How do employers view the move to our new pension scheme? We asked Erik Holl. He is Managing Director at Johnson & Johnson Innovative Medicine in Breda. "There are some serious 'polder' consultations going on. All the opinions and visions are being weighed up. But whichever way you look at it: we have to reach agreement."
Erik has been closely involved in the creation of the new scheme. He sits on the steering committee set up for this purpose. Members of the committee include representatives from Johnson & Johnson (J&J) in the US, local and regional HR partners and the managements of the J&J companies in the Netherlands.
He starts by outlining the big picture: "The J&J Group has separate entities in the Netherlands, all of which report independently to different parts of the parent organisations in Europe and America. That makes it a complex process to get all the stakeholders heard and involved."
An important starting point, according to Erik, is how the new pension will compare with competitors. "We want and need to be competitive, in order to retain and attract talent. Benchmarking plays a key role in this. What are similar international companies to J&J in our industry with branches in the Netherlands doing with their pension schemes? A scheme also needs to remain affordable. The Dutch pension system is good, but changes in the labour market will make it unsustainable in the long run. As an employer, it is important to ensure that we manage our costs responsibly, to remain competitive as a company in the market and within the internationally operating J&J. So that requires a balanced approach and outlook from all involved, which is not always easy."
"No inequality"
"When designing the new scheme, we are obviously looking at the effects and consequences for our current and former employees, but of course also for future employees. What we want to avoid is a big inequality between people who have been with J&J for a longer time and those who have been with the company for a shorter time. Or between 'young and old'. An overly attractive compensation scheme for current staff to make up for differences from the current scheme could lead to irritation among newcomers. And due to the high costs for such a scheme, lead to a more disadvantageous plan in the medium term. Of course, what we as employers also look at is how the costs of the new scheme and of the measures in the transition to the new pension system compare with those of the current scheme. All in all, that's a tough puzzle."
"Quite unique
There is a lot of attention being paid to retirees and 'sleepers' (former colleagues now working elsewhere). They say they have missed out on quite a bit of indexation in recent years. On that, Erik says: "I understand the challenge; in a period of inflation, your disposable income can be hit pretty hard. This is something I see not only at J&J, but in many places around me. It's good to realise that with a so-called 'defined benefit' pension as we have now, Johnson & Johnson in the Netherlands still has a good scheme which, moreover, obliges the employer to step in in difficult times. Certainly the latter is quite unique in the Netherlands. We continue to consult with representatives of the 'inactives' to clarify our position where necessary and keep an eye on understanding mutual interests." |
|
|
|
