ups europe business monitor
TRANSCRIPT
UPS EUROPE BUSINESS MONITOR
EXECUTIVE SUMMARY XIII
2 Foreword
Notes on the research
3 Main findings4 Business climate across Europe5 Is the economic position of your
company better, worse or about thesame as it was 12 months ago?
6 Twelve months from now, do you thinkthe economic position of your companywill be better, worse or about the sameas it is now?
7 Over the next 12 months, does yourcompany plan to increase its workforce,reduce its workforce or will it remainabout the same as it is now?
8 Which budgets are most likely to be cutfirst if your company profits drop?
9 Has your business been affected by the conflict in Iraq in any of the following ways?
10 Prospects for European business11 In the next three years, which Western
European countries do you think willshow strongest economic growth?
12 When, if at all, do you think that theeuro will displace the US dollar as the most important internationalreserve currency?
13 Which global area do you consider tobe your country’s most importantbusiness partner over the next five years?
14 Which industry sectors do you believewill be the engine of your country’seconomy within the next five years?
15 Of the next ten countries to join the EUwhich one will offer the best potentialfor your business?
16 European business perspectives17 Within the first year of accession of the
next ten EU members, which factorswill offer the biggest benefits for your company?
18 What will be the biggest challenges foryour company, when the EU enlarges toinclude the next ten members?
19 When do you think your company willsee benefits from the upcoming roundof EU enlargement?
20 Should the EU expand beyond the ten new members, and if so, whichcountries should be included?
21 How should the EU set its priorities afterEU enlargement?
22 In which ways, if any, should the EUreform its legislative processes?
23 Business practices24 Which of the following work practices
are prevalent in your company?
27 If your company has a Corporate SocialResponsibility (CSR) policy, which ofthese does your company do?
28 Which of the following employeebenefits do you think give the bestoverall return for businesses in terms of recruitment and retention?
29 What are the least pleasant aspects of your job?
30 What two pieces of advice would youmost likely give to students to preparethemselves for their future career?
31 Executive insight32 Have you cut back on your personal
spending in any of the following areasdue to the current economic situation?
33 Has your attitude towards theprioritisation of work and private life changed during the course of your career?
34 What is your favourite food?
35 Thinking about when you were eight years old, what did you aspire to become?
36 Contact details
1
Contents
2
Foreword
UPS annually commissions the UPS EuropeBusiness Monitor survey to provide the latestinsight into the changing opinions, attitudes andhabits of European business leaders. The BusinessMonitor offers a barometer of opinion founded onour respondents’ extensive experience in the worldof industry and commerce.
The UPS Europe Business Monitor aims to provideUPS and its customers with a better understandingof the issues driving business decisions in Europeand the world.
This thirteenth edition of the UPS Europe BusinessMonitor once again considers some key issuesfacing business leaders: the business climate acrossEurope, economic and employment forecasts forWestern European companies and prospects forEuropean business. In addition, and with theimminent enlargement of the European Union, weasked business leaders about the new memberstates, the benefits and challenges they will bring
to business and whether enlargement should continue beyond the next round. Finally, we tookthe opportunity to ask respondents about theirworking habits and predictions for Europeanbusiness practices.
To make the research more accessible internationally,this edition and all previous years’ results of theUPS Europe Business Monitor will be available on aspecially created website at www.ebm.ups.comfrom January 2004.
A note on the researchThe thirteenth edition of the UPS Europe BusinessMonitor surveyed 1,453 business leaders fromEurope’s top 15,000 companies by revenuebetween September 23rd and November 10th2003. This survey takes place annually.
Interviews were conducted in the followingcountries: Belgium (101), France (250), Germany(250), Italy (250), the Netherlands (100), Spain(251) and the UK (251). Respondents are atdirector level. The average annual revenue of thebusinesses interviewed is 1.45 billion euro; theiraverage employee size is 3,400. Interviews wereconducted by independent global market researchorganisation, TNS, using the respondents’ nativelanguage from the TNS International TelephoneUnit in London, UK.
Graphics shown are abstracts of key findings fromthe full survey results. Figures may total less than100 per cent where only partial data are shown ormore than 100 per cent where more than oneresponse was allowed.
This year we see an encouraging revival in theproportion of European companies reportingimproved corporate performance over the previous12 months. Their outlook for the next 12 months iseven more positive. However, workforce forecastsremain gloomy, with more jobs likely to be cutthan added.
Business leaders report little effect of the Iraqconflict on their business, nor a need to curbpersonal spending. However, they warn that HRand Training budgets could be most at risk if profitsdrop, and reveal the industry sectors predicted todrive their nation’s future economy. Overall,European executives’ opinions are still split onwhether the euro or US dollar will dominate as thepremier global reserve currency. Interestingly,business leaders in the UK now believe in the euro,whereas their colleagues in Germany, Italy and theNetherlands support the dollar – a dramaticturnaround from previous years.
EU enlargement is expected to dominate theEuropean political agenda in the coming months,and the survey focuses on the impact this will haveon business. Of the ten new member states, Polandis clearly in pole position to offer best businesspotential. However, over a quarter of surveyrespondents foresee no business gain from anynew members and, significantly, over half want nofurther enlargement of their club. Benefits are notlikely to be immediate, but will include a widerinternal market and simplified procedures andstandards – though not without a price. Meanwhilebusiness tells the EU to focus on harmonising taxesand abolishing the right to veto.
