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HR BAROMETER 2017HRM TRENDS AND CHALLENGES IN BELGIAN ORGANISATIONS
Dear HR professional,
For the third year in a row, Vlerick Business School and Hudson have launched an HR barometer on the
trends and challenges in HRM in Belgian organisations. The barometer explores the HR priorities of leading
companies operating in Belgium and shifts in these HR priorities over time.
The HR barometer is a yearly initiative launched in January and involves two parts. The first part of the
barometer focuses on the strategic importance of different HR practices and policies, so that over time, the
shifts in these priorities can be explored. The second part examines a hot topic in HR. For this edition of
the HR barometer, we look into the topic of HR impact on the organisation.
This report provides you with an overview of the most important findings of the study in 2017 and the
shifts compared to 2016, based on a quantitative analysis of the HR priorities of leading Belgian
organisations.
We hope this report provides you with interesting and useful insights,
Nikola Trbovic Dirk Buyens
Director Research & Development Head HRM Centre & Director Open Exec Ed
Ellen Volckaert Emmy Defever
Manager Research & Development Senior Research Associate
Astrid Vandenbroucke
Research Associate
1METHODOLOGY
METHODOLOGY
Research design
Investigate the trends and challenges in HRM in leading organisations operating in Belgium
Among the largest profit organisations in Belgium (Bel 20+ 200 largest profit organisations in terms of number of employees)
Through an online survey among HR Directors and Managers
Broad spectrum of industries
Timing
January 2017 to March 2017
Sample
55 organisations
Representing about 205.000 employees in Belgium
4
ONLINE SURVEY
Actual HR practices:
Indicate the priority of HR practices and the mastery of these practices in 2016
On a scale from 0% (no priority/low mastery) to 100% (top priority/role model)
Future HR practices:
Look ahead to the planned priorities in 2017 and indicate top 5.
* New topic in the list
Specific HR Topic:
Spotlight on HR impact on the organisation
4
Selection & recruitment
Employer branding
Prepare organisation for growth
Learning & development
Talent management
Competency management
Performance management
Leadership development
Teamwork
The new ways of working
Well-being
Engagement
Compensation & benefits
Diversity
Retention
Prepare organisation for stagnation/downsizing
HR Analytics
HR Operational excellence
Industrial relationships
Cultural change*
…
SAMPLE CHARACTERISTICS
6
A. NUMBER OF EMPLOYEES IN BELGIUM
5,5%
16,4%
16,4%
18,2%
43,6%< 500 employees
501 - 1000 employees
1001 - 1500 employees
1501 - 2000 employees
> 2000 employees
SAMPLE CHARACTERISTICS
7
B. NUMBER OF EMPLOYEES INTERNATIONAL (INCLUDING BELGIUM)
49,1%
21,8%
10,9%
1,8%
16,4%
< 5000 employees
5001 - 25000 employees
25001 - 50000 employees
75000 - 100000employees
>100000 employees
SAMPLE CHARACTERISTICS
8
C. NUMBER OF BLUE & WHITE COLLAR EMPLOYEES
Blue collar White collar
30,9%
14,5%
9,1%
16,4%
27,3%
No employees
1-200 employees
201-500 employees
501-1000 employees
> 1000 employees
3,6% 7,3%
16,4%
20,0%
50,9%
SAMPLE CHARACTERISTICS
9
D. COMPANY SECTOR
1,8%
5,5%
5,5%
5,5%
5,5%
7,3%
7,3%
9,1%
9,1%
10,9%
14,5%
14,5%20,0%
0% 10% 20%
Aerospace & Defense
Fast Moving Consumer Goods
Public Sector
Automotive
Financial services & Insurance
Transport & storage
Legal & Professional services
Construction & Engineering
Retail
Telecommunications & IT
Energy & Utilities
Chemical, Pharmaceutical & Healthcare
Industry & Manufacturing
SAMPLE CHARACTERISTICS
10
E. RATIO OF HR STAFF TO EMPLOYEES
12,7%
43,6%
23,6%
10,9%
3,6%5,5%
1/50 employees or less
