Upload
tonyflanagan
View
518
Download
2
Embed Size (px)
DESCRIPTION
UK companies are more at risk of missing talent opportunities than organisations in the US and Western Europe due to not managing succession planning on a global basis. Less than half (47%) of UK-based international companies manage succession planning globally, compared to 69% of organisations based in Western Europe or North America. This is according to exclusive research by Personnel Today and international HR software company Cezanne, which also found that 27% of UK organisations not conducting succession planning across their global offices would like to do so in the future. For more information on the findings, you must read the full report.
Citation preview
Cezanne Software Hot Topics Research
Prepared by Gurur Sarbanoglu
Reed Business Insight
2
Contents
Slide
Background & Objectives 3
Methodology 4
Respondent Profile 6
Main Findings 13
Summary & Conclusions 42
3
Background & Objectives
Headquartered in the UK, Cezanne Software has over 20 years‟ experience of
providing global HR and talent management software solutions to some of the
world‟s leading organisations. Today Cezanne Software support over 700
organisations including companies as diverse as Vodafone, Swarovski, TNT, TSYS,
Bakkavor, TUI Travel, & Kempinski.
Research was required to understand how companies with offices overseas
manage their day-to-day HR activities, specifically to:
• Explore the HR processes they would like to manage across international
offices;
• Establish the professional skills HR personnel should possess in order to be
effective in an international company;
• Establish the main challenges HR personnel face when dealing across borders;
4
Sample & Methodology
Research was conducted as an online self-completion quantitative survey amongst
HR managers with international responsibility.
The survey was sent to a panel of HR professionals and supplemented with users
of Personneltoday.com.
Fieldwork was conducted between 2nd August 2010 and 17th September 2010.
In total 444 responses were received, of which 200 were eligible (i.e. working in a
company with offices in different countries or with plans to expand internationally in
the near future).
5
For more information on Cezanne Software……..
Case studies - www.cezannesw.com/customers/case-studies
Latest news and press releases - www.cezannesw.com/news
Cezanne on-line newsletter - www.cezannesw.com/newsletter
Free webinars - www.cezannesw.com/webinar
Product demonstrations - please call +44 (0)207 202 9300
Respondent Profile
6
7
Does your company have offices and operations in more than one country?
45% of respondents either have offices in more than
one country or are planning to expand internationally
Base: all respondents (444)
Excluded from
subsequent analysis.
Three quarters (75%) of respondents have
headquarters based in Europe
8
Where are your company headquarters based?
Base: those with int‟l offices (200)
75% are based in Europe.
16% of respondents work in manufacturing
9
Which of the following best describes the primary business of your company?
“Charity”
“Consultancy”
“Housing”
“Legal” etc.
Base: those with int‟l offices (193)
Half have 10,000+ employees within their
organisation
10
How many people are employed within your organisation?
Mean average is just
under 7,500 employees.
Base: those with int‟l offices (200)
Two-thirds (67%) of respondents are HR managers
11
Which of the following best describes your job function?
Base: those with int‟l offices (199)
More than three quarters (77%) have HR
representation on the board
12
In your company, does HR have representation on the board?
Base: those with int‟l offices (199)
Main Findings
13
14
How long has your organisation been operating internationally?
58% of respondents‟ organisations have been
operating internationally for more than 20 years
Mean average is
approximately 19 years.
Base: those with int‟l offices (200)
15
How did the organisation that you work for become an international company?
More than half (52%) have become an international company as part
of organic growth, while a third as a result of a merger or acquisition
Base: those with int‟l offices (192)
Method of becoming an international company by
years of operating internationally
TotalLess than 5
years
Between 5 – 20
years
More than 20
years
As a result of
organic growth52% 71% 53% 49%
As a result of a
merger /
acquisition /
joint venture
33% 24% 35% 32%
Don‟t know 6% - 8% 5%
Other 9% 5% 4% 13%
16
How did the organisation that you work for become an international company?
Base: those with int‟l offices (192)
Method of becoming an international company by
employee size
TotalLess than 1,000
employees
Between 1,001
and 10,000
employees
More than
10,000
employees
As a result of
organic growth52% 79% 40% 49%
As a result of a
merger /
acquisition /
joint venture
33% 16% 42% 36%
Don‟t know 6% - 8% 7%
Other 9% 5% 10% 8%
17
How did the organisation that you work for become an international company?
