Netherlands in Focus
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Talent in Banking 2015 The Netherlands in Focus UK Financial Services Insight Report contents The Netherlands in Focus • Key findings • Macroeconomic and industry context • Survey findings 2 © 2015 Deloitte LLP. All rights reserved. Key findings 3 © 2015 Deloitte LLP. All rights reserved. Attracting talent is difficult for Dutch banks because they are not seen as exciting, and because of the role banks played in the financial crisis • Banking is less popular among business students in the Netherlands than in all but five other countries surveyed, and its popularity has fallen significantly since the financial crisis • Banks do not feature in the top five most popular employers of Dutch banking students; among banking-inclined students, the three largest Dutch banks are the most popular • The top career goals of Dutch banking-inclined students are ‘to be competitively or intellectually challenged’ and ‘to be a leader or manager of people’ • Dutch banking-inclined students are much less concerned with being ‘creative/innovative’ than their business school peers • Dutch banking-inclined students want ‘leadership opportunities’ and leaders who will support and inspire them, but do not expect to find these attributes in the banking sector • Investment banking-inclined students have salary expectations that are significantly higher than the business student average • Banks in the Netherlands are failing to attract female business students; this is particularly true of investment banks 4 © 2015 Deloitte LLP. All rights reserved. Macroeconomic and industry context 5 © 2015 Deloitte LLP. All rights reserved. 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 © 2015 Deloitte LLP. All rights reserved. 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 10.0% 8.0% $3,500 6.0% $3,000 4.0% $2,500 2.0% $2,000 0.0% $1,500 -2.0% $1,000 -4.0% $500 -6.0% $0 -8.0% 2008 2009 2010 2011 2012 2013 2014 Average wages (monthly, US$) Growth in average wages (US$; % annual) Note: Average wages (monthly): average gross earnings per worker per month Growth in average wages (annual): percentage change in hourly wages in US$ over previous period Figures are converted to US$ using an average exchange rate 7 Source: Economist Intelligence Unit © 2015 Deloitte LLP. All rights reserved. The banking sector continues to decline; total banking assets decreased by almost 25 per cent between 2008 and 2014 Total banking assets in billion US$ and as % of real GDP, the Netherlands, 2008-2014 $4,500 600.0% $4,000 500.0% $3,500 $3,000 400.0% $2,500 300.0% $2,000 $1,500 200.0% $1,000 100.0% $500 $0 0.0% 2008 2009 2010 2011 2012 2013 2014 Total banking assets (billion US$) Total banking assets as % of real GDP Note: Total banking assets for 2010-2014 are Economist Intelligence Unit estimates Figures are converted to US$ using an average exchange rate 8 Source: Total banking assets – Economist Intelligence Unit; GDP - OECD © 2015 Deloitte LLP. All rights reserved. Survey findings 9 © 2015 Deloitte LLP. All rights reserved. Dutch banks are unpopular relative to international peers, having suffered a dent to their credibility, and pay levels, during and after the crisis Popularity of banking as a career choice, globally, 2015 China Hong Kong Singapore UK Italy Spain Brazil Sweden Russia Switzerland India Czech… Australia Poland Middle East Norway Canada US Ireland Finland South Africa Turkey Belgium France Netherlands UAE Mexico Denmark Germany Austria 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 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”. Sector popularity is calculated as the number of times individual employers in specific industries are short-listed among the five “ideal employers.” 10 Source: Universum Talent Survey 2015; Deloitte Analysis © 2015 Deloitte LLP. All rights reserved. Banking has continued to fall in popularity since the crisis, and could soon be overtaken by transport and logistics, boosted by local hero, KLM Eight most popular industries for business students in 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% Consumer Electronics and Household Appliances 5.0% Fashion, Accessories and Luxury Goods 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 © 2015 Deloitte LLP. All rights reserved. FMCG’s top place among Dutch business students can be attributed to Heineken’s and Unilever’s popularity; Dutch airline KLM takes first place 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 © 2015 Deloitte LLP. All rights reserved. The big three Dutch banks are the most attractive employers for banking-inclined students; KLM’s popularity persists even among this group Most popular employers, Dutch banking-inclined students, 2015 Rabobank 47.0% ING Group 32.3% ABN Amro 26.7% KLM 17.5% J.P. Morgan 14.9% 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 © 2015 Deloitte LLP. All rights reserved. Dutch banking-inclined students value challenge and leadership more highly than ‘work/life balance’ and ‘job security’, the top two career goals for global peers Career goals of Dutch banking-inclined students, 2013-2015 54.4% To be competitively or intellectually challenged 55.1% 48.8% 51.1% To be a leader or manager of people 43.5% 44.8% 45.2% To have work/life balance 48.9% 44.8% 44.7% To be entrepreneurial or creative/innovative 39.3% 39.7% 2015 36.1% 2014 To have an international career 44.1% 42.4% 2013 21.8% To be secure or stable in my job 24.3% 22.1% 18.3% To be autonomous or independent 12.7% 14.3% 12.8% To be a technical or functional expert 12.1% 10.7% To be dedicated to a cause or to feel that I am serving a 12.6% 19.2% greater good 15.6% 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 © 2015 Deloitte LLP. All rights reserved. The business students being attracted to banks are much less innovative than their peers, creating a vulnerability as tech and fintech companies attack the sector Career goals of Dutch banking-inclined students vs all business students, 2015 To be competitively or intellectually challenged 45.4% 54.4% To be a leader or manager of people 47.3% 51.1% To have work/life balance 49.1% 45.2% To be entrepreneurial or creative/innovative 54.5% 44.7% To have an international career 38.9% 36.1% To be secure or stable in my job 24.6% 21.8% To be autonomous or independent 15.7% 18.3% To be a technical or functional expert 8.0% 12.8% To be dedicated to a cause or to feel that I am serving a greater good 14.2% 12.6% All business students Banking-inclined students 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. Source: Universum Talent Survey 2015; Deloitte Analysis 15 1 http://www.dutchnews.nl/news/archives/2015/06/dutch-banks-risk-being-sidelined-in-innovation-payment-traffic-chief/ © 2015 Deloitte LLP. All rights reserved. Dutch banking-inclined students aspire to, but don’t expect, ‘leadership’, ‘inspiring management’, and a good environment, and expect, but don’t aspire to, bonuses Dutch banking-inclined students' top 10 aspirations and expectations, 2015 Dutch banking-inclined students’ top 10 Dutch banking-inclined students’ top 10 aspirations, 2015 expectations, 2015 Good reference for future career 1st Financial strength 1st Challenging work 2nd Good reference for future career 2nd Leaders who will support my 3rd Challenging work 3rd development Professional training and Leadership opportunities 4th 4th development Professional training and 5th Market success 5th development Market success 6th Prestige 6th Attractive/exciting products and Recognising performance 7th 7th services (meritocracy) Interaction with international Inspiring management 8th 8th clients and colleagues A friendly work environment 9th Performance-related bonus 9th A creative and dynamic work 10th High level of responsibility 10th environment Not in top 10 expectations 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 banking-inclined students are shown in the green bars – “aspirations”.