1/51 - 1/75 employees
1/76 - 1/100 employees
1/101 - 1/150 employees
1/151 - 1/200 employees
1/201 employees or more
Average ratio: 1 HR staff member per 87 employees
2GENERAL RESULTS
I.HR BAROMETER 2017:
ACTUAL PRIORITIES
HR BAROMETER 2017: ACTUAL PRIORITIES
13* Word size reflects average priority level across respondents
HR BAROMETER 2017: ACTUAL PRIORITIES
14
10
40
48
50
50
50
51
53
53
60
60
61
70
70
70
70
70
75
79
80
0 10 20 30 40 50 60 70 80 90
Prepare organisation for stagnation/ downsizing
Diversity
HR analytics
Compensation & Benefits
Employer Branding
Teamwork
The New Ways of Working
Competency management
Industrial Relationships
HR Operational Excellence
Well-being
Performance Management
Cultural Change
Engagement
Learning & Development
Prepare Organisation for Growth
Retention
Talent Management
Selection & Recruitment
Leadership DevelopmentTop 3 priorities
TRENDS IN ACTUAL PRIORITIES: HR BAROMETER 2016 COMPARED TO 2017
15
Actual priorities 2017
Actual priorities 2016
* New topic in 2017
0
10
20
30
40
50
60
70
80
90
Selection & Recruitment
Employer Branding
Prepare Organisation for Growth
Learning & Development
Talent Management
Competency management
Performance Management
Leadership Development
Teamwork
The New Ways of Working
Well-being
Engagement
Compensation & Benefits
Diversity
Retention
Prepare organisation for stagnation/downsizing
HR analytics
HR Operational Excellence
Industrial Relationships
*Cultural Change
II.HR BAROMETER 2017: PERCEIVED MASTERY
HR BAROMETER 2017: ACTUAL PERCEIVED MASTERY
17
40
48
49
50
50
51
51
54
57
60
60
60
61
62
70
70
70
70
70
75
0 10 20 30 40 50 60 70 80
Prepare organisation for stagnation/ downsizing
Employer branding
HR analytics
Diversity
Competency management
The new ways of working
HR operational excellence
Prepare organisation for growth
*Cultural Change
Talent management
Performance management
Teamwork
Retention
Well-being
Selection & recruitment
Learning & development
Leadership development
Engagement
Compensation & Benefits
Industrial relationships
Top 6
TRENDS IN PERCEIVED MASTERY:HR BAROMETER 2016 COMPARED TO 2017
18
Actual mastery 2017
Actual mastery 2016
* New topic in 2017
0
10
20
30
40
50
60
70
80
Selection & recruitment
Employer branding
Prepare organisation for growth
Learning & development
Talent management
Competency management
Performance management
Leadership development
Teamwork
The new ways of working
Well-being
Engagement
Compensation & Benefits
Diversity
Retention
Prepare organisation for stagnation/downsizing
HR analytics
HR operational excellence
Industrial relationships
*Cultural Change
III.HR BAROMETER 2017:
PRIORITY VS MASTERY
Prepare organisation for stagnation/ downsizing
Industrial Relationships
Compensation & Benefits
Diversity
Teamwork
Well-being
HR analytics
Engagement / Learning & Development
The New Ways of Working
Performance Management
Employer Branding
Competency management
HR Operational Excellence
Retention
Selection & Recruitment
Leadership Development
Cultural Change
Talent Management
Prepare Organisation for Growth
HR BAROMETER 2017: PRIORITY VERSUS HR MASTERY
20
Actu
al M
aste
ry
Actual Priority
High
HighLow
Low Area for improvement
StrengthGood job
No priority
PRIORITY VS HR MASTERY: STRENGTHS
High score in terms of priority and
mastery:
21
Main strengths
• Leadership development
• Selection & Recruitment
• Engagement
• Learning & development
Second in a row
• Talent management
• Retention
• Performance management
• Wellbeing
PRIORITY VS HR MASTERY: AREAS FOR IMPROVEMENT
High score in terms of priority, but not
in terms of mastery:
22
Main areas for improvement:
• Cultural change
• Prepare organisation for growth
Second in a row
• HR operational excellence
PRIORITY VS HR MASTERY: UNDER CONTROL?
