UPS EUROPE BUSINESS MONITOR

UPS EUROPE BUSINESS MONITOR

EXECUTIVE SUMMARY XIII

2 Foreword

Notes on the research

3 Main findings4 Business climate across Europe5 Is the economic position of your

company better, worse or about thesame as it was 12 months ago?

6 Twelve months from now, do you thinkthe economic position of your companywill be better, worse or about the sameas it is now?

7 Over the next 12 months, does yourcompany plan to increase its workforce,reduce its workforce or will it remainabout the same as it is now?

8 Which budgets are most likely to be cutfirst if your company profits drop?

9 Has your business been affected by the conflict in Iraq in any of the following ways?

10 Prospects for European business11 In the next three years, which Western

European countries do you think willshow strongest economic growth?

12 When, if at all, do you think that theeuro will displace the US dollar as the most important internationalreserve currency?

13 Which global area do you consider tobe your country’s most importantbusiness partner over the next five years?

14 Which industry sectors do you believewill be the engine of your country’seconomy within the next five years?

15 Of the next ten countries to join the EUwhich one will offer the best potentialfor your business?

16 European business perspectives17 Within the first year of accession of the

next ten EU members, which factorswill offer the biggest benefits for your company?

18 What will be the biggest challenges foryour company, when the EU enlarges toinclude the next ten members?

19 When do you think your company willsee benefits from the upcoming roundof EU enlargement?

20 Should the EU expand beyond the ten new members, and if so, whichcountries should be included?

21 How should the EU set its priorities afterEU enlargement?

22 In which ways, if any, should the EUreform its legislative processes?

23 Business practices24 Which of the following work practices

are prevalent in your company?

27 If your company has a Corporate SocialResponsibility (CSR) policy, which ofthese does your company do?

28 Which of the following employeebenefits do you think give the bestoverall return for businesses in terms of recruitment and retention?

29 What are the least pleasant aspects of your job?

30 What two pieces of advice would youmost likely give to students to preparethemselves for their future career?

31 Executive insight32 Have you cut back on your personal

spending in any of the following areasdue to the current economic situation?

33 Has your attitude towards theprioritisation of work and private life changed during the course of your career?

34 What is your favourite food?

35 Thinking about when you were eight years old, what did you aspire to become?

36 Contact details

1

Contents

2

Foreword

UPS annually commissions the UPS EuropeBusiness Monitor survey to provide the latestinsight into the changing opinions, attitudes andhabits of European business leaders. The BusinessMonitor offers a barometer of opinion founded onour respondents’ extensive experience in the worldof industry and commerce.

The UPS Europe Business Monitor aims to provideUPS and its customers with a better understandingof the issues driving business decisions in Europeand the world.

This thirteenth edition of the UPS Europe BusinessMonitor once again considers some key issuesfacing business leaders: the business climate acrossEurope, economic and employment forecasts forWestern European companies and prospects forEuropean business. In addition, and with theimminent enlargement of the European Union, weasked business leaders about the new memberstates, the benefits and challenges they will bring

to business and whether enlargement should continue beyond the next round. Finally, we tookthe opportunity to ask respondents about theirworking habits and predictions for Europeanbusiness practices.

To make the research more accessible internationally,this edition and all previous years’ results of theUPS Europe Business Monitor will be available on aspecially created website at www.ebm.ups.comfrom January 2004.

A note on the researchThe thirteenth edition of the UPS Europe BusinessMonitor surveyed 1,453 business leaders fromEurope’s top 15,000 companies by revenuebetween September 23rd and November 10th2003. This survey takes place annually.

Interviews were conducted in the followingcountries: Belgium (101), France (250), Germany(250), Italy (250), the Netherlands (100), Spain(251) and the UK (251). Respondents are atdirector level. The average annual revenue of thebusinesses interviewed is 1.45 billion euro; theiraverage employee size is 3,400. Interviews wereconducted by independent global market researchorganisation, TNS, using the respondents’ nativelanguage from the TNS International TelephoneUnit in London, UK.

Graphics shown are abstracts of key findings fromthe full survey results. Figures may total less than100 per cent where only partial data are shown ormore than 100 per cent where more than oneresponse was allowed.

This year we see an encouraging revival in theproportion of European companies reportingimproved corporate performance over the previous12 months. Their outlook for the next 12 months iseven more positive. However, workforce forecastsremain gloomy, with more jobs likely to be cutthan added.

Business leaders report little effect of the Iraqconflict on their business, nor a need to curbpersonal spending. However, they warn that HRand Training budgets could be most at risk if profitsdrop, and reveal the industry sectors predicted todrive their nation’s future economy. Overall,European executives’ opinions are still split onwhether the euro or US dollar will dominate as thepremier global reserve currency. Interestingly,business leaders in the UK now believe in the euro,whereas their colleagues in Germany, Italy and theNetherlands support the dollar – a dramaticturnaround from previous years.