Base: those with int‟l offices (192)
18
1- Headcount 78%
2- Organisational structure 69%
3- Performance 67%
Already manage
1- Skill gaps 30%
2- Succession planning 23%
3- Competencies 20%
Would like to manage
1- Absence 37%
2- Competencies 28%
3- Employee turnover 27%
Do not manage
What HR data do you look to manage across countries?
Base: those with int‟l offices
HR data managed across countries
See the following slide for the full data tables
HR Data managed across countries
19
What HR data do you look to manage across countries?
Base: those with int‟l offices
HR Data managed in companies w/ 10,000+
employees
20
What HR data do you look to manage across countries?
Base: those with int‟l offices
HR Data managed in companies based in the UK
21
What HR data do you look to manage across countries?
Base: those with int‟l offices
HR Data managed in companies based in Western
Europe or North America
22
What HR data do you look to manage across countries?
Base: those with int‟l offices
Key obstacles HR staff encounter when operating
globally
23
What are the key obstacles that HR staff encounter when operating internationally?
“Cultural alignment –
what‟s good in one
country is not „good‟ in
another.”
“Inconsistencies within
the HR systems.”
“Finding a system that
allows different rules
based on geography.”
“Remote from the UK
headquarters creates a
local „them v us‟ approach
sometimes.”
“Language, local
employment laws, time
zone differences, big
travel bills.”
“Ensuring each international
office works towards shared
goals whilst ensuring local
needs are met.”
24
In your opinion, how important are the following competencies and skills sets recommended by CIPD for HR
staff to have in order to be effective ?
Competencies and skills sets with the highest net
importance* for the respondents *Very or fairly important
Net importance
Showing an appreciation of the ways in which culture influences core
organisation behaviours.
98%
Having respect for the countries and communities being dealt with. 98%
Capacity for and tolerance of the ambiguities and uncertainties inherent
in new business situations.
97%
Becoming a broker of appropriate knowledge, learning and ideas across
a loose connection of people.
95%
Being a process facilitator, with diplomatic sensitivity to complex
organisational politics and power struggles.
95%
Being a provider of information and advice within the business network. 95%
Mobilising the energy and engagement behind ideas. 95%
Being a strategic thinker 94%
Base: those with int‟l offices
See the following slide for the full data tables
25
In your opinion, how important are the following competencies and skills sets recommended by CIPD for HR
staff to have in order to be effective?
Importance of competencies and skills sets
Base: those with int‟l offices
26
In your opinion, how important are the following benefits of / drivers for a global HR system?
63% said gaining efficiencies and 60% said minimising data security
risks are very important benefits of a global HR system
Net importance
95%
92%
91%
95%
92%
89%
87%
85%
92%
89%
87%
89%
83%
Base: those with int‟l offices
27
In your experience, which one of the following is the main barrier to implementing a global system?
Legislative complexity, culture of the organisation and a fragmented HR
process are seen as the main barriers to implementing a global system.
Base: those with int‟l offices (199)
28
More than half have a formal documented succession
planning process.
Yes, 52%No, 40%
Don't know, 8%
How long has your succession planning process
been used within your company?
Base: those with int‟l offices (200)
Base: those with succession planning process (103)
Does your company have a formal documented succession planning process?
Formal documented succession planning by region
29
Total UK Rest of Europe North America
Yes 52% 45% 56% 57%
No 41% 47% 33% 35%
Don‟t know 8% 8% 11% 8%
Does your company have a formal documented succession planning process?
Base: those with int‟l offices (200)
30
What levels of employees are managed for succession planning?
In 43% of respondents‟ organisations, senior management
level of employees are managed for succession planning
Base: those with succession planning (103)
31
What percentage of those who are managed for succession planning in your company spend time in different
international offices?
On average a quarter of those with succession
planning spend time in different international offices.
Mean average= 25%
Base: those with succession planning (103)
32
84%of respondents‟ companies‟ HR activities are aligned
with business objectives
Are your company‟s HR activities aligned with corporate objectives?
No – 10%
Don‟t know – 6%
Base: those with int‟l offices (198)
How a global mindset across the organisation is
managed
33
How do you manage to foster a global mindset across the organisation?
“Board level sponsorship. Top
down communication and
collaboration through working
groups.”
“It is a constant battle to
convince corporate that the
global mindset has to be
flexible enough to cater for
local mindsets.”
