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HR BAROMETER 2017HRM TRENDS AND CHALLENGES IN BELGIAN ORGANISATIONS

Dear HR professional,

For the third year in a row, Vlerick Business School and Hudson have launched an HR barometer on the

trends and challenges in HRM in Belgian organisations. The barometer explores the HR priorities of leading

companies operating in Belgium and shifts in these HR priorities over time.

The HR barometer is a yearly initiative launched in January and involves two parts. The first part of the

barometer focuses on the strategic importance of different HR practices and policies, so that over time, the

shifts in these priorities can be explored. The second part examines a hot topic in HR. For this edition of

the HR barometer, we look into the topic of HR impact on the organisation.

This report provides you with an overview of the most important findings of the study in 2017 and the

shifts compared to 2016, based on a quantitative analysis of the HR priorities of leading Belgian

organisations.

We hope this report provides you with interesting and useful insights,

Nikola Trbovic Dirk Buyens

Director Research & Development Head HRM Centre & Director Open Exec Ed

Ellen Volckaert Emmy Defever

Manager Research & Development Senior Research Associate

Astrid Vandenbroucke

Research Associate

1METHODOLOGY

METHODOLOGY

Research design

Investigate the trends and challenges in HRM in leading organisations operating in Belgium

Among the largest profit organisations in Belgium (Bel 20+ 200 largest profit organisations in terms of number of employees)

Through an online survey among HR Directors and Managers

Broad spectrum of industries

Timing

January 2017 to March 2017

Sample

55 organisations

Representing about 205.000 employees in Belgium

4

ONLINE SURVEY

Actual HR practices:

Indicate the priority of HR practices and the mastery of these practices in 2016

On a scale from 0% (no priority/low mastery) to 100% (top priority/role model)

Future HR practices:

Look ahead to the planned priorities in 2017 and indicate top 5.

* New topic in the list

Specific HR Topic:

Spotlight on HR impact on the organisation

4

Selection & recruitment

Employer branding

Prepare organisation for growth

Learning & development

Talent management

Competency management

Performance management

Leadership development

Teamwork

The new ways of working

Well-being

Engagement

Compensation & benefits

Diversity

Retention

Prepare organisation for stagnation/downsizing

HR Analytics

HR Operational excellence

Industrial relationships

Cultural change*

…

SAMPLE CHARACTERISTICS

6

A. NUMBER OF EMPLOYEES IN BELGIUM

5,5%

16,4%

16,4%

18,2%

43,6%< 500 employees

501 - 1000 employees



> 2000 employees


7

B. NUMBER OF EMPLOYEES INTERNATIONAL (INCLUDING BELGIUM)

49,1%

21,8%

10,9%

1,8%

16,4%

< 5000 employees


25001 - 50000 employees

75000 - 100000employees

>100000 employees


8

C. NUMBER OF BLUE & WHITE COLLAR EMPLOYEES

Blue collar White collar

30,9%

14,5%

9,1%

16,4%

27,3%

No employees

1-200 employees

201-500 employees

501-1000 employees

> 1000 employees

3,6% 7,3%

16,4%

20,0%

50,9%


9

D. COMPANY SECTOR

1,8%

5,5%

5,5%

5,5%

5,5%

7,3%

7,3%

9,1%

9,1%

10,9%

14,5%

14,5%20,0%

0% 10% 20%

Aerospace & Defense

Fast Moving Consumer Goods

Public Sector

Automotive

Financial services & Insurance

Transport & storage

Legal & Professional services

Construction & Engineering

Retail

Telecommunications & IT

Energy & Utilities

Chemical, Pharmaceutical & Healthcare

Industry & Manufacturing


10

E. RATIO OF HR STAFF TO EMPLOYEES

12,7%

43,6%

23,6%

10,9%

3,6%5,5%

1/50 employees or less

1/51 - 1/75 employees

1/76 - 1/100 employees

1/101 - 1/150 employees

1/151 - 1/200 employees

1/201 employees or more

Average ratio: 1 HR staff member per 87 employees

2GENERAL RESULTS

I.HR BAROMETER 2017:

