HR BAROMETER 2015 HRM TRENDS AND CHALLENGES IN BELGIAN ORGANISATIONS JUNE 2015
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1 HR BAROMETER 2015 HRM TRENDS AND CHALLENGES IN BELGIAN ORGANISATIONS JUNE 2015
2 Dear HR professional, In January 2015, 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 will be a yearly initiative and each version will involve two parts. The first part focuses on the strategic importance of different HR practices and policies, and, over time, the shifts in these priorities will be explored. The second part will examine a hot topic in HR. For this edition of the HR barometer, we look into the effects of the implementation of the Unity Status on HR practices and policies This report provides you with an overview of the most important findings of the study in 2015, based on a quantitative analysis of the HR priorities of leading Belgian organisations. We hope this report provides you with interesting and useful insights, Ellen Volckaert Manager Research & Development Celine De Vliegher Consultant Research & Development Dirk Buyens Head HRM Centre & Director Open Exec Ed Ine Willemse Senior Research Associate
3 1 METHODOLOGY
4 METHODOLOGY Research design Investigate the trends and challenges in HRM in leading organisations operating in Belgium Among the largest profit organisations in Belgium (Bel largest profit organisations in terms of number of employees) Through an online survey among HR Directors and Managers Broad spectrum of industries Timing January 2015 to March 2015 Sample 58 organisations 4
5 SAMPLE CHARACTERISTICS A. NUMBER OF EMPLOYEES IN BELGIUM 3,4% 36,2% 22,4% < 500 employees employees employees employees 17,2% 20,7% >2000 employees 5
6 SAMPLE CHARACTERISTICS B. NUMBER OF EMPLOYEES INTERNATIONAL (INCLUDING BELGIUM) 17,4% 32,6% 4,3% 10,9% <5000 employees employees employees employees employees 10,9% > employees 23,9% 6
7 SAMPLE CHARACTERISTICS C. NUMBER OF BLUE & WHITE COLLAR EMPLOYEES Blue collar No employees White collar 21% 29% employees employees 50% 5% 18% employees > 1000 employees 15% 17% 17% 27% 7
8 SAMPLE CHARACTERISTICS D. COMPANY SECTOR Industry & Manufacturing Financial Services & Insurance Chemical, Pharmaceutical & Healthcare Telecommunications & IT Construction & Engineering Energy & Utilities Automotive Transport Public Sector Media & Internet Retail Fast Moving Consumer Goods Property & Real Estate Legal & Professional Services Aerospace & Defence 1,7% 1,7% 1,7% 12,1% 10,4% 8,6% 8,6% 6,9% 6,9% 5,2% 5,2% 5,2% 5,2% 15,5% 20,7% 0% 10% 20% 8
9 SAMPLE CHARACTERISTICS E. RATIO OF HR STAFF TO EMPLOYEES 5% 15% 6% 1/201 employees or more 13% 1/151-1/200 employees 1/101-1/150 employees 1/76-1/100 employees 33% 1/51-1/75 employees 28% 1/50 employees or less 9
10 2 GENERAL RESULTS
11 I. PRIORITIES 2014
12 PRIORITIES 2014 Respondents were asked to look back at the priorities of their HR department in 2014 and to indicate the priority level of different HR practices: 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 On a scale from 0% (no priority) to 100% (top priority) Priority = of strategic importance 12
13 PRIORITIES 2014 * Word size reflects average priority level across respondents 13
14 PRIORITIES 2014 The new ways of working Teamwork Talent management 68 Compensation & benefits Well-being 80 Competency management Diversity Employer branding Engagement Selection & recruitment HR analytics Retention HR operational excellence 53 Prepare organisation for stagnation/ downsizing 50 Prepare organisation for 60 growth Performance management Industrial relationships Leadership development Learning & development 14
15 PRIORITIES 2014: CONCLUSION 15
16 II. MASTERY 2014
17 MASTERY 2014 Respondents were asked how well they master these HR practices and policies in comparison to companies they consider to be role model: 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 On a scale from 0% (low mastery) to 100% (role model) Role model = an organisation that you consider an expert in this domain in Belgium Vlerick Business School 17
18 MASTERY 2014 The new ways of working Teamwork Talent management Compensation & benefits Well-being 80 Competency management Diversity Employer branding Engagement Selection & recruitment HR analytics Retention Prepare organisation for stagnation/ downsizing Prepare organisation for growth 48 Performance management HR operational excellence Industrial relationships 61 Leadership development Learning & development 18
19 HR PRIORITY VERSUS HR MASTERY High Good job Industrial relationships Strength Compensation & benefits HR operational excellence Selection & recruitment Mastery 2014 Diversity Retention Prepare organisation for stagnation/ downsizing Learning & development Engagement Performance management Teamwork Well-being Talent management Competency management Employer branding Leadership development Prepare organisation for growth Low No priority HR analytics The new ways of working Area for improvement Low Priority 2014 High 19
