Retention of valuable employees, the main HR challenge for 2017

According to the survey „Trends and challenges in HR for 2017”, carried out by Valoria in collaboration with Business Mark, 60% of companies in Romania say the most important strategic challenge in HR is the retention of high-potential and high-performance employees. In 2016, the main HR challenge for companies was to maintain a high level of employee engagement.

„Companies consist of people who should be provided with a collaborative environment for them to perform and for the company to be profitable. The conditions in which the people work, the company’s values and the technology influence the effective employee engagement, as well as the activity in HR. At the second edition, the survey Trends and challenges in HR is the only one in Romania that gives the comparative perspective of CEOs and HR directors. The strategic, operational and resource challenges and actions to be implemented in HR are revealed by this survey”, says Constantin Măgdălina, Emerging Trends and Technologies Expert, co-author of the research.

Strategic challenges of the HR function

The main strategic challenges facing the Romanian companies in the HR function are more serious in 2017 than in 2016. Thus, the retention of high-potential employees is in the first place and the importance score rises from 4.39 to 4.69. Maintaining a high level of employee engagement is now second, after last year’s top position. Providing leadership skills to help the organization respond to the rapid pace of change is in the third place, with a score of 4.35. Unfortunately, companies have a low level of readiness, because the number one challenge is only in the sixth place when it comes to the ability of companies to address this challenge effectively.

Other strategic challenges on the HR agenda include the following: lack of competent and motivated graduates (67% of respondents), lack of specialists and craftsmen (61%), need to adapt to inconsistent legislative changes (54%), lack of employees’ direct involvement in personal development (36%) and shorter working periods for an employer (34%).

The strategic HR challenge that Romanian companies say are best prepared for is to create an organizational culture that will bring a competitive edge to the company. Unfortunately, this challenge is only fourth by importance score. Beyond the response ranking, all readiness scores are at a considerable difference (more than 1.1 points) from the top importance scores. The consequences of this situation have a direct impact on the performance of the companies and how they manage the economic and social risks.

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