EU enlargement is expected to dominate theEuropean political agenda in the coming months,and the survey focuses on the impact this will haveon business. Of the ten new member states, Polandis clearly in pole position to offer best businesspotential. However, over a quarter of surveyrespondents foresee no business gain from anynew members and, significantly, over half want nofurther enlargement of their club. Benefits are notlikely to be immediate, but will include a widerinternal market and simplified procedures andstandards – though not without a price. Meanwhilebusiness tells the EU to focus on harmonising taxesand abolishing the right to veto.

The survey further reveals which working practicesare now prevalent in companies; five years afterthese were first predicted. Flexitime is nowmainstream, and many companies offer a non-smoking environment and follow a CSR policy orpractice. However, childcare facilities remain

scarce. Despite shaky stock performances in recentyears, executives still rate company pensions askey to enticing and retaining their staff the best.

Today’s top executives least like long hours andtedious meetings, and many admit they have notbeen able to change their work/life balance. Theiradvice to get to the top is to learn languages andbe mobile. They share similar childhood aspirationsto compete and fly, yet their cultural differencesshow clearly through their favourite dishes, wherethey conservatively stick to their national cuisine.

3

Main findings

4

Business climate across Europe

Upturn in European corporate performance overpast yearMore companies now think things have improvedover the past year, compared to those thinkingthings have got worse. The reported net differencebetween better and worse – which had fallendramatically to zero in 2001 and had remained low in 2002 – has now revived as corporateperformance improves among Europe’s majorcompanies.

Most countries show a strong and positive upturn,though France and the Netherlands are alone witha balance tipped towards a negative performanceoutlook. However, Spain and the UK in particularhave shown strong improvement in their corporateposition, the former retaining its top spot in Europefor the third consecutive year and the latterenjoying a marked revival over the past two yearsfrom a position of negativity in 2001.

Corporate optimism continues to rise across EuropeIn line with better overall corporate performance,not surprisingly, European business leaders havecontinued their increased optimism aboutprospects for the next 12 months. This optimismhas bounced back to reach levels regularlypredicted in UPS Europe Business Monitors duringthe mid-nineties. Business leaders in the UK againreport the highest optimism, followed by those inGermany and Spain. In comparison, executives inFrance remain most cautious, reflecting lowcorporate performance.

More firing than hiring, despite betterperformance and higher optimismDespite more companies reporting a betterperformance and much greater optimism for theirfuture economic position, workforce predictionsoverall for the next 12 months have remained asbleak as they were last year. The message is

potentially one of increased job losses acrossEurope among these large companies, repeatingthe gloomy news for the third year running,especially for businesses in Belgium, Germany andthe Netherlands. However, business leaders inSpain are alone to forecast slightly more recruitmentthan job cuts, and job losses in the UK may at leastbe stemmed.

Business little affected by Iraq conflict, yetHuman Resources, Training and Marketing onthe line if company profits dropAlthough some companies have cut businesstravel, most claim not to have been affected by the recent conflict in Iraq. However, companiesfaced with a squeeze in their profits report that HR, Training and Marketing budgets are most likelyto be on the line, and even senior managers arenot safe from cost-cutting measures. Customerservice departments, nonetheless, remain out ofthe firing range.

5Full results and historical data are available online atwww.ebm.ups.com

Is the economic position ofyour company better, worse or about the same as it was 12 months ago?

European businesses report anupturn

Spanish and UK companiesprosper most

French corporate fortunes slumpfurther, German companiesbounce back

•

•

•

C O U N T R I E S S U R V E Y E D %

Total Belgium Germany Spain France Italy UnitedKingdom

Netherlands


57

33 32

40

52

24

36

41

50

28

21

30

57

4240

53

60

2628

26

67

43

36

43

52

29 2926

54

3035

51

13

44

0 2

17

36

20

6

20

36

8

15

6

46

21

16

40

50

73

10

60

16

8

20

32

6 7 7

34

11

8

35

3330

23

16

44

30

21

14

36 36

24

11

2124

1310

3331

36

7

27 28

2320

35 3633

20

41

27

16

Better 2000

Better 2001

Better 2002

Better 2003

Worse 2000

Worse 2001

Worse 2002

Worse 2003

Net (Better minus Worse)

Twelve months from now, doyou think the economicposition of your company willbe better, worse or about thesame as it is now?

Corporate optimism continues torise across Europe

UK, Spain and Germany showmost buoyant forecast

France remains most cautious,reflecting its low corporateperformance

•

•

•

C O U N T R I E S S U R V E Y E D %Full results and historical data are available online atwww.ebm.ups.com


Netherlands


6

57

44

50

59

48

39

49

5955

38

51

62

56

45

51

65

42

3735

42

70

49

58 60

71

4246

57

62

5658

68

7

15

97

12

20

1410

5

19

75

911

6 69

20

15

9

4

12

7 6 7

19

1210

68

64

50

29

41

52

36

19

35

49 50

19

44

57

47

34

45

59

33

1720

33

66

37

5154

64

23

34

47

56

4852

64

Better 2000

Better 2001

Better 2002

Better 2003

Worse 2000

Worse 2001

Worse 2002

Worse 2003

Net (Better minus Worse)


Over the next 12 months, doesyour company plan to increaseits workforce, reduce itsworkforce or will it remainabout the same as it is now?

