The Deloitte Talent in Insurance Survey 2015 Austria in Focus

The Deloitte Talent in Insurance Survey 2015
Austria in Focus
Figure 1. Popularity of insurance as a career choice among business students, EMEA, 2015
2.98%
Poland
2.93%
Switzerland
2.67%
Finland
2.23%
Italy
1.71%
South Africa
1.51%
Belgium
1.40%
Spain
Germany
1.31%
France
1.30%
1.29%
Norway
1.21%
Sweden
1.09%
Austria
1.05%
Czech Republic
1.00%
Denmark
0.94%
Netherlands
0.53%
UK
0.51%
Ireland
Middle East
0.38%
UAE
0.37%
Turkey
0.00%
Russia
0.00%
Source: Universum Talent Survey 2015; Deloitte analysis
See Appendix for survey questions
Figure 2. Industry popularity among Austrian business students, 2008-2015
24%
22%
Fast Moving Consumer
Goods
Automobiles and Parts
Software and
Computer Services
Engineering and
Manufacturing
Banks
Retail
Public Sector and
Governmental Agencies
Management and
Strategy Consulting
Insurance
20%
18%
16%
14%
12%
10%
8%
6%
4%
2%
0%
2008
2009
2010
Source: Universum Talent Survey 2015; Deloitte analysis
See Appendix for survey questions
2011
2012
2013
2014
2015
Like many countries in Europe, Austria will soon be
facing major demographic challenges. Combined with
differing expectations of the millennial generation
entering the workforce, this may shift the work
environment markedly. It is estimated that 25 per cent
of existing staff1 will retire in the next five years.
Meanwhile, those joining the workforce have different
ideas around ‘work/life balance’ and autonomy
compared with the traditional leadership styles still
characterising many organisations.
This can perhaps be seen in young people’s attitudes
to the sectors they want to work for. In Austria,
the automobile sector has always been strong, and in
the past few years has been growing, from being the
sector of choice for ten per cent of all business students
in 2008 to nearly 13 per cent today. Fast moving
consumer goods (FMCG) remains solid, holding up
as the top sector (for nearly 19 per cent of business
students), while sectors such as engineering and
software & computer services, in which there are skills
shortages, are in the ascendency. Interest in roles in
software and computing has more than doubled from
4.5 per cent of students in 2008 to 9.3 per cent today.
Compared to growth in these sectors, interest in
insurance over the same period has declined by almost
a third from a height of 1.6 per cent popularity in
2008, to 1.1 per cent by 2015. That said, interest has
been as low as under one per cent in 2010, so it has
recently seen a modest improvement. At an EMEA level,
even this relatively low-level interest puts it at a more
respectable 12th out of 21 countries measured. Interest
is higher, however, in neighbouring Germany and
Switzerland.
Figure 3. Top five most popular employers, Austrian business
students, 2015
28.5%
Red Bull
Google
18.9%
Porsche
Raiffeisen Bank
International
35.9%
Erste Group Bank
Oestereichische
Nationalbank
32.8%
25.0%
FMA
Finanzmarktaufsicht
18.8%
UNIQA
Versicherungen
18.8%
0%
10%
20%
30%
40% 50%
Source: Universum Talent Survey 2015; Deloitte analysis
See Appendix for survey questions
Perhaps not surprisingly, the Austrian-based beverage
company Red Bull is the company most business
students rank as their ideal employer, and it contributes
to FMCG’s position as the top sector. However,
the growth of the automobile sector is evident too,
with German car makers BMW, Audi and Porsche also
populating the top five, in 3rd, 4th and 5th places
respectively. It means car brands fill three of the top
five dream employer spots, with Google sneaking
into second.
The favourite companies insurance-inclined students
want to work for are dominated by two banks that
garner a third of the votes each – Raiffeisen Bank
International (with nearly 36 per cent of students
choosing it), and Erste Group Bank (with just under
33 per cent). A third, Oesterreichische Nationalbank,
the central bank, also registers 25 per cent support.