ACTUAL PRIORITIES

HR BAROMETER 2017: ACTUAL PRIORITIES

13* Word size reflects average priority level across respondents

HR BAROMETER 2017: ACTUAL PRIORITIES

14

10

40

48

50

50

50

51

53

53

60

60

61

70

70

70

70

70

75

79

80

0 10 20 30 40 50 60 70 80 90

Prepare organisation for stagnation/ downsizing

Diversity

HR analytics

Compensation & Benefits

Employer Branding

Teamwork

The New Ways of Working


Industrial Relationships

HR Operational Excellence

Well-being

Performance Management

Cultural Change

Engagement

Learning & Development

Prepare Organisation for Growth

Retention

Talent Management

Selection & Recruitment

Leadership DevelopmentTop 3 priorities

TRENDS IN ACTUAL PRIORITIES: HR BAROMETER 2016 COMPARED TO 2017

15

Actual priorities 2017

Actual priorities 2016

* New topic in 2017

0

10

20

30

40

50

60

70

80

90


Employer Branding


Learning & Development

Talent Management



Leadership Development

Teamwork


Well-being

Engagement


Diversity

Retention


HR analytics



*Cultural Change

II.HR BAROMETER 2017: PERCEIVED MASTERY

HR BAROMETER 2017: ACTUAL PERCEIVED MASTERY

17

40

48

49

50

50

51

51

54

57

60

60

60

61

62

70

70

70

70

70

75

0 10 20 30 40 50 60 70 80


Employer branding

HR analytics

Diversity



HR operational excellence


*Cultural Change

Talent management


Teamwork

Retention

Well-being




Engagement



Top 6

TRENDS IN PERCEIVED MASTERY:HR BAROMETER 2016 COMPARED TO 2017

18

Actual mastery 2017

Actual mastery 2016

* New topic in 2017

0

10

20

30

40

50

60

70

80


Employer branding



Talent management




Teamwork


Well-being

Engagement


Diversity

Retention


HR analytics

HR operational excellence


*Cultural Change

III.HR BAROMETER 2017:

PRIORITY VS MASTERY




Diversity

Teamwork

Well-being

HR analytics

Engagement / Learning & Development



Employer Branding



Retention



Cultural Change

Talent Management


HR BAROMETER 2017: PRIORITY VERSUS HR MASTERY

20

Actu

al M

aste

ry

Actual Priority

High

HighLow

Low Area for improvement

StrengthGood job

No priority

PRIORITY VS HR MASTERY: STRENGTHS

High score in terms of priority and

mastery:

21

Main strengths

• Leadership development

• Selection & Recruitment

• Engagement

• Learning & development

Second in a row

• Talent management

• Retention

• Performance management

• Wellbeing

PRIORITY VS HR MASTERY: AREAS FOR IMPROVEMENT

High score in terms of priority, but not

in terms of mastery:

22

Main areas for improvement:

• Cultural change

• Prepare organisation for growth

Second in a row

• HR operational excellence

PRIORITY VS HR MASTERY: UNDER CONTROL?

Lower score in terms of priority, but

high score in terms of mastery:

23

Good Job

• Industrial relationships

• Compensation & Benefits

• Teamwork

PRIORITY VS MASTERY: NO PRIORITY

Rather low score in terms of mastery

but not perceived as a priority:

