Risk and Talent Management at top of HR’s agenda in 2008
The 3rd edition of the HR Barometer designed and carried out by Hewitt Associates, a global human resources services company, for the European Club for human resources (EChr) reveals that the development of risk management policy related to people issues is the number one priority on HR’s "to do" list for 2008.
The study, which covered 53 organizations employing a total of more than two million people and generating 708 billion euros of revenue in 2007, explored the emerging business practices and priorities of the HR function across countries and sectors in Europe.
The key findings of this year’s research reveal that:
- Cultural and organizational changes, together with labour shortages and tough productivity targets, are the corporate factors expected to influence HR’s agenda the most over the period 2008 to 2010;
- In terms of performance, in four out of 10 organizations HR recognises the need to improve its services to match business expectation more effectively - notably on issues that require a more proactive and anticipatory approach such as demographic change, work-life balance programmes, new competency mapping and HR due diligence;
- HR expects to embrace new competencies and responsibilities over the period 2008-2010, while some traditional HR activities will be transferred to and handled by business operations;
- HR aims to contribute to CSR on the ground, mainly by implementing the labour standard of the International Labour Organisation, and by applying employee-friendly practices in the context of corporate restructuring;
- A large majority of HR executives have a generally positive perception of the impact of the European Union but lack knowledge of the specific EU activities that matter to HR.
These findings confirm an evolutionary shift in the focus and mindset of HR. Objectives and priorities are increasingly linked to strategic business concerns which, when put into action, can raise the impact of HR on business operation and reputation.
HR activities with the most impact
In line with the last two years’ editions, the study shows that talent management is the area where HR has the greatest impact on business performance. Organizational effectiveness, performance evaluation and leadership development are also ranked at the top of the HR activities with the highest positive impact, reflecting the growing importance for sustainable business success of employee development and retention.
Leonardo Sforza, head of EU affairs and research at Hewitt Associates and chairman of the committee leading the study, said: “This year’s barometer highlights HR’s commitment to contributing directly to addressing both “old” - but still compelling corporate imperatives - such as improving employee engagement and satisfaction - and new priorities that were not on the HR menu even a year ago.”
For a full set of the key findings of the study please contact Mathilde Serrault at echr@euralia.eu or Marleen Van De Velde at m2vandev@hewitt.com.
About the European Club for human resources (EChr)
The European Club for human resources (EChr) is a financially independent non-profit association based in Brussels. The EChr brings together senior executives from multinational companies to share experiences and develop, from a European perspective, an international vision of human resources management. The club is a forum for the exchange of ideas and debate about human resource policies and best practices in Europe.
For an overview of the EChr activities, please visit: www.europeanclub-hr.eu
Contact: echr@euralia.eu