The survey further reveals which working practicesare now prevalent in companies; five years afterthese were first predicted. Flexitime is nowmainstream, and many companies offer a non-smoking environment and follow a CSR policy orpractice. However, childcare facilities remain
scarce. Despite shaky stock performances in recentyears, executives still rate company pensions askey to enticing and retaining their staff the best.
Today’s top executives least like long hours andtedious meetings, and many admit they have notbeen able to change their work/life balance. Theiradvice to get to the top is to learn languages andbe mobile. They share similar childhood aspirationsto compete and fly, yet their cultural differencesshow clearly through their favourite dishes, wherethey conservatively stick to their national cuisine.
3
Main findings
4
Business climate across Europe
Upturn in European corporate performance overpast yearMore companies now think things have improvedover the past year, compared to those thinkingthings have got worse. The reported net differencebetween better and worse – which had fallendramatically to zero in 2001 and had remained low in 2002 – has now revived as corporateperformance improves among Europe’s majorcompanies.
Most countries show a strong and positive upturn,though France and the Netherlands are alone witha balance tipped towards a negative performanceoutlook. However, Spain and the UK in particularhave shown strong improvement in their corporateposition, the former retaining its top spot in Europefor the third consecutive year and the latterenjoying a marked revival over the past two yearsfrom a position of negativity in 2001.
Corporate optimism continues to rise across EuropeIn line with better overall corporate performance,not surprisingly, European business leaders havecontinued their increased optimism aboutprospects for the next 12 months. This optimismhas bounced back to reach levels regularlypredicted in UPS Europe Business Monitors duringthe mid-nineties. Business leaders in the UK againreport the highest optimism, followed by those inGermany and Spain. In comparison, executives inFrance remain most cautious, reflecting lowcorporate performance.
More firing than hiring, despite betterperformance and higher optimismDespite more companies reporting a betterperformance and much greater optimism for theirfuture economic position, workforce predictionsoverall for the next 12 months have remained asbleak as they were last year. The message is
potentially one of increased job losses acrossEurope among these large companies, repeatingthe gloomy news for the third year running,especially for businesses in Belgium, Germany andthe Netherlands. However, business leaders inSpain are alone to forecast slightly more recruitmentthan job cuts, and job losses in the UK may at leastbe stemmed.
Business little affected by Iraq conflict, yetHuman Resources, Training and Marketing onthe line if company profits dropAlthough some companies have cut businesstravel, most claim not to have been affected by the recent conflict in Iraq. However, companiesfaced with a squeeze in their profits report that HR, Training and Marketing budgets are most likelyto be on the line, and even senior managers arenot safe from cost-cutting measures. Customerservice departments, nonetheless, remain out ofthe firing range.
5Full results and historical data are available online atwww.ebm.ups.com
Is the economic position ofyour company better, worse or about the same as it was 12 months ago?
European businesses report anupturn
Spanish and UK companiesprosper most
French corporate fortunes slumpfurther, German companiesbounce back
•
•
•
C O U N T R I E S S U R V E Y E D %
Total Belgium Germany Spain France Italy UnitedKingdom
Netherlands
Business climate across Europe
57
33 32
40
52
24
36
41
50
28
21
30
57
4240
53
60
2628
26
67
43
36
43
52
29 2926
54
3035
51
13
44
0 2
17
36
20
6
20
36
8
15
6
46
21
16
40
50
73
10
60
16
8
20
32
6 7 7
34
11
8
35
3330
23
16
44
30
21
14
36 36
24
11
2124
1310
3331
36
7
27 28
2320
35 3633
20
41
27
16
Better 2000
Better 2001
Better 2002
Better 2003
Worse 2000
Worse 2001
Worse 2002
Worse 2003
Net (Better minus Worse)
Twelve months from now, doyou think the economicposition of your company willbe better, worse or about thesame as it is now?
Corporate optimism continues torise across Europe
UK, Spain and Germany showmost buoyant forecast
France remains most cautious,reflecting its low corporateperformance
•
•
•
C O U N T R I E S S U R V E Y E D %Full results and historical data are available online atwww.ebm.ups.com
Total Belgium Germany Spain France Italy UnitedKingdom
Netherlands
Business climate across Europe
6
57
44
50
59
48
39
49
5955
38
51
62
56
45
51
65
42
3735
42
70
49
58 60
71
4246
57
62
5658
68
7
15
97
12
20
1410
5
19
75
911
6 69
20
15
9
4
12
7 6 7
19
1210
68
64
50
29
41
52
36
19
35
49 50
19
44
57
47
34
45
59
33
1720
33
66
37
5154
64
23
34
47
56
4852
64
Better 2000
Better 2001
Better 2002
Better 2003
Worse 2000
Worse 2001
Worse 2002
Worse 2003
Net (Better minus Worse)
7Full results and historical data are available online atwww.ebm.ups.com
Over the next 12 months, doesyour company plan to increaseits workforce, reduce itsworkforce or will it remainabout the same as it is now?
