Hr Practices In Europe 3pl4b

HR PRACTICES IN EUROPE

Organisations throughout Europe know how important human capital is to their success. Yet managing people is a permanent challenge. To gain an insight into HR management practices in Europe, various centres have conducted a survey of how European businesses organise their HR department. This has produced a detailed picture of the department and its functioning. This report contains the results of this research. It helps HR professionals to identify issues which require different solutions in different regions. It can also serve as an aid to formulating an individual vision, and as a sounding-board for planned HR actions. One important finding is that there is no such thing as a common European HR model. The differences between the European countries and regions are very clear, in of HR policy, the functioning of the HR department and the areas on which businesses’ projects focus. Since the year 2000 the European Union, like other Western economies, has been resolutely travelling down the knowledge economy path. In the Lisbon Strategy, European leaders set themselves the goal of making Europe ‘the world’s most dynamic and competitive knowledge economy’ by 2010. The shift that this has brought about on the employment market has a substantial impact on companies and their HR management. Concerns about attracting and retaining competent knowledge workers are both current and acute. Europe will need to deploy the full potential of its employees to safeguard the growth and global competitiveness of its companies. The aim of this European survey was to obtain a picture of the organisation of the HR department in European organisations. Developing knowledge in this area is vital for the optimal long-term development of human capital and of European organisations. In an open economy, this is very important. Ultimately, it is the basis for a constantly renewable competitive advantage. The bottom-line results are central here, and they are partly determined by an intensive interchange between the HR core processes (staffing, payroll, compensation and benefits, performance,

development) and leadership, without which no process can run optimally. The extent to which HR contributes to the achievement of the organisation’s objectives depends on the effectiveness and efficiency of the HR processes, but equally on good leadership. Both ingredients are indispensable in the recipe for a high-performance personnel policy. For an HR strategy to tie in with the organisation’s strategy, a ‘vertical fit’ is needed. This represents a critical step for the achievement of the organisation’s goals. HR professionals need to communicate closely with the top management and hence to have sufficient knowledge of both business and market. It helps if they are close to the board of directors of the business. When we look at the reporting level of the European HR manager, it turns out that more than half of them report directly to the CEO. By consolidating different departments, HR can demonstrate that it is executing the HR strategy in concrete . At the same time, the HR department needs to provide responses to questions from local departments or divisions and from the personnel. It needs to be both centrally and locally based. Searching for human resource management(HRM) is no easy undertaking. If European management exist, it is in the term of greater cautiousness, sophistication of method, and pursuance of elitist reward and career systems. European union employment policy aims at promoting a high level of employment , coordinating the employment policies of EU member states, and on developing a coordinated employment strategy. To achieve these goals, the EU publishes a yearly schedule of employment policy guidelines of the council, monitors the employment programmes of the member states. This all is the work of the HR departments that is working throughout the union. The European countries are one the most developed and economically strong countries in the world. Let us now discuss about the various European countries and their HR management policies. The countries are discussed below.

THE COUNTRY STUDIES: IRELAND LEGISLATION Legislation is governed by EU regulations. The Equality Acts 1998 + 2004 effectively ensure employers have to operate in an equality driven environment. THE CASE OF A PRIVATE COMPANY: IL&P (Irish Life & Permanent): As a large public quoted bank it is in our interest to ensure we are fully compliant with all legal requirements. Also we want our customers to see us as a employers that value and appreciate equality in the workplace. As a private company we expect our suppliers to operate in a compliant manner. Eg. In the recruitment area we request our suppliers (recruitment agencies) to have an ‟Equality Policy‟. We will not do business unless this exists. State/regional attitude Through FAS (government body) there is funding available of up to 80 % for specific training. This year IL&P have received funding for our ‟disability awareness training‟ which has been rolled out initially to staff in HR/Facilities/Reception areas. The Equality Authority is a state body that promotes Diversity in the workplace. They offer services e.g. Diversity Audits/funding to encourage organisations to promote Diversity in the Workplace.

The EQUAL Project4 The EQUAL project has provided IL&P with the opportunity to undertake a ‟Diversity Audit‟ of our Recruitment & Selection practices. This has been a huge learning curve for us. The recommendations arising from this Audit will help further improve

the way we operate and raise awareness company wide on Diversity issues.

