Category: HR Information

Organisations will have to do more to reduce costs and retain and engage their workforces in 2014.

According to Josh Bersin of Deloitte, passion, engagement, development and innovation are key to a successful HR strategy in the year ahead.

Deloitte's Predictions for 2014 report describes a world that will be shaped by the globalisation of competition and technological advances that will force companies to improve their brands. 

Talent will be increasingly important and high-performing employees will become more influential. HR organisations must become more talent-focussed to attract and retain the best employees, making use of new analytics tools.

Key skills in the energy and life sciences sector, as well as other sectors of the economy, will be in short supply. Creating networks that attract people around the world will help organisations to win the global race.

Promoting continuous learning through partnerships with universities and apprenticeship schemes will enable organisations to attract and consolidate talent.

The systems of evaluation companies use will change, according to the report. They will increasingly be focussed on coaching, development, continuous goal alignment and recognition.

Increasingly, talent mobility and career development need to be taken seriously. Talent mobility is here to stay and organisations should put in place a strategy to open up access to internal positions, employee assessment tools and leadership values that focus on internal development.

Big data and talent networks are changing HR, meaning organisations will need to recruit more aggressively and intelligently. It will also be necessary to expand the use of analytics, big data and social networking.

Organisations must not be overwhelmed by the explosion in new technology such as the increased use of Twitter and MobileApps. Technology should be understood and simplified so that employees find it easy to use.

Bersin identifies high-impact HR as a key emerging trend for 2014. HR professionals will become highly trained specialists operating in "networks of expertise" and he commented: "In 2014 organisations should focus on innovation, new ideas and leveraging technology to drive value in HR. This demands an integrated team, a focus on skills and capabilities within HR and strong HR leadership."

Pension regulations have changed dramatically in recent years and this is something that HR professionals are still coming to terms with.

The government introduced auto-enrolment rules in 2012, which means most employers are obliged to automatically sign up full-time workers to a company saving scheme.

This new system is being rolled out gradually, with large corporations adopting it first.

According to newly-released figures from The Pensions Regulator, more than two million workers have started saving into a pension as a result of the reforms.

In excess of 3,500 employers have signed up to auto-enrolment thus far and this figure is expected to rise in 2014.

Pensions minister Steve Webb believes the new framework has proven to people that pensions are no longer the preserve of a minority.

"And the message to employers is make sure you're ready for the date your workforce joins the two million already in," he commented.

Smaller organisations are expected to adopt the scheme in 2014 and the Chartered Institute of Personnel and Development (CIPD) has urged firms to prepare themselves.

Unless HR departments are on the ball, the introduction of auto-enrolment pensions could prove to be a costly endeavour.

Figures compiled by the CIPD showed the number of employees choosing to opt out of pension schemes is still relatively low (no more than ten per cent), so the demand for savings provisions is clearly very high.

Around a quarter (26 per cent) of small and medium enterprises (SMEs) said they would have to reduce pay rises in order to cope with the extra administration costs that auto-enrolment will bring, while 22 per cent will freeze pay altogether.

CIPD performance and reward adviser Charles Cotton stated many small firms will make their first foray into pension provision in 2014 and this can be daunting as they will not have the same access to expertise as their larger counterparts.

"However, with early planning and preparation SMEs can overcome any challenges and realise the opportunity that auto-enrolment offers," he remarked.

A major new initiative has been launched to develop a new framework to ensure that organisations value talent sufficiently.

The Chartered Institute of Personnel Development (CIPD) launched the Valuing your Talent scheme at the organisation's annual conference last month and CIPD chief executive Peter Cheese believes it is time for more consistency of measurement across organisations and agreed reporting frameworks.

Writing in Personnel Today, Mr Cheese outlined the challenges facing businesses and corporate culture in the present climate; including the need to raise productivity, which remains low, the need to improve the country's skills base, and the need to harness diversity.

In order to overcome these challenges, an adequate understanding of the people that make up organisations is necessary. Although much is being done to address these issues, HR departments are hampered by the lack of a common framework of measurement.

