Eighth HR Barometer from CSC: The Crisis Weighs on HR
News Article -- February 09, 2011
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Premium, CSC's business magazine | Winter 2011 | No. 14
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HR Barometer 2010: Recovery or Breakdown
HR is suffering bleak times in the wake of the crisis. This strategic function has been forced this year to refocus on short-term management in order to be as closely aligned as possible with the evolution of business activity. The impression is one of backsliding, as shown by CSC’s latest European HR Barometer. HR directors are continuing to feel the impact of the crisis.
In the 8th HR Barometer carried out by CSC and Liaisons Sociales, the leading French HR magazine, HR directors list the slowdown or interruption of investment projects, headcount reduction, lower revenues and the deterioration in workplace atmosphere as consequences of the downturn. Last year, in an economic climate that was already morose, HR directors refrained from taking overly drastic measures in order to cope with demands from the business once the recovery sets in. In 2010, it has become difficult to postpone the necessary adjustments and the mindset has also changed.
Taking several steps backward…
HR directors have observed a shift in the priorities of top management. Or rather, the confirmation of a shift visible since last year: a return to highly directive functions and short-term management. According to the 2010 Barometer, the expectations of top management are clear: HR directors should contribute to the efficient management of people and teams, align HR policies with corporate strategy and make sure that workplace atmosphere and labor relations develop in a favorable manner.
Major pressure on cost control
This year unnecessary costs are fair game, and the hunting season is well and truly open. More than eight out of ten HR directors cite the importance of operational cost control. Over half (53%) even consider it an “absolute priority”! HR directors thus know that cost control in their departments will have to be beyond reproach. Almost two thirds of them quote cost control as a priority and 31% go as far as considering it an “absolute priority”.
Taking radical decisions while supporting growth
The cost of support functions has to follow the fall in revenues. It has become impossible to postpone the adjustments necessary. 63% of HR directors – so 14% more than last year – have had to slow down or freeze recruitment.
Over a third of respondents (37%) have also taken measures to reduce staff levels and just over a quarter (28%, or 14% more than the previous year) have had to freeze salaries. Even if the economic recovery seems far away, a majority (63%) still assert that supporting the growth of the business remains a priority – in particular for major corporations seeking growth in emerging markets. Improving the international development of the business is a priority for 30% of HR directors.
A very large majority, almost nine out of ten, are also preparing for the skills shortage likely to follow as a result of an economic upturn. Compared to the previous year, there is an increase of 15% in the number of HR directors putting priority on attracting and retaining talent.
Yes, CSR – But in which area?
Even if Corporate Social Responsibility is listed as a priority area for 56% of respondents, the various CSR topics are subject to a different weighting. Promotion of non-discrimination and gender equality are considered as priority issues by eight out of ten respondents. In addition, the management of older staff members has jumped by 14% in 2010 to become a major preoccupation for almost six out of ten HR directors.
On the other hand, bringing in demographic groups that are more distant from work, such as the handicapped and the young for example, receives less attention this year. Which in turn brings with it the risk, in the absence of imaginative thinking, of overlooking problems that are nonetheless very real…
Focus
Taking care of local managers
In addition to their primary objectives (competence management, supporting organizational transformation, social dialogue and the further development of employee commitment), 65% of HR directors consider that improving support provided to operational managers is a high priority this year. The evolution in the role of local managers is listed as the most important work-related matter for 68% of respondents.
At SFR for example, this prioritization has been made concrete by a reorganization of the HR function. “We came closer to the operational managers. The HR teams are no longer centralized, but rather ‘co-located’ with operational management and now take part in executive committee meetings. The goal is to anticipate needs even earlier. To help local managers boost the loyalty and motivation of their teams, we have expanded the traditional training curriculum with new modules that take place at component suppliers or even abroad”, explains Marie-Christine Théron, General Manager of HR at SFR.
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