Harvey nash hr survey final 2012 in search of engagement

NOW IN OUR 3Rd YEAR

HARVEY NASHHR SURVEY 2012IN SEARCH OF

ENGAGEMENT

Harvey Nash HR Survey 20122

3. Regional results

Contents1. Foreword 32. Executive summary 53. Regional results 74. Country and regional profiles4.1. Ireland 304.2. Switzerland 324.3. Netherlands 344.4. United Kingdom 36

Harvey Nash HR Survey 2012 3

3. Regional results

1. Foreword

33

Taking the pulse of HR leaders across Europe

Now in its third year, the Harvey Nash Human Resources Survey provides in-depth insight into the rapidly evolving role of HR, as well as the senior people who work in this increasingly important function.

Reflecting the views of hundreds of HR directors, CHROs and HR executives from across Europe, the survey looks in detail at the issues that matter to HR leaders: from priorities of the Board, to the tactics used to deploy leading HR programmes, to how HR professionals themselves are planning their careers.This year’s survey, launched in Europe’s fifth year of economic turmoil, looks in detail at the role HR is playing in supporting companies through difficult times and asks the question Is HR ready for the economic upswing?

It’s an important question. Whether upturn or downturn, HR has a key role to play; as one HR Director said to me “whether it’s good news or bad news, it’s HR’s job to deliver it.”

Most of the participants to this Survey prepare for the upswing of the economy by putting Employee Engagement top of the list of the areas they need to work on; they are in fact In Search for Engagement.

Thank you to everyone who took time to complete the survey. Without you this report would, literally, not be possible. We are also indebted to Dirk Jan Verheijen PhD, who assisted us in preparing the questionnaire and who provided an in-depth analysis on key sections of the report. In addition we would like to thank our partner Betula Services for their ongoing support.

I hope you enjoy reading it and find the results valuable in your business operations and career planning.

Roland SteenvoordeManaging Director Executive SearchHarvey Nash Nederland


3. Global results

WoRkFoRCe

WomaN iN HR

LabouR maRket

top 10 SHoRt teRm pRioRitieSoF tHe Ceo aNd boaRd

HR StRateGy about tHe paRtiCipaNtS

H a R V e yN a S H

H R S u R V e y 2 0 1 2k e y

F i N d i N G S

HumaN CapitaL maNaGemeNt

HR CaReeRS

Aligned with business strategy:Supports the growth of the businessincreases performance of employeeskeeps costs under controlinvolves business continuitymeasuring effectiveness

agingdiversityeducation

employer brandingFlexibility

Recruitmentpre-employment Screening

49%of the respondents are female

Strategic Workforce planningtalent managementSkill development

performance managementHigh performance Culture

employee engagementCommunication

employer brandingRetention

32% are less than 3 years with current employer;

40% 6 years or more.

80% is satisfied with remuneration.

88% have no aspiration outside HR.

81% finds interesting and exciting work important

almost 50% report to Ceo,

16% to other c-level.

25% have global responsibilityThey come from (mainly): belgium, ireland, Switzerland, the Netherlands, and the united kingdomAnd are from the following sectors: technology (26%) Financial Services (11%) manufacturing (10%) professional Services 9%) Retail 7%

Recruitmentmanagement development

Leadership CoachingRetention

training & educationCapability & Competence management

employee engagementtalent management

Connect peoplemeasure outcome not activities

Now in its 3rd year, the Harvey Nash HR Survey is one of the largest and longest established reports of its kind. Representing the views of more than 150 HR leaders across europe it is a unique insight into the shape of HR.


1. executive summary

2. executive summaryabout the participantsHundreds of HR Leaders took part in this, the third, annual Harvey Nash Human Resources Survey. Almost half of participants (47%) report to the Managing Director or Chief Executive, and almost two-thirds (62%) are the top most decision maker in HR. The most common job title was Director, VP of HR or Head of HR.

One third (34%) have a national remit and a further 51% had multi-national or global responsibilities. Participants came from Belgium, Ireland, Switzerland, The Netherlands and the United Kingdom as well as a smaller number from other European countries as well as Asia.

the Ceo and board see HR as a growth enabler Despite challenging economic times, HR’s primary role is still a proactive one. The top three Board priorities – management development, talent management and leadership coaching – all focus on HR’s ability to build value through developing people.

Conversely, HR’s more re-active responsibilities, such as creating policies, providing legal advice or managing downsizing projects , are much lower down the table. It suggests that even in difficult times, the CEO and Board are seeing the primary role of HR as helping growth, rather than managing costs or process.

One particular example of growth is recruitment. And when looking purely at the short term, recruitment is the Board’s number one priority, with 56% looking to bring on board new talent in the short term. Compared to last year’s survey recruitment has experienced the biggest jump in importance, reflecting a more positive sentiment towards growth.

measuring the effectiveness of HR strategy The vast majority – 90% – of companies use metrics of some kind to measure the effectiveness of the HR function. Staff turnover, employee engagement and retention are the primary measures (72%, 62% and 62% of participants cited these as important).In just under two-thirds of organizations in this survey some form of remuneration was added to incite HR management to outperform on strategic goals.

Labour market aging and diversity The world’s population has reached seven billion, and its growth rate is slowing down. At the same time, a stunning demographic revolution, mostly brought about by the falling fertility rate and increasing life expectancy, is underway worldwide. It is therefore remarkable that almost half of organizations are not prepared yet and the majority of the organizations see no effect of a decision to raise

the retirement age. Though many organizations have implemented diversity management, the majority are still not taking a pro-active approach.

RecruitmentIn the past, to recruit employees, originations would simply advertise opportunities in the local press, engage a recruitment consultant or, more recently, post jobs online via the company website or popular job boards. This ‘passive approach’, many claim, is on the way out. With recruitment being a short term management board priority many are turning to more pro-active means, such as actively engaging candidates on social media.

Flexibility in the workforceFlexibility has become a mature item on the HR agenda. Over 60% of respondents in this survey value flexible labour as a strategic part of their modus operandi. That said, almost one-third turned to flexible labour not for strategic reasons, but because they could not find the skills using permanent hiring.

Although most companies have embraced a flexible workforce, most – 70% – have no plans to significantly reduce the proportion of permanent staff.

Social media With hundreds of millions of users talking, participating, sharing, and networking online, social media has become a key concern to HR; 85% of participants believe it is important to employer branding, and 65% of the organizations have implemented guidelines for the use of social networks.

"most companies have no plans to significantly reduce the proportion

of permanent staff"

"the top board priorities focus on HR’s ability to build value through

developing people"

employee engagement In a period of economic uncertainty - when both companies and employees are collectively hunkered down to get the job done – staff retention and engagement tends to drop down the priority list. But as the economy rebounds and choices open up for people, many are likely to consider moving to another employer. At that point, emotional engagement may be the only thing helping retain those people most critical to the business. It is therefore no wonder that to prepare for the upswing of the economy, 62% of the organizations have put Employee Engagement top of the list of the areas they need to work on.

Communication The most favourable way for HR to communicate with employees is to enter into a dialogue (96%). Many other tools are used, the most traditional ones (personal meetings, meetings, presentations, newsletters) are still the most popular ones.

Human Capital management & strategic workforce planning Three per cent of the respondents in this survey note that there is no gap between the needed workforce and the current workforce. However approximately half of the organizations represented in this survey have a talent management program and just under 21% of this group has a program for high value specialists. In only 67% of the companies a learning and development culture is in place. Just over 64% has a strong performance appraisal culture. June 2012,

Harvey Nash Betula ServicesDirk Jan Verheijen PhD


1. executive summary

6


3. Regional results


3. Regional results

8

priorities of the Ceo and boardWe asked participants what the board was expecting of them when presented with a list of 27 possible priorities.

exhibit 1: priorities for the boardpriority

Management development 97%

Talent management 96%

Leadership coaching 95%

Capability & competence management 94%

Employee engagement 91%

Organizational development 89%

Performance management 89%

Employee retention & motivation 88%

Training & education programme 87%

Knowledge 83%

Recruitment 81%

Measure outcome, not activities 80%

Connect people 73%

Deployment of social media 70%

Job evaluation and reward programme 68%

Mobility 62%

Diversity 56%

Labour market communication 56%

Flexible employment (time and place) 54%

Executive compensation 51%

Health & welfare policy 51%Flexible employment (temporary versus permanent contracts)

51%

Speak the language of the business 50%

Safety 45%

Shared service centre 32%

Downsizing 31%

Works council 23%

Other 12%

As Exhibit 1 shows, the board priorities for the HR team focus very much on HR’s ‘traditional’ strengths of helping shape the development of talent within the organization; the top three – management development, talent management and leadership coaching – highlight this.