Lower score in terms of priority, but
high score in terms of mastery:
23
Good Job
• Industrial relationships
• Compensation & Benefits
• Teamwork
PRIORITY VS MASTERY: NO PRIORITY
Rather low score in terms of mastery
but not perceived as a priority:
24
No Priority
• Prepare organisation for stagnation/downsizing
• Diversity
• HR analytics
• Empoyer branding
Second in a row
• The new ways of working
• Competency Management
Prepare organisation for stagnation/ downsizing
Industrial Relationships
Diversity
Well-being
HR analytics
Engagement / Learning & Development
The New Ways of Working
Performance Management
Employer Branding
Competency management
HR Operational Excellence
Retention
Selection & Recruitment
Leadership Development
Cultural Change
Talent Management
Prepare Organisation for Growth
TRENDS IN PRIORITY VS MASTERY:TOPICS THAT REMAINED STABLE COMPARED TO 2016
25
Actu
al M
aste
ry
Actual Priority
High
HighLow
Low Area for improvement
StrengthGood job
No priority
Teamwork
Comp & ben
TRENDS IN PRIORITY VS MASTERY:CHANGED PRIORITIES ACROSS QUADRANTS
26
Actu
al M
aste
ry
Actual Priority
High
HighLow
Low Area for improvement
StrengthGood job
No priority
Retention
HR analyticsHR Operational Excellence
Talent Management
TRENDS IN PRIORITY VS MASTERY:CHANGED PRIORITIES WITHIN QUADRANTS
27
Actu
al M
aste
ry
Actual Priority
High
HighLow
Low Area for improvement
StrengthGood job
No priority
Prepare organisation for stagnation/ downsizing
IV.HR BAROMETER 2017: PLANNED PRIORITIES
PLANNED PRIORITIES 2017
29
Leadership development
Selection & Recruitment
Talent Management
Prepare Organisation for Growth
Employer branding
Compared to the planned priorities in 2016, engagement
dropped the top 5 in exchange for employer branding.
Top 5 priorities when looking ahead to the coming year:
V.HR BAROMETER 2017: SPOTLIGHT ON “HR IMPACT ON THE ORGANISATION”
HR IMPACT ON THE ORGANISATION:IS HR REPRESENTED IN THE BOARD?
31
Does the HR Director have a place on the board or equivalent top
executive team?
YES
5,5%94,5%
NO
1. Selection & Recruitment
2. Employee
Engagement
3. Absenteeism
4. Turnover/
Retention
5. Cost
1. Change
management /
Cultural change
2. Employee
Engagement
3. Selection &
Recruitment
4. Turnover/
Retention
5. Training &
Development /
Wellbeing
HR IMPACT ON THE ORGANISATION:EVALUATION OF HR PRACTICES
32
Top 5 KPI’s HR practices and policies are
currently evaluated upon:
Top 5 KPI’s participants would like
to be evaluated upon:
HR IMPACT ON THE ORGANISATION:KPI’S TO MEASURE ORGANISATIONAL SUCCESS
33
Q: Please indicate the importance of the following Key Performance Indicators (KPI’s) in your organisation to
measure organizational success (total must sum to 100).
KPI’s on three different levels:
23
30
47Financial outcomes
Organisational outcomes
Human Resources outcomes
HR IMPACT ON THE ORGANISATION:FINANCIAL OUTCOMES
34
Q: Please indicate the top 3 Financial Key Performance Indicators in your organisation to measure
organisational success.
Market/book value
Return on Investment (ROI)
Operating expenses
Revenue growth rate
Profitability
23,6%
41,8%
70,9%
72,7%
83,6%
Top 3 Financial Outcomes
Lower HR priorities on: Talent management
Lower perceived Mastery of: Retention
Lower HR priorities on: CompetencyManagement, Teamwork
Lower perceived mastery of: Teamwork, NWOW
HR IMPACT ON THE ORGANISATION:LINK BETWEEN FINANCIAL OUTCOMES & HR PRIORITIES
35
Profitability
OrganisationalFinancial KPIs
Correlate withHR
Priorities & Mastery
Higher HR Priorities on: Talent management, Employer Branding, Performance Management, Well-being & Engagement
Higher perceived mastery of: Retention, Teamwork, L&D, Talent Management, Engagement
Revenue Growth
Operating expenses
HR IMPACT ON THE ORGANISATION:ORGANISATIONAL OUTCOMES
36
Q: Please indicate the top 3 Organisational Key Performance Indicators in your organisation to measure
organisational success
Innovation
Productivity
Quality of product/service
Achievement of the organisational goals &strategy
Customer satisfaction
34,5%
54,5%
60,0%
60,0%
83,6%
Top 3 Organisational Outcomes
HR IMPACT ON THE ORGANISATION:HUMAN RESOURCE OUTCOMES
37
Q: Please indicate the top 3 Human Resource Key Performance Indicators in your organisation to measure
organisational success
Employee engagement
Employee turnover
Absenteeism
Social atmosphere
Employee skills and abilities
Employee attitudes and behaviours
7,3%
40,0%
50,9%
54,5%
63,6%
74,5%
Top 3 Human Resource Outcomes
HR IMPACT ON THE ORGANISATION:ADDED VALUE OF HR
38
Q: Please indicate how often the following statements apply to your HR department in the organisation
(ranging from 0% = not at all, to 100% = ‘to a very great extent’).