GOOD PRACTICE 1. The recruitment team ask all applicants do they require any special accomodations prior to attending a selection process. 2. We have organised sign language interpreters for staff when requested. 3. We are in the process of installing braille signage in all 110 bank branches and ensuring they are all wheelchair accessible. 4. Next year we plan to include a training piece on Diversity Awareness in all of our training Induction Programmes. About Irish Life & Permanent: The Irish Life & Permanent group (IL&P) is a leading provider of personal financial services in the Irish market. The group formed from the merger of Irish Life plc and Irish Permanent plc in 1999. The group‟s strategic focus is on Ireland and its successful economy, with our ambition to be the number one provider of personal financial services. The Group has over 4,500 employees and over one million customers in Ireland. This audit and action plan is one of a number being undertaken as part of Equal at Work – A Dublin Employment Pact Initiative and is funded by the European Social Fund. The audits will vary and there is learning to be extrapolated from the different conditions, circumstances, approaches and practices that will be used About the Audit: IL&P have engaged external consultants to conduct a Diversity Audit to: nt policies and procedures from an Equality and Diversity perspective.

-flows and relevant interfaces.

selection and make recommendations on how this can be achieved.

requirements of all candidates who enter the recruitment process taking of diverse backgrounds.

and developments that can be applied in IL&P5.

Outcomes: To date an interim report has been produced and and final version approved during the summer by the senior HR Management team. The report signaled the high priority areas and included recommendations and an action plan. Since then it has been agreed with Senior Management what actions are Short/Medium/Long term. To date we have closed off several actions the more long term actions are been dealt with in 2007 in tandem with the recruitment team with 3 mini project teams managing actions. It is expected that the vast majority of the actions will have been implemented year end.

LEGISLATION The anti-discrimination law has become effective from August 2006. Companies, however, are reluctant to comply. In relation to the size of a company a certain number of handicapped people has to be employed, but companies can buy off from that.

INCENTIVES FOR COMPANIES

There are bonuses paid by the employment service for hiring unemployed persons, particularly older ones. Work placements are without cost to the company. Public services and large companies have equal opportunities officers mostly concerned with women. There are bonuses for the hiring of unemployed. A number of pilot projects are mostly EU funded. In the context of a model programme by the Federal Ministry for Employment there is a prize given to companies. Employers are informed in workshops and receive offers of training programmes for older employees or migrant workers.

CONCEPTS RELATED TO INCLUSIVE HR 1. Diversity Management 38.5 per cent of German companies have DM in place (DAX and US subsidiaries), 90 per cent of which have more than 17.500 staff. 18.5 per cent additional companies are familiar with the principles of Diversity Management. 26.1 per cent of companies with DM are German, 70.0 per cent are US subsidiaries.

Good practice cases: Lufthansa, Deutsche Bank, WDR (Broadcast Channel), Ford

2. Managing Employee Live Cycles German companies are not very familiar with this concept, which comprises: Attraction and selection. Diverse work experience and development. Career planning.

Work-life balance. Re-orientation for the older workforce. Knowledge transfer. New professional roles: mentor, consultant Preparation for retirement.

3. Hiring unemployed people The case of Volkswagen Auto 5000 Deal: Employment for reduced wages Programme: 5000 x 5000 = Employment of 5000 jobless for a salary of 5000 DM (approx. 2.500 €) Result: 3800 trained and employed at Wolfsburg New, decentralised work organisation Process based teamwork Time for training on top of working hours.

THE EQUAL PROJECT FAIR PLUS Inclusion in the FAIR plus project means mainly older workers, one of our projects addresses unemployed persons.The municipality of Nuremberg offers through its labour service company (NoA) temporary placement for disadvantaged people (i.e. longterm unemployed) in different municipal departments to acquire job practice.8 Other projects are concerned with training older workers in companies, so as to give them better chances in their jobs and protect them from being laid off. Good practice: 1. The public transport organisation offers intercultural training for bus drivers and ticket inspectors (many of them are older), ed by our project. 2. The public transport organisation are retraining their bus drivers for a healthy

worklife until retirement. Our project gives consultancy. 3. Siemens are retraining older redundant staff for employment within or without Siemens by using our innovative learning programme. 4. A Telecom call centre offers a programme of improving their employability to its agents. Learning is offered by the EQUAL project.9

POLAND ASSETS OF THE PEOPLE AGED 45+ extensive professional experience time availability ability to work in group According to their immediate superiors, people aged 45+ may count on equal or even better employment possibilities in comparison with the younger ones in managing, specialized and scientific positions. Managers believe it is worthwhile to establish age-combined teams. Such teams prove to be more efficient, mainly due to the sharing experience and know-how by the employees aged 45+.

PORTFOLIO – THE BEST CANDIDATES FOR YOUR EMPLOYEES Since 2001 the Institute for Local Partnership and Cooperation has developed many actions helping people suffering discrimination on the labour market. A lot of these people are unemployed, have low qualifications, obsolete trades. Some of them are disabled. One of a splendid idea of the Institute was to create a website with the information about people who are looking for a job. Each candidate prepares a short presentation of one’s own qualifications, skills and important information that could encourage and convince an employer to choose and engaged just this person. Many people aged 40+ put their portfolio on this website. The important thing is the

portfolio of person aged 40+ is among others, much younger. In this way they are treated equal.

