ISSUE December 2019| TOPIC now and next

Dear Readers,

In the November edition Mark Richter addressed the digital disruption challenging our mission. His conclusion is that coaching is key to adapt to rapid changes..

So many countries so many customs

In this edition, ACF Europe shares insights from different markets throughout Europe and addresses five questions about the national market size development for 2019; the key factors driving the outplacement market; the key market trends, the challenges to market growth and finally what are our market opportunities and threats.

In the Netherlands, the Balanced Labour Market Act (in Dutch Wet arbeidsmarkt in balans or WAB) will come into force in a couple of days from now. It aims to reduce the differences between flexible and permanent work.

In Greece, the job market enters an era of growth and shows clear signs of an upturn. This upturn is driven by a more positive attitude, shared by employees and employers alike, towards the economic situation in the country

In Switzerland, how is the Outplacement Market doing? You will have five questions/answers to this topic.

Arbora is a global outplacement, career management and leadership development organisation, which has local partners in 30 countries, with offices on five continents. With the arrival of  Arbora, ACF Europe has expanded her network considerably

Now and next, what are we facing together?

Although each country has its own legislation, market structure etc., some fundamentals need new answers. Will salaried workforce still be the main labor force? How far will uberization go ? Retirement age, in somes countries, bring  people to take to the streets to express their concern. If not in the streets, the debate also takes place in the parliaments. Once the babyboomers will be ousted from the labor market, who will replace them? These are only a few examples of what we will be facing in the next future. If the workforce is getting more flexible than ever then, age may be also a competitive advantage for those who have actively supported their career development.

Until the second half of the past century, jobs were the most secure way to make a good living. Companies were in charge of the careers and personal development. Now, a new paradigm is ermerging: individuals have to take care of themselves. Career and Coaching activities will be more siginificant to individuals than ever. That is where we have to go.

 

Best regards,

Pascal L. Favre
ACF Europe

Pascal Laurent Favre is Chairman and Managing Director of pdp performance development partners Ltd and Chairman of ACF Switzerland.

Pascal began his career in the sales and marketing in Switzerland and Germany prior to joining Renault Suisse SA as National Sales Director and Member of the Board for its subsidiaries in the finance/leasing and retail. Later on, he led the successful turnaround and resolution of HR issues for a division of a major independent car distributor in Switzerland. Pascal held the role of Secretary General of a Group of Companies in the environmental services throughout Switzerland. He serves on the board of several companies and lectures on entrepreneurship at several institutions.

Pascal Laurent Favre earned his Masters Degree in Business Administration at the University of St. Gallen, Switzerland.

Pascal’s deep interest in managing change and in coaching individuals led him to take over pdp performance development partners Ltd as of January 2011. Pdp is a boutique Outplacement Firm with offices in several places in Switzerland, offering tailor made solutions for individuals and companies.

NATASHA KATOPODI IS A SENIOR CONSULTANT AT THE HR SOLUTIONS DEPARTMENT AT RANDSTAD HELLAS.

Natasha designs bespoke hr solutions for clients including career transition services, management trainee programs, leadership training and coaching, employer branding initiatives and assessment and development centers. Passionate about helping individuals explore their true potential and successfully reach their goals she focuses completely in the provision of HR services from 2010.Natasha has supported more than 1500 individuals deal positively with career transition and handle redundancy. She is particularly experienced in helping individuals define themselves professionally and remove significant roadblocks while searching for suitable career opportunities in the current economic climate. Finally, her background as a global citizen with pertinent workexperience gives her the opportunity to develop globally oriented problem solving capabilities while understanding and decoding cultural differences. Natasha holds a Master’s in Career Management & Counselling from the University of London, MSc in Strategic Human Resource’s management from Alba Business School and a BA in Economics from the National & Kapodistrian University of Athens. Since 2016, Natasha is a Randstad Certified Mentor©.

Overview of the Greek job market in 2019
The job market enters an era of growth shows clear signs of an upturn

The Greek job market is finally entering an era of growth, as attested in the results of our surveys hr trends 2019, work monitors & employer brand research. Greece’s economic crisis which took a great toll on the country’s job market over the past decade, impacting not only companies, but also employees’ behaviors and attitudes towards their employers is fading away. This upturn is driven by a more positive attitude, shared by employees and employers alike, towards the economic situation in the country. As the following data will clearly depict, the desire for normality and growth prospects are more than apparent, signalling that Greece is entering a new, more positive era. The country is recovering and positiveness prevails. The job market is expanding, creating new opportunities while showing clear signs of improvement across multiple key criteria.

