“The Danish model for a higher sustainable employability”

Kim Staack Nielsen MBA, DBA

Chairman, DANISH HR

Past Vice President, EAPM

DANISH HR has around 1.000 Companies as members

DANISH HR is the Danish representative of

the European Association for

People Management (EAPM)

Denmark in figures

Population: 5 724 456

Total area km ² 42 959

Coastline km 7 314

Highest natural point meter 170.86 (Møllehøj)

Land use:

Agriculture: 66 %

Forest and moorland: 16 %

City, road construction: 10 %

Lake, meadow and marsh: 7 %

79,5% of all men registered in the workforce (July 2015, Eurostat)

72,2% of all women registered in the workforce (July 2015 Eurostat)

The unemployment rate is 4,2 %

Source: Statistics Denmark, august 2016

Denmark is outstanding

Working GDP (dollars)

hours per working

per year hour

1. Norway 1,421 83.0

2. Denmark 1,451 79.4

3. Luxembourg 1,601 78.2

4. Ireland 1,543 67.8

5. USA 1,705 60.2

6. Netherlands 1,379 59.8

7. Belgium 1,577 59.5

8. France 1,476 57.7

9. Germany 1,406 55.8

10. Switzerland 1,593 53.7

11. Sweden 1,640 51.7

12. Austria 1,598 51.6

13. Australia 1,687 49.1

14. Finland 1,680 48.1

15. Spain 1,685 47.5

16. England 1,625 47.2

17. Canada 1,712 46.3

18. Italy 1,774 45.6

19. Japan 1,728 41.6

20. Island 1,732 39.5

The entire EU 1,571 50.9

The entire OECD 1,748 44.6

Source: OECD, Denmark Nationalbank and Statistics Denmark

Figures for Denmark are from 2012, the others from 2011

The Best-Performing CEOs in the World, 2015

1 LARS REBIEN SØRENSEN, NOVO NORDISK (2014 no. 6)

2 JOHN CHAMBERS, CISCO SYSTEMS

3 PABLO ISLA, INDITEX

4 ELMAR DEGENHART, CONTINENTAL

5 MARTIN SORRELL, WPP

6 STEPHEN LUCZO, SEAGATE TECHNOLOGY

7 JON FREDRIK BAKSAAS, TELENOR

8 GEORGE SCANGOS, BIOGEN

9 MICHAEL WOLF, SWEDBANK

His standing also reflects Novo Nordisk’s deep engagement with social and environmental issues, which now factor in to the calculations. “Corporate social responsibility is nothing but maximizing the value of your company over a long period,” says Sørensen, who has been with the company for 33 years. “In the long term, social and environmental issues become financial issues.”

Source: Harvard Business Review Staff, 2015

Bring sustainability values into the heart of a corporation

and the role of leaders in driving change

Linda Gratton, Professor London Business School

The social partners

Source: DA and LO, 2015

The Danish Confederation of

Trade Unions (LO),founded in 1898

The Confederation of Danish

Employers (DA), founded in 1896

The September Compromise of 5th September 1899

The Danish Flexicurity model

Source: Per Kongshøj Madsen, 2006

Social security

Flexible labour

market

Active labour market policies

The Flexicurity model axis

The benefit system of payment to unemployed started in the early 1900and was reformed in 1994 by The Labour market reform

Managing the Danish way

Management model A (The Danish model – gives the employees 94% influence)

High degree of delegating tasks to employees

Flat organizational structure Informal tone

Less clearly defined tasks Higher degree of stakeholder approach Lower degree of control and supervision of employees

Management model B (The American model – gives the employees 5% influence)

Low degree of delegating tasks to employeesHierarchical organizational structureformula tone

Clearly defined tasksHigher degree of focus on the bottom lineHigher degree of control and supervision of employees

Source: Capacent and Mandag Morgen, 2009

Employee turnover 2015

Source: Dansk Arbejdsgiverforening, 2015

Percent blue-

collar

blue-

collar

White

collar

White

collar

all all

Main Sectors approach Leaving approach Leaving approach Leaving

Manfacturing 20,2 19,2 18,9 15,5 19,7 17,6

building and

construction

37,2 28,9 20,4 16,2 33,7 26,2

service-

related

41,7 36,4 27,9 25,6 35,0 31,1

Averge 35,0 30,5 25,2 22,5 30,6 26,9

Denmark best in productivity

55,3

207,2

186,8

274,8

284,4

269

264,6

307,4

322,1

305,2

78,9

240,7

270,5

387,6

388,6

392,6

414,1

434,5

471

505,4

0 100 200 300 400 500 600

Poland

Italy

UK

France

Germany

Finland

Holland

Sweden

Belgium

Denmark

Source: EUROS 2015

Productivity in Danish kroner per hour in the industry Employee costs per hour in Danish kroner in the industry

Trust in 86 countriesSo much we believe in each otherMethod: The people in each country were asked about

their trust in people they do not know in advance.

Top-10:

1. Denmark (73%) (One region in Denmark is on a level of 91%)

2. Norway

3. Sweden

4. Finland

5. Holland

6. New Zealand

7. Canada

8. Australia

9. Indonesia

10. Island

Source: Svendsen, G.T., Svendsen, G.L.H., 2010, ’Social Capital and the Welfare State’, Böss, M. (red.), The Nation-State in Transformation, Aarhus University Press, Aarhus, Denmark, s. 315-334

and European Values Study 2008and Maria Emilie Arup, Aarhus Universitet 2016.