In light of improved performanceand buoyant optimism, jobprospects still look gloomy
Almost one third of companiesforecast to cut staff
Again, only in Spain companiesare planning overall job increases
•
•
•
C O U N T R I E S S U R V E Y E D %
Total Belgium Germany Spain France Italy UnitedKingdom
Netherlands
19
30 29 28
21
3942 41
26
40
3539
12
2017 17 16
29 30 29
13
2023
25
19
34
39
33
25
3632
24
17
1210 8
15
22
32
23
5
22 23 23
29
6
119
19
16
11 12
23
2 35
29
15 15
19
6
21
13
2
36
18 19 20
36
17
10
18
31
18
1216
41
2628
26
35
13
1917
36
1820 20
48
19
24
14
31
15
1922
Business climate across Europe
Increase 2000
Increase 2001
Increase 2002
Increase 2003
Decrease 2000
Decrease 2001
Decrease 2002
Decrease 2003
Net (Increase minus Decrease)
8
Which budgets are most likelyto be cut first if your companyprofits drop?
Two-fifths would axe HR andTraining if the going gets tough
Senior management budgetswould feel a pinch if faced with a squeeze
The customer is king; customerservice is non-negotiable
•
•
•
B U D G E T S M E N T I O N E D %Full results and historical data are available online atwww.ebm.ups.com
A B C D E F HG
Business climate across Europe
A
B
C
D
E
F
G
H
40
36
25
23 23
21
18
6
Human Resources andTraining
Marketing
Operations
Transport and Logistics
Senior Management
Research and Development
IT and Systems
Customer ServiceDepartments
9
Has your business beenaffected by the conflict in Iraqin any of the following ways?
Despite the conflict with Iraq, it isbusiness as usual across Europe’stop companies
Only one-fifth of business leaderssay customer orders have beenreduced
A quarter of companies have cutback on international travel
•
•
•
E F F E C T S M E N T I O N E D %Full results and historical data are available online atwww.ebm.ups.com
A B C D E F HG
Business climate across Europe
54
24
1918
10
6 54
A
B
C
D
E
F
G
H
Business not affected by the conflict
Reduction in business travel
Decrease in customer orders
Increased expenditure onsecurity measures
Cutback of expenditure inother areas of business
Reduced staff presence in Middle East
Lower branding profile in Middle East
Cut back in staff
10
Prospects for European business
Spain again predicted to show strongest economic growthThis year the consensus among European businessleaders is that Spain is again most likely to showstrongest economic growth over the next threeyears. The UK, German and French economiesfollow. Spanish and UK executives continue toshow strong confidence in their own economies,while German and French business leaders havelost their self-belief.
Will the euro or dollar dominate as premierglobal currency?The prediction on the euro’s ability to displace theUS dollar as the most important internationalreserve currency is still undecided, as opinion inEurope is more or less split down the middle.However, remarkably, the UK has become far lesseuro-sceptic and more than half of its businessleaders now support the euro, whereas more thanhalf in Germany, Italy and the Netherlands nowside with the US dollar.
ITT predicted to be main driver of Europeaneconomies Overall, information technology and telecoms (ITT)is forecast to be the most influential sector acrossEuropean economies over the next five years,though differences between the European nationsare notable. The automotive industry is predicted todrive the German economy, the UK will rely on thefinancial and insurance sector and Spain will buildon tourism and construction. France will be mostwired into ITT, the Netherlands will rely on bothmanufacturing and finance and Belgium will bedriven by both pharmaceuticals and ITT. In Italy, acombination of sectors will prove the driving forcefor their economy.
Europe will be best regional partner for futurebusiness and Poland offers best potential amongnew EU membersWhen asked which global area business leadersconsider to be their country’s most importantbusiness partner over the next five years, almosttwo-fifths opt for Western Europe and a further fifthidentify the former Eastern European countries.Business leaders in Belgium, Spain, France, theNetherlands and the UK all agree that WesternEurope will be their country’s most importantbusiness partner. Senior executives in Germany andItaly, however, look beyond Western Europe toChina and Eastern Europe for partnership. Inaddition, Poland is undeniably the most attractivenew EU member for European companies, though aquarter see little business potential in any of thenew EU member states.
11
54
48
5153
22
29
3334
49
2930 31
38
3432
2523
22
1716
18
14 13 13 13
1012 11
13
1011
5
In the next three years, whichWestern European countries doyou think will show strongesteconomic growth?
Spain once again crowned asWestern Europe’s biggest growthprospect
Confidence in France drops asGermany moves up to third place
UK shows steady rise •
•
•
C O U N T R I E S M E N T I O N E D %Full results and historical data are available online atwww.ebm.ups.com
Spain UnitedKingdom
Germany France Italy Portugal NetherlandsIreland
Prospects for European business
2000
2001
2002
2003
12Full results and historical data are available online atwww.ebm.ups.com
When, if at all, do you thinkthat the euro will displace theUS dollar as the mostimportant internationalreserve currency?