Looking lower down the table it is evident that another traditional role of HR – that of policy creator and legal advisor – is significantly less prominent. Health & welfare, safety, downsizing and works council are all toward the bottom of the table.

The priorities change radically when looking purely at the short term, as Exhibit 2 shows.

exhibit 2: Short term priorities of the board – top 10

When looking purely at the ‘now’, recruitment is the board’s number one priority, with 56% looking to bring on board new talent in the short term. Compared to last year’s survey recruitment experienced the biggest jump in priority, clearly reflecting a more positive sentiment towards growth.

Interestingly, the top five priorities can loosely be classified as ‘investing in people’; a clear indication that companies are increasingly looking for direct, highly visible ways to augment and improve their workforce.

3. Regional results

"Recruitment experienced biggest jump in priority compared to last year"

56%52% 49% 48% 45% 44% 44% 43% 40% 40%

0%

10%

20%

30%

40%

50%

60%

Recru

itmen

t

Man

agem

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evelo

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Lead

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Employe

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.

Training &

educa

tion pro

gr...

Capab

ility &

com

peten

ce m

a...

Employe

e enga

gem

ent

Talent m

anag

emen

t

Connect p

eople

Mea

sure

outc

ome,

not act

ivitie

s


3. Regional results

9

StrategyThe HR Strategy is about building and strengthening the competitive advantage of the organization on the market. It is about increasing the overall performance of the organization and utilizing the skills and competencies of employees. The fact that no less than 96% of the respondents participate in defining and shaping the company-wide business strategy underpins the importance.

However in order to be ready for the upswing of the economy some more needs to be accomplished as there is still quite some room for improvement signalled, up to no less than 40% of the participants indicate that the part whereby the goal is to increase the performance of the employees can be improved….

exhibit 3 to what level is the HR strategy aligned with the business strategy

Yes Room for

improvementNot

applicable

Does the HR strategy support the growth of the business?

68% 29% 2%

Does the HR strategy increase performance of the employees?

58% 40% 2%

Does the HR strategy keep the costs under control? 58% 39% 3%

Does the HR strategy involve business continuity?

54% 39% 7%

If one takes a close look at all the main elements that are part of the responsibility of HR, culture, organization, people, and the HR systems, some noticeable areas of improvements are signalled by our respondents:

With respect to Culture, the fact that there are not enough appropriate leadership skills (15% yes, 42% mostly and no less than 43% not enough) is worrying as the aim of leadership development is about growing new potential leaders for the organization and as such a vital part of the HR Strategy as Human Resources has a shared responsibility in finding and developing new leaders for the organization which is by nature a lengthy process.

Yes MostlyNot

enough

Do people feel part of the organization and its results?

46% 40% 13%

Do people have common interests?

37% 50% 14%

Is there a strong team spirit? 42% 45% 12%

Is work allocated on the basis of individual experience?

35% 54% 11%

Are there sufficient skills/power bases?

23% 59% 18%

Are there appropriate leadership skills?

15% 42% 43%

Are people encouraged to say what they think?

43% 39% 17%

Does the organization encourage innovation and creativity?

46% 32% 22%

Do people feel a sense of personal responsibility in their work?

54% 37% 9%

Is quality emphasized in all aspects?

45% 44% 11%

Do people take pride in their work?

53% 40% 7%

"96% of the respondents participate in defining and shaping business strategy"


3. Regional results

With respect to the organization a structure that is not flexible enough in the face of changing demands (such as the upswing), too complex (27%) whilst 30% indicates that the structure does not tend to resolve problems at the point where they occur.

Yes MostlyNot

enough

Do people have clear roles and responsibilities?

37% 51% 12%

Is the structure flexible in the face of changing demands?

33% 37% 30%

Does the structure encourage effective performance?

29% 52% 19%

Is the structure too complex? 27% 30% 43%

Does the structure tend to resolve problems at the point where they occur?

23% 46% 30%

Do procedures and management practices facilitate the accomplishments of tasks?

20% 57% 23%

With respect to people 32% indicate there is room for improvement in spotting and developing the potentials, and 23% a lack of communication on the business strategy.

Yes Mostly Not enough

Are they encouraged to perform well? 48% 39% 12%

Do they have a customer oriented orientation? 46% 37% 17%

Do they have clear goals and objectives? 39% 45% 16%

Do they know what their expected performance standards are?

38% 47% 15%

Are they aware of the business strategy? 36% 40% 23%

Are people with potential spotted and developed for the future?

33% 34% 32%

Do they have the necessary skills and knowledge?

29% 64% 7%

Also in the area of HR Systems there is room for improvement: 30% finds them not consistent enough, 30% signals there are no rewards for effective performance whilst 28% believes their system does not encourage effective performance.

methods to manage HR Strategic goals

exhibit 7: Which methods are used to manage HR strategic goals?

It is interesting to see that HR uses predominantly SMART goals and KPI’s for strategic goals, when you would normally find that more on a tactical level. It usually is difficult to translate strategic goals into practical activities and align their goals so the strategic goal is met.

“you get more of the behaviour you reward. you don’t get what you hope

for, ask for, wish for or beg for. you get what you reward.”

Michael le Boeuf

88% 87%

63%

40%

25%12% 13%

37%

60%

75%

0%10%20%30%40%50%60%70%80%90%

100%

SMART go

als

Key per

form

ance

indica

tors

Perso

nal re

ward sy

stem

for ..

.

Balance

d Score

Card

Other

YesNo


3. Regional results

ulrich’s Roles model David Ulrich defined a HR Roles model which is known for contributing to the start of the movement from the functional HR orientation to the more partnership organization in HRM Function. The acclaimed benefit is a more responsible and flexible organization of Human Resources, which allows to many HR Professionals to become real respected business partners

No less than 2/3 of the participants are dealing with this model: 16% of the participants have the model fully operational, 43% are working on it, and another 9% are thinking about it!

The acclaimed benefits are fully experienced by 18%, while another 75% is experiencing benefits to some extent (already).

“60% of the organizations have (partly) implemented ulrich’s model

93% of them are experiencing benefits”

“organizations measure what they treasure”

4.COUNTRY

PR O F I L E S

exhibit 8: What are the categories of HR metrics in the organization?

Important measurements are turnover and employee engagement. Whilst employee productivity scores just under 50% being the 7th highest rated HR KPI. Higher ranking KPI’s score more on the HR function with the clear exception of turnover, almost 70% of all companies rank their HR professionals on turnover, showing a significant alignment with business and HR goals.

Only 7% of the respondents use other metrics. This leads to the conclusion that the strategic goals of most organizations are based on the described categories. In the previous question almost 90% of the organizations use KPI’s and the categories in this question are the metrics that they use. Most organizations are more concerned about the quantitate aspect of employee management, turnover and retention, then the qualitative aspect, productivity.

Whatever is measured, one should consider that:• Organizations measure what they treasure. • What gets measured gets done. • Critical metrics have an owner. • To have value, metrics should have a target to be

compared to.

70%62% 61% 58%

51% 50%45%

30%

1%7%

0%10%20%30%40%50%60%70%80%

Turnove

r

Employe

e enga

gem

ent

Reten

tion

Recru

iting e

fficie

ncy

Employe

e atte

ndance

Reward

s sys

tem

and m

easu

r...

Employe

e pro

ductivi

ty

Comm

unicatio

nsNone

Other

, plea

se sp

ecify


3. Regional results

Labour market

aging Due to declining populations and a lack of younger workers, EU economies and Eastern European economies in transition face a decline in labour supply. Without dramatic and immediate changes in either birth or immigration rates, workforces in Germany, Italy, Spain and many other EU countries could decrease significantly over the next couple of decades.

"Workforces in eu countries could decrease significantly over the

next decades"

Slightly over 50% of the participants feel that their organization is prepared for the effects of this revolution while as a consequence close to 50% is not prepared yet.