9%
6%
4%
4%
27%
24%
24%
18%
18%
11%
33%
47%
36%
49%
36%
20%
31%
24%
40%
29%
42%
69%
HR communicates the ideas of line management andencourages that these are heard.
HR generates new ideas and inspires line management.
HR challenges the ideas of line management.
HR offers logical, rational reasons to convince otherdepartments and line management of its point of view.
HR looks for compromises with line management and makesconcessions to reach for outcomes that satisfy its greater
interest.
HR builds relationships and connects with line management’s ideas and decisions through listening,
understanding and building coalitions.
Very little extent (score between 0-25) Little extent (score between 25-50)
Moderate extent (score between 50-75) Great extent (score between 75-100)
HR IMPACT ON THE ORGANISATION:HR INVOLVEMENT
39
Q: Please indicate how often the following statements apply to your HR department in the organisation
(ranging from 0% = not at all, to 100% = ‘to a very great extent’).
20%
15%
9%
4%
31%
26%
13%
4%
31%
33%
22%
18%
18%
27%
56%
75%
The HR department is involved in optimising the businessprocesses in every department.
The HR department is proactively involved in developing andmaintaining strategic partnerships and alliances.
The HR department is involved as from the conceptual phase indetermining the organisational strategy.
The HR department is involved at an early stage inimplementing reorganisations, restructuring, mergers and
acquisitions.
Very little extent (score between 0-25) Little extent (score between 25-50)
Moderate extent (score between 50-75) Great extent (score between 75-100)
HR IMPACT ON THE ORGANISATION:ADDED VALUE OF HR
40
Q: How does the board in your organisation perceive HR’s
added value to organisational success according to you?
Less good Good Very Good Excellent
12,7%
43,6%40,0%
3,6%
HR IMPACT ON THE ORGANISATION: CONCLUSION
41
Role of HR as a strategic business partner is confirmed:
In most organisations, HR is represented in the top executive team
Involved in the development of the business strategy from the outset
Though: HR seems only moderately involved in the business strategy implementation
Cultural change is considered as the most important HR KPI organisations want to be evaluated upon, whereas in practice Selection and Recruitment is the most important KPI.
Although training and development is considered as an important HR KPI, few organisations indicate that their HR practices are evaluated upon this KPI.
Financial outcomes and organisational outcomes are considered as most important to measure organisational success, followed by HR outcomes.
VI.TOPIC NEXT HR BAROMETER
NEXT HR BAROMETER: TOP 3 TOPICS
43
HR analytics
Organisational culture / Mobility & employability
The new ways of working
Which topics would the respondents like to see covered in the next edition of the HR barometer
VI.FINAL LESSONS LEARNED
FINAL LESSONS LEARNED
Leadership development and R&S remain top priorities, followed by Talent
Management.
Cultural change and Preparing Organisation for Growth are most important areas for improvement
Although currently not high on priority list, HR Analytics is chosen as topic to explore in-depth next
year
HR is an important strategic business partner. In most companies, HR is
represented in the board & strongly involved in developing business strategy.
Though, less involved in strategy implementation
Trust in economy is clearly growing, as shown by the increased priority of retention, engagement and employer
branding
Cultural change is considered as the most important HR KPI the HR directors want to
be evaluated upon
3MORE INFORMATION?
Nikola Trbovic
Director Research & Development
(+32) 9 242 54 68
Ellen Volckaert
Manager Research & Development
(+32) 9 242 53 68
MORE INFORMATION?
Dirk Buyens
Head HRM Centre & Director Open Executive Education
(+32) 475 83 68 83
Emmy Defever
Senior Research Associate
(+32) 9 210 97 56