Opinion still split on whether theeuro or dollar will dominate
British companies are now fallingfor the euro
Business leaders in Germany, Italyand the Netherlands back thedollar as premier global currency
•
•
•
C O U N T R I E S S U R V E Y E D %
Total Belgium Germany Spain France Italy UnitedKingdom
Netherlands
Prospects for European business
1999
2000
2001
2003
1-2 years
3-5 years
6-10 years
11-20 years
20+ years
Never
7 9 13 1611 12
1312
20 1314 12
16
99 8
2
22 2
41
5045 47
10 716
2810 15
12
1326 26 11
13
177
8
1
26
61
30
3744 43
5 8 9 1011 9 8 10
17 12 14 8
13
68
6
2
12
1
50
6156
64
10 9 1118
10 15 1411
26 14 1514
19
1013
14
1
1
4 2
33
4340
37
8 1218 16
18 14
19 18
2111
1915
18
11
11
6
3
2
0
1
28
43
27
37
5 7 11 79
13 1110
25 16 18
12
2116 12
11
4
3 4
2
3541 42
54
1016 16 21
14
18 18 12
218 6 6
158
4 3
15
2 2
3842
5053
6 10 13218
612
12
10 9
11
14
8 2
5
9
1 0
1
2
6671
57
39
13
37
20 20
8
6
4
2
Which global area do youconsider to be your country’smost important businesspartner over the next fiveyears?
Western European companiespredict their country will lookclose to home for future business
Business leaders start to focustheir sights on links with EasternEurope
A third of German and Italiancompanies pin their hopes onChina
•
•
•
A R EA S M E N T I O N E D %Full results and historical data are available online atwww.ebm.ups.com
A B C D E F G
Prospects for European business
A
B
C
D
E
F
G
Western Europe
Eastern Europe, includingthe new EU member states
China
North America
Asia-Pacific
Central and South America
Africa and Middle East
14Full results and historical data are available online atwww.ebm.ups.com
Which industry sectors do youbelieve will be the engine ofyour country’s economy withinthe next five years?
ITT predicted to be main drivingforce for European economies
The Automotive sector will steerthe German economy
Finance and Insurance believed toaccelerate UK business
•
•
•
C O U N T R I E S S U R V E Y E D %
Prospects for European business
A 33 43 38 20 44 28 38 28
B 20 28 5 3 22 5 44 53
C 17 6 2 35 19 28 2 12
D 17 2 60 17 13 8 1 0
E 16 5 19 14 6 24 43 11
F 16 43 29 4 18 4 28 8
G 14 20 6 4 26 11 14 22
H 13 14 8 23 15 12 23 3
I 13 12 6 4 13 25 24 11
J 11 4 4 36 6 13 2 5
K 9 5 2 5 25 13 4 4
L 6 20 3 3 7 6 14 4
A
B
C
D
E
F
G
H
I
J
K
L
Information technologyand telecoms (ITT)
Financial and insurance
Leisure services/tourism
Automotive
General industrials
Chemicals/pharmaceuticals/biotech
Media and businessservices
Utilities, energy and rawmaterials
Consumer goods(household and textiles)
Building/construction
Consumer staples (farming,food and beverages)
Transport and logistics
Total Belgium Germany Spain France Italy NetherlandsUnited
Kingdom
Total Belgium Germany Spain France Italy Netherlands UnitedKingdom
15Full results and historical data are available online atwww.ebm.ups.com
Of the next ten countries tojoin the EU which one willoffer the best potential foryour business?
Poland is considered the leadinglight for business potential
However, over a quarter ofexecutives believe the new EUmember states will have little tooffer business
•
•
C O U N T R I E S M E N T I O N E D %
A B C D E F H I J KG
44
9
5
1 1 10 0 0 0
27
Prospects for European business
A
B
C
D
E
F
G
H
I
J
K
Poland
Czech Republic
Hungary
Slovenia
Lithuania
Slovakia
Estonia
Cyprus
Malta
Latvia
None of them
16
European business perspectives
Businesses look forward to EU enlargement forwider internal market and simpler regulations,but fear lack of standardisation in new EUmarketsAsked about the biggest benefits and challenges totheir companies when the EU expands to include afurther ten members, respondents expressed asmany hopes as fears. While the expansion of theEU offers a wider internal market and will simplifyadministrative procedures and standards with newmember states, it is the initial lack ofharmonisation in these areas that will provide thegreatest challenge when borders are opened up.Companies will perhaps need to accept theseshort-term challenges to achieve longer-term gains.Likewise, over a quarter look forward to cheaperlabour costs, but a third acknowledge that this mayin return threaten their competitiveness, thoughsome executives recognise benefits in the widerskills base and employment market that EUexpansion will offer. Benefits are not likely to be
reaped immediately; many foresee a wait of atleast a year after accession before seeing any andsome expect none for at least five years or more.
Cautious response to further expansion beyondthe ten accession membersWhile around a quarter of executives foresee nobenefits to their company from the upcominground of EU enlargement, even more are scepticalabout the EU opening its membership club further.Over half of Europe’s business leaders feel thereshould be no more members beyond the tenaccession countries; senior executives in Franceand Germany are most resistant to furtherexpansion. Where new countries are mentioned,none received more than 12% of mentions andfew see further enlargement as an EU priority.