The CIPD chief executive also called for an understanding of the people risks involved at the heart of business problems such as the failings of the financial sector. Organisations have failed to come up with a definition of the "intangible" assets they possess, despite having a better grasp of the "tangible" assets.

Mr Cheese lamented the lack of a common understanding regarding even the fundamentals of HR: "It is extraordinary that we do not even have common definitions for headcount – often leading to disagreement between finance and HR as to what the real number is."

The Valuing your Talent initiative is designed to develop such a common framework. "Our goal is to build on prior work and the many sources of practice and research to develop a common and open framework for understanding, valuing and reporting of key human capital metrics and links to outcomes," the CIPD chief executive commented.

Its development will take account of measurements from the basics of workforce composition to organisational development and capabilities such as leadership.

Mr Cheese conceded that not all of the data would be amenable to scientific measurement, adding there is still an element of "art" involved in HR. He claimed, however, this need does not prevent the development of a common language for HR or an improvement in measurement techniques. 

Many HR professionals use social media to vet job applicants, but are they maximising the potential of platforms such as Twitter, LinkedIn and Facebook? 

It is always advisable for job hunters to take care of their online profiles, as writing something controversial can come back to haunt you when you look for new employment opportunities. 

While HR departments seem to have a largely positive attitude towards social networking, a new study by the Chartered Institute of Personnel and Development (CIPD) has suggested they should perhaps allow employees to use online portals a little more freely.

Although 76 per cent of workers use social media in their personal lives, only 26 per cent utilise it for work purposes. 

Many companies have enforced strict policies to regulate social media usage in the workplace, which is understandable given the growing threat of cyber crime and possible reputational damage that Facebook statuses or tweets can inflict. 

However, the CIPD research indicated that 47 per cent of staff who regularly use digital communications on a professional level think this has had a positive impact on their employer. 

Research adviser at the organisation Jonny Gifford believes that "inhibiting channels of communication will only serve to create the kind of closed cultures that have proven to be so toxic in many organisations in recent years".

He added that HR departments should be "leading the charge" when it comes to social media adoption.

"Social media's potential for improving employee voice and employee engagement has not yet been realised, and employers could be missing a real trick there," Mr Gifford continued.

Other findings from the CIPD study suggested one in three employees think social media helps them be more responsive to customer queries, while 20 per cent said it gives them an opportunity to discuss business matters that they would not otherwise talk about. 

Perhaps most importantly, 23 per cent of the survey respondents insisted that social networking portals give them a voice, enabling them to make a more valuable contribution to the running of the company.

HR departments might need to do more to lower sickness absence levels in the UK. 

New research by the British Heart Foundation (BHF) has shown that 650,000 people miss work every week because they are too ill. 

The study indicated the public sector is the worst affected, with 51,000 employees calling in sick in a typical week. 

It is thought that sickness absences cost the UK economy £100 billion every year, which suggests the issue needs to be dealt with as a matter of urgency.

While HR professionals cannot force people to work if they are ill, there are a number of measures they can introduce to lower absence rates. 

According to the BHF, nearly eight million workers have an ailment that lasts for more than a year and 44 per cent of this number say the problem prevents them from doing their job to the best of their ability. 

As such, it is important the HR department does all it can to make life as easy as possible for employees who fall under this category. This could mean introducing more breaks, providing more flexible working hours and arrangements or offering free healthcare services. 

BHF project manager Lisa Purcell feels businesses should perhaps take more of an interest in the kind of lifestyles their employees are leading.

Of course, staff who eat unhealthy food and fail to complete their daily quota of exercise are more likely to suffer an illness that keeps them off work. 

"Businesses that have prioritised workplace health have been able to create a healthier, more productive workforce with fewer days lost to sickness," Ms Purcell commented. 

Simple measures, such as providing free fruit for employees, can help to lower absence rates, while more expensive perks like discounted gym membership might also have a positive impact.

While the initial expense of paying for all employees to attend a health club may put off a lot of firms, there is a chance they will recoup this money through reduced absence rates in the future. 

