hr practices in europe

8/12/2019 Hr Practices in Europe

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HR PRACTICES IN EUROPE

Organisations throughout Europe know how important human capital is to their

success. Yet managing people is a permanent challenge. To gain an insight into HRmanagement practices in Europe, various centres have conducted a survey of howEuropean businesses organise their HR department. This has produced a detailedpicture of the department and its functioning.This report contains the results of this research. It helps HR professionals to identifyissues which require different solutions in different regions. It can also serve as an aidto formulating an individual vision, and as a sounding-board for planned HR actions.One important finding is that there is no such thing as a common European HR model.The differences between the European countries and regions are very clear, in terms ofHR policy, thefunctioning of the HR department and the areas on which businessesprojects focus.Since the year 2000 the European Union, likeother Western economies, has been resolutelytravelling down the knowledge economy path.In the Lisbon Strategy, European leaders setthemselves the goal of making Europe the worlds most dynamic and competitive knowledge economy by 2010.

The shift that this has brought about on theemployment market has a substantial impact

on companies and their HR management.Concerns about attracting and retainingcompetent knowledge workers are both currentand acute. Europe will need to deploy thefull potential of its employees to safeguardthe growth and global competitiveness of itscompanies.

The aim of this European survey was to obtaina picture of the organisation of the HR departmentin European organisations.

Developing knowledge in this area is vital forthe optimal long-term development of humancapital and of European organisations. In anopen economy, this is very important. Ultimately,it is the basis for a constantly renewablecompetitive advantage.

The bottom-line results are central here, and they arepartly determined by an intensive interchange

between the HR core processes (staffing, payroll,compensation and benefits, performance,


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development) and leadership, without whichno process can run optimally. The extent towhich HR contributes to the achievement ofthe organisations objectives depends on the effectiveness and efficiency of the HR processes,but equally on good leadership. Bothingredients are indispensable in the recipe fora high-performance personnel policy.

For an HR strategy to tiein with the organisations strategy, a vertical fit is needed. This represents a critical step for the achievementof the organisations goals. HR professionals need to communicate closely with the topmanagement and hence to have sufficientknowledge of both business and market. Ithelps if they are close to the board of directorsof the business. When we look at the reportinglevel of the European HR manager, it turnsout that more than half of them report directlyto the CEO.

By consolidating different departments, HRcan demonstrate that it is executing the HRstrategy in concrete terms. At the same time,

the HR department needs to provide responsesto questions from local departments ordivisions and from the personnel. It needs tobe both centrally and locally based.

Searching for human resource management(HRM) is no easy undertaking. If Europeanmanagement exist, it is in the term of greater cautiousness, sophistication of method,and pursuance of elitist reward and career systems.

European union employment policy aims at promoting a high level of employment , co-ordinating the employment policies of EU member states, and on developing acoordinated employment strategy. To achieve these goals, the EU publishes a yearlyschedule of employment policy guidelines of the council, monitors the employmentprogrammes of the member states. This all is the work of the HR departments that isworking throughout the union.

The European countries are one the most developed and economically strong countriesin the world.Let us now discuss about the various European countries and their HR managementpolicies.

The countries are discussed below.


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THE COUNTRY STUDIES:

IRELAND

LEGISLATION

Legislation is governed by EU regulations.

The Equality Acts 1998 + 2004 effectively ensure employers have to operate in an

equality driven environment.

THE CASE OF A PRIVATE COMPANY:

IL&P (Irish Life & Permanent): As a large public quoted bank it is in our interest to

ensure we are fully compliant with all legal requirements. Also we want our

customers to see us as a employers that value and appreciate equality in the

workplace.

As a private company we expect our suppliers to operate in a compliant manner.

Eg. In the recruitment area we request our suppliers (recruitment agencies) to have

an Equality Policy . We will not do business unless this exists.

State/regional attitude

Through FAS (government body) there is funding available of up to 80 % for

specific training. This year IL&P have received funding for our disability awareness

training which has been rolled out initially to staff in HR/Facilities/Reception areas.

The Equality Authority is a state body that promotes Diversity in the workplace.