Businesses tell EU to prioritise taxharmonisation and abolish the veto Companies want the EU to harmonise internalmarket taxation, complete the internal market andgain full compliance with existing EU regulations.There is a preference to see the EU prioritise acommon foreign and defence policy and reform theCAP (Common Agricultural Policy), rather thanfurther expand EU membership. In particular,Belgium and the Netherlands would like to see theEU tackle compliance and the UK wants to push areform of CAP. In terms of prioritising the EU’s owninternal reform, nearly half of the business leaderswant to abolish the veto (unanimity voting) andgive more power to the European Commission.Executives in Spain, Italy and the Netherlands arekeen to empower the Commission, a conceptforeign to most UK business leaders who feel thatmember states should be given more power.
17
Within the first year ofaccession of the next ten EUmembers, which factors willoffer the biggest benefits foryour company?
Overall, half cite a larger internalmarket as a major plus point of EUenlargement
Business leaders in France andItaly are looking forward tosimplified procedures
Removal of border controls alsolikely to benefit business
•
•
•
C O U N T R I E S S U R V E Y E D %Full results and historical data are available online atwww.ebm.ups.com
Total Belgium Germany Spain France Italy Netherlands UnitedKingdom
European business perspectives
Larger internal market
Simplified administrativeprocedures and standardswith new member states
Removal of border controls
Lower labour costs
Cheaper source of rawmaterials
Wider employment marketand skills base
49
42
31
27
17 17
60
45
21
25
1211
62
45
3232
1416
48
3128
2221
13
49
54
26
31
1916
36
4745
47
22
17
22
36
2221
1113
46
33
29 29
2123
18Full results and historical data are available online atwww.ebm.ups.com
What will be the biggestchallenges for your company,when the EU enlarges toinclude the next ten members?
Two-fifths of business leadersanticipate standardisationproblems across EU memberstates
One-third fear the effect of lowerlabour costs
A quarter think EU enlargementmay weaken their country’seconomy
•
•
•
C H A L L E N G E S M E N T I O N E D %
A B C D E F HG
European business perspectives
40
3332
25
20
16
14 14
A
B
C
D
E
F
G
H
Lack of harmonisation ofstandards and regulationsacross new member states
Threat to competitivenessfrom lower labour costs innew member states
Finding compatiblebusiness partner
May weaken own countryeconomy
Language barriers
Setting up shop
Threat of decreasedsecurity/increased crime
Recruitment of qualifiedpersonnel
19
When do you think yourcompany will see benefitsfrom the upcoming round of EUenlargement?
Immediate benefits not expected
One in ten foresees no benefitin expansion
••
C O U N T R I E S S U R V E Y E D %Full results and historical data are available online atwww.ebm.ups.com
Total Belgium Germany Spain France Italy UnitedKingdom
Netherlands
European business perspectives
1727
20
1124
15
18 13
3
4
4 4
3
4
22
11
11
17
10
8
10
98
38
36 43
43
30
35
45
37
1210 6
10 12
19
8
17
6 2 38 5
104 7
10 96
1014
6
1114
Already do
Between now and accession
Within a year afteraccession
1-5 years after accession
6-10 years after accession
Not for at least 10 yearsafter accession
Never
20Full results and historical data are available online atwww.ebm.ups.com
Should the EU expand beyondthe ten new members, and ifso, which countries should beincluded?
Big may not be beautiful; majorityagree expansion of the EU shouldnow stop
Russia named despite not being inthe running for EU entry
Business leaders in Germany andFrance feel the strongest aboutshutting the door to any moremembers
The Netherlands would keep thedoor ajar
•
•
•
•
C O U N T R I E S M E N T I O N E D %
A B C D E F H I JG
European business perspectives
12 11
6 6 6 54 4 4
57 A
B
C
D
E
F
G
H
I
J
Russia
Turkey
Romania
Switzerland
Bulgaria
Croatia
Ukraine
Norway
Belarus
No new members
The following countriesscored three per cent orless: Albania, Serbia-Montenegro, Moldova,FYROM (Macedonia)
21
How should the EU set itspriorities after enlargement?
Harmonising internal markettaxation is voted EU number one priority
Just under half also see fullcompliance of EU regulations as a must
Over half of business leaders inGermany and France want todevelop a common foreign anddefence policy
British business leaders plead toreform CAP
•
•
•
•
C O U N T R I E S S U R V E Y E D %Full results and historical data are available online atwww.ebm.ups.com
Total Belgium Germany Spain France Italy Netherlands UnitedKingdom
European business perspectivesHarmonise internal markettaxation
Complete internal market inten new member states
Full compliance with existingEU regulations from allmember states
Develop a common foreignand defence policy
Reform Common AgriculturalPolicy (CAP)
Extend EU membershipbeyond the next tenprospective members
59
4645
3939
10
61
31
67
25
34
5
69
56
31
52
48
5
59
45
373639
15
70
47
5253
28
6
68
4646 46
1613
4239
49
15
44
4
35
4750
25
65
14
22Full results and historical data are available online atwww.ebm.ups.com
In which ways, if any, shouldthe EU reform its legislativeprocesses?