Raising the retirement age will have a positive effect on 20% of the organizations, while 22% indicates it would have a negative effect. The majority of the participants see no effect of such a decision.

diversity Over 50% of the participants indicate they simply focus on hiring the best. About 1/6 of the participants indicate they have diversity management implemented to apply to legislation. Another 1/6 to be more balanced in terms of customer representation while the remaining 1/6 see other benefits for diversity management.

"diversity management: the majority simply hires the best"

education Last year over 80% of the respondents ranked their country’s education system with a good degree of confidence. 10% ranked their college level education ineffective and 12% thought that about their academic level of education. This year the respondents were less positive. The academic level were found ineffective by 22% of the respondents, the college level even 24%, while other education was ranked ineffective by no less than 34% of the respondents. So in all 3 situations almost twice the number of respondents found the country’s education in all 3 levels ineffective!

"Less confidence in the country’s education system compared to last year"

employer branding In an era of dwindling demographics, companies and organizations are trying to attract people and to convince them to become employees. They tend to use many Human Resources Marketing techniques to do so, one of them being Employer branding.

It defines the personality of a company as a preferred employer. This process is similar to managing a brand in product or services marketing. Why should anyone join the company (instead of any other company) is the basic question addressed. On top of that it is leading in generating strategies for retention and motivation. The fact that Intranet News ranks No. 1 in the column Very Important and Intranet collaboration No. 3 is proof of the latter.

exhibit 9: How important are the following in your employer branding efforts

Very important

Quite important

Not important

Intranet news 50% 38% 12%

LinkedIn 37% 43% 20%

Intranet collaboration 36% 39% 25%

Twitter 18% 32% 50%

Corporate blogs 17% 36% 47%

Facebook 15% 33% 52%

Employee blogs 12% 33% 55%

Influencer blogs 11% 27% 63%

YouTube 11% 24% 65%

Micro blogging 8% 25% 68%

Flickr/SlideShare 4% 14% 82%

"main purpose of employer branding often retention and motivation"

Another remarkable series of answers are the use of Social Media. Except for LinkedIn with 20% Not Important, they all rank 50% and up Not important! In fact from the answers given one might easily conclude that Employer Branding is performed on the corporate website or outside the internet…


3. Regional results

FlexibilityFlexibility of Labour is about permanent, temporary and knowledge. How do organizations deal with the labour market flexibility and strategic human resource management?

The flexible labour market is seen as vital for the development of our economy. Independent professionals, with specific knowledge, skills that may be hired for a limited period, have developed into a major player in the labour market.

There is talk of a “quiet revolution” of entrepreneurship. Companies call for further flexibility to compete with other countries. What are the current developments in the area of flexibility? What does strategic flexibility mean for staff and talent management?

exhibit 10: What situations are applicable in case of using flexible staff?

The crisis has had its impact on HR’s views on flexible labour as more respondents view flexible staff as a strategic choice with hiring specialists a close second. It is remarkable that in a time of increasing unemployment 32% still find it difficult to fulfil certain positions with internal staff.

exhibit 11: type of employment offered for new hires

None1 -

10%11 - 25%

26 - 40%

41 - 50%

51%+

Payrolling 59% 22% 6% 4% 5% 4%

Staff from agencies

19% 59% 14% 6% 1% 1%

Contractors 13% 63% 15% 6% 1% 2%

Temporary contract

4% 39% 24% 14% 8% 12%

Permanent contract

3% 10% 2% 6% 9% 70%

Payrolling is increasing, but not as widespread as labour unions fear as almost 60% of the respondents do not offer Payrolling contracts. With increasing flexibility almost all companies still offer permanent contracts to new staff.

exhibit 12: proportion of the current workforce that is flexible

None1 -

10%11 - 25%

26 - 40%

41 - 50%

51%+

Payrolling 62% 25% 6% 1% 1% 5%

Staff from agencies 23% 53% 14% 6% 2% 3%

Temporary contract 17% 45% 25% 8% 3% 2%

Contractors 14% 59% 18% 4% 4% 1%

Permanent contract 13% 10% 1% 3% 5% 67%

Contractors have surpassed staff from agencies as the predominant flexible labour in companies. This matches the growing trend for individuals offering their own labour to companies.

As flexible labour is for almost 90% a strategic choice the results of this question lead to the conclusion that organizations mostly choose to have only a small percentage (<10%) as flexible labour with the usual maximum at 25%. Only a very small percentage of companies decide on a predominantly flexible workforce.

Almost 90% of the respondents are aware that a flexible workforce requires a different way of working for HR.

Noticeable is that almost 60 % of the organizations deal with specialised labour where small companies are the primary force in the market, either through the ability to support business or low cost propositions.

61% 58%

32%

6%1%

0%10%20%30%40%50%60%70%

Strat

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we w

ant a

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Operat

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None, we d

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3. Regional results

RecruitmentThe recruitment process has become the Flagship of an Employer’s brand. Slow or malfunctioning processes cannot only lead to missing new hires but can also damage the employer’s image on a long-term basis. Important factors to consider are fairness, innovation, difficulty, usability, and transparency.

"Corporate Website No. 1 tool to attract active candidates;

printed adverts on the decline"

exhibit 13: the importance of the following tools in your recruitment strategy

In this survey, the corporate website is considered not important by 6% of the respondents only, and thus the most important mean to get new people on board. On the other side of the spectrum we find printed adverts with 60% of the respondents considering this way to find new hires not important (anymore). The 2nd important tool on the list is the personal network of the recruiter explaining the importance to locate passive candidates, this nonetheless of the importance of job boards to find active candidates on the 3rd place of the list.

When asked for specific tools to attract millennials, internships are on top of the list with 52%. Campus recruitment is No. 2 and Social Media are No. 3. 29% does not use specific tools to attract millennials.

pre-employment screeningRegardless of the size of a business, pre-employment screening has become a necessary hiring practice to avoid costly hiring mistakes. Gone are the days of a simple reference check and a few phone calls to screen new employees. Amid security concerns, corporate scandals, and workplace violence, pre-employment screening has been gaining ground: 49% of the respondents indicate they perform a detailed analysis of work and education history (up 9% from last year).

"pre-employment screening is gaining ground"

A Statement of Conduct is asked in 20% of the cases (down 2%), and a financial investigation is performed in 8% (up 1%).

58%

53%

39% 39%37%

26%

10%7%

36%33%

39%

48%45%

53%

30%33%

0%

10%

20%

30%

40%

50%

60%

70%

Corporat

e web

site

Online j

ob boards

Employe

e ref

erral

progr

am

Perso

nal net

work of t

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ruite

r

Socia

l med

ia

Recru

itmen

t com

panies

Alumni p

rogr

am

Printe

d adve

rts

Very importantQuite important


3. Regional results

Social mediaSocial Media essentially is a category of online media where people are talking, participating, sharing, networking, and bookmarking online.

exhibit 14: the importance of Social media in relation to the following:

Not

importantImportant

Very important

Build and leverage networks

17% 61% 22%

Vacancies publication

21% 59% 19%

Source of candidates

23% 56% 21%

Employer branding 15% 56% 29%

Research tool 26% 55% 20%

Employer transparency

29% 54% 17%

It is at least remarkable that 17% of the respondents feel Social Media are not important to build and leverage networks. 21% feel they are not important if it comes down to publication of vacancies while to 23% they are not important as a source of candidates. The latter is quite a high percentage given the fact that 34m+ Europeans put their profile on LinkedIn alone.

"Social media become increasingly important"

Social Networks are dominant if it comes down to Employer Branding: 85% of the respondents believe them to be important or very important!

When asked for what other purposes Social Media are used a wide variety of purposes are given such as branding, business growth and reach, corporate communications, internal collaboration, public relations, recruitment, sharing knowledge, social enterprise and innovation, to communicate, discuss and share thoughts, and many, many more …….

policies and Guidelines for the use of Social mediaA Social Media Policy document helps to:• Establish a set of guidelines for all employees when using

Social Media sites • Ensure employees understand their legal responsibilities

when interacting online • Ensure employees understand their responsibilities when

writing about the company, its products or services, on their personal blogs, Facebook pages and Twitter accounts

• Other goals include increasing brand awareness, finding new markets, and positioning the company as a thought leader.

65% of the respondents have indicated such a policy is in place while another 13% is thinking about it.