In light of improved performanceand buoyant optimism, jobprospects still look gloomy

Almost one third of companiesforecast to cut staff

Again, only in Spain companiesare planning overall job increases

•

•

•



Netherlands

19

30 29 28

21

3942 41

26

40

3539

12

2017 17 16

29 30 29

13

2023

25

19

34

39

33

25

3632

24

17

1210 8

15

22

32

23

5

22 23 23

29

6

119

19

16

11 12

23

2 35

29

15 15

19

6

21

13

2

36

18 19 20

36

17

10

18

31

18

1216

41

2628

26

35

13

1917

36

1820 20

48

19

24

14

31

15

1922


Increase 2000

Increase 2001

Increase 2002

Increase 2003

Decrease 2000

Decrease 2001

Decrease 2002

Decrease 2003

Net (Increase minus Decrease)

8

Which budgets are most likelyto be cut first if your companyprofits drop?

Two-fifths would axe HR andTraining if the going gets tough

Senior management budgetswould feel a pinch if faced with a squeeze

The customer is king; customerservice is non-negotiable

•

•

•

B U D G E T S M E N T I O N E D %Full results and historical data are available online atwww.ebm.ups.com

A B C D E F HG


A

B

C

D

E

F

G

H

40

36

25

23 23

21

18

6

Human Resources andTraining

Marketing

Operations

Transport and Logistics

Senior Management

Research and Development

IT and Systems

Customer ServiceDepartments

9

Has your business beenaffected by the conflict in Iraqin any of the following ways?

Despite the conflict with Iraq, it isbusiness as usual across Europe’stop companies

Only one-fifth of business leaderssay customer orders have beenreduced

A quarter of companies have cutback on international travel

•

•

•

E F F E C T S M E N T I O N E D %Full results and historical data are available online atwww.ebm.ups.com

A B C D E F HG


54

24

1918

10

6 54

A

B

C

D

E

F

G

H

Business not affected by the conflict

Reduction in business travel

Decrease in customer orders

Increased expenditure onsecurity measures

Cutback of expenditure inother areas of business

Reduced staff presence in Middle East

Lower branding profile in Middle East

Cut back in staff

10

Prospects for European business

Spain again predicted to show strongest economic growthThis year the consensus among European businessleaders is that Spain is again most likely to showstrongest economic growth over the next threeyears. The UK, German and French economiesfollow. Spanish and UK executives continue toshow strong confidence in their own economies,while German and French business leaders havelost their self-belief.

Will the euro or dollar dominate as premierglobal currency?The prediction on the euro’s ability to displace theUS dollar as the most important internationalreserve currency is still undecided, as opinion inEurope is more or less split down the middle.However, remarkably, the UK has become far lesseuro-sceptic and more than half of its businessleaders now support the euro, whereas more thanhalf in Germany, Italy and the Netherlands nowside with the US dollar.

ITT predicted to be main driver of Europeaneconomies Overall, information technology and telecoms (ITT)is forecast to be the most influential sector acrossEuropean economies over the next five years,though differences between the European nationsare notable. The automotive industry is predicted todrive the German economy, the UK will rely on thefinancial and insurance sector and Spain will buildon tourism and construction. France will be mostwired into ITT, the Netherlands will rely on bothmanufacturing and finance and Belgium will bedriven by both pharmaceuticals and ITT. In Italy, acombination of sectors will prove the driving forcefor their economy.

Europe will be best regional partner for futurebusiness and Poland offers best potential amongnew EU membersWhen asked which global area business leadersconsider to be their country’s most importantbusiness partner over the next five years, almosttwo-fifths opt for Western Europe and a further fifthidentify the former Eastern European countries.Business leaders in Belgium, Spain, France, theNetherlands and the UK all agree that WesternEurope will be their country’s most importantbusiness partner. Senior executives in Germany andItaly, however, look beyond Western Europe toChina and Eastern Europe for partnership. Inaddition, Poland is undeniably the most attractivenew EU member for European companies, though aquarter see little business potential in any of thenew EU member states.

11

54

48

5153

22

29

3334

49

2930 31

38

3432

2523

22

1716

18

14 13 13 13

1012 11

13

1011

5

In the next three years, whichWestern European countries doyou think will show strongesteconomic growth?

Spain once again crowned asWestern Europe’s biggest growthprospect

Confidence in France drops asGermany moves up to third place

UK shows steady rise •

•

•

C O U N T R I E S M E N T I O N E D %Full results and historical data are available online atwww.ebm.ups.com

Spain UnitedKingdom

Germany France Italy Portugal NetherlandsIreland


2000

2001

2002

2003


When, if at all, do you thinkthat the euro will displace theUS dollar as the mostimportant internationalreserve currency?

