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Academy of Management_Montreal_Emerging Trends In HR Europe August 2010_Luk Smeyers

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Academy of Management_Montreal_Emerging Trends In HR Europe August 2010_Luk Smeyers

  1. 1. The Global Downturn: Emerging HR Best Practices and Capabilities,
Global HR Best Practices<br />Academy of Management, <br />Annual Meeting 2010,<br />Luk Smeyers, PDW #33, submission 16148<br />
  2. 2. Alternative title…<br />How the crisis has changed the future of work…(Europe)<br />Academy of Management, <br />Annual Meeting 2010,<br />Luk Smeyers, PDW #33, submission 16148<br />
  3. 3. Agenda<br /><ul><li> Background presenter
  4. 4. Turbulent times and HR
  5. 5. The future of work
  6. 6. 3 recurring “themes
  7. 7. Is Europe any different from the rest?
  8. 8. Is HR fit for the future? </li></li></ul><li>iNostix background:<br />Starting point:<br />Phd research of JeroenDelmotte (2008)<br />(Research Centre for Organisation Studies, K.U.Leuven): <br />“Evaluating the HR function: empirical studies on HRM architecture and HRM system strength”.<br />Supporting organizations & consultants by developing & scientifically validating HRM & HC diagnostic instruments and research methodologies.<br />
  9. 9. 3 iNostix Focus-Areas<br />1. <br />Quantifying the effectiveness <br />of the HR function<br />2.<br />Quantify the value & <br />business impact of <br />Human Capital investments<br />3. <br />Drive cost saving opportunities <br />with predicting <br />Human Capital Outcomes<br />
  10. 10. Bio LukSmeyers<br />Experience: >25 year as international HR executive in several Fortune 500 companies (Pepsi, Starbucks, Nielsen).<br />Untill 2007 Senior Vice President HR Europe with the world’s biggest FMGC marketing-consultancy Nielsen (VNU). <br />Education: <br /><ul><li> Social & Labour Science (Antwerp)
  11. 11. Ashridge Business School (London) in General Management
  12. 12. INSEAD (Paris), Master in Clinical Organisation Psychology. </li></li></ul><li>Agenda<br /><ul><li> Background presentor
  13. 13. Turbulent times and HR
  14. 14. The future of work
  15. 15. 3 recurring themes
  16. 16. Is Europe any different from the rest?
  17. 17. Is HR fit for the future? </li></li></ul><li>“Turbulent times have empowered HR!”<br />© copyright NVP/iNostix<br />
  18. 18. Turbulent times!<br />86%<br />of respondents is involved in<br /><ul><li> organization change
  19. 19. restructuring/reductions in force
  20. 20. social conflict </li></ul>And…28,3% confirms <br />stronger HR business involvement!<br />Source: iNostix/NVP Survey, <br />Nov. 2009, the Netherlands<br />
  21. 21. HR during the crisis…<br />Cutting back in a reactive mode…top 5<br /><ul><li> Recruitment (69%)
  22. 22. Company events (54%)
  23. 23. Bonus payments (based on company performance) (45%)
  24. 24. Individual (34%) & functional training (33%)
  25. 25. Temporary (43%) & full-time employees (34%) </li></ul>Source: Boston Consulting Group Survey, Europe, 2009 – 3.400 HR & Executives, all EU countries<br />
  26. 26. Agenda<br /><ul><li> Background presentor
  27. 27. Turbulent times and HR
  28. 28. The future of work
  29. 29. 3 recurring themes
  30. 30. Is Europe any different from the rest?
  31. 31. Is HR fit for the future? </li></li></ul><li>For employers the challenges will be much harder!<br />
  32. 32. A short warm-up…<br />As the global economy moves toward recovery, companies face some tough challenges and complex choices about how best to retool for growth. (TowersWatson)<br />A different set of questions is emerging. Have organizations cut too far too fast — beyond “fat” and into “muscle”? If so, have they inadvertently slowed a fast return to growth? How easily can they correct course and close emerging gaps in capacity and capability? (TowersWatson)<br />86% of millennials would consider leaving an employer whose behaviour no longer met their corporate responsibility expectations. (Millenials at Work)<br />Europe is expected to undergo a population decline to an extent that has not been seen since the Black Death!<br />(Alf Göransson, President and CEO, Securitas, Sweden).<br />
  33. 33. Agenda<br /><ul><li> Background presentor
  34. 34. Turbulent times and HR
  35. 35. The future of work
  36. 36. 3 Recurring themes
  37. 37. Is Europe any different from the rest?