"Guidelines for the use of Socialmedia are inevitable"


3. Regional results

employee engagementIn today’s business we accept the premise that an engaged workforce is essential for the success of the company. Therefore in this chapter of the survey we are identifying the factors that correlate with high employee engagement levels and fine-tune strategies for improving scores.

A truly engaged company is a high-energy environment in which employees do everything they can to ensure its business success. Engagement means generating passion and pride in the work force, finding the right fit for each individual to bring out their strengths. But to ensure that employees stay engaged and energized, we need to know what we can do for them, how we can help them to learn new skills, grow and meet new challenges. To put it more strongly: ‘We want to know how companies make progress in their efforts to make the organization the inspiring, positive working environment that brings out the best in employees.

"an engaged workforce is essential for the success of the company"

key findingsExhibit 15 shows respondents’ “scores” on the core questions of engagement. The emotional factors tie to people’s personal satisfaction and the sense of inspiration and affirmation they get from their work and from being part of their organization. In our database we used questions related to your own reflection on the level of your engagement as well as related to the reflection on the overall level of engagement in the company from the perspective of the employees.

exhibit 15: Really believe in the future and values of the company

Strongly agree

Agree DisagreeStrongly disagree

I believe in our company values 49% 47% 3% 1%

I believe the organization has an outstanding future 37% 51% 10% 2%

Employees believe in our company values 26% 64% 9% 1%

Employees believe the organization has an outstanding future 21% 60% 17% 2%

exhibit 16: passionate and proud to work for the company

Strongly agree


I do my job with passion 48% 46% 6% 1%

I am proud to work for the organization 45% 49% 4% 2%

Employees are proud to work for the organization 34% 57% 8% 1%

Employees do their jobs with passion 28% 58% 14% 1%

exhibit 17: the company inspires me to do my best work

Strongly agree


I am inspired by the vision of the organization 37% 52% 10% 1%

Employees are inspired by the vision of the organization 19% 55% 25% 1%

Employees are proud to work for the organization 34% 57% 8% 1%

Employees do their jobs with passion 28% 58% 14% 1%


3. Regional results

exhibit 18: Sense of personal accomplishment from the job

Strongly agree


I matter, I can make a difference in the organization 47% 47% 5% 1%

Employees believe they can make a difference in the organization 18% 57% 24% 1%

exhibit 19: motivated by management to help my company succeed

Strongly agree


My manager engages our team and is a leader 31% 47% 18% 4%

I trust our leadership 28% 59% 9% 4%

Employees trust our leadership 14% 52% 33% 1%

My manager brings the best out in me 25% 47% 24% 4%

My manager helps me to develop and grow 23% 46% 25% 5%

Employees feel valued 15% 50% 33% 1%

exhibit 20: the Company is a good place to work

Strongly agree


I am an ambassador for the organization and its products/services 53% 44% 3% 1%

They are an ambassador for the organization and its products 21% 68% 10% 0%

I enjoy going to work every day 33% 59% 6% 3%

Employees enjoy going to work every day 12% 75% 12% 1%

I feel the organization offers the perfect conditions for individual and team growth 12% 55% 31% 2%

Employees feel that the organization offers the perfect conditions for individual and team growth 6% 49% 42% 3%

The organization offers the r ight climate to develop my skills 23% 53% 21% 3%

Employee morale is very high across processes 12% 50% 35% 2%


3. Regional results

exhibit 210% 20% 40% 60% 80% 100%(% may not add to 100 due to rounding)Really believe in the future and values of the company

2% 10% 56% 33% Passionate and proud to work for the company

1% 8% 53% 39%The company inspires me to do my best work

1% 14% 56% 30%Sense of personal accomplishment from the job

1% 15% 52% 33%Motivated by management to help my company succeed

3% 23% 50% 23%Would say our company is a good place to work

2% 20% 57% 22%Strong disagree Disagree Agree Strong Agree

Exhibit 21 provides the evidence that, despite the rough and tumble of the economics recession, more than 90% believe in the future and values of the company. A key item is having a strong sense of personal accomplishment from one’s job, 85% of respondents indicated that they matter, that they can make a difference in the organization. This factor is generally related to the relationship between the individual and the broader corporation; for instance, the extent to which employees understand their role, is relative to the company vision and its objectives. It’s a combination of “the will” and “the way”. Full engagement demands both. Employees need the will: the sense of mission, passion and pride that motivates them to give the important effort. And they need the way: the support and conditions from the organization to act on their sense of mission and passion.

In the overall rating 73% has favorable views about supervisory engagement. It suggests companies recognize the importance of the managerial role and helping equip managers with the skills and tools to become more effective in the key areas.

"despite the rough and tumble of the economics recession, more than 90% believe in the future andvalues

of the company"

Most alarming is that companies are, in general, still behind where they need to be inspiring people and providing the personal sense of engagement that count heavily in a meaningful work experience. Respondents’ overall ratings for leadership and managerial engagement show some points to consider:

"organizations are, in general, still behind where they need to be inspiring people"

• Management appears still to struggle with key leadership behaviours correlated to engagement. Our findings suggest leader’s motivation can have a greater potential impact on engagement. Almost 1 in 4 employees tells us not to be motivated by management to help the company succeed, 1 in 3 employees (33%) does not feel themselves as valued.

• Still, employers have a long way to go. This is affirming how far managers have to travel to deliver a more inspiring and challenging work experience in their companies.

Four levels of employee engagementWhile organizations are keen to maximize the contribution of each employee toward company’s imperatives and metrics, individual employees need to find purpose and satisfaction in their work. Therefore consequently engagement focuses on individuals: contribution to the company’s success and personal satisfaction. Full engagement represents an alignment of maximum job statisfaction (“I do my job with passion”, with maximum job contribution (“I matter, I can make a difference in the organization”).

Engaged employees are not just committed. They are not just passionate or proud. They have a line of sight on their own future and on the organization’s mission and goals. They are using their talents and efforts to make a difference in company’s drive for sustainable business success.The index we use to determine engagement levels contains items that reflect the two axes of contribution and satisfaction.


3. Regional results

Level Description

Strongly agree Engaged

High contribution and high satisfaction: These employees are at the top where personal and organizational interests align. They contribute fully to the success of the organization and find great satisfaction in their work.

Agree Almost engaged Medium to high contribution and satisfaction: These employees are among the high performers and are reasonably satisfied with their job.

Disagree Fairly engagedMedium to high contribution but low satisfaction. These employees are not achieving their personal definition of success and satisfaction and often feel themselve disillusioned.

Strongly Disagree Disengaged Low to medium contribution and satisfaction. The employees are feeling

themselves underutilized, and clearly not getting what they need from work.

engagement: your reflection

Engaged

Almost engaged

Fairly engaged

Disengaged

29%

54%

16%

1%

exhibit 22: Fewer than 1 in 3 employees are engaged. Nearly 1:5 (17%) are actually poorly engaged or even disengaged.

In part, this speaks to the undeniable progress companies made in recent years in creating more engagement, although there is still a lack in motivating employees. Plumbing deeper into the more emotional aspects of engagement we see that just under 80% of the Region agreed that their company is a good place to work and, even better: almost 90% agreed their company inspires them to do their best work.

engagement: moving the needleThe moderate and lower scores for elements of engagement in the area of leadership (motivated by management) pose some risk for employers: the impact of employees’ dissatisfaction with various aspects of leadership and the lack of developmental opportunities.

In a period of rational endurance - when both companies and employees are collectively hunkered down to get the job done - engagement based largely or only on rational factors may be adequate. But as the economy rebounds and choices open up for people, many are likely to consider moving to another employer. At that point, emotional engagement may be the only thing helping retain those people most critical to the business.

Finally, our respondents may be reminding us that the heart of the employee is a tougher battleground than the mind.The heart of the employee is a tougher battleground than the mind.