They offer services e.g. Diversity Audits/funding to encourage organisations topromote Diversity in the Workplace.

The EQUAL Project4

The EQUAL project has provided IL&P with the opportunity to undertake a Diversity

Audit of our Recruitment & Selection practices. This has been a huge learning

curve for us. The recommendations arising from this Audit will help further improve


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the way we operate and raise awareness company wide on Diversity issues.

GOOD PRACTICE

1. The recruitment team ask all applicants do they require any special

accomodations prior to attending a selection process.

2. We have organised sign language interpreters for staff members when

requested.

3. We are in the process of installing braille signage in all 110 bank branches and

ensuring they are all wheelchair accessible.

4. Next year we plan to include a training piece on Diversity Awareness in all of

our training Induction Programmes.

About Irish Life & Permanent:

The Irish Life & Permanent group (IL&P) is a leading provider of personal financial

services in the Irish market. The group formed from the merger of Irish Life plc and

Irish Permanent plc in 1999. The group

s strategic focus is on Ireland and its

successful economy, with our ambition to be the number one provider of personal

financial services. The Group has over 4,500 employees and over one million

customers in Ireland.

This audit and action plan is one of a number being undertaken as part of Equal at

Work A Dublin Employment Pact Initiative and is funded by the European Social

Fund. The audits will vary and there is learning to be extrapolated from the

different conditions, circumstances, approaches and practices that will be used

About the Audit:

IL&P have engaged external consultants to conduct a Diversity Audit to:

nt policies and procedures from an Equality and Diversity

perspective.


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-flows and relevant interfaces.

selection and make recommendations on how this can be achieved.

requirements of all candidates who enter the recruitment process taking account of

diverse backgrounds.

and developments that can be applied in IL&P5.

Outcomes:

To date an interim report has been produced and and final version approved during

the summer by the senior HR Management team. The report signaled the high

priority areas and included recommendations and an action plan. Since then it has

been agreed with Senior Management what actions are Short/Medium/Long term.To date we have closed off several actions the more long term actions are been

dealt with in 2007 in tandem with the recruitment team with 3 mini project teams

managing actions. It is expected that the vast majority of the actions will have been

implemented year end.

GERMANY LEGISLATION

The anti-discrimination law has become effective from August 2006. Companies,

however, are reluctant to comply.

In relation to the size of a company a certain number of handicapped people has to

be employed, but companies can buy off from that.

INCENTIVES FOR COMPANIES


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There are bonuses paid by the employment service for hiring unemployed persons,

particularly older ones. Work placements are without cost to the company.

Public services and large companies have equal opportunities officers mostly

concerned with women.

There are bonuses for the hiring of unemployed. A number of pilot projects are

mostly EU funded.

In the context of a model programme by the Federal Ministry for Employment there

is a prize given to companies.

Employers are informed in workshops and receive offers of training programmes for

older employees or migrant workers.

CONCEPTS RELATED TO INCLUSIVE HR

1. Diversity Management

38.5 per cent of German companies have DM in place (DAX and US subsidiaries),

90 per cent of which have more than 17.500 staff. 18.5 per cent additionalcompanies are familiar with the principles of Diversity Management. 26.1 per cent

of companies with DM are German, 70.0 per cent are US subsidiaries.

Good practice cases:

Lufthansa, Deutsche Bank, WDR (Broadcast Channel), Ford

2. Managing Employee Live Cycles

German companies are not very familiar with this concept, which comprises:

Attraction and selection.

Diverse work experience and development.

Career planning.


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Work-life balance.

Re-orientation for the older workforce.

Knowledge transfer.

New professional roles: mentor, consultant

Preparation for retirement.

3. Hiring unemployed people

The case of Volkswagen Auto 5000

Deal: Employment for reduced wages

Programme: 5000 x 5000 = Employment of 5000 jobless for a salary of 5000

DM (approx. 2.500 )

Result: 3800 trained and employed at Wolfsburg

New, decentralised work organisation

Process based teamwork

Time for training on top of working hours.

