european association for personnel management the future of hr in europe: key challenges through...

European Association forPersonnel Management

The Future of HR in Europe: Key Challenges through 2015

2European Association for Personnel ManagementThe Future of HR in Europe_EAPM prez_4Oct07.ppt

17 relevant topics were systematically derived

Note: Business and scientific literature as basis, growth rate of publications quoting specific HR topic as indicator for potential future importanceSource: BCG/EAPM analysis

Mastering HR processes

Managing change and cultural transformation

Becoming a learning organization

Managing globalization

Recruiting and staffing

Managing talent

Enhancing employee commitmentRestructuring the organization

Improving leadership development

Outsourcing HR/providing shared services

Transforming HR into a strategic partner

Measuring HR and employee performance

Improving performance management/rewards

Managing diversity

Managing demographics

Managing corporate social responsibility

Managing work-life balance

Societal developments:

changing environment

Economic developments:

global growth and competition

Company performance

Reform/ improve HR

Most important topicsMost important topics ClusterCluster40 potentially relevant topics

in literature

Scientificassessment

BCG/EAPM-expertassessment


One of the broadest European HR studies—more than 1,350 responses and over 100 interviews

Note: Other countries: 41Source: BCG/EAPM analysis; Web survey in 27 countries with 1,355 responses

21Germany

12United Kingdom

102Total

3Switzerland

5Spain

12Russia

3Netherlands

11Italy

4Ireland

14France

5Denmark

10Czech Republic

2Belgium

Number of InterviewsCountry

InterviewsInterviewsWeb survey responsesWeb survey responses

Spain121

France113

Ireland125 UK

64

Italy99

Norway53

Portugal64

Swe-den86

Bulgaria28

Cyprus 21

Denmark41

Estonia 36

Russia20

Turkey 24

CZ 47

Slovenia 25

Malta 7

Latvia 4

Poland6

B 9

Greece 11

Finland 19

Hungary 18

NL18

Slovakia 4

= 0< 10< 20< 50

< 100≥ 100

Germany133

CH72

Austria45


Restructuring themes topped list of business issues in Europe, growth-related issues ranked high as well

Ital

y

Irel

and

Ger

man

y

Fra

nce

Est

on

ia

Den

mar

k

Cze

ch

Rep

.

Cyp

rus

Bu

lgar

ia

Au

stri

a

Other

Business process insourcing

Post-merger integration

Business Process outsourcing

Changing the scopeof activities of your company

Turnaround management

Growth outside yourhome country

Global competition

Growth in your home country

Reorganization

Increasing labor productivity

Cost reduction

2%6%

2%5%

23%24%

22%

26%21%

33%36%

32%45%

57%47%

48%55%

66%61%

17%14%

13%12%

15%

6%4%

4%4%

29%20%

23%27%

23%26%

64%

51%35%

47%35%

47%29%

54%50%

68%58%

71%70%

16%

6%2%9%0%7%9%

0%0%5%2%

5%

29%

24%6%29%

22%24%7%9%

25%44%32%48%44%

25%37%38%29%43%33%

58%68%60%48%54%51%

39%54%55%71%43%53%

72%29%77%86%71%84%

33%39%53%67%50%71%

10%14%

14%15%17%11%13%

11%12%13%19%13%

11%14%14%

17%11%

14%

8%

8%

21%

25%

42%

32%

57%

43%

55%

13%

19%

45%

9%4%7%9%7%4%0%2%

3%0%4%7%4%8%5%8%

28%25%9%4%0%8%

3%33%25%0%

33%24%24%28%13%

33%35%22%34%0%

55%25%31%26%44%35%25%

48%33%36%40%41%32%44%

45%63%28%30%34%40%35%47%

33%67%56%50%52%52%40%55%

33%67%43%43%68%65%67%

44%46%57%57%50%52%55%61%

18%16%

17%17%15%17%

17%15%10%

16%16%16%

17%

10%

19%

UK

Tu

rkey

Sw

itze

r-la

nd

Sw

eden

Sp

ain

Slo

ven

ia

Ru

ssia

Po

rtu

gal

No

rway

Still strong focus on restructuring, little focus ongrowth or global competition

Note: Only countries with sample size equal to or larger 20Source: BCG/EAPM analysis; Web survey in 27 countries with 1,355 responses

Restructuring-related issues Growth-related issues % of respondents: 0–9% 10–19% 20–29% 40–49%30–39% 50–59% 60–69% 70–79% 80–89% 90–100%


5 future topics require the most immediate need for action to improve capability in Europe


Capabilities in managing talent and in changemanagement will play critical role in Denmark

Denmark


Carried out by superior capable companies

Companies with successful talent management used especially two actions

Which of the following aspects of talent management are and will bethe key areas for action of HR in your company?

