Second pan-European Barometer shows that Human Resource Executives face more challenges than ever

Brussels – A study designed and carried out by Hewitt Associates, a global human resources services company, for the European Club for human resources (EChr) reveals that HR is scaling up its role in large companies in Europe, while transforming the way it delivers its services to the organisation.

HR priorities and goals
The study shows that 7 out of 10 participants believe that changing the way HR delivers its
services is the most compelling HR issue to be faced by their organisation in 2007, followed by improving talent retention. Both these priorities indicate a need to act on modernising people policies and the HR own delivery system. Ranked at the bottom of HR priorities is the
development of a risk management policy on people issues.
Supporting organisational effectiveness is today the primary goal of HR executives, while change management, and talent attraction and retention continue to be the top underlying HR objectives for 6 out of 10 respondents. Labour cost management and personnel administration receive the least attention. In less than 10% of participant organisations they are identified as a top goal.
These findings appear to reflect a shift in the focus of HR, with objectives increasingly linked to greater professional efficiency and strategic business concerns, well beyond purely short-term considerations of cost and administration.

HR job satisfaction
The survey also reveals a high level of satisfaction of HR directors in their job, of loyalty for their employer and of trust for their CEO. 74% of the respondents indicated that they like their company and their role, while only 4% would give up HR and move to another function.
13% would remain in HR, but change company.

“This year’s barometer highlights HR’s greater focus and direct contribution to facing compelling business imperatives. The high rate of trust expressed by HR executives for both their CEOs and for the workforce of their company is an ideal starting point for moving forward the process of HR transformation in Europe. The conditions are there for a definitive shift of HR from being a cost administrative centre to becoming an agent to drive business performance across an organisation. However, HR is still struggling to integrate the different aspects of its activities into a model that combines both financial and people needs. The limited power recognised by HR professionals to adapt to employees’ expectations, heightens the risk of falling short in reflecting the fast changing cultural patterns, attitudes and behaviours of people at work.
Moreover, the low priority assigned to work-force planning could limit the capacity of HR to anticipate and align future business developments with internal and external demographic factors”, comments Leonardo Sforza, head of EU affairs and research at Hewitt Associates and chairman of EChr’ scientific committee.
In line with last year’s HR Barometer, talent management continues to be the HR activity having the highest impact on business performance. Survey respondents expect an even greater emphasis on talent management over the next three years, reflecting the growing importance for sustainable business success of employee development and retention.

HR views on the impact of the European Union
The majority of respondents (53%) have a positive opinion on the impact of the European
Union, 37 % consider the impact as neutral, and only 10 % as negative. In general, the impact is felt more positively on the country economy (58 %) and on the own company (54 %) while it is considered less pronounced on respondents themselves (48 %).
The areas where the European Union is called to intervene most are mainly related to the
removal of inflexible legal requirements connected to redundancy, together with measures protecting the financial security of dismissed employees. People mobility is the other area where the EU is expected to play a more prominent role. The abolishment of labour market restrictions for selected groups of people from non EU countries is endorsed by 71% of respondents, while a fully liberalised access to EU labour market from non EU countries is opposed by 75 percent.
On the front of business operations, the removal of national barriers preventing cross-border mergers and acquisitions is supported by 67 %. Respondents are divided on labour market access for citizens from new EU member states: 49 % are against restrictions, 39 % are favourable to keep them in place.
“The positive judgement and support given by HR executives to the EU integration project, but not to the European Institutions, shows that the EU need to respond better to business leaders and people expectations if they want to reduce the credibility gap emerging from the survey”, says Leonardo Sforza.

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