A look at current trends and data

Citation

Nolan, S. (2010), "A look at current trends and data", Strategic HR Review, Vol. 9 No. 3. https://doi.org/10.1108/shr.2010.37209cab.007

A look at current trends and data

Article Type: Research and results From: Strategic HR Review, Volume 9, Issue 3

Story 1

European firms facing management and talent crisis

A preoccupation with personnel change and structural reorganization as a key to improving performance is undermining the investment made by European businesses in developing leadership talent and making more difficult the challenge of retaining high-potential individuals. This is one of the key findings of Executive Guidance for 2010, a research report published by global executive network and consultancy Corporate Executive Board (CEB).

Only one in six (16 percent) of surveyed organizations that made at least one senior level personnel change have succeeded in outperforming their key performance objectives (KBOs) during 2009. In contrast, 39 percent of leaders in organizations that have resisted leadership team personnel changes have succeeded in outperforming their KBOs in the same period. However, additional CEB research – the Leadership Bench Assessment Survey – reveals that among European companies, an estimated 40 percent of the barriers to effective leadership are linked to shortcomings imposed by their surrounding working environment and have little to do with individuals’ leadership ability.

Commenting on the findings, Christoffer Ellehuus, managing director EMEA, Corporate Leadership Council, CEB, says: “European companies are rightly reappraising their readiness for outstanding future performance as the global economy exits recession, but the collective focus needs to be on ensuring that the impact of structural changes upon the ability of individuals to do their jobs effectively is factored into the planning process.”

Unprepared for the future

The CEB findings further suggest that the resources that companies have and are dedicating to developing tomorrow’s business leaders are being undermined by a widespread failure to ensure today’s leaders are suitably equipped to operate in the economic marketplace. Moreover, the spotlight is on training investment and why succession plans have not delivered all that they promised. Almost four out of five (84 percent) of identified successors are not ready to step into the executive roles for which they have been nominated.

Further, designated high potential employees are also found by the report to be unsettled. While these individuals perform 21 percent better than (non-high-potential) colleagues they are 10 percent more likely to leave their organizations today than a year ago – in fact one in four indicate that they plan to leave in the next 12 months.

For more information

Visit: www.executiveboard.com

Story 2

Employers increasing use of social media in challenging times

In order to communicate messages to workers in a complex business environment, a majority of companies plan to increase their use of social media in the coming year, according to a survey by global consulting firm Watson Wyatt. Sixty-five percent of companies plan to increase their use of social media in 2010, according to the Watson Wyatt 2009/2010 Communication ROI Study, which surveyed 328 companies from various regions around the world. Overall, 78 percent of global respondents have increased their electronic communication in the last 24 months, and 55 percent have increased face-to-face communication. However, 48 percent have decreased their print communication over the past 24 months.

“Companies continue to explore using social media as the next communication frontier,” says Kathryn Yates, global leader of communication consulting at Watson Wyatt. “Today’s workers are looking for authentic, timely messages that address how business changes affect them personally. Social media engages employees in real time and on a variety of topics.”

Common hurdles

While interest is growing, many employers report common hurdles to implementing social media. Among employers that did not expand their use of social media, more than 36 percent cited the lack of information technology support or inadequate technical capability. Forty percent indicate limited knowledge of the topic, and 45 percent of companies cite the lack of staff or resources.

For now, the traditional communication channels remain the most popular for many of employers’ messages to their workers. According to the report, most employers prefer to communicate changes to business performance via staff meetings (73 percent). Employers view financial education as best delivered through their intranet (43 percent). Employers still prefer communicating changes to pay and job security face-to-face (58 percent and 48 percent respectively).

“While traditional communication channels are still preferred in some instances, the downturn has put a premium on effective, innovative communication,” says John Finney, senior communication consultant at Watson Wyatt. “However, it is important for companies to take full advantage of these new, exciting forms of communication by developing strategies before making any sudden leaps and then continually measuring the programs’ effectiveness.”

For more information

To view the 2009/2010 Communication ROI Study report, visit: www.watsonwyatt.com/CommROI

Story 3

Measuring cultural alignment

Talent management company A&DC has carried out a worldwide psychological research assessment to reveal deeply held beliefs and assumptions people have in the workplace. Called the Cultural Alignment Indicator, the test uncovers the real values that are judged to be important within organizations, how employees perceive these values and how well they are integrated in the day-to-day running of an organization.

Espoused culture versus actual culture can differ widely. A&DC has developed this tool to help organizations surface the actual culture that exists versus the culture they might wish to see. Rory Fidgeon, psychologist consultant and the report’s author at A&DC, says: “Culture has long been a holy grail of workplace psychology because it is so difficult to measure, understand, communicate and manage. Culture is commonly defined as ‘how we do things around here’ so when the views of an individual or group are aligned with those of the organization, you see a cultural fit.”

It is the view of A&DC that it is as important to measure cultural alignment as it is capability alignment (i.e. skills, knowledge and experience), as research has shown that when cultural alignment exists, people report higher levels of job satisfaction, which in turn leads to reduced attrition, increased discretionary effort and increased performance. When someone is excessively misaligned with the collectively agreed view of what positive or less positive looks and sounds like within an organization, they are much more likely to report feeling unhappy and out of step with their employer and colleagues.

Same workplace, different attitudes

Initial assessment surveys have been carried out by over 300 respondents globally and the research is ongoing. Following is a summary of some of the differences found between some of the groups analyzed:

Men versus women

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  Options. Women think it is more important to “offer choice” compared to men who think it is more important to “offer simplicity.”

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  Ambitious. Men think it is more important to “be ambitious” compared to women who think it is more important to “be content.”

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  Direct. Men think it is more important to “be direct” than to “be diplomatic” compared to women at work.

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  Reactive. Women think it is more important to “be reactive” than to be “pre-emptive” compared to men.

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  Conceptual. Men think it is more important to “be conceptual” compared to women, who think it is more important to “be practical.”

Senior executive versus others

Compared to the rest of us, senior executives believe it is more important to:

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  Question status quo rather than conform.

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  Focus on tomorrow instead of respect tradition.

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  Take risks rather than avoid risks.

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  Focus on the big issues rather than get bogged down in detail.

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  Think positively rather than pessimistically or even realistically.

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  Widen skill base rather than perfect existing skills.

For more information

Visit: www.adc.uk.com

Story 4

Companies forced to change approach to talent

Companies are being forced to change their approach to talent attraction and retention in the light of the global recession. This is according to the HR Barometer survey, which was conducted by UK-based HR consultancy The Scala Group and The ACE Network and supported by international law firm Salans, and polled 559 senior HR management professionals across 17 countries. Only 25 percent of respondents felt that enhancing pay and benefits would assist companies to navigate their way successfully through the downturn. A much higher importance – 63 percent – was placed on skill and capability development of employees.

The survey also showed that increased communication (65 percent) and employee engagement (51 percent) were ranked as the key drivers to ensuring companies were in the best possible position with their staff to not only survive the downturn, but be prepared for the upturn. Over 56 percent of respondents felt that tackling poor performance was still needed in companies.

For more information

Visit: www.salans.com

Sara Nolan