From the stance of employers

Following the positive trend of previous years, the number of companies that expect their sales volume to increase is high. More than 30% of the respondents expect to see a business growth greater than 10%, while almost a quarter of the companies foresee a sales volume increase of 7 to 10%. Similarly to 2018, 22% of the respondents foresee stability in their sales volumes, while only 3% of the respondents expect their sales to decrease.

As a consequence, 82% of the respondents declare that they plan to hire permanent personnel during 2019. The main reason for recruiting is the national/international growth of the company as per the 48,1% of the decision-makers, while in 2018 the same reason was selected by respondents in a percentage of 30,9%. The increase in headcount is more likely to happen in sales, IT/technology and marketing departments. Moreover, more than half of the responding companies (55,9%) reported that their salaries increased compared to the previous and only less than 1% of participants reported salary reductions.

From the stance of employees 

Employees attest high levels of job satisfaction stating that they are satisfied with their job, according to our work monitors survey which is published once per quarter.

  • 63% of Greek employees would consider emigrating, if they could improve their career and work-life balance.
  • 52% would be willing to emigrate for a substantially higher salary and 40% are willing to emigrate to have a meaningful career.

Regarding the countries Greek employees would prefer to work in:

  1. United Kingdom (10.5%)
  2. Germany (9.5%)
  3. United States (8.7%)

Moreover:

  • 96% of Greeks will check a potential employer’s reputation as indicated in our employer brand research
  • the generation Z (18-24) will solicit a company’s reputation primarily via facebook
  • millennials (25-34) will investigate a company’s reputation via the opinion of friends and family
  • generation x (35-54) will search for general articles in the press in order to form an opinion
  • and finally boomers (55-64) will form an opinion via a physical presence (e.g. shops, stores, restaurants).

On the same note, what potential employees value via generation profile when considering an employer varies substantially.

  • 33% of the gen z’s are looking for good training in their employer. This is higher when compared to older workforce.
  • 66% of millennials seek pleasant work atmosphere. Boomers are less interested in this offering from their employer.
  • 48% of the gen x’s find good work-life balance a very important pull factor towards an employer. Among gen z and boomers, this factor is deemed less important.
  • And last but not least 33% of the boomers are attracted to a financially healthy company. This is less so among the other cohorts.

About Outplacement

The outplacement trends of 2019 also indicate that participants have more interviews with employers compared to participants of previous years, landing their new job on average 2 weeks faster than the previous years with a higher satisfaction rate after one month of employment. Moreover 2019 data clearly indicate that for the outplacement participants the ratio of CVs sent to interviews scheduled has a significant rise of 11% since 2018.

As a result of the aforementioned data, outplacement participants enter their job hunting with the perception of a job market that provides opportunities and the expectation to land a new job fairly quickly hence they may become impatient.

For the full content of the reports:

hr trends and salary report 2019
employer brand research 2019
work monitor Q3 2019

New employment law in the Netherlands in 2020:
The Balanced Labour Market Act (Wet Arbeidsmarkt in Balans: WAB)

The Balanced Labour Market Act (in Dutch Wet arbeidsmarkt in balans or WAB) will come into force on 1 January 2020. Major changes in employment law are being implemented which will have consequences for every employer.

The Balanced Labour Market Act must reduce the differences between flexible and permanent work. Flex work remains possible, but is made more expensive by the new procedures. The majority of the measures will take effect from 1 January 2020.

Below you will find a brief overview of the most important changes.

Number / duration of labour agreements

It becomes possible to enter into three fixed term employment contracts in a period of 36 months before an open-ended employment contract is created. This period used to be 24 months. With a collective labour agreement the number of employment contracts and period can be extended. With a break of six months and one day, the period starts again. With a collective labour agreement there will be the option to shorten the term of six months and one day to three months and one day.

Construction severance pay

An employee is currently entitled to severance pay from the first working day. With the new procedures the employee is entitled to severance pay after 24 months. This change will take effect immediately when, in 2020, a fixed-term employment contract is not extended at the initiative of the employer or an employment contract for an indefinite period of time ends in 2020 at the initiative of the employer (unless there is culpability on the part of the employee). The amount of severance pay will be a third of the monthly salary for each year of employment and will be calculated over the actual duration of the employment. There is no longer affiliation with half years of service. The higher accrual is no longer applicable for employees who have been employed for more than ten years and the transitional arrangement also is no longer applicable for employees aged 50 and older.