THE EQUAL PROJECT FAIR PLUS

Inclusion in the FAIR plus project means mainly older workers, one of our projects

addresses unemployed persons.The municipality of Nuremberg offers through its

labour service company (NoA) temporary placement for disadvantaged people (i.e.

longterm unemployed) in different municipal departments to acquire job practice.8

Other projects are concerned with training older workers in companies, so as to

give them better chances in their jobs and protect them from being laid off.

Good practice:

1. The public transport organisation offers intercultural training for bus drivers

and ticket inspectors (many of them are older), supported by our project.

2. The public transport organisation are retraining their bus drivers for a healthy


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worklife until retirement. Our project gives consultancy.

3. Siemens are retraining older redundant staff for employment within or without

Siemens by using our innovative learning programme.

4. A Telecom call centre offers a programme of improving their employability to

its agents. Learning support is offered by the EQUAL project.9

POLAND

ASSETS OF THE PEOPLE AGED 45+

extensive professional experience

time availability

ability to work in group

According to their immediate superiors, people aged 45+ may count on equal or

even better employment possibilities in comparison with the younger ones in

managing, specialized and scientific positions. Managers believe it is worthwhile to

establish age-combined teams. Such teams prove to be more efficient, mainly dueto the sharing experience and know-how by the employees aged 45+.

PORTFOLIO THE BEST CANDIDATES FOR YOUR EMPLOYEES

Since 2001 the Institute for Local Partnership and Cooperation has developed many

actions helping people suffering discrimination on the labour market. A lot of these

people are unemployed, have low qualifications, obsolete trades. Some of them are

disabled.

One of a splendid idea of the Institute was to create a website with the information

about people who are looking for a job. Each candidate prepares a short

presentation of ones own qualifications, skills and important information that could

encourage and convince an employer to choose and engaged just this person. Many

people aged 40+ put their portfolio on this website. The important thing is the


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portfolio of person aged 40+ is among others, much younger. In this way they are

treated equal.

THE THIRD AGE INSTITUTION

Olsztyn University of the Third Age is a university unit of Warminsko-Mazurski

University, which was brought to life on the basis of University Senate resolution

adopted in 2000. The idea of the Olsztyn University of the Third Age is to include

elder people into lifelong learning throughout propagating social activity on the

basis of the development of interests.

The main assumption is, therefore, widely understood intellectual, mental and

physical stimulation of seniors, as well as leading educational and cultural activity,

not forgetting about propagation of gerontological prophylaxis.

During the education many Students aged 50 60 come back to work or re-start

very active life an local labour market.

SPAIN

SUBJECT GROUP: INTEGRATION OF GOOD PRACTICES IN COMPANIES

HUMAN RESOURCES (MANAGING DIVERSITY)

1. What activities or methods does the EQUAL project promote to raise

employers awareness?

From the South Madrid DP the following activities are carried out:

- Meetings with company heads and their middle managers to raise awareness

and for inclusion of groups that have difficulty in integrating into the labour market

in HR hiring policies.

- Carrying out of information days, seminars and sessions on the importance of

managing HR policies that incorporate diversity in organisations.


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- We stress demographic and organisational trends and the need to adapt to

changes.

- Publishing in the press and participation in the communication media, radio,

television, etc.

2. Some local examples of good practice (companies that promote human

resource policies that improve the quality of life of their workers, afford them

ongoing training, which promote reconciliation policies, etc.).

The example of good practice closest to home is an associate who participates in

the South Madrid DP.

The Los Nogales Group are residential centres that are integrating the beneficiary

groups of the South Madrid project and have an Internal Training Plan, which

includes introductory training for new staff and the drawing up of career plans. For

example, last years Training Plan included actions to build on personal skills

(Communication, social skills, laughter therapy, etc.)

Also, as a work and home life reconciliation measure, workers have a crche for

workers children under 3 years, and this includes the provision of crches for their

companies workers in each new work centre that opens.

Another example of good practice is the realisation of the SKILLS BALANCE by

Madrid Council

s Employment Agency and the Randstad Foundation.This aims to offer a training area where students can put into practice the

knowledge, skills and attitudes throughout their occupational training, based on

learning while actually working and in work simulations for each job, so that they

are able to carry these out correctly, safely and efficiently.