Opinion still split on whether theeuro or dollar will dominate

British companies are now fallingfor the euro

Business leaders in Germany, Italyand the Netherlands back thedollar as premier global currency

•

•

•



Netherlands


1999

2000

2001

2003

1-2 years

3-5 years

6-10 years

11-20 years

20+ years

Never

7 9 13 1611 12

1312

20 1314 12

16

99 8

2

22 2

41

5045 47

10 716

2810 15

12

1326 26 11

13

177

8

1

26

61

30

3744 43

5 8 9 1011 9 8 10

17 12 14 8

13

68

6

2

12

1

50

6156

64

10 9 1118

10 15 1411

26 14 1514

19

1013

14

1

1

4 2

33

4340

37

8 1218 16

18 14

19 18

2111

1915

18

11

11

6

3

2

0

1

28

43

27

37

5 7 11 79

13 1110

25 16 18

12

2116 12

11

4

3 4

2

3541 42

54

1016 16 21

14

18 18 12

218 6 6

158

4 3

15

2 2

3842

5053

6 10 13218

612

12

10 9

11

14

8 2

5

9

1 0

1

2

6671

57

39

13

37

20 20

8

6

4

2

Which global area do youconsider to be your country’smost important businesspartner over the next fiveyears?

Western European companiespredict their country will lookclose to home for future business

Business leaders start to focustheir sights on links with EasternEurope

A third of German and Italiancompanies pin their hopes onChina

•

•

•

A R EA S M E N T I O N E D %Full results and historical data are available online atwww.ebm.ups.com

A B C D E F G


A

B

C

D

E

F

G

Western Europe

Eastern Europe, includingthe new EU member states

China

North America

Asia-Pacific

Central and South America

Africa and Middle East


Which industry sectors do youbelieve will be the engine ofyour country’s economy withinthe next five years?

ITT predicted to be main drivingforce for European economies

The Automotive sector will steerthe German economy

Finance and Insurance believed toaccelerate UK business

•

•

•



A 33 43 38 20 44 28 38 28

B 20 28 5 3 22 5 44 53

C 17 6 2 35 19 28 2 12

D 17 2 60 17 13 8 1 0

E 16 5 19 14 6 24 43 11

F 16 43 29 4 18 4 28 8

G 14 20 6 4 26 11 14 22

H 13 14 8 23 15 12 23 3

I 13 12 6 4 13 25 24 11

J 11 4 4 36 6 13 2 5

K 9 5 2 5 25 13 4 4

L 6 20 3 3 7 6 14 4

A

B

C

D

E

F

G

H

I

J

K

L

Information technologyand telecoms (ITT)

Financial and insurance

Leisure services/tourism

Automotive

General industrials

Chemicals/pharmaceuticals/biotech

Media and businessservices

Utilities, energy and rawmaterials

Consumer goods(household and textiles)

Building/construction

Consumer staples (farming,food and beverages)

Transport and logistics

Total Belgium Germany Spain France Italy NetherlandsUnited

Kingdom

Total Belgium Germany Spain France Italy Netherlands UnitedKingdom


Of the next ten countries tojoin the EU which one willoffer the best potential foryour business?

Poland is considered the leadinglight for business potential

However, over a quarter ofexecutives believe the new EUmember states will have little tooffer business

•

•

C O U N T R I E S M E N T I O N E D %

A B C D E F H I J KG

44

9

5

1 1 10 0 0 0

27


A

B

C

D

E

F

G

H

I

J

K

Poland

Czech Republic

Hungary

Slovenia

Lithuania

Slovakia

Estonia

Cyprus

Malta

Latvia

None of them

16

European business perspectives

Businesses look forward to EU enlargement forwider internal market and simpler regulations,but fear lack of standardisation in new EUmarketsAsked about the biggest benefits and challenges totheir companies when the EU expands to include afurther ten members, respondents expressed asmany hopes as fears. While the expansion of theEU offers a wider internal market and will simplifyadministrative procedures and standards with newmember states, it is the initial lack ofharmonisation in these areas that will provide thegreatest challenge when borders are opened up.Companies will perhaps need to accept theseshort-term challenges to achieve longer-term gains.Likewise, over a quarter look forward to cheaperlabour costs, but a third acknowledge that this mayin return threaten their competitiveness, thoughsome executives recognise benefits in the widerskills base and employment market that EUexpansion will offer. Benefits are not likely to be

reaped immediately; many foresee a wait of atleast a year after accession before seeing any andsome expect none for at least five years or more.

Cautious response to further expansion beyondthe ten accession membersWhile around a quarter of executives foresee nobenefits to their company from the upcominground of EU enlargement, even more are scepticalabout the EU opening its membership club further.Over half of Europe’s business leaders feel thereshould be no more members beyond the tenaccession countries; senior executives in Franceand Germany are most resistant to furtherexpansion. Where new countries are mentioned,none received more than 12% of mentions andfew see further enlargement as an EU priority.

