A look at current trends and data

Citation

(2013), "A look at current trends and data", Strategic HR Review, Vol. 12 No. 5. https://doi.org/10.1108/shr.2013.37212eaa.009

A look at current trends and data

Article Type: Research and results From: Strategic HR Review, Volume 12, Issue 5

Story 1

European organizations challenged by the growth of China and Africa

As the CRF Institute announced its Top Employers for Europe for 2013, its global HR best-practice research program, it said it was clear that Europe’s best are facing competition from elsewhere, especially Africa and China.

Employment expectations are much more bullish amongst Africa’s and China’s Top Employers. In Africa, an average of 36 percent of the Top Employers expects to increase employee numbers by more than 5 percent. This number is as high as 86 percent in China, but only 26 percent in Europe, a number that has dropped by 5 basis points from the previous year.

The representation of women in senior positions also seems to be lagging in Europe’s Top Employers. Measuring the percentage of women occupying the 50 most senior positions in companies, Europe scored the lowest proportion with 21.3 percent. In Africa, the percentage was 25 percent, and in China it was 29.7 percent. In all three regions, Top Employers expect to increase these proportions over the next three years.

HR function is key across all regions

Elsewhere in the CRF Institute’s data for Top Employers, there are closer similarities across the three regions. The top-three key performance indicators for Europe are employee well-being, workforce planning, and training and development. For Africa, the top-three are the same. For China, it is performance review, recruitment, and compensation and benefits.

In all three regions, the HR function is a member of the executive team in almost all companies, and, in most, the HR function reports to the CEO. The HR function is central to the organization in a large majority of Top Employers in all three regions.

Top Employers for 2013

The Top Employers Certification program is a HR policy audit through which leading national and multinational organizations across 45 countries are certified. The HR policy research, on which the Top Employer certification is awarded, is independently audited by the International Auditing firm, Grant Thornton.

Following is the 2013 Index of Certified Top Employers in Europe:

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  Avanade;

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  British American Tobacco;

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  BSH Bosch and Siemens Home Appliances Group;

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  Chiesi Farmaceutici;

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  Dimension Data;

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  Goodyear Dunlop Tires Europe;

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  Groupe Soparind Bongrain;

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  Japan Tobacco International;

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  Lloyd’s Register;

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  Mc Donald’s Europe;

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  Olympus Europa Holding;

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  Orange;

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  PepsiCo;

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  Philip Morris International;

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  Samsung Electronics;

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  Sigma-Aldrich;

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  Tata Consultancy Services;

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  Technip;

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  UniCredit; and

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  Valeo.

For more information visit www.topemployers.eu

Story 2

Employers looking to technology to improve employee health engagement

Research by Buck Consultants, the global employee benefits firm, and WorldatWork, reveals that employers are committed to using new technologies to promote health engagement and achieve desired employee behavior changes. The study, Emerging Technology in Health Engagement, examined the current use and future potential for three key technologies: gamification, mobile apps and social media. More than 360 employers based in the USA participated in the survey, conducted in the autumn of 2012, with more than half of the respondents belonging to multinational organizations.

Among the three solutions studied, gamification is the most prevalent (62 percent) and ranks highest in employers’ perception of effectiveness. Gamification refers to the use of game-like features in non-game situations to motivate a change in behavior. As defined for participants in this survey, gamification initiatives include games, contests, or game-like elements (e.g., lotteries, points, quizzes, leaderboards, avatars). A third of companies (31 percent) intend to adopt one or more new gamification elements in the coming year. Social networking is used in some fashion by 50 percent of organizations, but ranks highest in concerns over privacy of personal information. Mobile technology is the least implemented (36 percent) but is the highest priority for future adoption or expansion (40 percent).

By far the greatest barrier preventing organizations from using these new technologies is competition from higher-priority issues in their budgets (71 percent for gamification, 73 percent for mobile technology and 68 percent for social networking). Lack of support from senior management and the absence of a technique for measuring effectiveness were also identified as barriers across all categories. In addition, 43 percent of respondents said they blocked some or all social networking or social media websites from their organization’s computers.

Measurement lacking

The survey also found that, while three-quarters (73 percent) of responding organizations have a health engagement strategy in place, measurement of communication effectiveness and return on investment (ROI) is lacking. Two in five (40 percent) respondents believe mobile technology will be the most frequently adopted technology by employers during the next two years, yet only 11 percent measure ROI on mobile apps and social media initiatives. Just 21 percent measure ROI on gamification technologies.