The methodology is basically participatory and dynamic, made up of a series of

dynamicsadapted to the content of each of the training actions- which will deal


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with the elements involved in each job (telemarketing, receptionist, customer

service, etc.), giving special emphasis to role playing feared situations.

Here, different situations related to the carrying out of daily work duties are

represented, where students will have to roleplay what they learn throughout the

course and develop skills with which to tackle contexts with different degrees of

difficulty.

Students will thereby be ready for the work environment with a greater degree of

preparation and, above all, with a real practice of specific situations that, because

they can be solved with the help of the trainers, will give them very useful tools for

their working futures.

The group work is also digitally recorded in order that the role-plays can be worked

over later, giving particular emphasis to verbal and non-verbal communication.

A CD will also be made of all the material studied in the session including a

selection of best moments, which is provided to participants as part of theWorkshop material.

At the end of every session, an ASSESSMENT dynamic will be carried out, which will

consist of a questionnaire in which participants will assess the Workshop and the

knowledge and practical skills acquired.

The workshop lasts 12 hours.

HUNGARY

THE INCLUSIVE WORK PLACE AWARD

The INCLUSIVE WORK PLACE AWARD has been firstly announced by the Equal

Opportunity Office of the Municipality of Budapest in 2005, supported by the


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European Social Found and the Hungarian Government in frame of the EQUAL

community initiative with the of the European Social Found and the Hungarian

Government.

The aim of the award is to express appreciation of the City of Budapest for

employers who make an active role and set example in strengthening and

developing equal opportunities at the workplaces. There is an Equal Opportunity Act

to protect disadvantaged groups, discrimination is penalized officially by a special

authority, however, good practices are rare on the labour market. These creative

and sensible employers deserve attention and appreciation of the experts and the

public as well.

Members of the Commitment deciding on the award as follows: the Municipality of

Budapest, the Budapest Chamber of Commerce and Industry, the National

Organization of Non-profit Human Services, municipal, employer and employee

Sides of the Budapest Labour Council, members are further the representative of

the granter, the representative of the EQUAL support program of the Ministry ofSocial Affairs and Labour and Ildik Kocz specialist and journalist. The award will

be announced in every year again.

The award winners in 2005:

Uzsoki Street Hospital of Budapest, budget and non-profit organisations category.

Hewlett Packard Hungary Kft., for-profit enterprises category14

UZSOKI STREET HOSPITAL OF BUDAPEST

If there is humanity, there is love of profession as well.

Hippocrates

The institution developed its equal opportunity plan in 2004, with that unique

initiative in in this field, that they include homeless people into the hospitals equal


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opportunity policy by solving their housing problems, providing rooms for the

stakeholders in their nurse hostel. The hospital does a lot for equality, in spite ofinstitution s limited budget.

The Hospital make outstanding efforts on inclusion of people living with disability.

One of the main priorities to let employees to obtain all the employer s informations

free of barriers (for e.: job ads, job descriptions, invitations available in braille). The

buildings of the institution aredesigned for all, and free of physical barriers, on

both sides of the office desk, too.

Starting of the Fnykzelben program was an answer to the fact of the growing

populace of people living with seeing impairment. It s a basic problem in Hungary

for disabled people to reach certain public services like health provision and

preventive services. The hospital set up this project to solve this challenge, and

provides monthly healthdays with mass sport events. The services mostly visited by

the employees of the hospital living with disability, the employees FKEFE

Industrial Kft. (sheltered employment company of the City of Budapest), and

members of the Budapest Region Organisation of People with Seeing Impairment.

With this barrier free environment and flow of information it is possible for the

hospital to employ more and more qualified people living with disability. By the

latest statistics, there are more than 3% of the staff belongs to this disadvantaged

group,

They pay attention to the participation of disadvantaged people in LIFELONG

LEARNING program. All the information about the education is available for

everybody. People over 40 are encouraged for learning, there are personally

planned courses for them to develop their language skills and knowledge of

information technology.


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The employees are supported by certain services. These are mostly preventive

health services or debt handling advice and crisis intervention service. There is a

tradition of employees health day, too. It is possible for the women coming back

from maternity or child care benefit to work in part time.

