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The European Company Survey: The European Company Survey: introduction and some findingsintroduction and some findings

Greet VermeylenGreet Vermeylenresearch manager Surveys and Trend Unitresearch manager Surveys and Trend Unit

Conference: how to make the working environment more human Conference: how to make the working environment more human friendly? friendly?

Slovenia, Congress Centre Brdo pri KranjuSlovenia, Congress Centre Brdo pri Kranju6 October 20116 October 2011

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ECS : two waves…ECS : two waves…• First survey in 2004/2005:

narrower focus: working time and work life balance• Second survey : flexibility practises and social dialogue in European

companies Continue building up trends from this survey

Working time flexibility in companies, background variables (HR bottlenecks, practices, performance), social dialogue

But some issues deepened, others more shallow Complemented with a wider range of flexibility practices

Contribute to flexicurity debateUnderstand which ‘package of measures’ companies chooseHow their choices are negociated/implementedDifferent forms of internal and external flexibility

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Building blocksBuilding blocks

• Competitiveness : how can companies be more competitive and adapt? Which practices + which combination?

• Flexibility & security Companies usually use a combination of different practices

Mulitple motives + potential benefits for both company and workersHow to make the win-win

Some -> give also employment security to workers:equip workers with new skills, beneficial for both current job +

longer term

• Tools to implement this at company level Change is not always easy for workers : trust is an important element Important: way these tools are discussed/negotiated etc in companies Very unique data …

-> Social dialogue

• Background variables: HR bottlenecks, performance,…

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European company survey: European company survey: mapping flexibility practicesmapping flexibility practices

Flexibility Quantitative Qualitative

External Employment status -Non permanent/non full-time contracts-> numerical/ contractual flexibility

Production system-subcontracting, outsourcing, free lancers-> productive/geographical flexibility

Internal Working hours and pay

- Changes on working time-Individualisation in pay ->Time/financial flexibility

Work organisation-teamwork, multiskilling, matrix organisation, etc ->Functional/ organisational flexibility

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Different flexiblity practices in Different flexiblity practices in companiescompanies

• How do companies select their measures: Different accents over the countries: choices embedded in labour market structure

and systems

• External flexibility : Two ways :

flexibility of the whole workforce (easy hire and fire) or for part of the workforce (through non-permanent contracts (FTC,

TAW)Risk of labour market segmentation try to see whether this could be a stepping stone

» how many people get a permanent contract?• Internal flexibility

Two ways: working time (working time arrangements) functional flexibility (work organisation)

Equip workers to work more flexibly andto deal with changes (employment security)

• Important to make transitions possible

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Different flexibility practices in our survey Different flexibility practices in our survey

• Working time flexibility practices: From flexi-time to working time accounts

Overtime

Working at unusual hours

Part time work

• Organisational practices: Team work, in particular autonomous team work

Training: checking training needs for different categories of workers + provision of

training

• Contractual flexibility & recruitment strategies: Non permanent contracts: fixed term contracts, temporary agency workers + possibilities

to stay afterwards / free lancers

• Variable pay (individual and group performance based pay) and financial participation (profit sharing and share ownership schemes)

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MethodologyMethodology

• Unit of enquiry : establishments 10+ without agriculture, fishing and private households

• Management interview : the most senior person at the establishments level responsible for HR management

27,160 interviews of 20 minutes

• Employee representative : interview after that of the management, pref. the chair person, secretary or spoke person of the relevant structure representing the interests of the workers

6,569 interviews of 15 minutes

• Phone (CATI) interviews in 27,160 establishments

• 38 language versions

• Fieldwork in spring 2009: undertaken by TNS Infratest / TNS Opinion

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Different forms of flexi-time used in more than half of Different forms of flexi-time used in more than half of the establishments with more than 10 employeesthe establishments with more than 10 employees

0

10

20

30

40

50

60

70

80

90

100

% o

f es

tab

lish

men

ts

Possibility to vary start and end of daily work, but no accumulation of hours

Possiblility to accumulate hours, but no compensation by full days off

Possibility to use accumulated hours also for full days off

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Long term time savings accounts remain an exception Long term time savings accounts remain an exception

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2/3 of establishments are using overtime2/3 of establishments are using overtime

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In countries where part-time is more frequent, more In countries where part-time is more frequent, more workers per establishments are part-timers workers per establishments are part-timers

( more than a tautology)( more than a tautology)

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Yet, the proportion of managerial/highly qualified Yet, the proportion of managerial/highly qualified staff who are part-timers remain limited staff who are part-timers remain limited

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Working time at unsual hoursWorking time at unsual hours

• Working at nights, weekend, shifts• Commonly used for companies to extend running hours,

have longer working hours , cope with high workload variations Stays very stable over time, slight increase in Saturday work In most countries: Sunday and night work is concentrated on

sectors whcih by nature need a 24 hr service (medical services, public transport,energy)

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HR practises:HR practises:Contractual flexibilityContractual flexibility

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Establishments with any temporary contractEstablishments with any temporary contract

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Transition from fixed term contracts into Transition from fixed term contracts into permanent employment ? permanent employment ?

