Retention of valuable employees, the main HR challenge in 2017

According to the survey “Trends and challenges in HR for 2017”, carried out by Valoria in collaboration with Business Mark, 60 percent of companies in Romania say that the most important strategic challenge in HR is the retention of high-potential and high-performance employees.

“The survey Trends and challenges in HR is a mirror of the HR profession and a testimony from the top management about what the HR professionals represent for the company. The findings in the survey report show the reality of the strategic role the HR function plays in the Romanian companies. This survey asks tough questions on HR development and provides the HR professionals’ answers about who they are, what they do, how they cooperate with the top management of the company. Used to interview the candidates, the HR professional takes now an interview with the top management“, says Elena Badea, Managing Partner Valoria, co-author of the research.

Strategic challenges for HR

The survey has shown that the main strategic challenges Romanian companies face in HR are more serious in 2017 than they were in 2016. The retention of high-potential employees is in the first place, with its importance score rising from 4.39 to 4.69.

Maintaining a high level of employee engagement, the first ranking issue of last year, is now in second place. Third place is taken by providing leadership skills to help the organization respond to the rapid pace of change.

Other strategic challenges in HR include: lack of competent and motivated graduates; lack of specialists and craftsmen; need to adapt to inconsistent legislative changes; lack of employees’ direct involvement in personal development; and shorter working periods for an employer.

Unfortunately, companies appear to have a low level of readiness for the main challenges they face – the number one ranking challenge is only in sixth place in terms of companies being able to address it effectively. The strategic challenge Romanian companies are best prepared for is creating an organizational culture that will bring a competitive edge to the company – but this challenge is only fourth by importance score.

Challenges to HR practices

In terms of challenges to HR practices, the first place in 2017 is taken by finding and recruiting employees with specialized skills, while in 2016 it was the development of the next generation of leaders of the organization, which is now down to second place.

For essential resources that can be used by companies to successfully meet challenges of HR practices, companies have ranked stronger skills of HR staff in first place, followed by collaboration between HR and management for strategy alignment, and the solid support extended by top management to the HR function.

As for the key actions companies should take in the next 3 years to give a more strategic orientation to the HR function, the first place is occupied this year by the involvement of the company’s top management in the development of the HR strategy, which was in third place last year.

In recent years, HR has shifted from a transactional to a more transformational role, with a truly strategic contribution. An important contribution towards this has been the technology which has lifted the burden of routine processes from the shoulders of HR teams.

The most important trends that can significantly change HR in the future as viewed by Romanian companies are: mobile and social media applications; artificial intelligence; political and economic developments; demographic change.

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