HR Challenges for 21 century. Kiril Minoski, USAID BEA Project

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1 HR Challenges for century Kiril Minoski, USAID BEA Project

2 Human Resource Management versus, HR Development HR Management function Recruitment /Selection Compensation and benefits Training for the staff Adjustment with the legislation Occupational safety and health Performance Management

3 HR as a strategic partner of the organizations To improve the business results with the people support To know how to empower employees and managers To develop leaders To encourage the workplace diversity To retain key employees To make pay communication more transparent

4 HR as a strategic partner of the organizations o o o o o o o To acquire a basic business understanding To learn how does compensation affect sales To build a dialogue in internal communication To use internal mentors To make good hires To expand your network and information resources To develop credibility: measure the effectiveness of the HR function

5 Measure the effectiveness of the HR function Compliance (respect a law) Client satisfaction (managers as clients) Culture management (employee attitude surveys) Cost control (employees as a large expence) Contribution (HRM practise has a positive effect on employee performance)

6 Challenges of the century According to the latest survey performed by International Labor Organization (ILO), knowledge and skills provided in the educational process will be outdated in a period of years, as a result of the technological progress In century the companies will compete between themselves not on a bases of the technology or capital, but on the bases of the human capital

7 The global financial and economic crisis challenges HR- Management After the end of Socialism as a serious competitor, capitalism shows its ugly face! Economic scandals, extreme individualism, egoism, pathological egomanic orientations! A kind of self-service: Huge salaries, un-explicable high bonuses and at the same time: Reduction of employees income, longer working hours, high numbers of dismissals, rising unemployment And as the final consequence (of human greedy) we got this global financial and economic crisis!

8 HR-Management has not met its challenges up to now! HR-Managers came under strong pressures to: significantly reduce the labor costs (by reducing compensations) reduce the headcount reduce the costs for training and development reduce the level of services (f. e. be simplifying processes) outsourcing of even strategically important services Most HR-Managers were not strong enough to resist!

9 What we need is a Professional HR- Management in a Social Market Economy At a first glance its main challenges could be: Re-discover and implement clear and strong ethical-moral values of a corporate culture! (social obligation of property, social responsibility and common sense, fairness and honesty, confidence and trust, mutual loyalty and solidarity, consequence in the punishment of abuse) Seek, hire and retain the fitting people! (HR-Marketing) Develop and keep leading positions in the keycompetencies!(knowledge, skills, attitudes) Leadership : - Leadership competencies will be the most important for success! - A main challenge for HR-Management: Placement of the real leaders by Analysis of Potential, Management Development, and Management Selection

10 Participants:,8 More than,00 online survey participants across Europe Number of online survey participants < >00 No data collected Извор: BCG/EAPM

11 Top three business issues for HR are related to the crisis What are the key business issues facing HR management at your company? 9% 8% Percentage of respondents % 9% 9% % % Growth through acquisition Restructuring/ Reorganization Cost pressure Organic growth Integration after merge Regulations Divesting Source: BCG/EAPM

12 Managing talent ranked as most important topic in nearly all focus countries HR topics Focus countries Austria Bulgaria France Germany Ireland Italy Netherland Norway Russia Spain UK Managing talent Leadership Employee engagement Employer branding Learning organization Str. work force planning Demographic aging HR as strategic partner Perform. management Managing change Source : BCG/EAPM Рангирање:

13 S Strategic work force planning Preparing for growth G Creating sustainable HR practices Strategic work force planning M Measuring people performance Focus today R Managing through the recession Source: BCG/EAPM

14 Three possible operation modes to navigate through the crisis Save costs: "Swim" Survive: "Dive" Leverage crisis: "Surf" Headcount Control recruiting Reduce temporary employment Lay off selectively Reduce work force Voluntary departures Lay-offs Plan work force strategically Hire key talent Delayer organization Reorganize Time Working time accounts Shorter working hours Encourage LOAs Reduce working hours Implement flexi security schemes Compensation Reduce collective parts of bonuses Adjust entry level compensation Reduce base salary Adjust payouts to market compensation Source: BCG/EAPM

15 HR challenges in Macedonia...

16 Thank you! Kiril Minoski USAID Business Environment Activity Macedonian HR Association Nikola Vapcarov / II floor, 000 Skopje Tel/Fax: 0 0 Web page:

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