The seventh annual Aon Hewitt's study called HR Barometer showed that European HR leaders managed to keep the ambitious development plans for employees despite the economic situation and the increasing pressure to reduce costs. Thez tend to see the current state of the ecomic environment as an opportunity more than a threat. At the same time, however, they would also like to see changes leading to simplier labor legislation in the European Union.
Aon Hewitt prepares the study for the European Club for HR, an organization which brings together human resources directors of multinational companies in order to create a broader vision of HR management in the European context. This year's study is based on responses from HR directors and board members of 13 different nationalities in 52 leading European companies. 62% of the companies are listed companies employing more than 2.4 million people and generating income exceeding 517 billion euros.
Most respondents expect the continuing economic downturn to further influence the business performance of their companies. However, only a third think that it will affect HR programs as well. Costs remain the most influential factor in creating HR strategies for this year. Other main factors include the ability to obtain skilled labor and talents along with achieving higher productivity and profits.
In the short term (in 2012), the biggest emphasis will be placed on education and development programs as well as finding ways for rewarding performance more effectively. In the long term (until 2014), leadership development, employee engagement and retaining talent will be the most important HR issues.
When evaluating their own performance in relation to business expectations, the study showed that European HR was able to meet corporate goals in only 10 of the 25 activities associated with managing people. HR is most successful in the area of corporate governance, CSR and OSH. On the other hand, the largest reserves were found in the area of work-life balance, mapping and manageming competencies, HR measuring tools and leading generational diversity.
Only 2 percent of the HR leaders surveyed believe that their company will play no role in addressing the high unemployment rate of young people. They want to strengthen cooperation with schools and other educational institutions, offer more options for internships and streamline disclosure of information on job vacancies.
For the second year in a row, only a minority of HR professionals remain positive view of the influence of the European Union. Most respondents would like to see simplification of European labor laws into a single code, wider support for education, innovation and research as well as cross-border labor mobility.
For more information on the study results see the press release on the Aon Hewitt website here.
-Kk-