3. Regional results

HR effectiveness on engagementThe respondents ranked the overall job satisfaction in the HR department Excellent 18%, Good 60%, Average 15%, Room for improvement 8%. At the same time they feel Very satisfied 7%, Satisfied 52%, Somewhat satisfied 35%, Not satisfied 5% about the general efficiency and productivity in the company. This means that our group confirms that there is a significant space for improvement, but it seems that HR and executives aren’t getting the basics of increasing performance right. While our respondents are reasonably positive about their management’s business (with more than half agreeing they believe in the future and being inspired). Considering this is an important driver of engagement, employers should be disturbed by respondents of weak vote of satisfaction here.

the HR department has launched new employees programs as from 2010strongly agree 34%agree 42%disagree 18%strongly disagree 6%

all employee programs launched by HR have achieved its objectivesstrongly agree 16%agree 50%disagree 29%strongly disagree 5%

are you satisfied with the image of the HR department?Very satisfied 10%Satisfied 50%Somewhat satisfied 31%Not satisfied 9%

The value of this study is that it not only tells us what engagement looks like, but also how to build it, highlighting those variables that have the most positive impact on behaviour and performance. Perhaps most important, the study reminds us of a hard truth that’s often forgotten in the desire for a quick solution: building engagement is a process that never ends.

And it rests on the foundation of a meaningful and emotionally enriching work experience. It is not only about making people happy or even paying them more money. As important as pay and benefits are in attracting and retaining people, they play a less important role in engaging people in their work and developing their skills. The responds to our

question: which of the following has a positive impact on your skills, shows that the driver behind engagement is being stimulated as a human being.

"building engagement is a processthat never ends"

exhibit 23: shows that the traditional monetary rewards have a relatively minor role in driving engagement itself.

Management interest in employee’s well-being is the most important driver behind engagement. Here are the important points to note: considering employees as human beings is considered more important for the impact of engagement levels than managers actions. In today’s situation Managers and HR are not necessarily doing the things that matter most.

This actually garnered the biggest negative score across the range of manager behaviours, with 33% rating managers as poor or very poor at taking their views into account.

"management interest in employee’swell-being is the most important

driver behind engagement"

Given today’s fast pace and need for rapid decisions having the time to talk to people about an issue may be more of a luxury than a practical reality for many managers. And sometimes, consultation just isn’t possible for business or other reasons. Still, giving people a chance to provide input - providing a forum for opinions - is not only part of building more challenge and stimulation into the work environment, but also a part of involving people to enhance engagement and a sense of accountability. The workplace is no different from other areas in our lives

81%

65%

43%

28%

3%

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30%

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3. Regional results

Which of the following employee programs need to be launchedLeadership programs 61%Employee engagement programs 50%Organizational learning programs 36%None 14%Other 4%

Which of the following areas should HR assistCareer orientation 78%Employee motivation 72%Goal and objective setting 72%Conflict management 59%Emotional intelligence 50%Stress management 43%Self-esteem 30%Other 5%

exhibit 24 Career advancement opportunities

Exhibit 24 responds to the statement: Employees feel that the organization offers the perfect conditions for individual and team growth.

Respondents gave their companies the lowest scores by far on this engagement driver. Just a third of the respondents agreed their conditions for individual growth were excellent, while 40% disagreed.

Only 55% were positive about this aspect of their organization, while 45% were not. Given companies’ economic belt-tightening over the last two years, job advancement - indeed, job movement at all - has probably been limited at best (other than job eliminations). So to some extent, our respondents’ views may simply be a sign of the times - in keeping with their recognition that today, it is harder to find another, and especially better, job than it was two years ago. Still, we have a far more mobile workforce than was true a generation ago.

Strongly agree

Agree

Disagree

Strongly disagree

7%

48%

40%

5%


3. Regional results

CommunicationMost respondents feel that entering into a dialogue with employees boost the effectiveness of HR (96%). There are however other means as well:

exhibit 25: Which tools do you use to communicate value and influence perceptions?

Don't use

thisDaily Weekly Monthly Quarterly Annually

Micro blogging 84% 3% 7% 4% 2% 0%

Influencer blogs 84% 4% 5% 3% 4% 0%

Podcasts 79% 1% 2% 9% 7% 2%

Employee blogs 77% 5% 8% 7% 3% 0%

Corporate blogs 63% 4% 13% 15% 4% 0%

Intranet collaboration 47% 13% 21% 14% 5% 0%

Social networks 47% 19% 15% 12% 7% 1%

News letters 23% 1% 14% 36% 24% 2%

Intranet news 15% 25% 34% 18% 9% 0%

Email updates 12% 18% 32% 31% 6% 1%

Presentations 12% 7% 17% 34% 26% 4%Management meetings/conferences

6% 9% 23% 28% 30% 5%

Personal meetings 4% 42% 27% 22% 4% 1%

RetentionAs we did for the drivers of engagement, we analysed our data to isolate the specific elements of the work experience most important to recruiting and retaining employees. Exhibit 26 shows the results of the top 10 drivers of retention strategies. What is immediately apparent are the differences across these areas. While there are some overlaps, particularly in retention and engagement. Let’s take a closer look.

exhibit 26: Which of the following retention strategies are you successfully employing?

Placing the right talent in the right job 69%

Treat each employee with respect and as an individual 64%

Improve the balance work and personal life 54%

Offer a competitive compensation package 54%

Workplace flexibility 48%

Communication by HR and availability of HR 46%

Employee empowerment 46%

Make the workplace fun 34%

Eradicate favouritism 24%

Other 4%

These exhibits tell a mixed story as far as communication is concerned. The relatively favourable scores for HR communication abilities (96%), is to enter into a dialogue with employees which will boost the effectiveness of HR.

Effective employee communication is a perennial challenge for organizations, especially large, complex ones. In our work with clients, we have found that it is a learned skill, and one that traditionally has not been emphasized among managers moving up through the ranks. In addition, many organizations confuse communication with information, concentrating on disseminating basic facts rather than providing context, commentary and a two-way dialogue. In our experience, employees want to know what management thinks and believes and how it plans to act.

"many organizations confuse communication with information"

And they also want vehicles to give their input. It is part of the environment of mutual trust, accountability and responsibility that is important in engaging people and winning discretionary effort. Equally damaging is a culture characterized by perceived gaps between leadership’s words and its actions. A common example is trumpeting.


3. Regional results

This exhibit takes a closer look at the intent to leave the company - underscoring the fact that a highly engaged workforce is a more stable workforce. As shown, retention strategies are used for moving employees from a state of moderate to high engagement that makes them almost twice as likely to want to stay with the company and invest discretionary effort, all other things being equal. And while high engagement does not guarantee retention, it does increase the chances of retaining the very people who are probably going to be most attractive in a competitive talent market. Disengagement, for its part, poses two distinctly different retention risks for employers.

building the right foundationPay and benefits remain somewhat important in retention, but clearly to a lesser extent. In a sense, what we are seeing here is the difference between the needed-to-play and needed-to-win reward elements. Assuming an employee perceives that his or her pay and benefits are competitive and adequate in the context of the job and competitive realities, other things - notably advancement, talented co-workers and the overall work environment - matter far more in deciding to stay with a company. But if pay or benefits are seen as inadequate or out of line with effort or competitive reality, that will then become a major factor in pushing people to look for other situations. Here, too, we have seen some shifts in the mix of key elements driving retention over the last two years. What is also more important today is managerial effectiveness, particularly in setting clear goals and inspiring people, both of which hark back to people’s need for both “the will” and “the way” in giving discretionary effort. Indeed, it is impossible to underestimate the importance of the manager’s role overall, especially, as we have seen, in creating a positive work environment and building more challenge into people’s jobs.

"What is important today is settingclear goals and inspiring people"

Essentially, this comes down to an employer’s responsibility to provide employees with information. To the extent in which a company consistently keeps employees fully informed, it provides the necessary foundation for employees to behave responsibly and accept accountability for making their own decisions. So, along with decision-making, communication and education must also become clear.

exhibit 27: putting it all together: an HR agenda for the future

Managing an organization and its people poses unique challenges today. Consider what has just occurred in the past two years; continued economic uncertainty. However, it is also a function of strong employee engagement management programs that help people set clear goals, assess progress against those goals, understand gaps in skills and how to close them, and what their longer-term opportunities might be.• Give employees education to increase their business. This

is among the top drivers of engagement. This element speaks to employees’ need and desire to have more of a personal connection to, and impact on, the business and its customers and contribute materially to results. This is obviously easier in some roles than others, particularly in service-based businesses where employees can have a great deal of direct customer contact.

• Ultimately, managing people should become as an important objective to an organization as managing operations, inventory or budgets. This is a message that has to flow down from the top and take root in the fabric of the organization.