The rest register 11-18 per cent support each, with
the top ten rounded off by Vienna Insurance Group
with nearly 11 per cent support, compared to almost
19 per cent for insurer UNIQA Versicherungen, which
took fifth place for insurance-inclined students. All the
top ten choices are companies that are clearly highly
respected, with none having less than ten per cent
support from students.
17.0%
BMW Group
Audi
Figure 4. Top five most popular employers, Austrian
insurance-inclined students, 2015
14.5%
11.7%
0% 5% 10% 15% 20% 25% 30%
Source: Universum Talent Survey 2015; Deloitte analysis
See Appendix for survey questions
The Deloitte Talent in Insurance Survey 2015 Austria in Focus
2
Figure 5. Career goals of Austrian insurance-inclined students, 2011-2015
To have work/life
balance
To be secure or stable in
my job
90%
80%
To be a leader or manager
of people
70%
60%
50%
40%
30%
20%
10%
0%
2011
2012
2013
2014
2015
To be competitively or
intellectually challenged
To have an international
career
To be a technical or
functional expert
To be entrepreneurial or
creative/innovative
To be autonomous or
independent
To be dedicated to a cause
or to feel that I am serving
a greater good
Source: Universum Talent Survey 2015; Deloitte analysis
See Appendix for survey questions
Those that want to enter insurance do not do so
because they want to be ‘dedicated to a cause’.
Response to this goal has remained low over the past
four years. Neither is insurance a sector that attracts
entrepreneurial types or those who want to work in an
autonomous way. The proportion of insurance-inclined
students choosing each of these as a top career goal
has declined.
Interest in working internationally has doubled since
2011, and the desire ‘to be a manager of people’ has
also grown, from 34 per cent in 2011 to 46 per cent
in 2015. This is unusually high: the global average is
38 per cent.
Figure 6. Expected annual salary (EUR), Austria, 2015
€34,242
Insurance-inclined
€32,735
All Business
€32,187
Banking-inclined
0
10
20
30
40
Source: Universum Talent Survey 2015; Deloitte analysis
See Appendix for survey questions
Those who express an interest in entering insurance
expect the sector to pay well. The ‘all-business’ student
population expect to enter work earning around
€32,735 annually. Those with an interest in insurance
expect to earn 4.6 per cent more, €34,242. A similar
pattern can be observed in neighbouring countries,
with insurance-inclined students in Switzerland
and Germany also expecting salaries approximately
€2,000 higher than their business school peers.
The Deloitte Talent in Insurance Survey 2015 Austria in Focus
3
Figure 7. Austrian insurance-inclined students’ aspirations, 2015
1st
Recognising performance (meritocracy)
2nd
Leaders who will support my development
Professional training and development
3rd
Attractive/exciting products and services
4th
Sponsorship of future education
5th
Competitive base salary
5th
Market success
7th
Challenging work
8th
Respect for its people
9th
A friendly work environment
9th
Source: Universum Talent Survey 2015; Deloitte analysis
See Appendix for survey questions
Figure 8. Austrian insurance-inclined students’ expectations, 2015
1st
Financial strength
2nd
Market success
3rd
Good reference for future career
4th
Recognising performance (meritocracy)
Variety of assignments
5th
Challenging work
6th
Client interaction
7th
High level of responsibility
8th
Professional training and development
9th
Competitive base salary
10th
Source: Universum Talent Survey 2015; Deloitte analysis
See Appendix for survey questions
The Deloitte Talent in Insurance Survey 2015 Austria in Focus
4
While insurance-inclined students have higher than
average initial salary expectations, a ‘competitive base
salary’ is not their principal aspiration. Nor does ‘high
future earnings’ rank within the top-ten aspirations.
Figure 10. Austrian insurance-inclined student
demographics, 2015
Total number of respondents: 64
Average age: 23.0
‘Meritocracy’ is by far the most appealing attribute to
these students. They also aspire to strong ‘professional
development’ to give them the skills they need in order
to progress.
