end of career management _kbc bank solution
TRANSCRIPT
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Joshua McLoughlinOlivier SchelstraeteMiguel Van AschPiyush Virmani
GSCM - PMGC
End of Career Management
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Introduction to End of Career Management
“An aging problem or an aging opportunity”
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Table of content
Introduction Macroeconomic Impact Microeconomic Impact Belgium
KBC’s Approach Overview 5 points Results
Our point of view What we think Our Recommendation
Conclusion
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The Impact of an Aging Workforce Macroeconomic approach
Japan Italy Germany
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The Impact of an Aging Workforce
Dependency Ratio
Burden of supporting aging population falls upon shrinking workforce
Governement Spending
Increase costs of health care and pensions
Taxation on Working Population
Higher taxes on working population discourages investment
Changing Sectors
Increase in demand for services and goods associated with older people
Reduced Capital Investment
Society putting money into pensions takes away from productive investments
Shortage of Workers
Macroeconomic Approach – Societal Perspective
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The Impact of an Aging Workforce Microeconomic approach
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The Impact of an Aging Workforce
Compensation
Higher usage and associated costs of healthcare
Incidence of Disabilities
Higher wages
Training and recruitment
Lower return on investment in training
Shorter anticipated employement tenure
Legal Implications
Age descrimiation law suitsRelated to hiring, promotion, retraining, firing and mandatory retirement
Microeconomic Approach - Employers perspective
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The Impact of an Aging Workforce Situation in Belgium
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An Aging Workforce in Belgium
Italy
Greece
Belgium
Luxe
mburg
Ireland
France
Spain
Austria
Portugal
Finland
Germany UK
Denmark
Netherlands
Sweden
0
5
10
15
20
25
30
35
40
45
30.5 32 32.2 32.5 34.1 34.6 34.736.9 36.9 37.4 37.5 38.1 39.3 39.6 40.6
Average Career length in 2012
One of the worst in the european class…
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An Aging Workforce in Belgium
Government Date Legal Pension age
Legal early retirement
Minimum age Minimum Age Minimum career length
Di Rupo 1 1/01/2012 65 60 5
1/01/2016 65 62 40
Michel 1 1/01/2018 65 63 411/01/2030 67 63 42
Government measures
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Responses to the issueCommon practices on this topic
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Responses to the issue
20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-740%
1%
2%
3%
4%
5%
6%
7%
Intel Layoffs, by age group
Age Group
1. Lay offs
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Respones to the issue
2. “The window seat tribe”
Sharp, NEC:
Voluntary retirement programs
Boredom
Expensive
Demoralised
Underachievement
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Responses to the issue
More friendly
More efficiënt
In full transparence
In convenience
with all Parties
As a strategic asset
3. But, there are better ways..
Pro-active end
ofCareer
Management
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End of Career Management – Application on KBC
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End of Career Management - Application on KBC
- Positive way of thinking instead of Exit Policy
-> Creation of Minerva Policy
10%
45%
45%
Employee age at KBC
> 55> 45Rest
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Work stays the same
Work less
Work lighterWork less as
wel as lighter
Extramural employment
End of Career Management - Application on KBC
Minerva Policy
- Named after the blue-eyed daughter of Zeus, Minerva
- Godess of wisdom
- 5 Options
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End of Career Management - Application on KBC Option 1: Work stays the same
- Reality check
- Employee willingly chooses this option
- Procrastinating is prohibited
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End of Career Management - Application on KBC
- Working part time
- Only when possible to integrate in
organization model
- Employee must be aware of implications on
salary and environment
Option 2: Work less
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End of Career Management - Application on KBC
Only when possible to integrate in organization model
Need for good agreements with the employee about the decrease of function levels
Employee is able to calculate remunaration changes by consulting a tool
Option 3: Work lighter
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End of Career Management - Application on KBC
- Employee stays in the same entity
- Decrease in responsibilities
- Tool for salary impact
Option 4: Work less as wel as lighter
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End of Career Management - Application on KBC
- Sending the employee to another social profit or profit organisation
- Consultancy
- Only on mutual agreement of the employee and the management
- Has to be in line with: CSR Policy Commercial policy Development capabilities of the employee
Option 5: Extramurale employment
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End of Career Management - Application on KBC
About 1,800 employees are able to use the Minerva policy.
- Most popular option: ‘ Work stays the same “
- Only 10 employees in option 5 ( First phase )
- Goal of KBC -> Employees have to find a balance between what they like to do and what they are good at
- No extra options planned, but there is room for improvement
Results
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Our point of view
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What we think…
Working for longer has become a necessity.
Early retirement can lead to lower self image.
Minerva Plan is a meaningful way to give fresh impetus to the closing stages of a working career.
Employees get a better insight into their realistic choices.
Plan the final stages of their career themselves, taking account of several factors.
Encourages people to look at the alternatives.
Offers clear added value.
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Recommendations…
Older employees be given mentoring and coaching jobs where they can use their experience.
Develop skill transition plans, based on industry, that will facilitate the transfer of knowledge from older to younger workers.
Develop and offer appropriate options like flexible work hours and accommodations that will encourage continued employment of skilled, older workers.
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Conclusion
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Conclusion
Problem gets bigger
Companies need to recognize and adapt
KBC’s solution
Our recommendations
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Special Thanks to…
Mister Bart Melaert
For his help and his answers to all our questions
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Sources
http://cadmusjournal.org/node/312#Anchor-31
CIA factbook
https://www.dol.gov/odep/pdf/NTAR_Employer_Strategies_Report.pdf
http://www.researchgate.net/post/How_does_population_aging_affect_the_structure_of_an_economy
http://vbo-feb.be/nl-BE/Actiedomeinen/Pensioen-en-vergrijzing/Pensioen--vergrijzing/Belgie-bij-landen-met-kortste-loopbaanduur/
https://www.bestuurszaken.be/historiek-evolutie-pensioenwetgeving
P&O Kluwer, interview 06-04-2014: Koen Vertessen