Which of the following aspects of talent management are and will bethe key areas for action of HR in your company?

Managing talent

Note: Participants could make multiple selections. The positive influences are identified through regression analysis with 10 percent confidence levelSource: Web survey; BCG/EAPM analysis

Developing tailored career tracks

Sourcing talent locally

Developing specific compensation schemesfor talented people

Enhancing the number of visible talents for thecorporate center

Sourcing talent globally

Hiring talent from competitors

Moving businesses to new locations to accesstalented people

Establishing alumni networks

Launching initiatives targeting specific communities

Respondents (%) 0 10 20 30 40 50 60 70 80 90 100

Today (2007) In future (2010–2015) Europe

+40%

+60%

-33%

+300%

+700%

+38%

-41%

+50%

+12%


Ensuring visible leadership

Except for ensuring visible leadership all actions with a positive influence will be less important than in Europe

In which of the following change levers does and will HR play a role in your company?In which of the following change levers does and will HR play a role in your company?

Respondents (%)

Today (2007) In future (2010–2015)

0 10 20 30 40 50 60 70 80 90 100

Europe

Managing change and cultural transformation

Communicating a vision for action

Closing gaps in capabilities (assessment,training, staffing)

Ensuring alignment of the HR system with the desiredculture and/or the expected reorganization

Managing social relations (unions, workers' council)

Maintaining rigorous program management(project, milestones, financial follow-up)

Mobilizing stakeholder support

Installing a head of change management who is asimportant as, e.g., the head of finance

+33%

+23%

+15%

+33%

+22%

+50%

+25%

+400%





All actions with positive influence will become more important in future than in the rest of Europe

Which are and will be the key aspects of work-life balance your company offers?Which are and will be the key aspects of work-life balance your company offers?

Respondents (%)

Today (2007) In future (2010–2015)

0 10 20 30 40 50 60 70 80 90 100

+100%

+0%

+88%

Europe

Managing work-life balance

+67%

+0%

+167%

+133%

+0%

Flexible working hours

Teleworking

Part-time working

Sabbaticals

Job sharing

Compensatory time

Parent's sabbatical

Career couple programs

Increase headcount (and decrease productivity)

-6%



Danish respondents believe managing talent is #1 challenge and priority, in line with rest of Europe

• Need for identifying “top 10%” in an organization early – the future leaders• Offer additional opportunities in terms of development, responsibility and compensation

Danish respondents view “managing cultural transformation” critical• Reflecting a more global footprint of most companies today and higher knowledge content

Danish respondents, however, do not view demographic risk management a priority • Despite aging work force, also in Denmark• Despite record low unemployment – bottlenecks in all functions and at most levels already

Some observations

Get basic HR processes right and focus on top future topics


Non-HR executives want HR to get the basics (basic processes, recruiting/staffing, and strategic partnership) right

• However, this is where HR overestimates its own capabilities most

HR capability assessed to be 65% stronger if HR receives top management support

• However, only 35% of HR professionals feel that they receive top management support

Clear focus for the future: need for action in topics with high future importance and low current capability

• Only 30% of the respondents have already started to tackle the top future topics

HR departments face major challenges

Get basic HR processes right and focus on top future topics


Conclusion

4. Initiate projectswith dedicated

teams

5. Secure supportfrom top

management

3. Select the most critical

HR topics andprioritize projects

and initiatives

2. Understand theinternal environment

• HR audit

1. Understand theexternal environment

• Business strategy• HR trends

17 HR topics

You can order the complete study at [email protected] (please provide your full postal address)

european association for personnel management the future of hr in europe: key challenges through...

Documents

future of hr

personnel management

european association

broadest european hr

global growth

specific hr topic

strategic partner measuring

global competition note