Citation
Nolan, S. (2010), "A look at current trends and data", Strategic HR Review, Vol. 9 No. 2. https://doi.org/10.1108/shr.2010.37209bab.009
Publisher
:Emerald Group Publishing Limited
Copyright © 2010, Emerald Group Publishing Limited
A look at current trends and data
Article Type: Research and results From: Strategic HR Review, Volume 9, Issue 2
Sara Nolan
Story 1People factors and leadership ability stifling change
A study conducted by Lane4 in the first quarter of 2009, has revealed that 88 percent of businesses had experienced substantial change over the previous two years but only 9 percent said they had been truly successful at managing this change. According to the study report, which was produced in September 2009, Emerging Stronger: Strategic Insights for Leading in Tough Times, people factors and leadership ability were the most significant barriers that stifled change in these organizations.
Firms are operating in a state of continual flux. While some are managing this quite successfully, the majority is struggling to achieve strived for results. The report revealed that 51 percent of companies had experienced some success, leaving 40 percent whose change initiatives had failed to achieve their intended objectives.
Senior managers, CEOs, directors and partners from organizations ranging from small businesses to large corporations across the globe were asked what were the most challenging barriers to change. These included people factors (36 percent), leadership factors (34 percent), practical factors (25 percent) and external factors (5 percent). The following are some of the people and leadership barriers identified:
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People factors:
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Employee resistance accounted for 53 percent of the barriers that related to people factors. Respondents talked about uncooperative staff who were hostile to change.
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People-related cultural constraints – 22 percent talked about a culture of caution and bureaucracy.
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Lack of necessary skills accounted for 15 percent of the people barriers.
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Lack of engagement accounted for the final 10 percent of the people component.
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Leadership factors:
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Leadership accounted for 32 percent of the leadership barriers. Respondents said that leaders lacked the knowledge and skill to lead change effectively.
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Inadequate communication – 30 percent said messages were unclear and communicated too formally, preventing employees from really understanding what the change was about.
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Lack of consultation – 14 percent said that change was too top-down and that leaders failed to involve the people who would be impacted by the change.
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Other leadership barriers included lack of vision and lack of alignment.
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Story 2HR must prove its value in global recession
A study report finds disparity between how HR professionals view their contribution to business operations and perceptions of executives elsewhere in the organization. The HR function faces many organizational and financial hurdles, particularly in a grueling business environment. At the same time, HR is confronting a continued perception problem in that many organizations view HR as a services provider rather than a critical business partner.
In a survey of 199 senior executives worldwide, carried out in March 2009, 66 percent of respondents from the HR function say they have identified opportunities to streamline processes and cut costs during the recession; only 49 percent of non-HR respondents agree that HR has done so. The findings of the report, The Role of HR in Uncertain Times, written by the Economist Intelligence Unit and sponsored by Oracle, underscore the need for HR professionals to find ways to close this gap by becoming an acknowledged strategic partner with the business.
Survey respondents say that a big obstacle for HR is that when there is a need for a reduction in headcount, HR has an inadequate understanding of how such reductions will affect business goals. This might be due to the fact that senior managers have not explained the company’s goals. Yet the poor perception of HR at certain organizations could be improved by a more intimate knowledge of the business, as it has the potential to play an important role during the global recession. The tumultuous environment of the economic downturn provides a unique opportunity for HR to demonstrate leadership and creativity. The majority of survey respondents agree that when business conditions become unfavorable, senior managers rely on HR more than they do in good economic times.
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Story 3Gap in international mobility trends
The ongoing economic downturn has forced many companies to dramatically scale back the number of employees they are relocating for international assignments, but has left other industries virtually unscathed, a report exploring international mobility trends from Brookfield Global Relocation Services has found. The 2009 report, International Mobility: The Impact of the Current Economic Climate, queried senior international mobility professionals responsible for international assignment strategy at a number of the world’s leading companies across a range of industries.
Of the companies, 33 percent expect to increase the number of employees they relocate this year, while 67 percent expect to either decrease or maintain the number of employees they relocate. Certain industries – among them telecommunications, oil and gas – are experiencing an uptick in their employee relocation activities due to mergers, emerging global markets and other factors.
The report’s findings pointed to four key trends currently facing multinational companies:
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A reduction in the volume of assignments due to the recession. This is occurring in industries that have been hit especially hard by the economic downturn, including the automobile manufacturing, information technology service and financial services sectors.
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Changes in the volume of assignments. However, these changes are not directly caused by the recession. This trend is impacting the high technology, engineering, retail, financial and information services industries.
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No impact so far, but companies expect a general tightening soon. These industries include the pharmaceutical, food and consumer products manufacturing and logistics sectors.
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An increase in the number of employee relocations. This trend is primarily occurring in the telecommunications, oil and gas sectors, and in some professional services firms.
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Story 4Downturn leading to decline in morale and commitment
The cost-cutting actions of employers trying to deal with the economic crisis have contributed to a sharp decline in the morale and commitment of their workers, especially top performers, according to an annual survey by global consulting firm Watson Wyatt and WorldatWork, an international association of HR professionals. The survey was conducted in May 2009 and is based on responses from 1,300 full-time workers at large US employers.
The 2009/2010 US Strategic Rewards Survey found that employee engagement levels for all workers at the companies surveyed have dropped 9 percent since the previous year, and close to 25 percent for top performers. Additionally, 36 percent of top performers say their employer’s situation has worsened in the past 12 months and the number who would recommend others take jobs at their company has declined by nearly 20 percent. Compared with the previous year, top-performing employees are 26 percent less likely to be satisfied with advancement opportunities at their company. They are also 14 percent less likely to want to remain with their company versus taking a job elsewhere.
The survey also found that top-performing employees are 29 percent less confident in management’s ability to grow the business. A total of 41 percent believe that pay and benefit changes made by their employer in the previous year have had a negative effect on work quality and customer service. The most top-performing employees say they are not expecting to receive the same bonus or pay increase as they have in the past, even though historically companies have rewarded them with pay commensurate with their performance. A total of 61 percent say their companies have reduced or suspended bonuses, while only 35 percent agree their employers reward top employees for performance.
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