Talent in Insurance 2015 Germany in Focus. UK Financial Services Insight

Transcription

1 Talent in Insurance 2015 Germany in Focus UK Financial Services Insight

2 Report contents Germany in Focus Macroeconomic and industry context Survey findings 2

3 Macroeconomic and industry context 3

4 The strength of Germany s economy can be seen in its declining unemployment rates, which have fallen every year since a brief post-crisis increase in 2009 Overall and youth unemployment, Germany, % 10% 5% 0% Overall Youth (Aged 15-24) 4 Source: OECD

5 Average wages are improving, with wages reaching a post-crisis peak in 2014 Growth in average real wages (US$), Germany, $4, % $3,500 $3,000 $2, % 8.0% 6.0% 4.0% $2, % $1,500 $1,000 $ % -2.0% -4.0% -6.0% $ % 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 5 Source: Economist Intelligence Unit

6 German insurance has recovered strongly since 2010; all insurance lines saw stable growth in 2014, despite the challenges posed by continuing low-interest rates 1 Total gross written premiums in millions US$ and as % of real GDP, Germany, $400, % $350, % $300,000 $250, % $200, % $150, % $100,000 $50, % $ % 6 Note: 2014 data is not available Source: OECD Gross Written Premium (millions US$) 1 Gross Written Premium as a % of real GDP

7 Survey findings 7

8 Insurance is more popular in Germany than in most EMEA countries surveyed, including France, Austria and the UK 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% 8 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

9 Insurance ranks 15 th out of 25 sectors in Germany, far behind other sectors in Germany, despite placing host to Allianz and Munich Re; car-making tops the poll Insurance and the eight most popular industries for business students, Germany, % Automobiles and Parts 20.0% Fast Moving Consumer Goods Banks 15.0% Software and computer services Management and Strategy Consulting 10.0% Transportation and Logistics Retail 5.0% Auditing and Accounting 0.0% Insurance 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. 9 Source: Universum Talent Survey 2015; Deloitte Analysis

10 Four of the top five most popular employers among German business students are car-makers; Google, the most popular employer worldwide, is the sole exception Most popular employers, German business students, 2015 BMW Group 21.3% Audi 21.1% Porsche 18.8% Google 15.9% Volkswagen 15.5% 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. 10 Source: Universum Talent Survey 2015; Deloitte Analysis

11 Insurance-inclined students are most attracted to global market leaders Allianz and Munich Re, but are also considering other sectors, including banks and car-makers Most popular employers, German insurance-inclined students, 2015 Allianz 31.4% Munich Re 20.3% Deutsche Bank 19.1% BMW Group 18.6% Professional services firm 13.6% 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. 11 Source: Universum Talent Survey 2015; Deloitte Analysis

12 Work/life balance and job security are the top career goals for insurance-inclined students. They do not view being innovative or technical expertise as important Career goals of German insurance-inclined students, % To have work-life balance 60% To be secure or stable in my job 50% To be a leader or manager of people 40% 30% To be competitively or intellectually challenged To have an international career To be autonomous or independent 20% 10% To be entrepreneurial or creative/innovative To be a technical or functional expert 0% To be dedicated to a cause or to feel that I am serving a greater good 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. 12 Source: Universum Talent Survey 2015; Deloitte Analysis

13 Insurance-inclined students neither aspire to, nor expect, innovation from the sector German insurance-inclined students' top ten aspirations and expectations, 2015 Top ten aspirations Top ten expectations Competitive base salary 1st Market success 1st Recognising performance (meritocracy) 2nd Professional training and development 2nd Financial strength 3rd Challenging work 3rd Leaders who will support my development 4th High level of responsibility 4th High future earnings 5th Interaction with international clients and colleagues 5th A friendly work environment 6th Good reference for future career 6th Good reference for future career 7th Clear path for advancement 7th Secure employment 8th Competitive base salary 8th Attractive/exciting products and services 9th Client interaction 9th Professional training and development 10th High future earnings 10th 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). 13 Source: Universum Talent Survey 2015; Deloitte Analysis

14 Insurance-inclined students expect to be paid almost 5 per cent more than their business student peers, though banking expectations are 8.5 per cent higher again Expected annual salary (EUR), German business students, 2015 Banking-inclined 48,339 Insurance-inclined 44,536 All Business 42,438 Survey question: What is your expected salary before taxes (excluding commission and bonus) at your first employment after graduation? 14 Source: Universum Talent Survey 2015; Deloitte Analysis

15 Women now account for 25 per cent of insurance management positions 2 but despite these strides, German insurers are turning off women even more than global peers Student demographics, globally, 2015 Student demographics, Germany, 2015 All business (Global) 61.1% 38.9% All business (Germany) 57.4% 42.6% 11.1% drop off 20.4% drop off Insurance-inclined (Global) 54.3% 45.7% Insurance-inclined (Germany) 45.7% 54.3% Female Male Female Male 15 Source: Universum Talent Survey 2015; Deloitte Analysis 2

16 Appendix - methodology 16

17 Appendix Methodology This report is based on the Universum Talent Survey Universum has been researching students career intentions since In , 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 to 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 ). 17

18 Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited ( DTTL ), a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see for a detailed description of the legal structure of DTTL and its member firms. Deloitte LLP is the United Kingdom member firm of DTTL. This publication has been written in general terms and therefore cannot be relied on to cover specific situations; application of the principles set out will depend upon the particular circumstances involved and we recommend that you obtain professional advice before acting or refraining from acting on any of the contents of this publication. Deloitte LLP would be pleased to advise readers on how to apply the principles set out in this publication to their specific circumstances. Deloitte LLP accepts no duty of care or liability for any loss occasioned to any person acting or refraining from action as a result of any material in this publication. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC and its registered office at 2 New Street Square, London EC4A 3BZ, United Kingdom. Tel: +44 (0) Fax: +44 (0)