?
• How can I renew/ refresh the know-legde base of
  older employees?
• How can I leverage the knowledge of older
  employees?

21
Contact

• Anne KeibelHR Consultant
• Adecco Human Capital Solutions
• Valentinskamp 40-42
• D-20355 Hamburg
• Phone [phone]
• Mobil 49 (0)172/ 30 45 163
• Fax [phone] - 66
• anne.keibel_at_adecco.de
• www.adecco.de

22
Leveraging Demographic ChangeSECOND PART
September 2006
23
Diverse challenges due to demographic
changeGeneral Motors US

• Due to changes in workforce structure, General
  Motors currently has to finance
  two and a half pensioners per employee.
  
• The pension fund today falls short of 19 bn
  (which equals the market capitalization of the
  company) even after having infused close to 30
  bn to cover obligations since 2004.
• Pensions plus health benefits add a 1000 to
  the cost of each car it makes.

Source Press search Team analysis
24
Diverse challenges due to demographic
changeBoeing US

• During a business downturn in the mid-1990s,
  Boeing offered early retirement
  to 9000 senior employees.
• The resulting loss of knowledge and inexperience
  of replacement employees threw the firms 737
  and 747 assembly lines into chaos (leading to a
  one month total shut down of production),
  contributing to a loss of 1.6 bn and the switch
  of key customers to arch-rivals Airbus.

Source Company information DeLong Press
search Team analysis
25
Diverse challenges due to demographic
changeMitsubishi Japan

• In Japan, Mitsubishi has been faced with a
  rapidly shrinking pool of young job applicants
  and has initiated a comprehensive rehiring plan
  for retired employees.
• Approximately 600 employees have been rehired
  since 2003, at salary levels 60 below what they
  were earning before retirement.
• At the same time to avoid rapidly increasing
  payroll costs due to age based wage systems as
  much as to leverage new markets the search for
  oversea production locations has been intensified.

Source Company information Japan Organization
for Employment of the Elderly and Persons with
Disabilities Team analysis
26
Diverse challenges due to demographic
changeNippon Paint Japan/ Singapore

• With an average age of 48 in their Singapore
  logistics department, Nippon Paint was facing an
  increased rate of human errors due to physical
  impairments. This was leading to wrong color
  paints being delivered to the customers, or goods
  stored in the wrong place at the company's
  warehouse.
• First successful measures have included the
  introduction of an electronic bar-coding system
  aiding older workers with eyesight limitations
  and lift systems enabling older workers to carry
  heavy loads of raw materials, all leading to
  higher productivity of the workforce.

Source Press search Team analysis
27
Diverse challenges due to demographic
changeWestpac Australia

• Westpac, a financial services institution, was
  facing the issue that older customers (45 making
  up 49 of their customer base) felt that younger
  staff were not experienced enough to address
  their financial concerns and did not relate to
  this customer group. Only 20 of their front line
  employees fit the required age profile, only 3
  are 55.
• As a reaction, the company launched its Age
  Balance initiative and has hired close to
  900 people who are over 55.

Source Company information Press search Team
analysis
28
Diverse challenges due to demographic
changeAnhalt Elektro Motor Werke Germany

• Anhalt Elektro Motor Werke, a 165-employee
  specialty engine maker in Dessau, Germany, is
  facing a mass retirement wave of over a quarter
  of its employees in the coming 10 years.
  This trend is exacerbated by very low
  fluctuation rates and the recruiting practice of
  replacing exiting employees with apprentices.
• The situation is especially critical in the area
  of engineers, who have an even higher average age
  and where a typical induction period of 3 to 5
  years is required.
• As a reaction, the company has begun with
  structured succession planning and is actively
  recruiting employees
  above 50.

Source Press search Team analysis
29
Diverse challenges due to demographic
changeHBOS UK

• No. 4 British bank Halifax Bank of Scotland
  (HBOS) believes that failure to achieve an
  age-diverse workforce risks
  alienating their current customer base, 50 of
  whom are 50, as well as
  potential customers (50 group representing 70
  of British high-net-worth).
• In addition, age-discrimination legislation in
  Britain is creating a legal risk attached to
  previous recruiting practices.
• HBOS has reacted in significantly stepping up
  their recruiting of older age employees, hiring
  people up to the age of 70. This has earned them
  accolades as an age diverse employer and
  recognition in the marketplace.

Source Employers Forum on Age
30
Diverse challenges due to demographic
changeItaly

• In Northern Italy the predominantly family-owned
  businesses are possible victims to international
  conglomerates because they do not find
  appropriate successors.