20 MASTERY 2014: CONCLUSION Most HR practices score high in terms of priority Successful HR = juggling several balls at the same time Areas for improvement Most important Leadership development Talent management Second in a row The new ways of working Prepare organisation for growth Employer branding Competency management Well-being Basic HR functions (industrial relationships, compensation and benefits, learning and development, performance management, engagement, selection and recruitment, HR operational excellence) are mastered well, but remain very important 20
21 MASTERY 2014: CONCLUSION Retention versus talent management Similar score in terms of mastery Very different score in terms of priority Focus on developing key talents rather than a focus on retention in itself Diversity Despite the high societal relevance: not among the top priorities of organisations + high perceived mastery HR Analytics Rather low score in terms of mastery But is not perceived as a priority at the moment Rather favourable economic situation in 2014 Prepare organisation for growth > Prepare organisation for stagnation/downsizing 21
22 III. PRIORITIES 2015
23 PRIORITIES 2015 Respondents were asked to look ahead to the priorities of their HR department in 2015 and to indicate their top 5 priorities of the following list of HR practices: 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 23
24 PRIORITIES 2015 * Word size reflects average priority level across respondents 24
25 PRIORITIES 2015: CONCLUSION Top 5 priorities Leadership development 2. Selection & recruitment 3. Talent Management 4. Engagement 5. Learning & Development + Performance Management Top 5 priorities Leadership Development 2. Talent Management 3. Prepare organisation for growth 4. Engagement 5. Prepare organisation for stagnation/downsizing 25
26 IV. IMPACT UNITY STATUS
27 IMPACT UNITY STATUS Respondents were asked: Whether the introduction of the Unity Status had an impact on their HR practices/policies (yes/no) To what extent the Unity Status had an impact (more/no change/less) on: Number of hires Number of permanent employments Number of temporary employments The time to take the decision to hire a new employee Absenteeism Personnel budget Voluntary turnover Forced turnover The time to take the decision to end the contract of an employee 27
28 IMPACT UNITY STATUS 70,7% 29,3% of organizations indicated that the Unity Status had an impact on their HR policies/practices Yes No 28
29 IMPACT UNITY STATUS A. BLUE COLLARS More 1 Less Number of hires Number of temporary employments The time to take the decision to hire a new employee Absenteeism Personnel budget The time to take the decision to end the contract of an employee * Graph shows the number of organisations that indicated that the Unity Status had an impact on the HR practice 29
30 IMPACT UNITY STATUS B. WHITE COLLARS More 1 1 Less 3 30
31 IMPACT UNITY STATUS: CONCLUSION Rather limited impact of the unity status on specific HR parameters (± one third of organisations) Blue collars No impact on: Number of permanent employments Voluntary turnover Forced turnover Highest (although limited) impact on: Absenteeism (higher) Number of temporary employments (higher) White collars No impact on: The time to take the decision to hire a new employee Highest (although limited) impact on: The time to take the decision to end the contract of an employee (less time) 31
32 V. TOPIC NEXT HR BAROMETER
33 TOPIC NEXT HR BAROMETER Respondents were asked which topic they would like to see covered in the next edition of the HR barometer They could choose 3 topics from the following topic list Selection & recruitment Employer branding Use of social media Job crafting 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 Industrial relationships 33
34 TOPIC NEXT HR BAROMETER Leadership development Job crafting Use of social media Talent management HR analytics 34
35 VI. FINAL LESSONS LEARNED
36 FINAL LESSONS LEARNED Successful HR = juggling several balls at the same time Most important areas for improvement Leadership development - Talent management Only 29,3% of organisations indicated that the Unity Status had an impact on their HR practices/policies Top priorities Leadership Development - Talent Management
37 3 MORE INFORMATION?
38 MORE INFORMATION? Ellen Volckaert Manager Research & Development (+32) Dirk Buyens Head HRM Centre & Director Open Exec Ed dirk.buyens@vlerick.com (+32) Celine De Vliegher Consultant Research & Development celine.devliegher@hudson.com (+32) Ine Willemse Senior Research Associate ine.willemse@vlerick.com (+32)
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