One of the biggest tasks facing HR professionals is staying up to date on the UK's latest employment law reforms.

The government is always looking for new ways to improve conditions for workers without placing businesses under undue strain.

One issue that has been put under the spotlight in recent years is the allocation of leave for employees who have just had a baby.

Deputy prime minister Nick Clegg announced today (November 29th) that a new system will take effect in April 2015, which will allow men and women to share the responsibility of looking after their child for the first 12 months. 

At the moment, men are severely restricted when it comes to paternity leave, with women expected to stay at home and care for their baby. This, Mr Clegg stated, is an outdated approach. 

"Women deserve the right to pursue their goals and not feel they have to choose between having a successful career or having a baby," he commented. 

"They should be supported by their employers, rather than being made to feel less employable or under pressure to take unchallenging jobs."

With men and women set to benefit from shared parental leave, HR departments will need to familiarise themselves with the new regulations and possibly introduce new policies to ensure they are compliant with the law. 

Mr Clegg said flexibility is key in the modern workplace and many businesses that have introduced measures such as remote working and less rigid working hours have already reported an upturn in productivity.

The Chartered Institute of Personnel & Development (CIPD) has welcomed the reforms, although the organisation's employment relations adviser Mike Emmott warned that HR departments must do much more if they are to attract the very best talent.

He also suggested there may be one or two teething problems once the parental changes are enforced and the CIPD will keep a close eye on the situation – offering guidance on best practice as time progresses. 

One of the biggest challenges facing British HR departments heading into 2014 is coping with widening skills gaps.

There are certain sectors of the economy where this is a particular concern, most notably scientific engineering.

Although the UK government has already introduced measures to address this issue, such as new engineering apprenticeship schemes, some companies are struggling to find talented employees who can make an instant impact within their organisation.

While the apparent shortfall of experienced workers obviously makes life much harder for HR professionals, the situation is expected to improve.

A new study conducted by business school INSEAD has suggested that Britain is well placed in the global talent race.

The study assessed the quality of universities and talent management processes in more than 100 economies around the world and the UK secured a place in the top ten.

According to the first edition of the Global Talent Competitiveness Index, Britain is the seventh best place on earth for developing highly-skilled workers – only beaten by Switzerland, Singapore, Sweden, Denmark, Luxembourg and the Netherlands.

Encouragingly, the UK finished higher than the US – one of the biggest economic powerhouses on the planet.

Bruno Lanvin, executive director for global indices at INSEAD and co-author of the report, explained: "Talent attractiveness is becoming the true currency by which countries, regions and cities compete with each other."

Clearly, the British economy has a much brighter future than many people had originally thought.

That said, there is still plenty of work for HR departments to do. It does not matter how talented a new recruit is, their impact will be limited if they are not integrated into an organisation as quickly as possible.

HR specialists must ensure their onboarding processes are effective and that training programmes are fit for purpose.

Strong induction policies that focus on helping new employees get fully up to speed with what they need to be doing are hugely important and this is unlikely to change.

Zero-hours contracts have been unfairly stigmatised, the Chartered Institute of Personnel & Development (CIPD) has claimed.

Around one million workers are employed in this manner, which represents approximately 3.1 per cent of the overall UK workforce. 

A survey undertaken by the professional body for HR and people development has shown that these controversial employment arrangements are working well for companies and workers. 

HR departments have been using zero-hours contracts more frequently in recent years and some people think they are infringing employees' rights by only offering work when it becomes available.

However, the CIPD believes these contracts allow for greater flexibility and those who operate in this way enjoy a good work-life balance. 

According to the survey – which covered 2,500 employees from various professions – 60 per cent of zero-hours workers are satisfied with their job, which is slightly higher than the overall average of 59 per cent. 

In addition to this, 80 per cent of respondents said they were not penalised for not being able to work when their boss calls. 

While there are some examples of businesses abusing the system, the CIPD insisted employers are generally using flexible contracts "for the right reasons".