Businesses tell EU to prioritise taxharmonisation and abolish the veto Companies want the EU to harmonise internalmarket taxation, complete the internal market andgain full compliance with existing EU regulations.There is a preference to see the EU prioritise acommon foreign and defence policy and reform theCAP (Common Agricultural Policy), rather thanfurther expand EU membership. In particular,Belgium and the Netherlands would like to see theEU tackle compliance and the UK wants to push areform of CAP. In terms of prioritising the EU’s owninternal reform, nearly half of the business leaderswant to abolish the veto (unanimity voting) andgive more power to the European Commission.Executives in Spain, Italy and the Netherlands arekeen to empower the Commission, a conceptforeign to most UK business leaders who feel thatmember states should be given more power.

17

Within the first year ofaccession of the next ten EUmembers, which factors willoffer the biggest benefits foryour company?

Overall, half cite a larger internalmarket as a major plus point of EUenlargement

Business leaders in France andItaly are looking forward tosimplified procedures

Removal of border controls alsolikely to benefit business

•

•

•




Larger internal market

Simplified administrativeprocedures and standardswith new member states

Removal of border controls

Lower labour costs

Cheaper source of rawmaterials

Wider employment marketand skills base

49

42

31

27

17 17

60

45

21

25

1211

62

45

3232

1416

48

3128

2221

13

49

54

26

31

1916

36

4745

47

22

17

22

36

2221

1113

46

33

29 29

2123


What will be the biggestchallenges for your company,when the EU enlarges toinclude the next ten members?

Two-fifths of business leadersanticipate standardisationproblems across EU memberstates

One-third fear the effect of lowerlabour costs

A quarter think EU enlargementmay weaken their country’seconomy

•

•

•

C H A L L E N G E S M E N T I O N E D %

A B C D E F HG


40

3332

25

20

16

14 14

A

B

C

D

E

F

G

H

Lack of harmonisation ofstandards and regulationsacross new member states

Threat to competitivenessfrom lower labour costs innew member states

Finding compatiblebusiness partner

May weaken own countryeconomy

Language barriers

Setting up shop

Threat of decreasedsecurity/increased crime

Recruitment of qualifiedpersonnel

19

When do you think yourcompany will see benefitsfrom the upcoming round of EUenlargement?

Immediate benefits not expected

One in ten foresees no benefitin expansion

••



Netherlands


1727

20

1124

15

18 13

3

4

4 4

3

4

22

11

11

17

10

8

10

98

38

36 43

43

30

35

45

37

1210 6

10 12

19

8

17

6 2 38 5

104 7

10 96

1014

6

1114

Already do

Between now and accession

Within a year afteraccession

1-5 years after accession

6-10 years after accession

Not for at least 10 yearsafter accession

Never


Should the EU expand beyondthe ten new members, and ifso, which countries should beincluded?

Big may not be beautiful; majorityagree expansion of the EU shouldnow stop

Russia named despite not being inthe running for EU entry

Business leaders in Germany andFrance feel the strongest aboutshutting the door to any moremembers

The Netherlands would keep thedoor ajar

•

•

•

•

C O U N T R I E S M E N T I O N E D %

A B C D E F H I JG


12 11

6 6 6 54 4 4

57 A

B

C

D

E

F

G

H

I

J

Russia

Turkey

Romania

Switzerland

Bulgaria

Croatia

Ukraine

Norway

Belarus

No new members

The following countriesscored three per cent orless: Albania, Serbia-Montenegro, Moldova,FYROM (Macedonia)

21

How should the EU set itspriorities after enlargement?

Harmonising internal markettaxation is voted EU number one priority

Just under half also see fullcompliance of EU regulations as a must

Over half of business leaders inGermany and France want todevelop a common foreign anddefence policy

British business leaders plead toreform CAP

•

•

•

•



European business perspectivesHarmonise internal markettaxation

Complete internal market inten new member states

Full compliance with existingEU regulations from allmember states

Develop a common foreignand defence policy

Reform Common AgriculturalPolicy (CAP)

Extend EU membershipbeyond the next tenprospective members

59

4645

3939

10

61

31

67

25

34

5

69

56

31

52

48

5

59

45

373639

15

70

47

5253

28

6

68

4646 46

1613

4239

49

15

44

4

35

4750

25

65

14


In which ways, if any, shouldthe EU reform its legislativeprocesses?

Abolishing the veto is mostwanted reform

Two-fifths of executives believe inempowering the EuropeanCommission; Italian businessleaders want this the most

But British leaders plead for morepower to member states

•

•

•



Netherlands


46

40

35 35

29

53 52

36

32

13

66

36

44

38

30

35

50

20

44

20

55

3335

39

28

50

61

32 32

12

31

39

32

29

22

25

13

48

27

63

Abolish unanimity voting(veto)

Increased power to theEuropean Commission

Reduction of number ofworking languages

Equal power to theParliament and Council ofMinisters for all legislation

Increased power to themember states

European offices become smokeless and flexibleToday, three-quarters of all companies in Europeprovide a smokeless environment. Almost all UKcompanies are now non-smoking, but this is not as widespread among businesses in Spain andGermany, where only a little over half have smoke-free zones in the workplace and the latterseems unlikely to be smoke-free within the nextfive years.