These would appear to be attractive aspirations,
but there is the risk that students see insurance as a
stepping-stone, providing them with development,
experience and rapid progression to enable them
to succeed elsewhere. This is a particular risk as a
significant proportion of the workforce will need to
be replaced over the next five years. Another concern
is that the development students seek is not widely
expected of insurers; there is a need for training to be
individualised and embedded more in daily business.2
Interestingly, Austrian insurance-inclined students are
attracted to ‘exciting products and services’, unlike in
most other markets surveyed. This is very encouraging
as digitisation among insurers increases. Unfortunately,
this same group of students does not expect to find
such products within the sector. Expectations of the
sector are significantly different to aspirations, with the
first and third highest-ranked expectations, ‘financial
strength’ and ‘good reference for future career’, not
appearing within the top ten aspirations.
50.0%
Female
50.0%
Male
Source: Universum Talent Survey 2015; Deloitte analysis
The majority of business students surveyed in Austria
were female, at 59.1 per cent. Just 50.0 per cent of the
insurance-inclined were female. The insurance sector in
the country remains male-dominated. Insurers are aware
of the scope to improve the gender imbalance, and
particularly the ratio of women in leadership functions.3
Currently, by failing to better attract women, Austrian
insurers appear to be missing out on a significant pool
of talent.
Insurers should move away from marketing their
traditional strengths to graduates and highlight the
development opportunities and exciting products
offered by the industry more.
Figure 9. Austrian business student demographics, 2015
Total number of respondents: 3,728
Average age: 22.7
40.9%
59.1%
Female
Male
Source: Universum Talent Survey 2015; Deloitte analysis
The Deloitte Talent in Insurance Survey 2015 Austria in Focus
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Figure 11. Attractiveness of job aspects, all Austrian business students and Austrian insurance-inclined students, 2015
5.0
4.4
4.0
3.7
4.3
4.3
4.1
4.3
3.8
3.6
3.0
2.0
1.0
0.0
Employer Reputation
& Image
All business students
Job Characteristics
People & Culture
Remuneration &
Advancement Opportunities
Insurance-inclined students
Source: Universum Talent Survey 2015; Deloitte analysis
See Appendix for survey questions
It is noteworthy that while insurance-inclined Austrians
crave a strong and prestigious company to work for,
this is still only on a par with what all business students
want. In fact all-business and insurance-inclined
students share virtually identical scores for ‘reputation
and image’; ‘remuneration and advancement’; and
‘job characteristics’. The big difference is in culture.
Insurance-inclined students do not rate insurance
as being ‘people and culture’ driven (3.8 out of five
vs 4.1 for all business students in this category).
The Deloitte Talent in Insurance Survey 2015 Austria in Focus
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Macroeconomic context
Figure 12. Growth in average monthly wages (US$), Austria, 2008-2014
$4,500
12.0%
$4,000
10.0%
$3,500
8.0%
$3,000
6.0%
$2,500
4.0%
$2,000
2.0%
$1,500
0.0%
$1,000
-2.0%
$500
-4.0%
$0
2008
2009
2010
2011
Average wages (monthly, US$)
2012
2013
-6.0%
2014
Growth in average wages (US$; % annual)
Source: Economist Intelligence Unit
See Appendix for notes
The importance of insurance to the Austrian economy
grew slightly between 2004 and 2013, with total gross
written premiums (GWP) increasing from 6.0 per cent to
6.9 per cent as a percentage of GDP over that period.
However, while total GWP increased each year between
2004 and 2008, the sector was subsequently affected
by the eurozone financial crisis. As of 2013, total GWP
remained lower than its 2008 peak, at US$ 25,072 million
(€18,210 million) compared to US$ 26,282 million
(€18,644 million) five years previously.
The industry is likely to be affected in coming years by the
implementation of the Solvency II Framework in 2016,
which is expected to necessitate organisational changes.4
Average monthly wages also fell post-crisis, from
US$ 3,881 (€2,753) in 2008 to a low of US$ 3,595
(€2,712) in 2010. They have since recovered, and
surpassed 2008 levels in 2014, when they reached
US$ 3,898 (€3,206).