Lenny Sanicola, CBP, senior benefits practice leader, WorldatWork, comments: “The lack of measurement is due, in part, to the fact that many companies are using third parties, such as health insurers and wellness program vendors, to handle various aspects of their wellness programs. These companies should direct their vendors to better engage employees and to collaborate on measuring effectiveness.”

For more information visit www.buckconsultants.com

Story 3

The evolution of digital recruitment models: the hottest markets in 2020

Brazil came top of the list of Top 10 “markets to watch” in digital recruitment over the next five to 10 years, according to Evenbase report, Digital Recruitment: The Hottest Markets in 2020. The report, commissioned by Evenbase to compare recruitment markets around the world, is based on research conducted by MBA & Company in late 2012.

Evenbase CEO, Keith Potts comments: “Globalization is one of the 21st Century’s key trends. However, while playing fields have been leveled and geographic boundaries blurred, many barriers to business remain. The recruitment industry is no exception. It will surprise no one that models that work in Belgium, for example, will probably not work in Brazil.”

New ways of thinking required

The report looks at the many variables that affect the receptiveness of a market to digital recruitment, from raw GDP growth potential to earnings trends, cultural phenomena, mobile and social internet usage, and more. Potts says: “On their own these metrics have limited value, but viewed as a whole we have a platform for fresh thinking and conversations around the future of the global recruitment industry.”

He continues: “One thing is very clear: employers and recruiters are going to need some new ideas as they consider their move into global markets. Many apparently attractive traditional markets are going to be very hard places to do business over the next decade. This will force the recruitment sector to focus on new models in new places based on new metrics, not just find ways to maintain old revenue streams.”

The 2020 Hot Market List

Evenbase says the 2020 Hot Market List – see below – offers just one view of the way the digital recruitment landscape is likely to evolve towards 2020, but its central message is that global employers will need to tailor recruitment according to culture, people and technologies.

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  Brazil. A young, confident and ambitious market, Brazil has growth potential on many levels and is known to be digitally innovative.

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  India. India’s sheer economic growth potential makes it an exceptionally interesting market. Only serious development imbalances keep from the top slot.

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  China. Although significant political and cultural challenges remain, the sheer growth performance and destiny of the world’s largest economy make it attractive.

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  USA. Expected to stay a dynamic, innovative economic powerhouse and driver of change in digital recruitment over the next few years.

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  Australia. Another confident and ambitious AsiaPac country, Australia’s skill shortages make it ripe for innovation in digital recruitment.

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  Japan. This massive, technologically innovative economy is undergoing cultural change after many years of stagnation.

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  Canada. Although small in size, Canada has been fast to adopt new ideas, with a range of unique opportunities for the introduction to the new digital recruitment offerings.

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  Germany. Considered as the European economic powerhouse for the foreseeable future, and currently undergoing significant labor market changes.

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  Russia. A wild card, Russia is beset by deep political and economic issues but has a range of opportunities to unlock its untapped potential.

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  Mexico/UK. Mexico, another wild card, is highly problematic at present but has the potential to suddenly take off and become the new Brazil. The UK has significant economic growth issues but is traditionally one of the world’s largest recruitment markets.

For more information visit www.evenbase.com/wp-content/uploads/2013/03/Evenbase-2020-Hot-Markets-FINAL.pdf

Story 4

Feminized companies a better investment

Michel Ferrary, professor of Human Resource Management at SKEMA Business School, one of France’s largest Grande Ecoles, has revealed that investing in companies with management teams which consist of at least 35 percent women considerably improved investment performance during the recent financial crisis.

Professor Ferrary followed the stock performance of each company in the Parisian stock index, the CAC40, between 2007 and 2012. He then composed the Femina Index, a separate index of companies whose management teams consisted of at least 35 percent women. Over the six years, the CAC40 lost 34.70 percent of its value, whereas companies in the Femina Index lost only 5.28 percent.

He says: “Our analysis confirms that investing in companies with a feminized management is an investment strategy which is responsible and profitable. Promoting diversity and employing women in posts of responsibility contributes toward the improved financial performance of companies during crises.”

Other studies published on the theme had already explored the link between feminization and performance, but these considered the number of women on the board of directors. Professor Ferrary’s study proposed a different analysis; the correlation between the feminization of the whole management team and the companies’ stock performances.

For more information visit www.skema.edu