Compensation severance pay

The lower accrual of severance pay for small employers with a bad financial situation will be cancelled. Instead a compensation scheme is put back in place for small employers in the event of company termination due to death, retirement or illness. If conditions are met, a small employer (<25 employees) can be compensated for a transitional payment based on company termination due to death, retirement or illness. Further conditions under which compensation could be obtained, including the amount, must still be announced. In any case, it cannot be invoked with retroactive effect. From 1 April 2020, compensation can be requested retroactively (from 1 July 2015) for a transition allowance to be paid to an employee whose employment has been terminated due to 2 years of incapacity to work.

The amount of the compensation will be limited to the severance to which the employee was/is entitled at the time of 2 years of incapacity to work.

Dismissal

Dismissal becomes possible through the accumulation of two grounds for partial dismissal. Combining, for example, the ground for dismissal due to poor performance with the ground for dismissal due to a disturbed employment relationship still can lead to dismissal. Therefore, it is no longer necessary to meet one full ground for dismissal. However, in proceedings, the court can impose further compensation of 50% of the severance pay in addition to the usual severance pay.

On-call employees

The employer is obliged to give the on-call employee a contract for a fixed number of hours after 12 months. This must be the same number of hours as the on-call employee has worked on average in the past 12 months. There are also several changes in the calling period of an on-call employee. The on-call employee must be called up at least 4 days in advance. With a call less than the 4 days minimum, the on-call employee is not obliged to work. A call shorter than 4 days in advance cannot be changed. The hours for which the on-call employee is then called can be enforced by the on-call employee. With the new regulations the cancellation period of a call agreement is shortened to 4 days. With a collective labour agreement there will be the possibility to deviate from the aforementioned rules.

Remittance unemployment insurance premium

The amount of unemployment insurance contribution will be determined on the basis of the type of employment contract of an employee. The current sectoral classification for unemployment insurance premium will be abolished. A lower unemployment insurance contribution will have to be paid for an employee with an open-ended employment contract than for an employee with a fixed-term employment contract. It is important that the number of hours in the open-ended employment contract has a fixed size. The lower unemployment insurance premium does not apply to a fixed-term contract. The reduced premium also applies to an employee younger than 21 who, on average, does not work more than 12 hours a week, and an employee who is following a professional practical training course (BBL).

Payroll

There is a legal distinction between payroll and temporary agency work. As a result, the contract flexibility that temporary work has (such as Phase A and B) no longer applies to payrolling. It is therefore no longer possible to invoke the temporary employment clause. The employment conditions of a payroll employee must also at least be the same as the employment conditions of employees at the hiring employer. An exception applies to a pension scheme. The payroll employer must have made an appropriate arrangement for this before 1 January 2021.

One HR Director in attendance explained how feedback from employees regarding weekend emails had led to a new well-being initiative within their organisation, encouraging employees to switch off during weekends and holidays by only sending emails during the week and not taking their phones on holiday. Others detailed how their organisation had developed a culture of complete flexibility to suit all employees, with less focus on being present from 9-5, instead focusing on outputs and achieving results.

The importance of organisational culture on well-being
When developing resilience and well-being in the workplace it’s important to promote the correct initiatives, however if the culture of the organisation does not fully support these initiatives and employees still feel over-worked and undervalued then workplace stress will continue to be an issue. Before putting any resilience and well-being initiative in place it is important to review your current organisational culture in the context of whether it promotes or negatively affects well-being.

To begin ask yourself these key questions:
• Organisation – Does it promote a culture of health, well-being and work-life balance?
• Leaders and Managers – Are they able to identify, address and support issues employees raise regarding stress and work overload?
• Employees – How are they managing their own well-being and resilience and what more can be done?

Generally, the consensus throughout the event was that we are currently seeing a culture shift in the world of work, with people demanding flexibility and expecting a better, more flexible work-life balance, which organisations will need to provide to build resilience and safeguard well being. Initiatives such as mental health first-aiders and yoga lessons are all good, however organisations need to have the right culture in place to support this, one that is championed by all leaders throughout the business and where employees feel empowered to challenge any behaviors that negatively affect well-being.