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Functional flexibilityFunctional flexibility

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Team work in Europe Team work in Europe

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Training needs are periodically checked in Training needs are periodically checked in more than 7 out of 10 establishments more than 7 out of 10 establishments

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Training needs checked for different groups of Training needs checked for different groups of workersworkers

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Variable pay and Variable pay and financial participationfinancial participation

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Types of variable pay covered by the ECSTypes of variable pay covered by the ECS

Variable pay elements(in addition to normal remuneration)

Pay elements related to employee performance

Profit sharing schemes

Share ownership schemes

Individual performance

Team, group, department performance

• Set targets or MM appraisal• E.g.: piecerates, commission pay• Independent of company profit

Share purchase schemes

Bonus sharing schemes

• Directly or indirectly linked to financial results/profit of the company „Financial participation“

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How many companies have variable pay?How many companies have variable pay?

9

Pay elements related to indiv. or group performance

0

5

10

15

20

25

30

35

40

45

50

55

60

65

70

CZ SI

SK FI

PL

RO

DK

DE

BG

ES

LU

UK

MK

LT

MT

PT

NL IE EL IT CY

AT

FR

EE

BE

HU

TR

HR

LV

SE

Individual

Group/Team/Department

EU-27

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How many companies have profit sharing?How many companies have profit sharing?

10

0%

5%

10%

15%

20%

25%

30%

35%

40%

FR

NL

SE FI

EE

CZ

ES

SK

PT

MK

BE

DK

DE SI

HU IE LV

BG

LU LT

AT

UK

PL

RO

CY

HR

TR

EL

MT IT

Schemes accessible to specific groups only(narrow-based schemesSchemes accessible to all employees(broad-based schemes)

Application of profit sharing schemes in private establishments (10+)

EU-27

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In which companies do we find profit In which companies do we find profit sharing? sharing?

12

Profit sharing schemes in private establishments, by sector

0 5 10 15 20 25

Health

Education

Other Services

Construction

Transport & Communication

Manufacturing & Energy

All sectors

Hotels & Restaurants

Wholesale & Retail Trade

Real Estate & Business Activities

Financial Intermediation

Broad-based schemes (accessible to all)

Narrow-based schemes (accessible to specific groups only)

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And share ownership?And share ownership?

13

0%

2%

4%

6%

8%

10%

12%

14%

DK

BE

RO

SE

BG S

I

IE UK

FR

NL FI

MK

TR IT

CY

LV

LU

HU

PL

HR

DE

EE

ES LT

MT

EL

AT

SK

CZ

Narrow-based schemes

Broad-based schemes

Share ownership schemes in private establishments

EU-27

Average by size-classes:10 -49 empl.: 5%50-199 empl.: 7%200+ empl.: 13%

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And the motivesAnd the motives

16

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Increaseproductivity

Increase staffmotivation

Attract and keepwell qualified

staff

Increaseemployee

involvement inprocess and

productimprovements

Reduction ofwage costs intimes of low

order volume

Other reasons

A large role Some role Hardly any role DK/NA

Motives for the application of profit sharing schemes

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Social dialogueSocial dialogue

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social dialogue in the ECSsocial dialogue in the ECS

Management interview + Employee representative interview (works councils, trade unions)

Analysing processes of information + consultation + collective bargaining at the workplace Involvement of employees in decision making Resources of employee representatives

-> workplace social dialogue in Europe

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Robust social dialogue…Robust social dialogue…

• Pay for most workers set by negotiation• Most workers covered by independent “institutionalised”

representation• Significant involvement and influence of employee representation• Climate of cooperation generally good• 70% of managers are generally positive about the effect of social

dialogue at the workplace• 70% of managers believe that consulting the employee

representatives leads to more commitment of staff to implement changes

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Resources are keyResources are key

Information provision• 85% receive information on financial, economic and

employment situation at least once a year • 67% say information is usually timely and unrequested• Difficulties with information provision in small establishments

and in parts of Southern EuropeTime facilities• 74% say to have sufficient paid time off• Better time facilities in medium and large enterprises Training• 72% get regular training in role

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Influence in organisational areasInfluence in organisational areas

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Health and safety matters

Changes in working time regulations

Disciplinary or hierarchical problems

Changes in the organisation of workprocesses or workflow

Equal opportunities and diversitymanagement

Determination of pay

Structural changes such asrestructurings, relocations or takeovers

Career management (selection,appraisal, training)

Employment and HR planning

Very weak Quite weak Quite strong Very StrongSource: ECS 2009, employee representatives

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Challenges for the future Challenges for the future

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Human resources challenges for the future Human resources challenges for the future

0

20

40

60

80

100

120

140

160

180

CY LU BG BE MT HR DE DK FR FI CZ HU AT NLEU

27Al

l 30 EE EL MK PL SE TR SK IT PT RO SI LV ES LT UK IE

difficulties finding staff for skilled jobs difficulties finding staff for low-skilled/unskilled jobs

difficulties retaining staff need to reduce staff levels

low motivation of staff

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Flexibility practices in a win-win?Flexibility practices in a win-win?

• Flexibility practices are widespread Growing working time flexibility First HR worry – even in crisis – is to find skilled staff Investment in work force pays … Companies are trying different approaches to deal with change / to get out of the crisis

• Combinations matter Not just more or less flexibility: it is how you combine + implement Some lead more to win-win, others driven more by one or the other group short versus long term vision … towards a more sustainable work organisation

More in 3rd ECS on functional flexibility, work organisation, employee participation, workplace innovation and social dialogue

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Thank you Thank you

More info :

http://www.eurofound.europa.eu/surveys/companysurvey/2009/index.htm

Have also a look at the survey map tool

Overview report / summary

Data wavailable via Essex Data Archive

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Establishments with workforce growth Establishments with workforce growth

(over the previous 3 years) by country (over the previous 3 years) by country 2005-2008 (%)2005-2008 (%)

Source: ECS 2009 and ESWT 2005