Europe’s business leaders are proving to be evenmore flexible than they thought, with predictionsfor flexitime underestimated by most five yearsago. Now, flexitime is offered by a large majority ofEurope’s top companies and others expect that theywill introduce flexitime within the next five years.

Dressing down to do a five-day week It seems European business is getting more relaxed.Twice as many companies have dress-down daysthan was predicted in 1998, with almost halfsaying they have a casual-dress-day policy today.

UK business leaders had anticipated that moreinformal clothes would slip into their wardrobes;the Spanish had made the most cautiousprediction, with only five per cent expecting to‘dress down’. Today, half of Spanish businessleaders admit to having changed their habits andslipping into something more casual to do business.

And, predictions for a four-day workweek werespot on. It would seem European businesses stillneed a five-day week to get things done, and aclear majority do not envisage ever being able tohave a long weekend – most significantly amongbusiness leaders in Spain and Italy where a four-day workweek is not in their sights.

Take a break to look after your children Asked for the first time whether sabbaticals arecommon in their business practice, Europeancompanies are split on whether a break frombusiness is a good or bad thing.

Around a half of French and Belgian companiesallow employees to take time out. However, in Spain and Italy it is a different story, with lessthan one in ten seeing the benefits of allowing alonger break.

Surprisingly, childcare facilities are still notrecognised today as significant by business, with1998 predictions holding true. Only the Dutchregard childcare provision as essential – the rest of Europe’s workers have to look outside theworkplace. Nonetheless, the forecast for the futurelooks a little more child-friendly.

23

Business practices


Which of the following workpractices are prevalent in yourcompany?

Offering a smokeless environmentand flexitime hours aremainstream

However, dressing down andsharing jobs are morepopular than expected

Childcare facilities still given lowpriority

•

•

•

P R A C T I C E S M E N T I O N E D %

Non-smokingenvironment*

Flexitime Casual-dressday

Job-sharing Home-working

Sabbaticals 4-day week Childcarefacilities

Hot-desking

Business practices

***

74

14

11

61

73

13

13

22

46

11

42

30

43

17

38

27 26

24

47

***

25

11

62

2724

15

59

2017

14

67

12 11

21

65

1998 prediction**

Prevalent now

Not now, but in five yearstime

Not within five years

* Except for designatedsmoking areas

** In 1998, respondents wereasked what would beprevalent in five years’time

*** Not asked in 1998


Which of the following workpractices are prevalent in yourcompany?

German and Spanish mosttolerant of smokers, UK least

UK slower to take up flexitimeethos

Belgian and French executives getrefreshed with a sabbatical

Only Dutch nurture childcareprovision

•

•

•

•


Business practices

74 85 54 56 86 70 82 96

73 81 98 65 78 70 72 48

46 45 50 50 40 25 47 63

43 68 56 18 43 43 58 37

26 35 47 10 15 7 37 46

25 47 26 4 55 2 24 29

24 30 19 7 33 8 33 49

17 34 24 2 25 2 40 16

11 8 15 2 4 8 47 12

*** *** *** *** *** *** *** ***

61 56 84 50 51 58 64 60

22 22 19 5 19 9 18 60

30 44 29 12 42 22 38 32

27 30 34 13 10 23 29 53

*** *** *** *** *** *** *** ***

27 30 13 26 30 22 22 44

20 27 19 7 39 13 34 14

12 9 11 2 4 7 39 28

14 9 21 28 6 17 8 2

13 12 1 17 6 16 11 28

11 17 13 9 15 5 7 10

17 11 28 10 9 17 13 26

24 27 23 22 17 34 23 23

11 16 17 5 12 3 20 13

15 23 28 8 15 6 9 14

14 17 18 16 10 10 11 16

21 18 24 24 11 19 17 33

11 5 25 14 5 13 7 2

13 5 1 18 14 13 14 23

42 34 37 39 41 70 42 27

38 19 16 69 43 40 26 36

47 33 30 66 64 58 37 30

62 33 56 89 30 94 52 57

59 42 53 82 48 86 53 36

67 46 57 80 62 87 47 68

65 67 60 71 79 73 33 54

1998prediction**

Prevalent now

Not now, but infive years time

Not within fiveyears

* except fordesignatedsmoking areas

** In 1998,respondents wereasked whatwould beprevalent in fiveyears’ time

*** Not asked in1998

Total Belgium Germany Spain France Italy NetherlandsUnited

Kingdom


Non-smokingenvironment*

Flexitime

Casual-dress day

Job-sharing

Home-working

Sabbaticals

Hot-desking

4-day week

Childcarefacilities

26

Business practices

CSR statement in companies’ annual reports ismost common policyTwo-fifths of companies surveyed include aCorporate Social Responsibility statement in theirannual report. Almost this same proportion saysthat they monitor their CSR activities against theobjectives set in their policy document, and over athird have a written CSR policy document ormanual.

Over a quarter of Europe’s leading businessespublish an annual CSR report, and the samenumber have made a significant corporateinvestment in CSR this year. To highlight theimportance of this new business phenomenon,exactly a quarter of the companies surveyed havegiven a member of the board specific responsibilityfor CSR activities.