24

No Priority

• Prepare organisation for stagnation/downsizing

• Diversity

• HR analytics

• Empoyer branding

Second in a row

• The new ways of working

• Competency Management



Diversity

Well-being

HR analytics

Engagement / Learning & Development



Employer Branding



Retention



Cultural Change

Talent Management


TRENDS IN PRIORITY VS MASTERY:TOPICS THAT REMAINED STABLE COMPARED TO 2016

25

Actu

al M

aste

ry

Actual Priority

High

HighLow


StrengthGood job

No priority

Teamwork

Comp & ben

TRENDS IN PRIORITY VS MASTERY:CHANGED PRIORITIES ACROSS QUADRANTS

26

Actu

al M

aste

ry

Actual Priority

High

HighLow


StrengthGood job

No priority

Retention

HR analyticsHR Operational Excellence

Talent Management

TRENDS IN PRIORITY VS MASTERY:CHANGED PRIORITIES WITHIN QUADRANTS

27

Actu

al M

aste

ry

Actual Priority

High

HighLow


StrengthGood job

No priority


IV.HR BAROMETER 2017: PLANNED PRIORITIES

PLANNED PRIORITIES 2017

29



Talent Management


Employer branding

Compared to the planned priorities in 2016, engagement

dropped the top 5 in exchange for employer branding.

Top 5 priorities when looking ahead to the coming year:

V.HR BAROMETER 2017: SPOTLIGHT ON “HR IMPACT ON THE ORGANISATION”

HR IMPACT ON THE ORGANISATION:IS HR REPRESENTED IN THE BOARD?

31

Does the HR Director have a place on the board or equivalent top

executive team?

YES

5,5%94,5%

NO

1. Selection & Recruitment

2. Employee

Engagement

3. Absenteeism

4. Turnover/

Retention

5. Cost

1. Change

management /

Cultural change

2. Employee

Engagement

3. Selection &

Recruitment

4. Turnover/

Retention

5. Training &

Development /

Wellbeing

HR IMPACT ON THE ORGANISATION:EVALUATION OF HR PRACTICES

32

Top 5 KPI’s HR practices and policies are

currently evaluated upon:

Top 5 KPI’s participants would like

to be evaluated upon:

HR IMPACT ON THE ORGANISATION:KPI’S TO MEASURE ORGANISATIONAL SUCCESS

33

Q: Please indicate the importance of the following Key Performance Indicators (KPI’s) in your organisation to

measure organizational success (total must sum to 100).

KPI’s on three different levels:

23

30

47Financial outcomes

Organisational outcomes

Human Resources outcomes

HR IMPACT ON THE ORGANISATION:FINANCIAL OUTCOMES

34

Q: Please indicate the top 3 Financial Key Performance Indicators in your organisation to measure

organisational success.

Market/book value

Return on Investment (ROI)

Operating expenses

Revenue growth rate

Profitability

23,6%

41,8%

70,9%

72,7%

83,6%

Top 3 Financial Outcomes

Lower HR priorities on: Talent management

Lower perceived Mastery of: Retention

Lower HR priorities on: CompetencyManagement, Teamwork

Lower perceived mastery of: Teamwork, NWOW

HR IMPACT ON THE ORGANISATION:LINK BETWEEN FINANCIAL OUTCOMES & HR PRIORITIES

35

Profitability

OrganisationalFinancial KPIs

Correlate withHR

Priorities & Mastery

Higher HR Priorities on: Talent management, Employer Branding, Performance Management, Well-being & Engagement

Higher perceived mastery of: Retention, Teamwork, L&D, Talent Management, Engagement

Revenue Growth

Operating expenses

HR IMPACT ON THE ORGANISATION:ORGANISATIONAL OUTCOMES

36

Q: Please indicate the top 3 Organisational Key Performance Indicators in your organisation to measure

organisational success

Innovation

Productivity

Quality of product/service

Achievement of the organisational goals &strategy

Customer satisfaction

34,5%

54,5%

60,0%

60,0%

83,6%

Top 3 Organisational Outcomes

HR IMPACT ON THE ORGANISATION:HUMAN RESOURCE OUTCOMES

37

Q: Please indicate the top 3 Human Resource Key Performance Indicators in your organisation to measure

organisational success

Employee engagement

Employee turnover

Absenteeism

Social atmosphere

Employee skills and abilities

Employee attitudes and behaviours

7,3%

40,0%

50,9%

54,5%

63,6%

74,5%

Top 3 Human Resource Outcomes

HR IMPACT ON THE ORGANISATION:ADDED VALUE OF HR

38

Q: Please indicate how often the following statements apply to your HR department in the organisation

(ranging from 0% = not at all, to 100% = ‘to a very great extent’).