• Seek creative ways to make jobs more challenging and improve opportunities for advancement. If employers were to focus on just two areas in workforce management, these would arguably provide the most return on their investment. At a time when so many people are struggling with excess work - doing the same or more work with less help - there is a special urgency to making work seem more challenging and stimulating. Simply put, it can mitigate the negative impact of a demanding workload.

• One of the interesting findings in our study of the emotional climate of the workplace was that people want to be stimulated as a human being. This stimulation ultimately compensates for the amount of the work, helping dissipate negative feelings about workload itself.

62% 58%

41% 40% 37%27%

1%8%

0%10%20%30%40%50%60%70%

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3. Regional results

Organizations have always struggled with the temptation to address people management issues with money. “What is on the engagement list are the things that take time and commitment such as strong leadership, accountability, autonomy, a sense of control over one’s environment, a sense of shared destiny, and opportunities for development and advancement. In the end, this study reminds us there are no substitutes for these fundamentals. The remainder of this report explores the elements of engagement in more detail, and compares them to the somewhat different mix of elements that attract and retain employees. Individuals, who can become role models for their peers, help building the kind of environment and work experience that does engage greater numbers of people. Human beings are ends in themselves and not means, so the intrinsic value of every human being is important.

The challenge, by contrast, lies with the large number of moderately or fairly engaged. Left to their own devices, these employees could easily slide toward the wrong end of the engagement scale, with serious consequences on productivity and morale. Indeed, the sheer size of this group - probably the single largest group in any organization - means it will have a disproportionate impact on the mood and morale of the workforce overall. Strengthening this group’s level of engagement may be the most critical task virtually every employer faces today.

"ultimately, managing people should become as an important objective to an organization as managing operations,

inventory or budgets"

• What does it take to create more stimulation and challenge in a job? As we have seen, that can, and often has to, go beyond the boundaries of an individual job. It rests on shaping a culture that gives people a reasonable amount of autonomy, allows them to take some risks and is open to new ideas.

• In part, companies need to redefine advancement, focusing less on traditional spans of control and reporting, but rather empower employees to make their own, on-the-spot decisions about how best to address customer needs.

• But there are other ways to help people feel they are part of and contributing to the business. Our study reaffirms the importance of engagement. Now, we need to recommit to using it and staying the course over time. What employees seek - indeed, what we all seek in our work experience - is a blend of tangible and intangible elements that together create an environment of stimulation, contribution, and recognition.

"Human beings are ends in themselves and not means, so the intrinsic value of

every human being is important."


3. Regional results

Human Capital management

Strategic Workforce planning

exhibit 28: How will the gap between the current and the needed workforce be closed (if at all)?

"Learning and development and Recruitment are most popular to close the Gap"

There is no single strategy for getting the workforce the organizations need. Both internal actions are required like training and education, but equally important is an outward focus to bring in knowledge and skills that are lacking. This is done through hiring both permanent and temporary staff.

exhibit 29: What types of learning and development activities are currently active?

In-house development programs 90%

On-the-job training 87%

External conferences, workshops and events 79%

Coaching by line managers 72%

Coaching by external practitioners 63%

Job rotation, secondment and shadowing 39%

Action learning sets 22%

None 1%

Other, please specify 2%

Organizations like to keep their training and development activities in house.

In most organizations (85%) development of staff is a joint effort between line management and HR.

talent managementTalent management here defined as a business strategy that will help you retain exceptional employees. The goal of talent management is a superior workforce. 57% of the organizations have a talent management programme in place. The underlying objectives are:

exhibit 30: objectives for talent management

exhibit 31: Which groups of employees are covered?

High potentials 54%

All 46%

Senior managers 36%

Other managers 21%

Graduates 21%

Specialists 21%


"57% have a talent management programme in place"

Depending on the objectives of the programme, in many organizations only a minority of the employees are covered.

72% 68%

56%48%

37%

25%16%

6% 5% 3%0%

10%20%30%40%50%60%70%80%

87%89%

60%60%

45%43%34%

18%

1%0%

10%20%30%40%50%60%70%80%90%

100%


3. Regional results

Skill development

exhibit 33: What skills are most needed to meet (future) objective and is a training programme in place?

Leadership 75%

People management 65%

Business skills/Commercial acumen 55%

Communication/interpersonal 55%

Project and programme management 49%

General management 39%

Innovation and creativity 32%

Customer service 31%

Team working 31%

Specialist skills 28%

Technical skills 24%

Problem solving 22%

IT skills 20%

Political and cultural awareness 17%

Budgeting 14%

exhibit 34: Which means does your organization deploy for skill development?

When asked, 86% of the respondents believe their organization provides the right climate to develop skills.

exhibit 32: What activities are most effective?

In-house development programs 69%

Coaching 60%

Mentoring 50%

360-degree feedback 48%

High-potential development scheme 42%

Cross-functional project assignments 39%

Internal secondments 32%

External courses 30%

Job rotation 24%Courses leading to an official qualification

19%

Assessment centres 12%


The most effective activities are clearly those handled in-house.

86%

65%58%

54% 51% 49%45%

2% 1%0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

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3. Regional results

performance management

exhibit 35: to what level has the organization implemented performance management?

The organization has a documented policy in place agreed by management

37%

Personal objectives are aligned with business objectives

27%

Contributions against business objectives and demonstrated values are evaluated

21%

Required competencies and values are assessed

9%

Not at all 5%

Opportunities for people development are defined

1%

Total 100%

Though almost all organizations have implemented performance management to some extent, only 37% have a full implementation inclusive a documented policy that is agreed by management.

exhibit 36: to what level is this creating a high performance culture?

This exhibit shows many organizations are on their way creating a high performance culture, but a lot still needs to be done to achieve the ultimate goal of having one.

29%

48%50%

29%

42%

20%

29%27%

0%

10%

20%

30%

40%

50%

60%

"Still a long way from a true High performance Culture"


3. Regional results

The 3 most important things mentioned are Interesting and exciting work (81%) followed at quite a distance by An organization that treats people fairly and respectfully (36%), and competent management and a vision for the future (31%).

Remuneration

exhibit 38: What is your base salary?

80% of the respondents are satisfied with their remuneration package. 81% have a bonus possibility; 57% actually received 10% or more from their base income while 17% actually received over 30% of their base income last year.

"Little aspiration to continuea career outside HR"

A pension is also high on the list of benefits: 69% have a contributory pension, and 19% a non-contributory pension. Over 50% receive a company car or a car allowance, while 28% have share options or another form of equity.

What role do you ultimately realistically aspire?Almost all respondents have no aspiration outside HR (88%). 6% aspire to become a Chief Exec or an MD, 4% have COO on top of their list and another 2% another C-level position.

you and your Career

previous Role 86% of the respondents indicated their previous role was also in HR. The remaining 14% came from Sales & Marketing, General Management, Consultancy or another line management position.

How long have you worked for your current employer?40% (up 8% compared to last year) of the respondents have worked for their current employer 6 years or more. On the other side of this table 32% (up 2%) work for their current employer less than 3 years. This number is slightly higher than the number of CIO’s who work for their current employer less than 3 years (29%).

How long from this point onwards, do you expect to stay with your current employer? 22% believe they will leave within a year, another 29% within 1-2 years. Only 19% would not consider a new role, not even if presented. 15% is actively seeking & applying for jobs. All these in spite of the fact that 90% of the respondents find their current job quite to very fulfilling and 80% indicated their current job to offer intellectual stimulation.

A fresh challenge (54%) is the single most important factor to move to a new organization (up 21% from last year!). This percentage is also high compared to the CIO’s who were asked the same question earlier this year; from them 34% indicated that a fresh challenge is the top reason.

"interesting work by far the most important issue about employer"

exhibit 37: What do you find important about your employer

81%

36%31% 28% 25% 22% 21%

13%

0%10%20%30%40%50%60%70%80%90%

30% 30%

24%

12%

2% 2%

0%5%

10%15%20%25%30%35%


3. Regional results

3. Regional results


4. Country profiles

0%10%20%30%40%50%60%70%80%

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irelandabout you and your Current RoleA relatively high percentage of the Irish respondents (67%) were senior HR Executives. No less than 37% carried a global responsibility, whilst 19% was responsible for more than 1,000 employees.

The split between male and female was rather different from the other countries (15% Male, 85% Female).

Most respondents came from the Technology / Telecoms Sector (44%), followed by Financial Services (11%) and Government (7%).