Abolishing the veto is mostwanted reform
Two-fifths of executives believe inempowering the EuropeanCommission; Italian businessleaders want this the most
But British leaders plead for morepower to member states
•
•
•
C O U N T R I E S S U R V E Y E D %
Total Belgium Germany Spain France Italy UnitedKingdom
Netherlands
European business perspectives
46
40
35 35
29
53 52
36
32
13
66
36
44
38
30
35
50
20
44
20
55
3335
39
28
50
61
32 32
12
31
39
32
29
22
25
13
48
27
63
Abolish unanimity voting(veto)
Increased power to theEuropean Commission
Reduction of number ofworking languages
Equal power to theParliament and Council ofMinisters for all legislation
Increased power to themember states
European offices become smokeless and flexibleToday, three-quarters of all companies in Europeprovide a smokeless environment. Almost all UKcompanies are now non-smoking, but this is not as widespread among businesses in Spain andGermany, where only a little over half have smoke-free zones in the workplace and the latterseems unlikely to be smoke-free within the nextfive years.
Europe’s business leaders are proving to be evenmore flexible than they thought, with predictionsfor flexitime underestimated by most five yearsago. Now, flexitime is offered by a large majority ofEurope’s top companies and others expect that theywill introduce flexitime within the next five years.
Dressing down to do a five-day week It seems European business is getting more relaxed.Twice as many companies have dress-down daysthan was predicted in 1998, with almost halfsaying they have a casual-dress-day policy today.
UK business leaders had anticipated that moreinformal clothes would slip into their wardrobes;the Spanish had made the most cautiousprediction, with only five per cent expecting to‘dress down’. Today, half of Spanish businessleaders admit to having changed their habits andslipping into something more casual to do business.
And, predictions for a four-day workweek werespot on. It would seem European businesses stillneed a five-day week to get things done, and aclear majority do not envisage ever being able tohave a long weekend – most significantly amongbusiness leaders in Spain and Italy where a four-day workweek is not in their sights.
Take a break to look after your children Asked for the first time whether sabbaticals arecommon in their business practice, Europeancompanies are split on whether a break frombusiness is a good or bad thing.
Around a half of French and Belgian companiesallow employees to take time out. However, in Spain and Italy it is a different story, with lessthan one in ten seeing the benefits of allowing alonger break.
Surprisingly, childcare facilities are still notrecognised today as significant by business, with1998 predictions holding true. Only the Dutchregard childcare provision as essential – the rest of Europe’s workers have to look outside theworkplace. Nonetheless, the forecast for the futurelooks a little more child-friendly.
23
Business practices
24Full results and historical data are available online atwww.ebm.ups.com
Which of the following workpractices are prevalent in yourcompany?
Offering a smokeless environmentand flexitime hours aremainstream
However, dressing down andsharing jobs are morepopular than expected
Childcare facilities still given lowpriority
•
•
•
P R A C T I C E S M E N T I O N E D %
Non-smokingenvironment*
Flexitime Casual-dressday
Job-sharing Home-working
Sabbaticals 4-day week Childcarefacilities
Hot-desking
Business practices
***
74
14
11
61
73
13
13
22
46
11
42
30
43
17
38
27 26
24
47
***
25
11
62
2724
15
59
2017
14
67
12 11
21
65
1998 prediction**
Prevalent now
Not now, but in five yearstime
Not within five years
* Except for designatedsmoking areas
** In 1998, respondents wereasked what would beprevalent in five years’time
*** Not asked in 1998
25Full results and historical data are available online atwww.ebm.ups.com
Which of the following workpractices are prevalent in yourcompany?
German and Spanish mosttolerant of smokers, UK least
UK slower to take up flexitimeethos
Belgian and French executives getrefreshed with a sabbatical
Only Dutch nurture childcareprovision
•
•
•
•
C O U N T R I E S S U R V E Y E D %
Business practices
74 85 54 56 86 70 82 96
73 81 98 65 78 70 72 48
46 45 50 50 40 25 47 63
43 68 56 18 43 43 58 37
26 35 47 10 15 7 37 46
25 47 26 4 55 2 24 29
24 30 19 7 33 8 33 49
17 34 24 2 25 2 40 16
11 8 15 2 4 8 47 12
*** *** *** *** *** *** *** ***
61 56 84 50 51 58 64 60
22 22 19 5 19 9 18 60
30 44 29 12 42 22 38 32
27 30 34 13 10 23 29 53
*** *** *** *** *** *** *** ***
27 30 13 26 30 22 22 44
20 27 19 7 39 13 34 14
12 9 11 2 4 7 39 28
14 9 21 28 6 17 8 2
13 12 1 17 6 16 11 28
11 17 13 9 15 5 7 10
17 11 28 10 9 17 13 26
24 27 23 22 17 34 23 23
11 16 17 5 12 3 20 13
15 23 28 8 15 6 9 14
14 17 18 16 10 10 11 16
21 18 24 24 11 19 17 33
11 5 25 14 5 13 7 2
13 5 1 18 14 13 14 23
42 34 37 39 41 70 42 27
38 19 16 69 43 40 26 36
47 33 30 66 64 58 37 30
62 33 56 89 30 94 52 57
59 42 53 82 48 86 53 36
67 46 57 80 62 87 47 68
65 67 60 71 79 73 33 54
1998prediction**
Prevalent now
Not now, but infive years time
Not within fiveyears
* except fordesignatedsmoking areas
** In 1998,respondents wereasked whatwould beprevalent in fiveyears’ time
*** Not asked in1998
Total Belgium Germany Spain France Italy NetherlandsUnited
Kingdom
Total Belgium Germany Spain France Italy Netherlands UnitedKingdom
Non-smokingenvironment*
Flexitime
Casual-dress day
Job-sharing
Home-working
Sabbaticals
Hot-desking
4-day week
Childcarefacilities
26
Business practices
CSR statement in companies’ annual reports ismost common policyTwo-fifths of companies surveyed include aCorporate Social Responsibility statement in theirannual report. Almost this same proportion saysthat they monitor their CSR activities against theobjectives set in their policy document, and over athird have a written CSR policy document ormanual.