Bottom-10:

77. Colombia78. Turkey79. Malaysia

80. Ecuador81. Tanzania82. Peru83. Uganda84. Costa Rica

85. Philippines86. Brazil

Benefits of trust

SourceSource: CIPD and Dietz, 2011

Trust levels at work

Employee Engagement (extra effort, job satisfaction, commitment)

Operational Efficiencies

Information Sharing &Knowledge Exchange

Positive Work Climate

Individual, Group & Organizational Performance

Cooperation & Problem Solving

THE CORRUPTION PERCEPTIONS INDEX

Rank

CP

I2015

Co

un

try

1 91Denmark

2 90Finland

3 89Sweden

4 88New Zealand

5 87Netherlands

5 87Norway

7 86Switzerland

8 85Singapore

9 83Canada

10 81Germany

10 81Luxembourg

10 81United Kingdom

13 79Australia

13 79 Iceland

15 77Belgium

16 76Austria

16 76The United States Of America

18 75Hong Kong

18 75 Ireland

18 75Japan

21 74Uruguay

22 71Qatar

23 70Chile

23 70Estonia

23 70France

23 70United Arab Emirates

27 65Bhutan

28 63Botswana

28 63Portugal

30 62Poland

30 62Taiwan

32 61Cyprus

32 61 Israel

32 61Lithuania

35 60Slovenia

36 58Spain

37 56Czech Republic

37 56Korea (South)

37 56Malta

40 55Cape Verde

40 55Costa Rica

40 55Latvia

40 55Seychelles

44 54Rwanda

45 53Jordan

45 53Mauritius

45 53Namibia

48 52Georgia

48 52Saudi Arabia

50 51Bahrain

50 51Croatia

50 51Hungary

50 51Slovakia

54 50Malaysia

55 49Kuwait

56 47Cuba

56 47Ghana

58 46Greece

58 46Romania

60 45Oman

61 44 Italy

Source: Transparency International, 2016

The Corruption Perceptions Index measures the perceived levels of public sector corruption worldwide.

Exercising in the working hours

Source: AXA POWER 2015

Sorry but the

Company is closed

from 10.45 to 12.15

every day

AXA Power is a strong brand of ITW GSE, the worlds leading supplier of 400 Hz ground power units and pre-conditioned air units for aircraft.

Survey - Danish Directors 2015

5 areas to have focus on1. Ensure the development of a culture of innovation to promote

innovation and competitiveness

2. Ensure the strategic execution skills to using potential strategies

3. Ensure that change management is an integrated management

discipline and not a special area

4. Get managers staff responsibility to develop in full potential

5. Reflect on the Danish management style and practice in a

global perspective and the possible adjustments that are to be

done

Source: The VL Directors groups in Denmark, 2015

Source: Video – Dorte Brandsen, Vejle Amts Folkeblad, 25. Feb. 2015

Lego MD – dancing

https://www.youtube.com/watch?v=MJJVKRo73BU

Soft leadership skills

Soft leadership skills are the non-structural processes that are driven, in terms of how organizations function.

We talk about culture, mindset, behavior change psychology, human dynamics, dialogue, facilitation rather than management. Creation of innovative processes and focus on, for example, dialogue and Change Management.

How to develop softleadership skills

Be open-mindedWilling to learnLearn from othersReflect on observationsLearn from failures

Source: DANISH HR, 2015

HR and the Executive level

In 2014 70% of the global HR dept. is a member of the Executive level

In 2010 60% of the global HR dept. is a member of the Executive level

In 2008 63% of the Danish HR dept. is a member of the Executive level

In 2005 53% of the Danish HR dept. is a member of the Executive level

In 1999 25% of the Danish HR dept. is a member of the Executive level

In 1995 53% of the global HR dept. is a member of the Executive level

Source: PA Consulting 1999, Oxford Institute 2005, RBL 2010 og Cranet 1995, 2008, 2014

Management and HR

In a study by McKinsey shows that Chief Executives only consider HR as the 8th most important business

function

Source: McKinsey, 2015

Denmark versus 19 other countries

Denmark's position in relation to the 19 other countries DK position 2007 DK position 2008 DK position 2009

Job satisfaction 1 1 1 (2010: 1)

Motivation 2 2 1

Satisfaction in general 1 1 1

Loyalty 4 4 2

Engagement 6 6 1

Faithfulness 3 3 5

Reputation 12 12 7 (2010: 7)

General Management 9 9 5 (2010: 5)

Line Manager 11 11 8

Cooperation 6 6 3 (2010: 2)

The daily work 4 4 3 (2010: 3)

Salary and employment 1 1 1 (2010: 1)

Professional and personal development 5 5 3 (2010: 3)

Source: Ennova, European Employee index 2007/2008/2009

Følgende lande indgik i undersøgelsen i 2009: Danmark, Sverige, Norge, Finland,

Tyskland, Storbritannien, Frankrig, Italien, Holland, Spanien, Irland, Tjekkiet,

Estland, Polen, Rusland, Ungarn, USA, Kina, Japan, Indien, Brasilien og Mexico.

IMD World Talent Report 2014

Source: IMD World Talent Report 2014

Managers in Denmark

Source: Managers in Denmark (Lederne), 2012

Age Women men total

29 and younger 38 % 62 % 100 %

30-34 34 % 66 % 100 %

35-39 31 % 69 % 100 %

40-44 30 % 70 % 100 %

45-49 28 % 72 % 100 %

50-54 26 % 74 % 100 %

55-59 22 % 78 % 100 %

60-64 17 % 83 % 100 %

65 and older 12 % 88 % 100 %

Average 27 % 73 % 100 %

Source: Climate Action Network Europe, 2016

The Climate Change Performance Index Results 2016

* None of the countriesachieved positionsone to three.No country is doingenough to prevent

dangerous climatechange.

** rounded

When do you become an expert?

Once you have

done the same

thing in 10,000 hours (Gladwell)

or

Three hours per day in 10 year (Weisberg)

Source: Weisberg, 1999 and Gladwell, 2009

“The Danish model for a higher sustainable employability”

THE END