Risk Management Issues for the Future

Transcription

1 Risk Management Issues for the Future AMICE Congress 2010 Mutuality Today: Sustainable Values Genoa, Italy Discover the trouble: the future is just around the corner Gothaer s approach AMICE Congress

2 Demographic development in Germany graphical illustration Age structure in Germany: From the Pine Tree Age structure in Germany: Via the Mushroom Age structure in Germany: To the Urn men age women men age women men age women age population (thousands of inhabitants) population (thousands of inhabitants) population (thousands of inhabitants) Source: Federal Statistical Office of Germany, Wiesbaden AMICE Congress Development of the age structure in the German insurance industry* Age Groups < % 30.1% 42.6% 9.7% 19.7% 29.4% % 33.6% % 57.4% 28.1% 70.6% >55 6.1% 8.9% Average Age Main changes between 2000 and 2008: Average age increases by 3.0 years (7.9%) Age structure changes significantly: employees 35 years: -31.0%, employees 36 years: +23.0% Key figures 2008: Employees >40 years: 55.4% Employees >50 years: 21.8% * Figures include apprentices; source: AMICE Congress

3 HR Trends in the German Insurance Industry Increasing demand for qualified staff* Increased competition/more complex tasks Differentiated insurance needs Complex insurance products Well-informed & discerning customers Fewer candidates for the insurance apprenticeship Decreasing number of high school graduates (starting 2014)** Greater interest in higher education Qualified employees are difficult to find and retain Insurance sector has a rather low employee attractiveness especially for university graduates Press releases on structural changes and associated HR measures within the financial services industry Limited HR budgets due to cost pressure/cuttings Insufficient education at schools and universities * Source: Höhn, K. (2005): Ergebnisse der BWV-Zukunftswerkstatt: VGA-Jahrestagung 21. April 2005 in Ulm **Source: Sekretariat der Ständigen Konferenz der Kultusminister der Länder der Bundesrepublik Deutschland, Referat IV D. (2009): Vorausberechnung der Studienanfängerzahlen Zwischenstand; Veröffentlichungen AMICE Congress Impact of demographic development on HR (1/2) Key issues Increasing HR costs Increasing opportunity costs Increasing importance of health services Higher requirements on working conditions Special lay-off protection for older employees Fewer possibilities for early retirement AMICE Congress

4 Impact of demographic development on HR (2/2) Key issues Ability to learn, change and learning motivation are crucial Older employees have an increased need for training Intergenerational conflicts might increase Imminent loss of know-how In the long run: Lack of qualified employees/loss of expertise in Germany Conclusion: German companies might face a huge competitive disadvantage. AMICE Congress Consequences for HR Challenges Obtain, retain and sustain expertise in all age groups Key areas of action ❶ ❷ ❸ ❹ To support and sustain the ability to perform, motivation and image of older employees To create and uphold development perspectives for young and middle-age employees To retain experience knowledge within the company To develop new forms of pension benefits AMICE Congress

5 Discover the trouble: the future is just around the corner Gothaer s approach AMICE Congress Gothaer s approach overview ❶ ❷ ❸ ❹ ❺ ❻ Strategic development and retention of junior staff Succession planning based on job families Focus on the target group women : Project women in management Healthcare management: GoFit employee scheme Senior expert model New scope of duties for experienced managers Strategic HR planning based on differentiated age structure analyses AMICE Congress

6 Approach No. 1 Strategic development and retention of junior staff Components Initial vocational training is extended Increased number of posts in 2007/2008, 2008: Bachelor of Arts is introduced Integrated studies Cologne model Studies and training within the company Student programme Internships for outstanding students Management start up 2-year programme for graduates with management potential Management programme Development programme for young professionals with management potential Aim To obtain and retain talents in time To rejuvenate personnel To provide new stimuli by junior staff (generation mix leads to diversity) To support departments by writing theses which are of interest to the company To promote Gothaer s employer brand To fast/cost effectively familiarize graduates with the job To benefit from new scientific insights/methods To secure sufficient high-potentials for future management positions due to the quite high average age of Gothaer s management the increasing war for talents AMICE Congress Approach No. 2 succession planning based on job families Challenge: volatile structures impede succession planning As the structure is quite volatile, midand long-term succession planning based on the current organization is rigid and unrealistic. It is inadequate to solely rely on generalists. In accordance with the function, managers must meet all requirements regarding their position. Solution: job families facilitate succession planning in ever changing business structures Overall 20 job families * cover functions which are professionally related. These remain quite stable, even in the case of a reorganisation. Job families are the basis for analyses, planning, development as well as career plans. Henceforth, succession planning does not focus on single positions, but on the demand which is expected in each job family. * Asset Management, Business Process Optimization, Corporate Security, Finance/Controlling/Risk Management, General Administration/Purchasing/Logistics/Facility Management, Health Insurance Operations/Benefits, Human Resources, IT, Law/Taxes, Life Insurance Operations/Benefits, Marketing-oriented Activities, Office Assistance, Product Development Life and Health Insurances, Product Development Property/Casualty Insurance, Property/Casualty Insurance Operations/Benefits Corporate Customers, Property/Casualty Insurance Operations/Benefits Private Customers, Reinsurance, Revision, Sales, Service Center AMICE Congress