Overall and youth unemployment, meanwhile, quickly
recovered from a post-crisis spike in 2009, but have
increased year-on-year since 2011. In 2014, overall
unemployment was greater than it was in 2009,
at 5.6 per cent, whereas youth unemployment,
at 10.3 per cent, remained lower than 2009 levels.
These levels are low by European standards.
Figure 13. Overall and youth unemployment, Austria, 2008-2014
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
2008
2009
Youth (Aged 15-24)
2010
2011
2012
2013
2014
Overall
Source: OECD
Figure 14. Total Gross Written Premiums in US$ mn and as % of real GDP, Austria, 2004-2013
$30,000
8.0%
7.0%
$25,000
6.0%
$20,000
5.0%
4.0%
$15,000
3.0%
$10,000
2.0%
$5,000
1.0%
$0
2004
2005
2006
Gross Written Premium (millions US$)
2007
2008
2013
0.0%
Gross Written Premium as a % of real GDP
Source: OECD
See Appendix for notes
The Deloitte Talent in Insurance Survey 2015 Austria in Focus
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Appendix
Terminology
Business students = students studying business-related subjects.
Insurance-inclined students = business students who put at least one insurer
in their top five ‘ideal employers’, when offered a list of potential employers
to choose from.
About the Research
This report is based on the Universum Talent Survey 2015. Universum has
been researching students’ career intentions since 1988. In 2014-15, it
surveyed about 1.2 million students and professionals drawn from over
2,000 universities and institutions 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.
Currency conversions
Currency conversions into local currency use exchange rate data from
OANDA. Rates are correct as of the 31st December of the relevant year
unless otherwise stated.
Note to Figure 1
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”.
Insurance popularity by market is calculated as the
number of times insurers are short-listed among the
five “ideal employers” in each market.
Note to Figure 7
Survey question: “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].”
Note to Figure 2
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”. Industry popularity by market is calculated
as the number of times employers for that industry are
short‑listed among the five “ideal employers”.
Note to Figure 8
Survey question: “Which of the following [40 attributes]
do you associate with your chosen employer(s)?”
Note to Figure 3
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”.
Note to Figure 4
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”.
Note to Figure 5
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.
Note to Figure 6
Survey question: “What is your expected salary before
tax at your first employment after graduation, excluding
commission and bonus?”
Note to Figure 11
Survey question: “How important are each of the
aspects below to you? Please rate the importance of
each aspect on a scale from 1-5.”
Note to Figure 12
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.
Fluctuations in average wages could be partially due to
changes in the EUR/US$ exchange rate.
Note to Figure 14
Data for 2009-2012 and 2014 is not available.
Fluctuations in Total Gross Written Premiums could be
partially due to changes in the EUR/US$ exchange rate.
The Deloitte Talent in Insurance Survey 2015 Austria in Focus
8
Endnotes
1.Deloitte analysis
2. Deloitte analysis
3. Deloitte analysis
4. Deloitte analysis
The Deloitte Talent in Insurance Survey 2015 Austria in Focus
9
Contacts
Karin Mair
Partner
National FSI Insurance Leader
+43 1 537004840
[email protected]
David Rush
Partner
EMEA Insurance Co-Leader
+44 20 7303 6302
[email protected]
Guido Eperjesi
Director
Consulting
+43 1 537002522
[email protected]
Michel De La Bellière
Partner
EMEA Insurance Co-Leader
+33 1 40 88 29 95
[email protected]
Margarete Doblhamer
Manager
Human Capital
+43 1 537002510
[email protected]
Margaret Doyle
Partner
Head UK Financial Services Insight
+44 20 7007 6311
[email protected]
Florian Brence
Manager
Human Capital
+43 1 537002613
[email protected]
About the authors
Margaret Doyle, Peter Evans, Cem Turan and Christopher Ross comprised the London-based Deloitte UK
Financial Services Insight team, and Gaurav Narula and Vishwanath Sonnad the Hyderabad-based Financial
Services research team that worked on this report.
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