Our EMPLOYEES
AEGON provides employees with a safe working environment and the incentives and formal training they require to fulfill their potential. AEGON promotes a business culture in which employees are encouraged to work together, as well as to display initiative and commitment.
At the end of 2007, AEGON had a total of 30,414 employees, up 5.9% from 28,726 twelve months previously 1. This increase was due mainly to an expansion of the Group’s businesses, most notably in Asia and Central and Eastern Europe, and the inclusion of a number of newly acquired companies. In the United States, AEGON’s workforce expanded by almost 900, while the number of employees in the United Kingdom rose by more than 500. In the Netherlands, AEGON’s workforce was reduced by just over 200 employees. Nearly half the Group’s total workforce is employed in the United States.
Employee turnover
In 2007, employee turnover reached 13%, down from 14% the previous year. Of the total, just over half – 7% – left the company voluntarily to pursue opportunities elsewhere. Employment was terminated for a further 4%, either because of internal reorganizations or individual underperformance. The remaining 2% was due to a policy of not replacing those employees leaving the company either to take up other jobs or else to retire. On average, current AEGON employees have spent 8.2 years with the Group.
Recruitment, training and performance appraisals
Last year, AEGON recruited more than 5,30 new employees worldwide 2. Some of these employees were hired to replace staff leaving the company, though many were recruited as part of an expansion in the Group’s businesses during the past year. On average, vacant positions were filled within 34 days, though individual country unit rates varied widely. Each vacancy attracted an average of 20 applicants.
AEGON encourages employees at all levels to take part in formal skills and development programs. Training sessions cover topics such as customer service, product knowledge, business writing, compliance and sales. Most AEGON country units grant employees time and, occasionally, financial assistance to pursue individual projects such as language training or higher education related to their work at the company.
|
Percentage of workforce taking part in formal skills and capabilities programs: |
2007 |
2006 |
change |
|
% of senior management 1 |
89% |
96% |
-7.3% |
|
% of middle management |
90% |
95% |
-5.3% |
|
% of other employees |
91% |
95% |
-4.2% |
|
Training |
|||
|
Amount spent on training (amounts in EUR million) |
17.6 |
17.1 |
+2.9% |
|
Average amount spent on training per employee (amounts in EUR) |
580 |
597 |
-2.8% |
|
Average number of days spent on training |
4.16 |
4.03 |
+3.2% |
|
Percentage of workforce subject to regular, standardized performance appraisal |
|||
|
% of senior management |
100% |
97% |
+3.1% |
|
% of middle management |
98% |
97% |
+1.0% |
|
% of other employees |
97% |
100% |
-3.0% |
|
|||
Non-discrimination
AEGON actively enforces policies that promote non-discrimination in the workplace whether on grounds of race, creed, religion or gender. This principle of non-discrimination is contained in AEGON’s business principles. In addition, AEGON complies with all local legislation in the countries in which it operates with regard to equal pay and treatment.
AEGON has a number of policies designed specifically to encourage women to remain in the workforce and to take up positions in management, including part-time working, flexible hours and child care facilities.
|
Men |
Women |
|||
|
2007 |
2006 |
2007 |
2006 |
|
|
Total workforce |
47.5% |
48.8% |
52.5% |
51.2% |
|
Senior management 1 |
78.0% |
85.1% |
22.0% |
14.9% |
|
||||
In 2007, 9.6% of all AEGON employees worked part-time, up from 9.2% twelve months previously.
Employment costs
To attract and retain talented employees, AEGON believes it must offer competitive salaries and compensation packages. AEGON’s total employment costs in 2007 for its entire workforce of 30,415, totaled EUR 1.90 billion, up 4.4% from EUR 1.82 billion in 2006. This increase was due mainly to the inclusion of new acquisitions and an expansion of the Group’s businesses in Central and Eastern Europe and Asia. In the Americas and the United Kingdom, employment costs per capita declined in euro terms in 2007, primarily as a result of exchange rate movements.
|
Employment costs Amounts in EUR million |
Salaries |
Other expenses |
Total 2007 |
Total 2006 |
Change |
|
Americas |
736 |
210 |
946 |
920 |
+2.8% |
|
The Netherlands |
257 |
232 |
489 |
455 |
+7.5% |
|
United Kingdom |
208 |
135 |
343 |
331 |
+3.6% |
|
Other countries |
55 |
24 |
79 |
69 |
+14.5% |
|
Holding and other activities |
30 |
16 |
46 |
46 |
– |
|
AEGON (total) |
1,286 |
617 |
1,903 |
1,821 |
+4.5% |
|
Total employment costs per capita were as follows: Amounts in EUR |
2007 |
2006 |
Change |
|
Americas |
62,413 |
64,625 |
-3.4% |
|
The Netherlands |
78,871 |
71,049 |
+11.0% |
|
United Kingdom |
68,737 |
71,352 |
-3.7% |
|
AEGON (total) |
62,570 |
63,392 |
-1.3% |
Salary structures
Employees’ salaries may contain both a fixed and a variable component, linked to company and/or individual performance.
|
Salary structures |
% of total remuneration received as variable compensation |
% of variable compensation based on company performance |
% of variable compensation based on individual performance |
|
Senior management 1 |
31% |
50% |
50% |
|
Middle management |
16% |
45% |
55% |
|
Other employees |
6% |
43% |
57% |
|
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Pension arrangements and other benefits
Naturally, pension arrangements vary from country to country. AEGON USA offers both defined contribution (DC) and defined benefit (DB) plans. In the United Kingdom, AEGON has now closed its DB plan to new entrants and offers only a DC plan. AEGON The Netherlands has a number of hybrid pension plans in place. In total, AEGON pension plans in its three main operating countries – the United States, the Netherlands and the United Kingdom – cover just over 53,000 people. While, substantially, all AEGON employees have access to a pension plan, the Group does not offer company-sponsored pension plans in Central and Eastern Europe. AEGON is currently considering a new Group-wide approach to retirement benefits as a method of helping cross-border transfers of personnel. Further details on AEGON’s pension policies may be found in the Group’s Annual Report, available on the corporate website.
