December 31, 2003—A survey of top executives, senior managers and human resource professionals hints at a shift in the “jobless recovery,” with executives reporting that their attention will be more focused on employee retention and recruitment in 2004 than on pressures to reduce staff or increase productivity with fewer employees. The survey, conducted by the Society for Human Resource Management (SHRM), also revealed that as the recovery continues in 2004, those HR professionals who think most strategically will find top executives eager to listen to their counsel on human capital issues.
Results indicate that across the board, 79 percent of top executives and 77 percent of senior managers agree that wisely managing human capital is “very” important to the success of an organization as a whole. Given that, top executives and senior managers expect to spend at least the same or more time focused on human capital management than they did in 2003.
A sign that employers will be spending more time on employee satisfaction is the perception among senior managers that more of their time will be spent responding to demands for flexible work schedules, rather than on reducing staff or on communications to maintain employee morale.
“These survey results indicate a clear calling from executives and senior managers for HR professionals who understand the crucial role their contributions can play in helping an organization achieve its business goals,” said SHRM President and CEO Susan R. Meisinger.
Meisinger pointed to the survey’s findings that 63 percent of top executives and 66 percent of senior managers say it is “very” important to align employees with business goals rather than just give them a job to do—with 62 percent of top executives and 73 percent of senior managers “completely” or “somewhat” acknowledging the contribution of HR in achieving this alignment.
Moreover, the majority of top executives either “completely” or “somewhat” agree that HR professionals play a role in creating employee loyalty which impacts customer loyalty (66 percent). They also agree that HR can help companies keep costs down by effectively managing the organization’s investment in human capital (64 percent).
The survey showed slight but significant differences in issues identified as trends in 2003 and those predicted to be important in 2004. Key trends from 2003 that are expected to have slightly less impact in 2004 are the need to build employee morale, pressure to increase productivity using fewer employees and the need to lay off employees—further evidence that the “jobless” aspect of the current economic recovery may be abating.
C-suite (CEO, COO, CFO, etc.) executives rank the rise in healthcare costs as the top trend to impact human capital strategy (79 percent rank it first) in 2004, followed by employee retention (61 percent). In 2003, executives ranked healthcare costs as the top trend impacting human capital strategy (78 percent) and increased productivity with fewer employees second (69 percent).
The survey was conducted December 10—December 18, 2003 on behalf of the Society for Human Resource Management (SHRM). The online interactive survey polled 362 executives, divided among C-suite executives, senior managers and human resource professionals who were drawn from a pre-identified online sample of individuals supplied by Insight Express.
The survey sought to predict shifts in human resources trends from 2003 to 2004 and compare attitudes toward human capital management among top executives, senior managers and HR professionals.
For more information, contact SHRM.