The organization has successfully integrated Roma employees into different jobs.

Type of organization: maintenance by municipality

No. of employees: 1410 persons

Primary target groups:

- People living with disability,- People who belong to minorities15

- Women

- Parents

- people over 40

- Homeless.

HEWLETT PACKARD HUNGARY KFT.

We believe that the secret of our success in business is in the philosophy of our

human policy, where basic keywords are diversity and equality citation from thecompanys tender documentations.

Diversity policy is one of the basic values of the organization; they have developed

a strategy supporting diversity and a system of liability with contribution of their

parent company. There is a well developed system of in-service training, flexible

working time and plaint Furthermore, ensuring equality with regulation against

discrimination, this attitude is required from their business partners as well.

Every year the company develops the Plan for Developing Diversity, and there is an

Equal Opportunity Coordinator responsible for implementation of the Plan, whose


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job is monitorized by the Diversity Supervising Team set up of volunteer employees.

The plan not only describes the strategy of the organization, but it defines

particular steps, aims and standards, so it results in controllable process.

They make efforts on work-life balancing, to develop the employees efficiency and

motivation. The company worked out a regulation for flexible work time that

ensures possibilities, for employees who take care of children or old relatives, to

work in part-time, flexible work time or distant work. For distant workers, the

employer ensures work tools and internet connection.

Important element of the company culture of HP is the open doors regulation thatstrengthens the communication between staff and management for transparency

and fast problem solution. There are a Responsibility Frame System and trainings to

reach all organizational levels with the companys equal opportunity policy.

Notable booklets theyve published to develop employees sensitivity about

colleagues living with disabilities. Publications strengthen the inclusive attitude and

give practical advices for employees in the field of communication, team work and

transportation.

What are the benefits for HP to be an inclusive workplace?

Our consumers and their expectations are different, we have to understand and

reflect these expectations.

In most of the countries, there are changing demographical characters, a demand

of workforce in many fields, and a strong competition for good workforce. The HP

has to be the best work place for all to ensure business success.

The engines of our organization are innovation, creativity, fast problem solution and

adaptation. These can be ensured only by open minds and diversity of skills.

Type of organization: Joint stock company


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Number of employees: 321 persons


- Women

- Labour market entrants

- Elderly employees

Documents regarding equality:

Plan for Supporting Diversity, Rules for flexible work time, Best Work Environment

Rules, Business Ethical Code, Antidiscrimination Regulation, Regulation Against

Harassment, Regulation of open doors, Voice of the Workforce Program,

Accessibility Policy.

THAN KROLY GRAMMAR SCHOOL, SECONDARY SCHOOL AND TECHNICAL

SCHOOL

The HEADMASTER REPORT devotes a separate chapter to the question of equal

opportunities. This is a unique arrangement both from the viewpoint of maintainerand employees.

The school adopted its Equal Opportunity Plan in school year 2004/05. It includes a

regulation about the process for harassment issues, established a status for an

equal opportunity co-ordinator colleague. The elevator was mechanically

refurbished and a renewed lavatory usable for all was opened. There were fixed

two parking spaces for disabled persons. By developing the class schedules they

pay attention to the needs of students living with disability, in addition, application

for admission information contained the school expect the application of persons

living with disability. So the school took serious steps to realize the barrier free

physical environment and education and to represent this commitment.

Working with the new entrant language teacher living with blindness, all of students

and teachers could learn a lot about each other, and this is a good practice to


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strengthen the inclusive attitude, To provide the necessary assistance for the

teacher the school employs a pedagogical assistant. This good practice shows the

power of personal experiences.

There is a progressive regulation for HIRING AND TRAINING NEW COLLEAGUES.

New entrant employees are supported by mentors. So a new employee can get to

know the organization culture, habits and generally the job by a colleagues help.

The mentors job grounds of the conning order, including getting familiar both

with the school and the colleagues, and with the documentation system, with

holding lessons and with self evaluation. This leaded practice is a very useful help

for the young teachers.