A pension encourages executives to sit stillthrough long meetings Pensions are thought an important benefit and mayhelp compensate the long working hours seniorexecutives endure during their careers. MostEuropean business leaders surveyed conclude thatoffering company pensions to employees is thebest way to get and keep staff, with British andGerman executives amongst the most supportive.But one in four finds lengthy business meetingsand long working hours the least attractive aspectabout their work.

Italy and France are the only countries wherecompany pensions are not the top benefit. Morethan half of Italian business leaders think that goodhealth is more vital, and in France, nearly two-thirds regard offering company share options orshare saving schemes to be a greater incentive.Flexible working hours is also an attractiveprospect for would-be and existing employees,though fewer French companies think so.

European businesses want mobile linguists With the increase in global business and thecontinued expansion of many companies across theEU, speaking more than one language seems to bethe most attractive quality to Europe’s toprecruiters. Just under half of all business leaders saythat one of the two pieces of advice they would bemost likely to give to today’s students would be tolearn as many languages as possible. The other isto be mobile.

A third of the respondents state that students needto widen their life experiences (i.e. travel abroad),with more than half of German managers believingtravel is an essential and positive pre-requisite toworking life. And the same number believes thathaving a generalist education is more helpful thanbeing a specialist, except in the Netherlands.

If your company has aCorporate Social Responsibility(CSR) policy, which of thesedoes your company do?

More than 40 per cent ofcompanies have a CSR statementin their annual report

The majority of British companieshave invested in a written CSRmanual

However, one-third have nospecific policy, rising to more thanhalf in Italy

•

•

•

P O L I C I E S M E N T I O N E D % 27Full results and historical data are available online atwww.ebm.ups.com

A B C D E F HG

Business practicesA

B

C

D

E

F

G

H

42

3836

29 29

26

19

30

Include a CSR statement incompany’s annual report

Monitor CSR activitiesagainst the objectives set inpolicy document

Have a written CSR policydocument/manual

Publish an annual CSRreport

Make a significant corporateinvestment in CSR this year

Member of the board withspecific responsibility forCSR activities

Accreditation or certificationof CSR by a third party

No specific policy (none ofthese)


Which of the followingemployee benefits do youthink give the best overallreturn for businesses in termsof recruitment and retention?

European business placespensions firmly on top

Italians and British look for goodhealth cover

The French seek shares and theBelgians want wheels

Trying to keep your staff fit won’twin you any favours; just threeper cent see the gym as a benefit

•

•

•

•

B E N E F I T S M E N T I O N E D %

Business practices

A B C D E F HG

A

B

C

D

E

F

G

H

65

45

41

35

32

29

13

3

Company pensions

Flexible working hours

Company healthcare

Company share options orshare saving schemes

Company car

Non job-specific educationand training

Company childcarefacilities

Company gym or sportsfacilities

What are the least pleasantaspects of your job?

Too many meetings and longhours are most commoncomplaints among Europe’sdirectors

One-third of respondents find ithard to find the right staff

The British get the most tired oftravelling; the Spanish businesselite feel most isolated

•

•

•

A S P E C T S M E N T I O N E D % 29Full results and historical data are available online atwww.ebm.ups.com

Business practices

A B C D E F G

4039

30

26

23

1312

A

B

C

D

E

F

G

Lengthy business meetings

Long working hours

Difficulty in finding highlyskilled staff

Dealing with staff personnelissues

Tiring business travel

Attending functions andcorporate entertaining

Isolation


What two pieces of advicewould you most likely give tostudents to prepare themselvesfor their future career?

Talk the talk and go where youhave to is the advice given to‘would-be’ workers

Just under half the respondents seelanguages and mobility as the twotop ingredients for job seekers

Spreading your net and living lifegets you further than a specialisteducation

•

•

•



Netherlands

Business practices

47

43

3232

2220

69

38

22

36

1518

29

43

56

51

1011

57

39

29

2523

21

4850

2426

34

13

59

42

29

2023 22

28

32 33

25

31

4039

49

25

37

21

27

Learn as many languagesas you can

Be prepared to be mobile

Widen your lifeexperiences (foreign travel)

Get a generalist education

Get plenty of paid orvoluntary work experience

Get a specialist education

Time puts a strain on senior executives’ wallets Despite businesses reporting a tough 12 months, amajority of Europe’s business leaders say that theyhave not cut personal spending. More than six outof ten executives admit that they have made nochanges to the way they spend their hard-earnedcash, despite a stagnant economy.

Almost a quarter of respondents have, however,slimmed down on their eating out, and moreGerman and French business leaders have clippedtheir wings and curtailed their travelling thananyone else. However, this may be more due totime than cash flow issues. Just under half ofrespondents state that nowadays they seem to bespending more time at work than they do withtheir families or on private time.

Italy provides some food for thoughtThe best-loved food by Europe’s top businesspeopleis Italian, nominated by two-fifths of the executives.For those that may get too wrapped up in spaghetti,some agree that French cuisine is their favourite,followed by Spanish.