Over a quarter of Europe’s leading businessespublish an annual CSR report, and the samenumber have made a significant corporateinvestment in CSR this year. To highlight theimportance of this new business phenomenon,exactly a quarter of the companies surveyed havegiven a member of the board specific responsibilityfor CSR activities.
A pension encourages executives to sit stillthrough long meetings Pensions are thought an important benefit and mayhelp compensate the long working hours seniorexecutives endure during their careers. MostEuropean business leaders surveyed conclude thatoffering company pensions to employees is thebest way to get and keep staff, with British andGerman executives amongst the most supportive.But one in four finds lengthy business meetingsand long working hours the least attractive aspectabout their work.
Italy and France are the only countries wherecompany pensions are not the top benefit. Morethan half of Italian business leaders think that goodhealth is more vital, and in France, nearly two-thirds regard offering company share options orshare saving schemes to be a greater incentive.Flexible working hours is also an attractiveprospect for would-be and existing employees,though fewer French companies think so.
European businesses want mobile linguists With the increase in global business and thecontinued expansion of many companies across theEU, speaking more than one language seems to bethe most attractive quality to Europe’s toprecruiters. Just under half of all business leaders saythat one of the two pieces of advice they would bemost likely to give to today’s students would be tolearn as many languages as possible. The other isto be mobile.
A third of the respondents state that students needto widen their life experiences (i.e. travel abroad),with more than half of German managers believingtravel is an essential and positive pre-requisite toworking life. And the same number believes thathaving a generalist education is more helpful thanbeing a specialist, except in the Netherlands.
If your company has aCorporate Social Responsibility(CSR) policy, which of thesedoes your company do?
More than 40 per cent ofcompanies have a CSR statementin their annual report
The majority of British companieshave invested in a written CSRmanual
However, one-third have nospecific policy, rising to more thanhalf in Italy
•
•
•
P O L I C I E S M E N T I O N E D % 27Full results and historical data are available online atwww.ebm.ups.com
A B C D E F HG
Business practicesA
B
C
D
E
F
G
H
42
3836
29 29
26
19
30
Include a CSR statement incompany’s annual report
Monitor CSR activitiesagainst the objectives set inpolicy document
Have a written CSR policydocument/manual
Publish an annual CSRreport
Make a significant corporateinvestment in CSR this year
Member of the board withspecific responsibility forCSR activities
Accreditation or certificationof CSR by a third party
No specific policy (none ofthese)
28Full results and historical data are available online atwww.ebm.ups.com
Which of the followingemployee benefits do youthink give the best overallreturn for businesses in termsof recruitment and retention?
European business placespensions firmly on top
Italians and British look for goodhealth cover
The French seek shares and theBelgians want wheels
Trying to keep your staff fit won’twin you any favours; just threeper cent see the gym as a benefit
•
•
•
•
B E N E F I T S M E N T I O N E D %
Business practices
A B C D E F HG
A
B
C
D
E
F
G
H
65
45
41
35
32
29
13
3
Company pensions
Flexible working hours
Company healthcare
Company share options orshare saving schemes
Company car
Non job-specific educationand training
Company childcarefacilities
Company gym or sportsfacilities
What are the least pleasantaspects of your job?
Too many meetings and longhours are most commoncomplaints among Europe’sdirectors
One-third of respondents find ithard to find the right staff
The British get the most tired oftravelling; the Spanish businesselite feel most isolated
•
•
•
A S P E C T S M E N T I O N E D % 29Full results and historical data are available online atwww.ebm.ups.com
Business practices
A B C D E F G
4039
30
26
23
1312
A
B
C
D
E
F
G
Lengthy business meetings
Long working hours
Difficulty in finding highlyskilled staff
Dealing with staff personnelissues
Tiring business travel
Attending functions andcorporate entertaining
Isolation
30Full results and historical data are available online atwww.ebm.ups.com
What two pieces of advicewould you most likely give tostudents to prepare themselvesfor their future career?