Source Employers Forum on Age
31
Reflect following effects
Main impact
Data points
Skill shortage

• In aerospace and defense as much as 40 of the
  workforce in key companies will be eligible to
  retire by 20111)
• The number of engineering graduates in developed
  countries is in steep decline (ca. 20 in US
  since 1996 and 30 in Germany since 1994), while
  the number of jobs requiring engineering skills
  jumped by between 15 (US) and 30 (Europe,
  Asia-Pacific)
• 58 of HR managers surveyed in the US said it was
  more difficult in 2005 than it was in 2000 to
  find qualified applicants

Productivity loss

• Inadequate knowledge transfer (esp. of tacit
  i.e. intuitive or experienced-based knowledge)
  has lead to significantly higher costs in
  maintenance of aircraft in the travel industry
• Physical impairments can lead to 20 lower
  productivity on assembly lines

Direct cost increase

• Rising health care costs for current and retired
  employees, e.g. over
  30 in Japan and the US since 1990
• Ramifications of hiring back retirees, can be as
  high as one times annual salary

1) In 2011, first wave of baby boomers will turn
65 Source Company information OECD AARP (2005
survey) Press search Team analysis
32
most Employers have not reacted yet
Recruiting

• 85 of employers do not have recruiting of older
  workers on their radar screen
• 67 of employers have not conducted workforce
  planning studies to understand where they will be
  facing skill shortages in the future

Development

• 95 of employers do not have specific training
  for older employees
• 90 of 55 employees do not take part in employer
  sponsored training
• 64 of employers have not increased spend/
  adapted their training measures in regard to
  demographic change

Retention

• 85 of employers do not lay a focus on retention
  of older workers
• 80 do not offer special provisions such as
  flexible work arrangements to appeal to mature
  workers

Exit

• 90 do not have instituted phased/ gradual
  retirement
• 82 of employers do not capture institutional
  knowledge
• 71 do not have succession plans or replacement
  charts

Source SHRM (2003 US Survey) AARP (2005 US
Survey) Conference Board Press search Team
analysis
33
But what is then the right approach to the key
questions?

• Do I have an issue with my workforce?
• If yes, how big is the issue?
• What are the key elements of a solution?

Knowledge Management
Career Management
Lifelong Learning
Health Management
Diversity Management

• How can I support a culture of respect towards
  experience and age, minimizing ageism/
  discrimination?
• How do I develop the skills of younger managers
  to lead older employees?
• How can I mitigate legal risks associated with
  anti-discrimination legislation?

• How can I ensure ongoing employa-bility of my
  emplo-yees in all age groups (35)?
• How can I continuously develop their skills in
  line with business strategy?
• How can I restart development of older employees
  (or increase training participation) in light of
  a later exit from their job?
• ...

• How can I ensure an ongoing workability of my
  older employees?
• How can I ensure varying task portfolios and
  stress levels for different employee groups?
• How can I limit absenteeism and sick leave costs?
• ....

• How do I recruit (younger and older employees) in
  a more competitive labor market?
• How do I engage and retain older employees to
  ensure high levels of motivation?
• How can I ideally (re-)deploy or offer horizontal
  mobility to older employees?
• ...

• How can I retain knowledge before the backdrop of
  mass retirement waves?
• How can I renew/ refresh the know-legde base of
  older employees?
• How can I leverage the knowledge of older
  employees?

34
The Idea

• Klaus J. Jacobs, CEO of Adecco Group, through his
  foundation helps to create conditions which are
  conducive to the holistic development of people,
  since 1988.
• Recognizing the immense challenges of the
  demographic changes for societies as well for
  organizations and individuals, he established the
  Jacobs Center for Life-long Learning and
  Institutional Development (JCLL) at the
  International University Bremen (IUB), Germany,
  in 2001.

35
The Idea

• In order to have the major stake and to gain
  quality leadership in an emerging consulting
  market for demographic issues he brought together
  a new consulting unit at Adecco with the JCLL in
  2005.
• Since 2005 a team of Aging Workforce Consultants
  is internationally active to provide companies
  with Demographic Fitness.

36
On the way to Demographic FitnessFields of
Activity and Levels of Demographic Fitness
Levels
Strategy
Organization
Individual
Demographic Fitness
Career Management
Lifelong Learning
Fields of Activity
Objective
Knowledge Management
Health Management
Diversity Management
37
On the way to Demographic FitnessChallenges for
Companies
Career Management Missing perspectives for older
people reduce their levels of motivation.
Lifelong Learning Low participation in further
training leads to inability to adapt to demands
of new production processes.
Knowledge Management Mass Retirement of large
cohorts stands for the loss of vital knowledge
and experience within short time periods.
Health Management High rates of absenteeism,
especially among olders, deplete overall
productivity of companies.
Diversity Management Discrimination of older
people work like self-fulfilling prophecies and
affect motivation and health of the employees.
Sources Team analysis
38
Program development requires proactive,
structured approach
Demographic Fitness
Implementation
Demographic Fitness Concept

Demographic Fitness Diagnostics
Quick Scan
Comprehensive Check
Key Activities

• (Quantitative) analysis of current and future
  demo-graphic structure
• Definition of critical areas re. future
  development