Type of the organization: municipal institution



- Persons living with disability- People starting carrier


Equal opportunity plan, Regulation of the process in case of harassment, Scope of

activities for the equal opportunity co-ordinator, Regulation for quality assurance,

40+ Ethical Code, Regulation for hiring and conning of new employees.

BUDAPEST SEWAGE WORKS

The enterprise created its equal opportunity plan even though it is not legal

commitment for them. The plan defines the most important ethical principles and

initiatives: prohibition of discrimination and promoting equal opportunities, and set

up of a status for a equal opportunity co-ordinator to implement objectives.


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The annual education plan defines the organizations strategy about supporting

further vocational education, to develop the skills of employees with disadvantages.

There is an objective to employ Roma employees at least 15% rate. It s more

important for the company to take responsibility in trying to change or affect some

certain social processes. Most of the employees are low educated persons, so it was

obvious to give chance to roma applicants.

Although the regulation does not include this field, results explain themselves. The

organization culture establishes possibility for all to prove her/his efficiency

independently from origin or social position.Type of the organization: Joint Stock Company

No. of employees: 1184


- People above 40 years

- People who have family

- Roma people

BUDAPEST CSEPEL MUNICIPALITY UNITED NURSERY

The institution created its equal plan in 2004. There is an extremely high rate of

women and people over 40 among the employees, so the organization focused their

actions on these groups. In the equal opportunity plan there is a list of

organizations with contact details, where to employees can make complaints in case

they meet with discriminative behavior.

The institution has succeeded to develop friendly and familiar atmosphere, because

of its size and attitude of the leaders. In spite of those frames that affect the

organizations activities, like the Civil Servant Act and the limited budget, they were

also able to develop good practices.


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They pay special attention to employees returning from maternity leave or child

care benefit or has young children. They ensure to closing up loans and flexible

shift regulation. The institution keeps contact with its employees during their

Maternity leave, and ensures babysitting occasionally (in case of office duty or

Trainings), and encourage them to take part in inner trainings. The institution

Involves employees family to participate on excursions for exchange of experiences

or team building.

Rate of women over 40 is overrepresented. This special group has the need of,

prevent screening tests. For the appreciation of elderly employees they arehonored with jubilee premium and service recognition award. Beside the

retirement preparing programs, further employment after retiring is supported by

playing serious role in mentoring of new entrants.

If anybody of the public workers do satisfactory job, and they seem to be able to

integrate to the community, they can gain long term contracts. This is the best way

to motivate these persons.

Type of organization: Institution owned by the District Municipality



- People with family and young children

- Women

- People over 40 years

- Roma persons

Documents regarding equality: Equal opportunity plan, employee collective

agreement, education plan.


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MAGYAR TELEKOM RT.

Deutsche Telekom - the strategic owner of the leading domestic telecommunication

provider - is one of the world leaders promoting diversity at workplaces. So do the

Magyar Telekom.

The basis of equity and equality have been laid down by the Ethical Codex . Equity

is based on the wide welfare allowances, the objective competency-based

approach, initiatives promoting equal opportunities.

The Uniform Competence Standards System had been implemented in 2003, which

lays down objective criterias to fulfill the same scope of activities. As part of this

system, in case of similar scopes of activities, ensures objectivity in such areas like

loans, allowances and carrier. This ensures non-discrimination and same salary and

allowances for the same job.

They have prepared a Unified Recruiting and Hiring Process which guaranties equal

treatment and transparency for all candidates. By recruiting the Toe the Line

trainee program is really important, since it guarantees the employment and innereducation of 15-20 recently graduated young people every year.

The company has initiated several programs to promote equality, for example the

distant work, for those employees who live far from the workplace or take care of

young children. The company has operating its Outplacement-service (Chance

Program) since 2001. Nowadays they can support the reemployment of dismissed

employees countrywide. Dismissed employees can choose from a variety of

services, for example retraining, job-seeking support, legal advice on labour law

matters, trainings.

Type of the organization: Joint stock company

No. of employees: 6473



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Ethical Code, Toe-the-line trainee program,

Report of Maintenance, Handbook of Recruitment and Hiring, Work Field System-

normative measure.