“With difficulty. We attempt to do
this through open communication
channels and ensuring all the
different areas understand what is
happening and why.”
“Regular conference calls, a
single point of contact on the
senior management team with
responsibility for HR globally.”
“Standardisation of processes
and policies to fit global ones,
harmonisation as far as
possible, if not applying a „one
company‟ HR philosophy.”
Initiatives to get a local buy-in
34
What initiatives have you put in place to get a local buy-in?
“CEO and senior board visits
to country firms to engage
local management teams.”
“Global policies on
compensation and benefits,
global annual pay review and
bonus process with better
communication.”
“Work very closely with the
local office, build an
environment of trust and
reliability. Open
communication channels.”
“Local involvement and centres
of practice / communication of
local deployment to the wider
audience.”
“Data management strategy –
single repository / home for data
to ensure accurate MI reporting
that in turn drives more informed
decision making.”
Developing relationships with international HR
colleagues
35
How do you develop relationships with international HR colleagues?
“I look after all HR activities in UK
and abroad.”
“Occasionally by exchanging staff
or knowledge where necessary.
Not as a rule.”
“Creation of regional HR teams to
minimise distance. Regular
communication, sharing and
forums.”
“Bi-annual face-to-face meetings
in Western Europe region and
annual meeting by global division.
Regular „same-time‟
teleconferences.”
“Regular phone calls. Visits are very important to
gain face-to-face contact. Monthly HR conference
calls enable all HR colleagues to interact and
learn from one another. Meetings at one
another‟s facilities would help in developing
relationships, however this has not been set up.”
36
93%feel it is very or fairly important to be able to provide
HR data to the management team
Not very important – 6%
Not at all important – 1%
In your opinion, how important is it to be able to provide global HR data to the management team?
Base: those with int‟l offices (200)
37
Does your company use a common HR system to manage its global workforce?
More than half (57%) have a common HR system.
Base: those with int‟l offices (200)
38
1- Core HR 94%
2- Performance 70%
3- Compensation management 64%
Currently have
1- Succession & career 30%
2- HR analytics dashboard 27%
3- Employee self-service 23%
Planning to add
1- Multi-language capabilities 34%
2- Local legislation support 33%
3- Integration w/ Outlook/Lotus notes 31%
No plans to add
Which of the following key functionalities does your main HR system software have?
Base: those with int‟l offices
Key functionalities of HR system software they use
See the following slide for the full data tables
39
Which of the following key functionalities does your main HR system software have?
Key functionalities of HR system software they use
Base: those with int‟l offices
40
Do you expect to switch to a common HR system in the future?
More than a third (36%) of those without a common HR system
expect to switch to a common HR system in the future
Base: those w/o common HR process (85)
41
In your opinion, which one of the following functionalities would you like your HR system to have?
36% would like their HR system to have the ability
to provide key metrics / reports.
Base: those with int‟l offices (192)
Summary & Conclusions
42
Key Findings (1)
43
HR Data managed across countries:
The HR data managed most commonly across countries are Headcount (78%),
Organisational Structure (69%), and Performance (67%).
Respondents have also expressed their desire to manage Skill Gaps (30%), Succession
Planning (23%), and Competencies (20%).
Absence (37%), Competencies (28%), and Employee Turnover (27%) are three of the
least managed sets of data across different countries.
Importance of competencies and skills sets recommended by CIPD for HR
staff:
Respondents feel it is either very or fairly important that HR staff have the respect for the
countries and communities they deal with (98%) and show an appreciation of the ways in
which culture influences core organisation behaviours (also 98%).
Also important are the capacity for and tolerance of the ambiguities and uncertainties
inherent in new business situations (97%).
Key Findings (2)
44
Main barriers in implementing a global HR system:
Legislative complexity (27%) and the culture of the organisation (20%) are two main
barriers in implementing a global HR system.
Respondents also point out to their fragmented HR process (19%).
45
For more information on Cezanne Software……..
Case studies - www.cezannesw.com/customers/case-studies
Latest news and press releases - www.cezannesw.com/news
Cezanne on-line newsletter - www.cezannesw.com/newsletter
Free webinars - www.cezannesw.com/webinar
Product demonstrations - please call +44 (0)207 202 9300
Cezanne Software Hot Topics Research
Prepared by Gurur Sarbanoglu
Reed Business Insight