End of career management _KBC bank solution

transcript

Joshua McLoughlinOlivier SchelstraeteMiguel Van AschPiyush Virmani

GSCM - PMGC

End of Career Management

Introduction to End of Career Management

“An aging problem or an aging opportunity”

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

The Impact of an Aging Workforce Macroeconomic approach

Japan Italy Germany

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

The Impact of an Aging Workforce Microeconomic approach

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

The Impact of an Aging Workforce Situation in Belgium

An Aging Workforce in Belgium

Greece

Belgium

Ireland

France

Austria

Portugal

Finland

Germany UK

Denmark

Netherlands

Sweden

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…

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

Responses to the issueCommon practices on this topic

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%

Intel Layoffs, by age group

Age Group

1. Lay offs

Respones to the issue

2. “The window seat tribe”

Sharp, NEC:

Voluntary retirement programs

Boredom

Expensive

Demoralised

Underachievement

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

End of Career Management – Application on KBC

End of Career Management - Application on KBC

- Positive way of thinking instead of Exit Policy

-> Creation of Minerva Policy

Employee age at KBC

> 55> 45Rest

Work stays the same

Work less

Work lighterWork less as

wel as lighter

Extramural employment

Minerva Policy

- Named after the blue-eyed daughter of Zeus, Minerva

- Godess of wisdom

- 5 Options

End of Career Management - Application on KBC Option 1: Work stays the same

- Reality check

- Employee willingly chooses this option

- Procrastinating is prohibited

- 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

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

- Employee stays in the same entity

- Decrease in responsibilities

- Tool for salary impact

Option 4: Work less as wel as lighter

- 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

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

Our point of view

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.

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.

Conclusion

Problem gets bigger

Companies need to recognize and adapt

KBC’s solution

Our recommendations

Special Thanks to…

Mister Bart Melaert

For his help and his answers to all our questions

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

End of career management _KBC bank solution

Education