Talent in Insurance 2015 The Netherlands in Focus UK Financial Services Insight
Report contents The Netherlands in Focus Key findings Macroeconomic and industry context Survey findings 2
Key findings 3
Insurers are unpopular among Dutch business students; however, the talent they attract is keen to tackle the challenges facing the sector Insurance is less popular among business students in the Netherlands than it is in all but six of the 21 EMEA countries surveyed; insurance ranks just 15 th out of 26 industries in popularity among Dutch business students No insurer makes the list of the top five most popular employers for insurance-inclined students The top two career goals of Dutch insurance-inclined students are to have work/life balance and to be competitively or intellectually challenged Dutch insurance-inclined students aspire to challenging work and expect to find it within the sector Dutch insurance-inclined students expect higher pay than their business school peers, but lower pay than banking-inclined students Insurance is less attractive to female business students in the Netherlands than it is globally 4
Macroeconomic and industry context 5
Youth unemployment in the Netherlands has almost doubled since the financial crisis, but is relatively low compared to other EMEA countries Overall and youth unemployment, the Netherlands, 2008-2014 15% 10% 5% 0% 2008 2009 2010 2011 2012 2013 2014 Overall Youth (Aged 15-24) 6 Source: OECD
Average wages in the Netherlands have yet to regain their pre-crisis levels Growth in average real wages (US$), the Netherlands, 2008-2014 $4,500 12.0% $4,000 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% -2.0% -4.0% -6.0% $0 2008 2009 2010 2011 2012 2013 2014-8.0% Average wages (monthly, US$) Growth in average wages (US$; % annual) 7 Note: Average wages (monthly): average gross earnings per worker per month Growth in average wages (annual): percentage change in hourly wages in US$ over previous period Figures are converted to US$ using an average exchange rate Source: Economist Intelligence Unit
Dutch insurance is in decline: a lack of consumer confidence and new bank savings products have dented life assurance revenue 1 Total gross written premiums in millions US$ and as % of real GDP, the Netherlands, 2008-2013 $80,000 10.0% $70,000 $60,000 $50,000 9.0% 8.0% 7.0% 6.0% $40,000 5.0% $30,000 $20,000 $10,000 4.0% 3.0% 2.0% 1.0% $0 2008 2009 2010 2011 2012 2013 0.0% 8 Note: 2014 data is not available Source: OECD Gross Written Premium (millions US$) 1 http://www.dnb.nl/en/news/news-and-archive/dnbulletin-2012/dnb277938.jsp Gross Written Premium as a % of real GDP
Survey findings 9
The Dutch insurance industry lags behind most of EMEA in popularity among business students Popularity of insurance as a career choice, EMEA, 2015 Poland Switzerland Finland Italy South Africa Belgium Spain Germany France Norway Sweden Austria Czech Republic Denmark Netherlands UK Ireland Middle East UAE Turkey Russia 0.00% 0.00% 0.53% 0.51% 0.38% 0.37% 1.51% 1.40% 1.31% 1.30% 1.29% 1.21% 1.09% 1.05% 1.00% 0.94% 1.71% 2.23% 2.67% 2.98% 2.93% 10 Survey question: Choose the five employers you most want to work for [from the list of employers you would consider working for], your five ideal employers. Sector popularity is calculated as the number of times individual employers in specific industries are short-listed among the five ideal employers. Source: Universum Talent Survey 2015; Deloitte Analysis
FMCG rules the roost in the Netherlands; insurance languishes at 15 th out of 26 industries, with a popularity of under 1 per cent Insurance and the eight most popular industries for business students, the Netherlands, 2008-2015 30.0% 25.0% Fast Moving Consumer Goods Banks 20.0% Transportation and Logistics Software and computer services 15.0% Auditing and Accounting Management and Strategy Consulting 10.0% 5.0% Consumer Electronics and Household Appliances Fashion, Accessories and Luxury Goods Insurance 0.0% 2008 2009 2010 2011 2012 2013 2014 2015 Survey question: Choose the five employers you most want to work for [from the list of employers you would consider working for], your five ideal employers. Sector popularity is calculated as the number of times individual employers in specific industries are short-listed among the five ideal employers. 11 Source: Universum Talent Survey 2015; Deloitte Analysis
FMCG s strength can be attributed to the popularity of local giants Heineken and Unilever; Dutch airline KLM takes the top spot Most popular employers, Dutch business students, 2015 KLM 21.1% Google 20.2% Heineken 19.9% Nike 17.3% Unilever 17.0% Survey question: Choose the five employers you most want to work for [from the list of employers you would consider working for], your five ideal employers. 12 Source: Universum Talent Survey 2015; Deloitte Analysis
The big three Dutch banks, followed by Anglo-Dutch giants Shell and Unilever, are the most sought-after employers for insurance-inclined students Most popular employers, Dutch insurance-inclined students, 2015 Rabobank 31.4% ABN Amro 24.5% ING Group 19.6% Shell 18.6% Unilever 17.7% Survey question: Choose the five employers you most want to work for [from the list of employers you would consider working for], your five ideal employers. 13 Source: Universum Talent Survey 2015; Deloitte Analysis