9%

6%

4%

4%

27%

24%

24%

18%

18%

11%

33%

47%

36%

49%

36%

20%

31%

24%

40%

29%

42%

69%

HR communicates the ideas of line management andencourages that these are heard.

HR generates new ideas and inspires line management.

HR challenges the ideas of line management.

HR offers logical, rational reasons to convince otherdepartments and line management of its point of view.

HR looks for compromises with line management and makesconcessions to reach for outcomes that satisfy its greater

interest.

HR builds relationships and connects with line management’s ideas and decisions through listening,

understanding and building coalitions.

Very little extent (score between 0-25) Little extent (score between 25-50)

Moderate extent (score between 50-75) Great extent (score between 75-100)

HR IMPACT ON THE ORGANISATION:HR INVOLVEMENT

39

Q: Please indicate how often the following statements apply to your HR department in the organisation

(ranging from 0% = not at all, to 100% = ‘to a very great extent’).

20%

15%

9%

4%

31%

26%

13%

4%

31%

33%

22%

18%

18%

27%

56%

75%

The HR department is involved in optimising the businessprocesses in every department.

The HR department is proactively involved in developing andmaintaining strategic partnerships and alliances.

The HR department is involved as from the conceptual phase indetermining the organisational strategy.

The HR department is involved at an early stage inimplementing reorganisations, restructuring, mergers and

acquisitions.

Very little extent (score between 0-25) Little extent (score between 25-50)

Moderate extent (score between 50-75) Great extent (score between 75-100)

HR IMPACT ON THE ORGANISATION:ADDED VALUE OF HR

40

Q: How does the board in your organisation perceive HR’s

added value to organisational success according to you?

Less good Good Very Good Excellent

12,7%

43,6%40,0%

3,6%

HR IMPACT ON THE ORGANISATION: CONCLUSION

41

Role of HR as a strategic business partner is confirmed:

In most organisations, HR is represented in the top executive team

Involved in the development of the business strategy from the outset

Though: HR seems only moderately involved in the business strategy implementation

Cultural change is considered as the most important HR KPI organisations want to be evaluated upon, whereas in practice Selection and Recruitment is the most important KPI.

Although training and development is considered as an important HR KPI, few organisations indicate that their HR practices are evaluated upon this KPI.

Financial outcomes and organisational outcomes are considered as most important to measure organisational success, followed by HR outcomes.

VI.TOPIC NEXT HR BAROMETER

NEXT HR BAROMETER: TOP 3 TOPICS

43

HR analytics

Organisational culture / Mobility & employability


Which topics would the respondents like to see covered in the next edition of the HR barometer

VI.FINAL LESSONS LEARNED

FINAL LESSONS LEARNED

Leadership development and R&S remain top priorities, followed by Talent

Management.

Cultural change and Preparing Organisation for Growth are most important areas for improvement

Although currently not high on priority list, HR Analytics is chosen as topic to explore in-depth next

year

HR is an important strategic business partner. In most companies, HR is

represented in the board & strongly involved in developing business strategy.

Though, less involved in strategy implementation

Trust in economy is clearly growing, as shown by the increased priority of retention, engagement and employer

branding

Cultural change is considered as the most important HR KPI the HR directors want to

be evaluated upon

3MORE INFORMATION?

Nikola Trbovic

Director Research & Development

[email protected]

(+32) 9 242 54 68

Ellen Volckaert

Manager Research & Development

[email protected]

(+32) 9 242 53 68

MORE INFORMATION?

Dirk Buyens

Head HRM Centre & Director Open Executive Education

[email protected]

(+32) 475 83 68 83

Emmy Defever

Senior Research Associate

[email protected]

(+32) 9 210 97 56

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