Chief executive of the organisation Peter Cheese remarked: "The use of zero-hours contracts in the UK economy has been underestimated, oversimplified and in some cases, unfairly demonised. 

"Our research shows that the majority of people employed on these contracts are satisfied with their jobs."

The CIPD has published new guidelines on the use of zero-hours contracts that HR professionals are advised to follow.

More than 1,000 employers also took part in the study and two-thirds said they relied on flexible working arrangements in order to cope with peaks and troughs in demand. 

Around 47 per cent of the poll stated they introduced zero-hours contracts for their employees' benefit, as they had been under growing pressure to offer more flexible conditions. 

"The reality of today's globally competitive economy and increasingly complex and age diverse workforce is that flexibility is here to stay," Mr Cheese concluded. 

A landmark study aimed at finding reasons for the apparent gender imbalance in British boardrooms has been launched.

Opportunity Now, Business in the Community's gender campaign, is hoping to gauge the views of more than 100,000 women aged between 28 and 40 in the coming weeks.

Chair of Opportunity Now Helena Morrissey said 'Project 28-40' is the biggest survey of its kind in the world and it could help employers to find new ways to improve levels of gender diversity.

She confirmed the study has been limited to this particular age group because this is a critical period for career development. 

"We're asking women to share their experiences candidly and to provide their own perspectives about harder-to-measure aspects such as culture and attitudes, so better initiatives can be developed for everyone's benefit," Ms Morrissey remarked. 

Kathryn Nawrockyi – a director at the organisation – labelled the research as "pioneering".

"[It] will help us understand the nature of female ambition and give greater clarity around why and how women leave the workforce," she commented. 

The study will be hosted by PwC and women will be able to share their views until December 15th. 

Opportunity Now will analyse the results in the first quarter of 2014 and Business in the Community will publish the initial findings during Responsible Business Week, which will run between March 31st and April 4th.

Achieving greater levels of gender diversity throughout a workforce is one of the biggest challenges facing HR professionals at the moment. 

This problem is not exclusive to the UK and it has emerged this week (November 18th) that Germany is planning to introduce gender quotas for blue chip companies. 

Chancellor Angela Merkel announced that firms will have to allot 30 per cent of their non-executive board seats to females by 2016. 

The concept of gender quotas has divided opinion, with some people suggesting that directorships and other top jobs should be awarded to the most suitable candidates, regardless of their sex. 

Others believe there is a glass ceiling for women in certain sectors and gender quotas will help to remove this. 

Maintaining high levels of employee engagement is one of the biggest challenges facing HR professionals heading into 2014, but are stubborn managers making this task much more difficult? 

A new survey conducted by The Forum Corporation found many workers are peeved that their bosses will not apologise when they make mistakes. 

Just five per cent of respondents in Britain said their manager always or often admitted to their errors. This figure fell to a mere three per cent in the Europe, Middle East and Africa (EMEA) region.

Around 60 per cent of UK bosses insisted they always say sorry when they are wrong, but employees clearly disagree with this. 

The study also discovered that 71 per cent of managers do not ask for forgiveness because they are afraid of being labelled as incompetent, while 29 per cent suggested they did not want to look weak.

While this may seem a trivial matter to many people, leaders at The Forum Corporation believe it could have a damaging impact on employee engagement levels – something that HR specialists will be particularly wary of. 

An overwhelming 93 per cent of the respondents claimed that being able to trust their boss was very important. 

Graham Scrivener, managing director of Forum EMEA, commented: "When managers aren't transparent in their actions – and that includes accepting responsibility for errors, being truthful with their employees and acknowledging hard work – that tends to breed mistrust among employees."

HR departments spend a great deal of time attempting to establish stronger links between employees and their supervisors and this hard work could be undone if managers are too stubborn. 

A recent report by the Chartered Institute of Personnel & Development showed that employees are now becoming more upwardly mobile, as job loss fears have started to subside. 

With the economy continuing to recover, companies will find it harder to keep hold of their most talented workers, which is why it is crucial that employees remain happy and motivated in their current roles.