Talk the talk and go where youhave to is the advice given to‘would-be’ workers
Just under half the respondents seelanguages and mobility as the twotop ingredients for job seekers
Spreading your net and living lifegets you further than a specialisteducation
•
•
•
C O U N T R I E S S U R V E Y E D %
Total Belgium Germany Spain France Italy UnitedKingdom
Netherlands
Business practices
47
43
3232
2220
69
38
22
36
1518
29
43
56
51
1011
57
39
29
2523
21
4850
2426
34
13
59
42
29
2023 22
28
32 33
25
31
4039
49
25
37
21
27
Learn as many languagesas you can
Be prepared to be mobile
Widen your lifeexperiences (foreign travel)
Get a generalist education
Get plenty of paid orvoluntary work experience
Get a specialist education
Time puts a strain on senior executives’ wallets Despite businesses reporting a tough 12 months, amajority of Europe’s business leaders say that theyhave not cut personal spending. More than six outof ten executives admit that they have made nochanges to the way they spend their hard-earnedcash, despite a stagnant economy.
Almost a quarter of respondents have, however,slimmed down on their eating out, and moreGerman and French business leaders have clippedtheir wings and curtailed their travelling thananyone else. However, this may be more due totime than cash flow issues. Just under half ofrespondents state that nowadays they seem to bespending more time at work than they do withtheir families or on private time.
Italy provides some food for thoughtThe best-loved food by Europe’s top businesspeopleis Italian, nominated by two-fifths of the executives.For those that may get too wrapped up in spaghetti,some agree that French cuisine is their favourite,followed by Spanish.
Almost all Italian business leaders prefer their owncountry’s cooking, and the Spanish and French alsothink a mix of their own national ingredients makesa better dish of the day than other types of foodthat may be on the menu.
Europe’s business leaders dreamt of flying the skies Despite having different tastes in cooking styles,there was some meeting of the minds when itcame to childhood aspirations. Almost allrespondents imagined becoming something otherthan a business leader when they were growing up.
It would appear that Europe’s boardrooms are fullof ‘would-be’ footballers and athletes, while othershouse executives that dreamt of flying the skies,burning rubber or using a stethoscope.
31
Executive insight
32Full results and historical data are available online atwww.ebm.ups.com
Have you cut back on yourpersonal spending in any ofthe following areas due to thecurrent economic situation?
Despite a recession, businessleaders are not counting theirpennies
Two-thirds have made nocutbacks, most significantly theBelgians
A fifth of European executiveshave slimmed down on eating out
•
•
•
C O U N T R I E S S U R V E Y E D %
Total Belgium Germany Spain France Italy UnitedKingdom
Netherlands
Executive insight
64
20 19
1412
76
9 10 11
7
48
31
22
18 19
71
1315
11
7
56
22 22
18 17
65
20 21
14
5
70
20
16
9
5
69
1618
1214
Not cut back personalspending
Eating out
Non-essential consumables,such as clothing apparel,music, furnishings
Travel/holidays
Taxis
Has your attitude towards theprioritisation of work andprivate life changed during thecourse of your career?
The heat is on for Europe’s topexecutives; just under half nowspend more time at their desks
A majority in Germany has morebusiness than pleasure
The Dutch buck the trend with athird spending more time withtheir families
•
•
•
C O U N T R I E S S U R V E Y E D % 33Full results and historical data are available online atwww.ebm.ups.com
Total Belgium Germany Spain France Italy UnitedKingdom
Netherlands
Executive insight
45
23
32
46
24
31
54
12
34
48
2725
39
24
37
44
18
37
27
35
38
47
29
23
Yes, I spend more time onmy job due to higherresponsibilities andworkload
Yes, I spend more time withmy family or for myself thanI used to in the past
No, my attitude has notchanged
34Full results and historical data are available online atwww.ebm.ups.com
What is your favourite food?
European in outlook, nationalist intaste – top businesses vote fortheir own cuisine
Spanish, French and Italianbusiness executives stick to whatthey know
Nearly four in ten choose anItalian dish from the menu
•
•
•
C O U N T R I E S S U R V E Y E D %
Total Belgium Germany Spain France Italy UnitedKingdom
Netherlands
Executive insight
Italian
French
Spanish
Asian (Thai, Indonesian, Chinese,Indian, etc)
Own nationality’s food
39
20
1512
49
26
39
0
1417
54
7
0
8
19
6
1
82
4
82
11
70
1
13
70
93
20
3
93
30
20
4
27
9
37
14
2
32
7
35
Thinking about when you wereeight years old, what did youaspire to become?
More than one in ten seniorexecutives wanted to run notwalk in their suits
A similar number aimed theirsights sky-high
Just seven per cent thought theywould be a leader of industry
•
•
•
A M B I T I O N S M E N T I O N E D %Full results and historical data are available online atwww.ebm.ups.com
Executive insight
13
12
9
7 7
5 5 5
4 4
3
A B C D E F G H I J K
A
B
C
D
E
F
G
H
I
J
K
Athlete, sportsperson
Doctor, nurse, vet
Entrepreneur, businessleader
Artist, entertainer (writer,singer, actor, dancer, TVpresenter)Train, truck, racing driver
Teacher
Fireman or policeman
Politician, lawyer, journalist
Engineer, scientist
Architect, builder
Pilot, astronaut
36
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Contact details
The information in this report is correct at the time of going to press.Survey undertaken for UPS by TNS.