Absentee rates
In 2007, AEGON companies’ overall absentee rate 3 stood at 2.8%, down from 3.1% the previous year. The decrease was due mainly to lower absentee rates in the United Kingdom, Spain and Canada, which offset a rise in absenteeism in the United States and Taiwan. Most AEGON country units have policies in place designed to reduce absenteeism, including wellness programs, safety training and occupational health facilities.
|
Absentee rates |
2007 |
2006 |
Change |
|
AEGON Group |
2.8% |
3.1% |
Down |
|
AEGON USA |
1.7% |
0.8% |
Up |
|
AEGON Canada |
1.8% |
2.9% |
Down |
|
AEGON UK |
2.9% |
6.4% |
Down |
|
AEGON The Netherlands |
5.4% |
5.5% |
Down |
|
AEGON Taiwan |
1.4% |
0.9% |
Up |
|
AEGON CEE |
4.4% |
4.6% |
Down |
|
AEGON Spain |
1.9% |
3.5% |
Down |
Work-related injuries
A total of 320 work-related injuries were reported in 2007, up 5.3% from 304 the previous year. This figure covers injuries sustained and reported by employees during the course of their work for the company. The rise is due to an increase in the number of country units reporting in 2007 compared with 2006.
Employee satisfaction
AEGON has introduced a number of measures over the past year to improve employee satisfaction levels. These include employee recognition programs and initiatives to strengthen internal communication. Fifty-seven percent of AEGON’s workforce is currently surveyed for employee satisfaction levels.
According to local surveys, overall employee satisfaction across AEGON’s country units improved by 1% in 2007 4. For the first time, AEGON also asked its country units to rank employee satisfaction on a scale of 1 to 100. On average, employee satisfaction levels in 2007 were ranked at a score of 77. Scores ranged between 70 and 90.
Improving employee satisfaction
AEGON ranked second in Incompany magazine’s annual survey of employee satisfaction in the Netherlands in 2007, just behind accountancy firm Ernst & Young. More than 6,500 employees at 200 of the country’s largest companies took part in the survey. In 2006, the same survey had ranked AEGON sixteenth out of 200.
AEGON’s Asia Leadership Academy
Last year, AEGON set up the AEGON Asia Leadership Academy (AALA) in the city of Zhuhai in southern China to help groom a new generation of Asian business leaders for the company. Modeled on AEGON University and the AEGON Americas Leadership Academy, the new academy will take in talented employees from across the region and give them the opportunity to share knowledge and experience as well as learn more about AEGON’s businesses.
“Asia is an area of very strong growth for AEGON,” says John Lee, who oversaw the AALA’s inaugural class. “We’ve been present in Taiwan since 1993 and in China, along with our partner CNOOC, for the past six years. That’s why we decided to set up the academy – because we are committed to China and committed to Asia. For the students who come to the AALA, it’s important they get an idea of the international scope of AEGON’s businesses and the personal opportunities that can open up for them.”
AEGON’s Code of Conduct
AEGON’s Code of Conduct sets out the Group’s core values and its underlying principles of business practice. It applies to all AEGON employees (excluding only those working for joint ventures where AEGON does not have full management control). AEGON’s country units regularly monitor compliance with the Code of Conduct.
Further information and a copy of the Code may be found on AEGON’s website at www.aegon.com.
AEGON’s ‘In Practice’ program
To increase employee awareness of the Code of Conduct, AEGON introduced an online, e-learning training program in 2006. To date, approximately 93% of current AEGON employees have completed this program. AEGON also extended this program to employees at Unirobe Meeùs, which became a unit of AEGON The Netherlands in 2006.
In 2007, AEGON launched ‘You & AEGON’, a new e-learning program designed to provide all new employees with basic information about the Group and its businesses around the world. To date, approximately 72% of AEGON employees worldwide have successfully completed the program.
In early 2008, the Group will roll out another e-learning program designed to help employees prevent insider dealing.
Code of Conduct
AEGON’s Code of Conduct contains rules, regulations and guidelines in areas ranging from ‘Fair competition’ to ‘Protecting company property and information’. Among other things, the Code contains rules and guidelines aimed at:
• Preventing discrimination in the workplace;
• Protecting free and open competition;
• Ensuring the confidentiality of personal information supplied by employees,
customers, business partners and shareholders;
• Stopping employees accepting bribes or seeking to gain any unlawful advantage;
• Preventing insider trading;
• Detecting and stopping money laundering;
• Promoting respect for the environment and the use of valuable resources;
• Strengthening corporate governance;
• Ensuring clear, accurate and regular disclosure of financial and other information.
Importantly, the Code also includes ‘whisteblower’ provisions allowing employees to report suspected irregularities without jeopardizing their positions. In addition, AEGON also has in place a detailed procedure for reporting complaints regarding accounting, international financial controls and auditing issues.
Naturally, these rules and regulations operate in conjunction with:
• National laws;
• Separate provisions set out at country unit level dealing with issues ranging
from handling confidential information to tackling money laundering.
AEGON’s Code of Conduct sets out a basic framework for how the Group expects its employees and managers to conduct themselves.
- A detailed geographical breakdown of AEGON’s workforce can be found in Appendix IV.
- This figures refers to new hires only. It does not include mergers and acquisitions.
- Includes illness and other reasons, but specifically excludes maternity leave (except in the United States).
- Based on 92% of AEGON’s global workforce.