A current study shows: HR issues are increasingly becoming the strategic focus of companies. It’s not just costs that play an important role. Meanwhile, other important topics threaten to fade into the background.
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In the past (crisis) years, the economy was characterized by material shortages and supply chain bottlenecks. A paradigm shift has now taken place: the availability and costs of workers – not just skilled workers – have become crucial competitive factors for companies. Personnel problems become a greater economic risk than material shortages.
The management consultancy Horváth conducted personal in-depth interviews on this topic with over 400 top managers from international companies, with a focus on Europe and German-speaking countries.
Personnel becomes a decisive location factor
For the full year 2023, companies expect a cost increase of only 4.5 percent in terms of raw materials and materials. Personnel costs, on the other hand, would increase by an average of 7.5 percent. The automotive, energy, telecommunications and oil and chemical sectors are expecting particularly high increases in personnel costs, with increases of 11 to 16 percent.
However, the costs are only one side of the coin. Companies are currently increasingly focusing not only on regions with cheap labor, but above all on those in which workers are available in the long term. This includes the need for structurally good conditions to exist on site, such as easy integration of foreign workers or opportunities for retraining and further training.
Ranking of management priorities
The current ranking of management priorities shows that HR strategy issues are increasingly dominating discussions in boardrooms. For the first time since 2020, human resources issues are ranked number one among the most important management topics.
Across industries, 58 percent attach very high importance to human resources issues, while another 34 percent see them as very important. The focus of the personnel issues are points such as models for flexible working or handling, demands regarding Generation Z, automation or the support and replacement of skilled workers with artificial intelligence.
In comparison, other topics take a back seat. Cyber security is in second place and digital transformation is in third place. The topic “optimization of cost structures” follows in fourth place. The company’s focus on ecological sustainability currently only ranks 5th.
There is room for improvement in recruiting and retaining staff
An analysis of the strategies and measures that companies use to attract and retain skilled workers shows that there is still room for improvement in terms of the maturity level of HR issues. When asked how they counteract HR challenges, companies most often mention offering flexible working models. Further development in the area of “culture and employer branding” takes second place. Commitment in the area of “Leadership” follows at a greater distance in third place. From here on, different approaches emerge – some companies rely on further training, others on digitalization or an extensive benefits program.
Topics such as reskilling, i.e. the retraining of existing staff, are currently not receiving the necessary attention. Projects in the areas of corporate culture or leadership are often underestimated and planned with too little time and budget. However, they are particularly necessary in order to further secure the human resources resource for the future.
The Study “CxO Priorities 2023You can get it here.
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2023-09-19 22:32:27
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