"85% of the irish respondents are female"

priorities of the Ceo and boardThe Management Boards short term priority for HR to address is Recruitment (60%). If short term priority and long term priority are combined, the list of priorities is headed Talent Management, Employee Retention & Motivation, Capability & Competence Management, and Management Development, each a priority for 96% of the Management boards, whilst Employee Engagement scores a strong 92%.

"Recruitment top Short term priority for 60% of the irish management boards"

StrategyDespite the fact that 74% of the Irish respondents is involved in defining and shaping the company wide business strategy, a lot of room for improvement in all the areas touched by the HR Strategy is signaled.

"High emphasis on Quality and flexibility in face of changing demands"

If one takes a close look at all the main elements that are part of the responsibility of HR, the culture, the organization, the people, and the HR systems some noticeable differences with the total group are: • With respect to Culture, a high emphasis on Quality (78%

versus 45%); People take pride in their work (70% versus 53%) and the Irish people do feel a sense of personal responsibility (69% versus 54%).

• With respect to Organization, a high emphasis on flexibility in face of changing demands (56% versus 33%); only 4% not enough on the fact if the structure encourages effective performance (versus 19% of the total group).

• With respect to people the Irish signal a high emphasis on Customer oriented orientation (69% versus 46%) and a strong encouragement to perform well (65% versus 48%).

• In HR Systems there are less clear rewards for effective performance (38% versus 30%).

RecruitmentCorporate Websites are considered important by all respondents from Ireland! Recruitment Companies in the high Nineties, versus 80% for the group; Online Job Boards also in the high Nineties versus 86% of the group.

"Corporate Website No. 1 tool to attract active candidates; Recruitment

Companies No. 1 to attract passive candidates!"

exhibit 39: putting it all together: the irish HR agenda for the future

3. Regional results


4. Country profiles


Close the gap between current and needed workforce Learning and development and Recruitment are highest on the list, with 75% higher than in the region (72% and 68% respectively). The percentages may differ from the region; the order of importance does hardly.

talent management A Talent Management program is in place with 41% of the respondents which is below average (57%). The most important objective for Talent Management is growing future leaders. All employees are covered in 60% of the organizations (compared to 46%).

performance managementAll organizations in Ireland have implemented performance management or are working on it. The Iirsh are a little ahead of the others with 43% having a fully implemented system (documented policy in place agreed by the management).

you and your Career

previous Role 86% of the respondents indicated their previous role was also in HR. The remaining 1% came from Sales & Marketing, General Management, Consultancy or another line management position.

How long have you worked for your current employer and how long from this point onwards, do you expect to stay with your current employer?57% (compared to 40% of the Group) of the Irish respondents have worked for their current employer 6 years or more, and only 21% less than 3 years. The number who expect to leave within 3 years is also a bit lower than the group (31% expects to leave versus 51% of the group). Only 7% is actively looking for a new job (versus 15% of the group).

What do you find important about your employer?The 2 most important things mentioned are Interesting and exciting work (69%) followed at quite a distance by An organization that treats people fairly and respectfully (46%), for the Irish a Good salary ranks No. 3.

Remuneration69% (compared to 80% of group) of the respondents are satisfied with their remuneration package. 25% (compared to 46% of the group) make 100,000€ or more. Bonus is in line with the group.

3. Regional results


4. Country profiles

Switzerlandabout you and your Current Role41% of the Swiss respondents are senior HR Executives and managers. No less than 29% carries a global responsibility, whilst 12% was responsible for more than 1,000 employees, 26% is a member of the management board versus 55%of the group.

The split between male and female is 33% male and 67% female.

The financial services sector counts for 42% of the respondents, signaling the importance of this market to Switzerland.

"2/3 of the Swiss respondents are female"

priorities of the Ceo and boardThe most important key business issues to address in the short term are Connect people, Recruitment (each 50%) followed by knowledge and talent management (each 38%).

"Connect people top short term priority for the Swiss"

Labour market

education The Swiss are positive about their countries education: No not effectives for college education (compared to 24% of the group), 16% ineffective for academic education (compared to 22%) and 23% not effective for other education (compared to 34%).

"the country’s educationsystem is effective"

RecruitmentThe corporate website is considered important by all Swiss respondents, Online job boards are important to 93%. The same percentage of the Swiss rank Recruitment companies important for their strategy, compared to 80% of the group.

When asked for specific tools to attract millennials, Campus recruitment is top of the list with 67% (compared to 41%). The use of Social Media is 40% (compared t 39%).

exhibit 40: putting it all together: the Swiss HR agenda for the future

A high emphasis is on retention (almost double the group), relatively low on training (43% versus 58%), whilst Engagement is also lower on the priority list than with the group (43% versus 62%).

71%

43% 43% 43% 43%

29%

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3. Regional results


4. Country profiles


Close the gap between current and needed workforce Recruitment is highest on the list, with 77% even higher than in the region (68%). The percentages may differ from the region; the order of importance does hardly.

talent management A Talent Management program is in place with 60% of the respondents (compared to 57% in the region). The organizational objectives have put attracting and recruiting key staff high on the list by 78% compared to 43% in the region.

Skill developmentThe top 5 hardly differs from the region. In the lower regions of the list it is remarkable that Political and Cultural Awareness is ranked higher than in the region (25% versus 17%) and Innovation and creativity lower (22% versus 32%). The means deployed hardly differ from the ones deployed in the region.

performance managementAll organizations in Switzerland have implemented performance management to a certain degree; 54% have reached the highest level (compared to 37% in the region).

you and your Career

How long have you worked for your current employer?17% (compared to 40% of the group) of the respondents have worked for their current employer 6 years or more, in fact none 10 years or more (compared to 18% of the group).

How long from this point onwards, do you expect to stay with your current employer? 17% believe they will leave within a year, another 33% within 1-2 years. Only 8% (half of the 19% of the group) would not consider a role presented to them. A fresh challenge (64%) is the single most important factor to move to a new organization.

What do you find important about your employer?The 3 most important things mentioned are Interesting and exciting work (81%) followed the opportunity to build a career (58% versus 25% of the group) at quite a distance by An organization that treats people fairly and respectfully (33%)

Remuneration89% of the respondents are satisfied with their remuneration package. All (versus 76% of the group) have a base income of 75,000€ or more, 42% between 100,000€ and 150,000€.

All respondents have a bonus possibility; 33% actually received 10% or more from their base income.

Only 8% of the Swiss respondents receive a company car or a car allowance, compared to 53% of the group).

3. Regional results


4. Country profiles

the Netherlandsabout you and your Current Role17% of the Dutch respondents (compared to 25% of the total) carry a global responsibility and likewise the total % who are responsible for more than 1,000 employees 27% of the Dutch are too.

12% (compared to 10%) of the participants are C-level and another 62% (compared to 52%) of the participants reports to C-level, signaling the importance of Human Capital in The Netherlands.

The split between male and female is 65% male and 35% female and differs thus quite from the total split (51% and 49%.)

The Dutch top 5 of markets appears to be the same, although the order is different: Technology/Telecoms 10%, followed by Financial Services (7%), Manufacturing (10%), Business Services (11%), and Retail/Leisure 8%.

"Females on Senior HR positions are a minority in the Netherlands"

priorities of the Ceo and boardFor the Dutch Management Boards, the most important key business issues to address in the short term are Leadership Coaching (62%), Management Development (59%), immediately followed by Performance Management (57%). Employee retention and motivation (53%) and Recruitment (52%), close the top 5 short term priorities. So the same list as overall, but in a different order. If one however combines short term and long term priorities a total different list becomes visible. Now headed by Talent Management (a priority for no less than 96% of the participants to address), followed by Management Development (93%), Capability & Competence Management (92%), Leadership Coaching (92%). In the Dutch chart, Employee retention and motivation (86%) replaces Employee Engagement (85%).

Labour market

agingSlightly over 45% of the Dutch participants feel that their organization is prepared for the effects of this revolution while as a consequence close to 55% is not prepared yet. Raising the retirement age will have a positive effect on 15% (20%) of the organizations and while 36% (22%) indicates it would have a negative effect.

diversityOver 60% (50%) of the participants indicate they simply focus on hiring the best. Less than 10% of the participants indicate they have diversity management implemented to apply to legislation. Another 12% to be more balanced in terms of customer representation.

educationThe academic level were found ineffective by 11% (22%) of the respondents, the college level even 23% (24%), while other education was ranked ineffective by 23% (34%) of the respondents.