Contact getintouch@intoo.com to request a copy of our Resilience and Well-being infographic.

Outplacement Market SWITZERLAND: Trends, Threats and Opportunities

Switzerland has one of the most competitive economies in the world thanks above all to its highly developed service sector (Source Swiss Miistry of Foreigh Affairs)

  • Second highest gross domestic product (GDP) per capita in the world (2015): EUR 73,000.
  • About 74% of Swiss GDP is generated by the service sector and 25% by industry.
  • 99% of Swiss Firms are small- and medium-sized enterprises with less than 250 employees.
  • Unemployment rate: 7 % of labour force in 2018 and 4.5 % in 2019 (Source: OECD)
  1. What is the national market size development for 2019?

2019 will be equal to 2018. If we look at the market in absolute numbers of outplacement candidates, we assume a stagnating number of candidates. In terms of sales, we assume a slightly declining market where predatory competition is emerging

  1. What are the key factors driving the national commercial outplacement services market?

Termination management remains an important component of a good HR strategy. Despite of the price pressure and market consolidation, outplacement is the ultimate company’s duty to take good care of its employees.  With Outplacement offerings, companies take the opportunity to develop and strengthen their reputation on the job market.

  1. What are the key market trends impacting the growth of the national commercial outplacement services market?

Based on current internal studies, we can assume that the demands on the quality of advice will increase, especially about digitalization. The expectations of a successful landing are also becoming more and more important so that outplacement providers are expected to have a very good knowledge of the market, the market networking as well as the whole economy.

  1. What are the challenges to market growth?

Outplacement is still important on the market, but overarching career concepts are becoming increasingly important. Outplacement is only one part of an overall mobility concept, which is gradually expanding into companies.

Another challenge is to face the high pressure on prices and the presently low unemployment rate

  1. What are the market opportunities and threats faced in the national commercial outplacement services market?

Threats

  • The saturation of outplacement providers in the market and the increasing shift of interests towards Career Mobility concepts will lead to consolidation in the market.
  • IT companies are also entering the market with digital services and will win market share in a stagnating market.
  • Prices are decreasing, so that the processes must be streamlined

Opportunities

  • Overall, it probably depends on which provider finds the best recipes to support the companies in their answers to the current personnel challenges in the best possible way.
  • Product diversification such facilitation in career development,

One HR Director in attendance explained how feedback from employees regarding weekend emails had led to a new well-being initiative within their organisation, encouraging employees to switch off during weekends and holidays by only sending emails during the week and not taking their phones on holiday. Others detailed how their organisation had developed a culture of complete flexibility to suit all employees, with less focus on being present from 9-5, instead focusing on outputs and achieving results.

The importance of organisational culture on well-being
When developing resilience and well-being in the workplace it’s important to promote the correct initiatives, however if the culture of the organisation does not fully support these initiatives and employees still feel over-worked and undervalued then workplace stress will continue to be an issue. Before putting any resilience and well-being initiative in place it is important to review your current organisational culture in the context of whether it promotes or negatively affects well-being.

To begin ask yourself these key questions:
• Organisation – Does it promote a culture of health, well-being and work-life balance?
• Leaders and Managers – Are they able to identify, address and support issues employees raise regarding stress and work overload?
• Employees – How are they managing their own well-being and resilience and what more can be done?

Generally, the consensus throughout the event was that we are currently seeing a culture shift in the world of work, with people demanding flexibility and expecting a better, more flexible work-life balance, which organisations will need to provide to build resilience and safeguard well being. Initiatives such as mental health first-aiders and yoga lessons are all good, however organisations need to have the right culture in place to support this, one that is championed by all leaders throughout the business and where employees feel empowered to challenge any behaviors that negatively affect well-being.

Contact getintouch@intoo.com to request a copy of our Resilience and Well-being infographic.

Welcome to Arbora Global Career Partners

ACF Europe welcomes her new member “Arbora”. Arbora is a global outplacement, career management and leadership development organisation. Arbora has local partners in 30 countries, with offices on five continents. For 25 years Arbora has been providing outplacement, career management and leadership development services to commercial, government and charity clients. Like all ACF members, every partner is owner-managed and has to undergo a rigorous quality and capability test before being invited to join Arbora. With the arrival of  Arbora, ACF Europe has expanded her network considerably. Now, ACF quality members can be found in 35 countries worldwide.

For more information about Arbora