  38. 38. Is HR fit for the future? </li></li></ul><li>3 recurring themes in Europe<br />Resources/Availability/Retention: the battle to retain/hire talent will be intensely fought<br />Employee expectations: will be far greater in the coming years<br />Globalization/Reversed Globalization: organizations will face these challenges against an even more complex global/local (and Euro) markets<br />3<br />
  39. 39. Theme 1:<br />Resources/Availability/Retention challenges<br />Restore trust/Employee Engagement<br />Rethink Talent Management<br />Monitor impact of demographic evolution/ Initiate Strategic Workforce Planning<br />Initiate Employer Branding Research<br />Understand influence of Social Networks<br />Targeted investment in Training & Development<br />1.<br />
  40. 40. “97% of CEOs said that having access to talent and key skills was the most critical factor for their long-term business strategy.”<br />(PwC’s 13th annual global CEO survey, 2010)<br />
  41. 41. Theme 2:<br />Far greater employee expectations<br />2.<br />Master ‘Smart working’/organization innovation<br />Manage the blurring line private/work<br />Dare to care: far greater transparency, CSR, compliance, sustainability, green (zero tolerance?)<br />Rethink pay: flexibility, individual customization, fairness, transparancy<br />
  42. 42. The ‘flexible working’ in the Netherlands*<br />(fit workforce = fit business)<br />Productivity: +14% <br />Key driver to stay: 90%<br />Cost reduction/FTE: -5 to -10%<br />Illness rate amongst flex workers: 4,2 to 2,5%<br />Engagement levels: +10 to +30%<br />*Virtual office/Home office<br />
  43. 43. ‘Taken as a whole, you can see that our commitment to corporate responsibility supports our sustainable employee engagement policy, which, in turn, is critical to the customer relationship that is the basis of our year-end results. It all hangs together.’<br />Stephen Green, Group Chairman, <br />HSBC Holdings plc, UK<br />
  44. 44. Theme 3:<br />Globalization/Reversed Globalization<br />Collaborative work, network structures, global teams<br />Resulting in more autonomy, from ‘hours worked’ to performance & results<br />Job definition: broader, generalized, independent<br />Global standards, local customization<br />Reversed globalization: protectionist policies began to rebuild barriers to free movement of people<br />3.<br />
  45. 45. REN Jianxin, President, <br />#1 China National Chemical Corporation <br />(ChemChina), China<br />“We see many enterprises around the world cutting jobs because of the financial crisis, and we work with leading human resource consultancies to recruit more Western professionals”.<br />
  46. 46. Agenda<br /><ul><li> Background presentor
  47. 47. Turbulent times and HR
  48. 48. The future of work
  49. 49. 3 recurring themes
  50. 50. Is Europe any different from the rest?
  51. 51. Is HR fit for the future? </li></li></ul><li>Is Europe any different from the rest?<br />More complex: countries, languages, legislations, different speed of development/recovery,…<br />Unification AND protectionism: European union versus local politics<br />Demographics: Europe/US versus Asia/Latin-America<br />HR Analytics - Evidence based HR: Europe/Asia lagging far behind US/UK<br />Requires tailor-made<br />approach from HR!<br />3<br />
  52. 52. Agenda<br /><ul><li> Background presentor
  53. 53. Turbulent times and HR
  54. 54. The future of work
  55. 55. 3 recurring themes
  56. 56. Is Europe any different from the rest?
  57. 57. Is HR fit for the future? </li></li></ul><li>HR fit for the future?<br />Globalization,<br />Reversed <br />globalization<br />Employee <br />expectations<br />Resources,<br />Availability,<br />Retention<br />
  58. 58. Doel<br />After the turbulence:<br />HR needs to…<br /><ul><li>…harden up!
  59. 59. …become data-driven!
  60. 60. …more science into management!
  61. 61. …become more externally focused!
  62. 62. customers & markets
  63. 63. social - economical - financial trends </li></li></ul><li>Thanks!<br />Contact:<br />luk.smeyers@inostix.com<br />jeroen.delmotte@inostix.com<br />www.inostix.com<br />LinkedIn with us:<br />www.linkedin.com/in/luksmeyers<br />www.linkedin.com/in/jeroendelmotte<br />