Almost all Italian business leaders prefer their owncountry’s cooking, and the Spanish and French alsothink a mix of their own national ingredients makesa better dish of the day than other types of foodthat may be on the menu.

Europe’s business leaders dreamt of flying the skies Despite having different tastes in cooking styles,there was some meeting of the minds when itcame to childhood aspirations. Almost allrespondents imagined becoming something otherthan a business leader when they were growing up.

It would appear that Europe’s boardrooms are fullof ‘would-be’ footballers and athletes, while othershouse executives that dreamt of flying the skies,burning rubber or using a stethoscope.

31

Executive insight


Have you cut back on yourpersonal spending in any ofthe following areas due to thecurrent economic situation?

Despite a recession, businessleaders are not counting theirpennies

Two-thirds have made nocutbacks, most significantly theBelgians

A fifth of European executiveshave slimmed down on eating out

•

•

•



Netherlands

Executive insight

64

20 19

1412

76

9 10 11

7

48

31

22

18 19

71

1315

11

7

56

22 22

18 17

65

20 21

14

5

70

20

16

9

5

69

1618

1214

Not cut back personalspending

Eating out

Non-essential consumables,such as clothing apparel,music, furnishings

Travel/holidays

Taxis

Has your attitude towards theprioritisation of work andprivate life changed during thecourse of your career?

The heat is on for Europe’s topexecutives; just under half nowspend more time at their desks

A majority in Germany has morebusiness than pleasure

The Dutch buck the trend with athird spending more time withtheir families

•

•

•

C O U N T R I E S S U R V E Y E D % 33Full results and historical data are available online atwww.ebm.ups.com


Netherlands

Executive insight

45

23

32

46

24

31

54

12

34

48

2725

39

24

37

44

18

37

27

35

38

47

29

23

Yes, I spend more time onmy job due to higherresponsibilities andworkload

Yes, I spend more time withmy family or for myself thanI used to in the past

No, my attitude has notchanged


What is your favourite food?

European in outlook, nationalist intaste – top businesses vote fortheir own cuisine

Spanish, French and Italianbusiness executives stick to whatthey know

Nearly four in ten choose anItalian dish from the menu

•

•

•



Netherlands

Executive insight

Italian

French

Spanish

Asian (Thai, Indonesian, Chinese,Indian, etc)

Own nationality’s food

39

20

1512

49

26

39

0

1417

54

7

0

8

19

6

1

82

4

82

11

70

1

13

70

93

20

3

93

30

20

4

27

9

37

14

2

32

7

35

Thinking about when you wereeight years old, what did youaspire to become?

More than one in ten seniorexecutives wanted to run notwalk in their suits

A similar number aimed theirsights sky-high

Just seven per cent thought theywould be a leader of industry

•

•

•

A M B I T I O N S M E N T I O N E D %Full results and historical data are available online atwww.ebm.ups.com

Executive insight

13

12

9

7 7

5 5 5

4 4

3

A B C D E F G H I J K

A

B

C

D

E

F

G

H

I

J

K

Athlete, sportsperson

Doctor, nurse, vet

Entrepreneur, businessleader

Artist, entertainer (writer,singer, actor, dancer, TVpresenter)Train, truck, racing driver

Teacher

Fireman or policeman

Politician, lawyer, journalist

Engineer, scientist

Architect, builder

Pilot, astronaut

36

For further information about UPS and its servicesplease call one of the following numbers:

UPS Austria 0810 006630

UPS Belgium 0800 128 28

UPS Denmark 80 302222

UPS Finland 0800 1 877 877

UPS France 0800 877 877

UPS Germany 0800 8826630

UPS Ireland 1 800 575757

UPS Italy 800 877 877

UPS Luxembourg 800 2 2510

UPS Netherlands 0800 099 1300

UPS Norway 800 33470

UPS Portugal 707 23 23 23

UPS Spain 902 88 88 20

UPS Sweden 020 788 799

UPS Switzerland 0800 55 88 33

UPS UK 08457 877 877

UPS Asia-Pacific 65 6883 7000

UPS US, Canada and Americas 1 800 742 58 77

For service information and contact telephone numbers inother countries please refer to: www.ups.com

For further information about the UPS Europe Business Monitor please refer to the

UPS website at www.ebm.ups.com or contact [email protected]

UPS Europe, Middle East and Africa PR OfficeAvenue Ariane 51200 BrusselsBelgiumFAX (+32) 2 776 9698

UPS US, Canada and Americas PR Office55 Glenlake Parkway, NEAtlanta, Georgia 30328USAFAX (+1) 404 828 6593

UPS Europe, Middle East and Africa Public AffairsAvenue Louis Gribaumont 11150 BrusselsBelgiumFAX (+32) 2 772 1126

UPS Asia Pacific PR OfficeUPS House22 Changi South Avenue 2Fourth FloorSingapore 486064FAX (+65) 6883 7040

Contact details

The information in this report is correct at the time of going to press.Survey undertaken for UPS by TNS.

Date post:	18-May-2015
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