• Internal and external analysis of critical
  areas
• Definition of key initiatives to achieve
  demo-graphic fitness

• Tailored design of initiatives
• Development of business case
• Development of implementation plan

• Implementation of initiatives
• Implementation controlling/ success measurement

Results

• Rapid preliminary
• understanding of
• potential issues
• Age pyramids and typologies
• Prioritised areas for further analysis

• Decision base for
• demographic
• fitness initiatives
• Opportunities/ risks matrix
• Strategy alignment
• Initiative priorities/ recommendations

• Basis for imple-
• menting demo-
• graphic fitness
• Economic rationale
• Roadmap for implementation

• Sustained
• Demographic
• fitness
• Implemented initiatives
• Ingrained aware-ness of demo-graphic change

39
Industry Leaders are setting the paceHigh
profile cases
Company
Key issues
Initiatives
BMW

• Skill shortages

• Entire production site (Leipzig) focused on
  recruiting 45
• Ergonomic design of assembly lines

Procter Gamble/ Eli Lilly

• Skill shortages

• Introduction of YourEncore.com to tap into
  experienced personnel on a demand basis (full and
  part-time)

Deutsche Bank

• Cross-generational cooperation
• Lifelong learning

• Defined part of the working time spent in other
  jobs
• Intergenerative teams built and know-how tandems
  introduced
• Opened training programs to older age groups

• Career management

• Systematic way to develop competencies of
  employees
• Dual career model for different career tracks

Global Consumer Goods Producer
International Financial Institution

• Knowledge retention/ sharing

• Job rotation introduced in order to get a right
  balance between continuity and change
• Age diverse teams to make the entry of new
  employees into the company more easy
• Phased retirement to ensure knowledge transfer

Source Company information Press search Team
analysis
40
On the way to Demographic FitnessAdecco Case
Study Accountancy Firm

• Challenge Assessment
• Internal performance management study conclusion
  Performance and productivity is decreasing with
  increasing age
• Demographic analysis conclusion As the average
  age is 43 years, major problems are expected to
  occur especially in performance and
  productivity-rates

• Impact and Organizational Result
• Awareness of age-related differences of the
  employees within the organization
• All managers possess communication skills
  regarding the career-assessment program in 2006
• All employees are familiar with their
  professional strengths and weaknesses and are
  well placed in the company
• Increasing productivity

• Project Scope
• Career Assessment
• Skill Training for Management in the context of
  the integration of an Age-Conscious Staffing
  Policy
• Career scan
• Career development interviews

41
On the way to Demographic FitnessAdecco Case
Study Global Consumer Goods Producer

• Challenge Assessment
• Significant part of workforce facing retirement
  in the coming years
• Uncertainty among potential retirees regarding
  current work/ life balance as well as
  alternatives to conventional retirement

• Impact and Organizational Result
• Clarity on career path opportunities for older
  employee age groups
• Higher engagement of older employees

• Project Scope
• Development of a series of workshops with target
  groups to assist participants in the exploration
  of the next phase of their life
• Guiding individuals through a comprehensive
  career/ life planning process, including
  productivity measurement and career transition
  approach
• Selected additional individual coaching

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On the way to Demographic FitnessAdecco Case
Study International Financial Institution

• Challenge Assessment
• Company moving functionally oriented to project
  oriented organization
• Faced with increasing number of younger managers
  managing older employees
• Additionally talent shortages projected for key
  business areas

• Impact and Organisational Result
• Clear understanding of impact of demographic
  change on organization
• Pragmatic adaptation of existing HR tools and
  processes to integrate aspect of aging workforce

• Project Scope
• External analysis of key demographic developments
• Internal analysis of starting situation
• - Current demographic structure
• - Drivers of current demographic structure
• - Projection of future demographic structure
• - Survey of employee satisfaction by age key HR
  dimensions
• Development of position paper of required
  adaptations to existing HR tools and processes

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Summary Demographic Aging is here to stay

• Demonstrate to you that Demographic Aging is a
  key strategic issue to be taken seriously

• Great number of employers already grappling with
  consequences of Aging Workforce
• Asia just as implicated as US or Europe

• Selected companies have already reacted
• Best practices demonstrate that Demographic
  Fitness allows for competitive advantages

• Illustrate how industry leaders are tackling this
  issue

• Discuss with you approaches to reacting in a
  timely manner to demographic change and
  leveraging it to your advantage

• Achieving Demographic Fitness requires
  understanding of entire breadth of HR competence
  areas
• Theres no one-size-fits-all
  programs require proactive diagnostic and
  tailored approach

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Contact

• Anne KeibelHR Consultant
• Adecco Human Capital Solutions
• Valentinskamp 40-42
• D-20355 Hamburg
• Phone [phone]
• Mobil 49 (0)172/ 30 45 163
• Fax [phone] - 66
• anne.keibel_at_adecco.de
• www.adecco.de