A desire to be intellectually challenged shares top billing with having work/life balance, top for all business students globally, for Dutch insurance-inclined students Career goals of Dutch insurance-inclined students, 2013-2015 To have work/life balance 45.1% 52.9% 57.1% To be competitively or intellectually challenged To be a leader or manager of people 32.8% 52.9% 50.0% 44.3% 49.0% 45.7% To be entrepreneurial or creative/innovative To be secure or stable in my job To have an international career 18.6% 33.3% 38.6% 41.8% 30.4% 41.4% 27.9% 30.4% 39.3% 2015 2014 2013 To be autonomous or independent 19.6% 11.4% 17.2% To be a technical or functional expert 17.6% 15.7% 10.7% To be dedicated to a cause or to feel that I am serving a greater good 11.8% 21.4% 19.7% Survey question: Below is a list of nine possible career goals. Which are most important to you? Please select a maximum of 3 alternatives. Importance of goals is then calculated as the percentage of students choosing each career goal on their shortlist of top three goals. 14 Source: Universum Talent Survey 2015; Deloitte Analysis
Dutch insurance-inclined students aspire to a challenge in their job, see it as their (joint) top career goal, and also expect it from the industry Dutch insurance-inclined students' top ten aspirations and expectations, 2015 Top ten aspirations Top ten expectations Good reference for future career 1st Challenging work 1st Challenging work Professional training and development 3rd 2nd Professional training and development High level of responsibility 2nd 2nd Respect for its people Leaders who will support my development 4th 5th Good reference for future career Leaders who will support my development 4th 5th Market success 6th Respect for its people 6th A friendly work environment 7th A friendly work environment 6th Leadership opportunities Attractive/exciting products and services 8th 9th Attractive/exciting products and services Market success 8th 9th Financial strength 10th Financial strength 9th Students were asked to choose up to 12 attributes, out of a total of 40, that they most sought for their five shortlisted ideal employers. The ten attributes that scored most highly for insurance-inclined students are shown in the green bars aspirations. Deloitte extracted the extent to which insurance-inclined students expected to find each of these top ten aspirations in their shortlisted ideal insurers. Each blue bar represents the proportion of insurance-inclined students who expect to find this attribute at the insurer(s) that appears on their shortlist of five ideal employers. Please note that because the number of aspirations students can choose is capped at 12, while the expectations are uncapped up to 40, the proportions of students expecting a particular attribute is likely to be higher those recording an aspiration for that attribute. Survey question: Aspirations which of these are most important to you? Please select a maximum of three alternatives [in each of the following four categories: Employer Reputation and Image; Job Characteristics; People and Culture; and Remuneration and Advancement Opportunities. Expectations which of the following [40 attributes] do you associate with your chosen employer(s). 15 Source: Universum Talent Survey 2015; Deloitte Analysis
Insurance-inclined students expect a 3 per cent higher salary than their business school peers, while the banking-inclined expect to earn 10 per cent more than their peers Expected annual salary (EUR), Dutch business students, 2015 Banking-inclined 30,885 Insurance-inclined 28,955 All Business 28,048 Survey question: What is your expected salary before taxes (excluding commission and bonus) at your first employment after graduation? 16 Source: Universum Talent Survey 2015; Deloitte Analysis
Dutch insurers are turning off women at an even greater rate than are their global peers Student demographics, globally, 2015 Student demographics, the Netherlands, 2015 All business (Global) 61.1% 38.9% All business (Netherlands) 60.9% 39.1% 11.1% drop off 14.0% drop off Insurance-inclined (Global) 54.3% 45.7% Insurance-inclined (Netherlands) 52.4% 47.6% Female Male Female Male 17 Source: Universum Talent Survey 2015; Deloitte Analysis
Appendix - methodology 18
Appendix Methodology This report is based on the Universum Talent Survey 2015. Universum has been researching students career intentions since 1988. In 2014-15, it surveyed about 1.2 million students and professionals drawn from over 2,000 universities and institutes of higher education in 55 countries. Deloitte examined the survey results from 211,000 business students in 30 markets: in the Americas, Brazil, Canada, Mexico and the US; in APAC, Australia, China, Hong Kong, India and Singapore; and in EMEA, Austria, Belgium, the Czech Republic, Denmark, Finland, France, Germany, Ireland, Italy, the Middle East (defined by Universum as Egypt, Lebanon, Kuwait, Qatar and Saudi Arabia), the Netherlands, Norway, Poland, Russia, South Africa, Spain, Sweden, Switzerland, Turkey, the UAE and the UK. The number of markets included in global and regional averages varies between 23 and 30. Business students were presented with a list of employers from a range of industry sectors. Students selected ideal employers from the initial list in a three-stage process. First they chose an unlimited list of companies for which they might consider working. Next they narrowed the choice to a maximum of five ideal employers. Finally, they were asked to select companies they had applied to or were considering for an application. Using the rankings by business students of the companies they would most like to work for, their ideal employers, Deloitte analysed their preferences across different industries over the eight academic years from 2007-08 to 2014-15. For this survey, business students are defined as students of business-related subjects. Insurance-inclined students are a subset who put at least one insurer in their top five ideal employers. Using Universum s detailed questionnaire, Deloitte analysed the motivations, aspirations and expectations of insurance-inclined students in relation to a career in insurance. This analysis includes a comparison of what makes insurers attractive to students ( aspirations ) with what they associate with insurers as employers ( expectations ). 19
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