7 Approach No. 3 focus on the target group women Project women in management (1/3) Initial situation 2005 Percentage of women in Gothaer s workforce > Industry average Skills of Gothaer s female employees > Industry average Percentage of women in Gothaer s management < Industry average Target A significant increase in the percentage of women in management positions at all structural levels by 2016 (compared to 2005): Level 1: from 5.6% to 15% Level 2: from 5.9% to 20% Level 3: from 30.1% to 40% Due to more creativity, flexibility, innovation and the better use of existing potential the company value is enhanced. AMICE Congress Approach No. 3 focus on the target group women Project women in management (2/3) 1 st starting point 2 nd starting point 3 rd starting point Recruitment and development Mentoring programme Work-life balance in particular Work-family balance Aim To improve conditions to identify and develop leadership potential in female employees/candidates. This is done by reviewing assessment/application procedures and by increasing the awareness among decision makers Previous activities and results Literature/internet research on established gender differences and stereotypes Collection of best-practices Discussion on Gothaer competence criteria in the light of research findings Exchange of experiences with other companies Aim To foster career development of female potentials beyond hierarchical structures Previous activities and results Concept design Pilot project Kick-off October 2009 Duration: 1 year 12 Mentees Aim To relieve the typical tension between job and family Previous activities and results Gothaer joints the corporate network Erfolgsfaktor Familie and signs the joint declaration Employee retention concept is designed Survey identifies demand for childcare Facilitated access to childcare for children under 3 AMICE Congress

8 Approach No. 3 focus on the target group women Project women in management (3/3) First results Initial situation 2005 Intermediate result 2009 Percentage of Gothaer s female management* Total: 15.8% Structural level 1: 5.6% Structural level 2: 5.9% Structural level 3: 30.1% Percentage of Gothaer s female management* Total: 17.9% Structural level 1: 7.1% Structural level 2: 9.2% Structural level 3: 31.4% Percentage of female managers at Gothaer has increased. This increase primarily took place in the upper hierarchical levels and in the Management start up programme. The qualification level of female employees has also improved. By the end of % had an university/university of applied sciences degree (GDV** 2008: 12.7%). * core companies: GA, GL, GKR, GoFiHo ** GDV: Association of German Insurance Industry AMICE Congress Healthcare management increasing importance in the context of demographic development The older the workforce, the longer the sick leave Age 2500 Days of sick leave Length of sick leave Number of sick leaves Age Source: BKK health report 2006 AMICE Congress

9 Approach No. 4 Healthcare management: GoFit employee scheme (1/3) Goals To reduce back problems, cardiovascular and stress conditions To improve life quality and personal well-being To increase the responsibility for own health To reduce cost due to sick leaves Main actions Health screening Courses focus on back training, stress relief, cardio training Massages and physiotherapy (self payment) Ergo coaching (consulting on ergonomic workplace design) Management training Canteen specials (healthy diet) Active work breaks Seminars on stress prevention AMICE Congress Approach No. 4 Healthcare management: GoFit employee scheme (2/3) Outcomes Qualitative Survey of course participants 2009: 74% notice an improvement with regard to their stress level 75% notice an improvement in their back conditions 75% find that they can more easily cope with everyday work life Quantitative drop in sick leave by course participants 2007/2008: Gothaer group** in % Work days Saving per participant* % participation in 2007/2008 (n=465) x 432 = 200,880 GSC % participation in 2007 (n=95) x 900 = 85,500 Win-win situation for employee and employer * Official daily rate (source: Association of German Insurance Industry 2006): 360 Euro ** Average values 2007/2008 AMICE Congress

10 Approach No. 4 healthcare management: awards (3/3) 2007: EU Commission Award Rating Excellence in the areas healthpromoting corporate culture, smoking prevention, healthy diet and healthy kinesic behavior 2008: EU Commission Award Rating Excellence in the above listed areas as well as mental health German Business Health Award 2009: Audit Occupational Health by invitation of EuPD Research and Handelsblatt Winner in the sector insurance, Award of the official Excellence seal EU Commission Award Rating Excellence in all the previous mentioned categories AMICE Congress Approach No. 5 senior expert model New scope of duties for experienced managers: from manager to senior consultant/senior project manager Staff function, generally at hierarchical level 1 or 2 below the executive board Tasks which require corporate knowledge, experience and networking, particularly complex, cross-divisional projects strategic topics interim management Employment conditions (e.g. working hours) are specific to individuals Chancen Corporate für das prospects Unternehmen To retain, use and transfer experience/practical knowledge To use, maintain and further develop networks To create career opportunities for young potentials Employee prospects To face new challenges via demanding and prestigious tasks To relieve line duties and managerial responsibility To improve work-life-balance AMICE Congress

11 Approach No. 6 strategic HR planning based on differentiated age structure analyses (1/2) Questions 1. How many employees are currently available to the company? 2. How many employees does the company need? 3. Where will these employees work? 4. When does the company need these employees? 5. What is the net workforce demand for each job family (group, location...)? 6. What are the opportunities/risks given the workforce supply/demand development? 7. How and by which means can the net workforce demand be covered? Procedure Assess the current age structure for each job family (group, location...) in detail Project of the age structure development until 2020 Forecast of the gross workforce demand for each job family (group, location...) until 2020 Analyse the net workforce demand for each job family (group, location...) by 2020 Benchmark Gothaer s age structure with market data Identify age-structural opportunities and risks (group, location...) Recommend future actions per job family (group, location ) AMICE Congress Approach No. 6 strategic HR planning based on differentiated age structure analyses (2/2) Demography strategic HR planning for job families % workforce % workforce age structure age group trend >50 Forecast on workforce demand, age structure and expected exits aggregated for all employees of one job family Aims of the analysis - To identify future workforce demand based on different future scenarios - To identify demography-based risks and opportunities - To prevent shortfall in workforce - To develop necessary HR actions Tool to simulate future development Pilot planned in 2010 year AMICE Congress

12 Back-up AMICE Congress The Gothaer Group key data One of the biggest German insurance companies more than 4 billion premium income around 3.5 million insured members Mutual Insurance Company We are represented in the following segments Property/Casualty Life Health Services in the areas financial consulting and personal pension plans Employees 2009*: 5,349 * Average no. of employees in companies included in the consolidated financial statement AMICE Congress