RecruitmentPrinted adverts are not important to 65% of the Dutch respondents.

When asked for specific tools to attract millennials, internships are on top of the list with 49%. Campus recruitment is No. 4 and Social Media are No. 2. 40% does not use specific tools to attract millennials.

pre-employment screeningPre-employment screening has been gaining ground: 49% of the respondents indicate they perform a detailed analysis of work and education history (up 9% from last year).

Job Satisfaction Factors

exhibit 41

57%

35%

20%

88%

0%10%20%30%40%50%60%70%80%90%

100%

Growth

of t

he org

aniza

tion

Expan

sion o

f pro

cesse

s

Incre

ase i

n reve

nue earn

ings

Be stim

ulated

as a

human

being

3. Regional results


4. Country profiles

The rates on Job satisfaction show that the traditional monetary rewards have a relatively minor role in driving engagement itself. Money to the Dutch is even less important than to the Region (20% versus 28%).

"money is less important thanelsewhere in the region"

exhibit 42: putting it all together: the dutch HR agenda for the future


Close the gap between current and needed workforce Learning and development is highest on the list, with 67% somewhat lower than in the region (72%). Recruitment being a solid number 2 tool to close the gap.

talent management A Talent Management program is in place with only 45% of the respondents (compared to 57% in the region).

"talent management lesspopular in the Netherlands"

performance managementAlmost all organizations in the region have implemented performance management or are working on it (5% are not). The Netherlands is a little behind the others with 31% having a fully implemented system (documented policy in place agreed by the management) compared to 37% in the region.

you and your Career

How long have you worked for your current employer?44% (compared to 40%) of the total number of the respondents have worked for their current employer 6 years or more. On the other side of this table 36% (32%) work for their current employer less than 3 years.

How long from this point onwards, do you expect to stay with your current employer? 22% believe they will leave within a year, another 22% (29%) within 1-2 years. 24% (19%) would not consider a new role, not even if presented. 86% of the Dutch respondents find their current job quite to very fulfilling and 68% (80%) indicated their current job to offer intellectual stimulation. Greater involvement in business strategy (50%) is for the Dutch the single most important factor to move to a new organization.

What do you find important about your employer?The 3 most important things mentioned are Interesting and exciting work (82%) followed at quite a distance by an organization that treats people fairly and respectfully 55% (36%), and competent management and a vision for the future 43% (31%).

Remuneration86% (80%) of the respondents are satisfied with their remuneration package. 79% (76%) have a base income of 75,000€ or more, 54% (46%) 100,000€ or more and 19% (16%) 150,000€ or more. The top 4% have an income of 200,000€ or more.

72% (81%) have a bonus possibility; 57% actually received 10% or more from their base income while 16% actually received over 30% of their base income last year. A pension is also high on the list of benefits: 78% (69%) have a contributory pension, and 16% (19%) a non-contributory pension. Over 72% receive a company car (stressing the fiscal situation with respect to allowances), while 24% (28%) have share options or another form of equity.

23%31%

62%

29%37%

58%

0%

10%

20%

30%

40%

50%

60%

70%

Employe

e ben

efits

Employe

e ret

entio

n

Employe

e trai

ning

Employe

e job nee

ds

Accounta

bility t

owards e

mploye

es

Employe

e enga

gem

ent

3. Regional results


4. Country profiles

united kingdomabout you and your Current Role71% of the respondents from the United Kingdom are senior HR Executives. 24% carry a global responsibility, another 23% multi-national. 37% is responsible for more than 1,000 employees and 51% has a seat on the board.

10% of the participants are C-level and another 61% of the participants reports to C-level, signaling the importance of Human Capital in the United Kingdom.

The split between male and female is 52% versus 48%.

Manufacturing heads the list of sectors. Followed by Professional Services and Retail/Leisure.

priorities of the Ceo and boardEmployee engagement and Leadership Coaching are considered the most important issues to address (99%).

"employee engagement and Leadership Coaching most important priorities"

Strategy

methods to manage HR Strategic goalsAlmost all respondents indicated that Key Performance Indicators are used to manage Strategic Goals (97% compared to 88% of the region). SMART goals are in place with 91% (compared to 88%) and a balanced score card with 53% (compared to 40%). Also personal rewards systems are slightly more in use in the United Kingdom (68% versus 63%).

HR metrics99% of the respondents indicate HR Metrics are in place. In over 50% 6 or more. It is noticeable that the top 5 metrics in use score about 10% higher than in the region.

ulrich’s Roles modelUlrich’s roles model is a bit more popular in the United Kingdom than in the region, or the United Kingdom is a bit ahead of the game: 21% full implementations versus 16%; 41% working on it versus 43% in the region. One is a bit more cautious about whether or not the model’s objectives are achieved: 13% versus 18% to a great extent, 83% versus 75% to some extent.

"uk ahead of the game with ulrich’sroles model Labour market"

aging60% of the participants feel that their organization is prepared for the effects of this revolution while as a consequence close to 40% is not prepared yet. Raising the retirement age will have a positive effect on 24% of the organizations, while 16% indicates it would have a negative effect.

diversityAlso with respect to diversity the United Kingdom is ahead of the region: 28% indicates that they apply to legislation with respect to age diversity (compared to 16% in the region) while one also sees benefits for diversity. All in all less than 50% indicates one simply hires the best.

education A high percentage of the respondents from the United Kingdom find the Countries Education system ineffective. Academic 32%, College 30%, and other education even 39%. These are about 10% higher than in the region.

"education found less effectivein the united kingdom"

RecruitmentRecruitment companies are in 4th place, just before Social Media. Employee Referral is in 3rd place in the region with 39% saying it is very important, but comes in at 6th with 34% in the UK.

exhibit 43: Which of the following retention strategies are you successfully employing?

Improve the balance work and personal life 58%

Offer a competitive compensation package 44%Treat each employee with respect and as an individual

63%

Eradicate favouritism 21%

Communication by HR and availability of HR 33%

Employee empowerment 38%

Placing the right talent in the right job 58%

Make the workplace fun 33%

Workplace flexibility 42%

3. Regional results


4. Country profiles

Offer a competitive compensation package is No. 2 with 65% (versus No. 4 with 44% for the region).

Retention

exhibit 44: putting it all together: the uk HR agenda for the future

Employee benefits 23%

Employee retention 31%

Employee training 62%

Employee job needs 29%

Accountability towards employees 37%

Employee engagement 58%


talent management A Talent Management program is in place with 74% of the respondents (compared to 57% in the region).

performance managementAlmost all organizations in the region have implemented performance management or are working on it (5% are not). The United Kingdom is a little ahead of the others with 39% having a fully implemented system (documented policy in place agreed by the management).

you and your Career

How long have you worked for your current employer?33% of the respondents have worked for their current employer 6 years or more. On the other side of this table 36% work for their current employer less than 3 years.

How long from this point onwards, do you expect to stay with your current employer? 28% believe they will leave within a year, another 30% within 1-2 years. Only 15% would not consider a new role, not even if presented. 19% is actively seeking & applying for jobs. All these in spite of the fact that 93% of the respondents find their current job quite to very fulfilling and 92% indicated their current job to offer intellectual stimulation.

Why? A fresh challenge (61%) is the single most important factor to move to a new organization. Greater involvement in business strategy comes in 2nd and more Money 3rd.

What do you find important about your employer?The 3 most important things mentioned are interesting and exciting work (81%) followed at quite a distance by good salary and a financially healthy organization. This UK top 3 differs quite somewhat from the regional top 3.

Remuneration78% of the respondents are satisfied with their remuneration package. 69% have a base income of 75,000€ or more, 45% of 100,000€ or more and 17% of 150,000€ or more. The top 2% have an income of 200,000€ or more.

85% have a bonus possibility; 80% actually received a bonus last year.

A pension is also high on the list of benefits: 77% have a contributory pension, and 12% a non-contributory pension. 50% receive a company car or a car allowance, while 33% have share options or another form of equity.

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Harvey nash hr survey final 2012 in search of engagement

Business

diversity

hr strategy

short term

hr function

hr systems

hr leaders

flexible employment

hrs ability