THE THIRD AGE INSTITUTION Olsztyn University of the Third Age is a university unit of Warminsko-Mazurski University, which was brought to life on the basis of University Senate resolution adopted in 2000. The idea of the Olsztyn University of the Third Age is to include elder people into lifelong learning throughout propagating social activity on the basis of the development of interests. The main assumption is, therefore, widely understood intellectual, mental and physical stimulation of seniors, as well as leading educational and cultural activity, not forgetting about propagation of gerontological prophylaxis. During the education many Students aged 50 – 60 come back to work or re-start very active life an local labour market.

SPAIN SUBJECT GROUP: INTEGRATION OF GOOD PRACTICES IN COMPANIES‟ HUMAN RESOURCES (MANAGING DIVERSITY) 1. What activities or methods does the EQUAL project promote to raise employers‟ awareness? From the South Madrid DP the following activities are carried out: - Meetings with company heads and their middle managers to raise awareness and for inclusion of groups that have difficulty in integrating into the labour market in HR hiring policies. - Carrying out of information days, seminars and sessions on the importance of managing HR policies that incorporate diversity in organisations.

- We stress demographic and organisational trends and the need to adapt to changes. - Publishing in the press and participation in the communication media, radio, television, etc. 2. Some local examples of good practice (companies that promote human resource policies that improve the quality of life of their workers, afford them ongoing training, which promote reconciliation policies, etc.). The example of good practice closest to home is an associate who participates in the South Madrid DP. The Los Nogales Group are residential centres that are integrating the beneficiary groups of the South Madrid project and have an Internal Training Plan, which includes introductory training for new staff and the drawing up of career plans. For example, last year’s Training Plan included actions to build on personal skills (Communication, social skills, laughter therapy, etc.)

Also, as a work and home life reconciliation measure, workers have a crèche for workers‟ children under 3 years, and this includes the provision of crèches for their companies‟ workers in each new work centre that opens. Another example of good practice is the realisation of the SKILLS BALANCE by Madrid Council‟s Employment Agency and the Randstad Foundation. This aims to offer a training area where students can put into practice the knowledge, skills and attitudes throughout their occupational training, based on learning while actually working and in work simulations for each job, so that they are able to carry these out correctly, safely and efficiently. The methodology is basically participatory and dynamic, made up of a series of dynamics –adapted to the content of each of the training actions- which will deal

with the elements involved in each job (telemarketing, receptionist, customer service, etc.), giving special emphasis to role playing feared situations. Here, different situations related to the carrying out of daily work duties are represented, where students will have to roleplay what they learn throughout the course and develop skills with which to tackle contexts with different degrees of difficulty. Students will thereby be ready for the work environment with a greater degree of preparation and, above all, with a real practice of specific situations that, because they can be solved with the help of the trainers, will give them very useful tools for their working futures. The group work is also digitally recorded in order that the role-plays can be worked over later, giving particular emphasis to verbal and non-verbal communication.

A CD will also be made of all the material studied in the session including a selection of “best moments”, which is provided to participants as part of the Workshop material.

At the end of every session, an ASSESSMENT dynamic will be carried out, which will consist of a questionnaire in which participants will assess the Workshop and the knowledge and practical skills acquired. The workshop lasts 12 hours.

HUNGARY THE “INCLUSIVE WORK PLACE AWARD”

The “INCLUSIVE WORK PLACE AWARD” has been firstly announced by the Equal Opportunity Office of the Municipality of Budapest in 2005, ed by the

European Social Found and the Hungarian Government in frame of the EQUAL community initiative with the of the European Social Found and the Hungarian Government. The aim of the award is to express appreciation of the City of Budapest for employers who make an active role and set example in strengthening and developing equal opportunities at the workplaces. There is an Equal Opportunity Act to protect disadvantaged groups, discrimination is penalized officially by a special authority, however, good practices are rare on the labour market. These creative and sensible employers deserve attention and appreciation of the experts and the public as well. of the Commitment deciding on the award as follows: the Municipality of Budapest, the Budapest Chamber of Commerce and Industry, the National Organization of Non-profit Human Services, municipal, employer and employee Sides of the Budapest Labour Council, are further the representative of the granter, the representative of the EQUAL program of the Ministry of Social Affairs and Labour and Ildikó Koczó specialist and journalist. The award will be announced in every year again.

The award winners in 2005: Uzsoki Street Hospital of Budapest, budget and non-profit organisations category. Hewlett Packard Hungary Kft., for-profit enterprises category14 UZSOKI STREET HOSPITAL OF BUDAPEST “If there is humanity, there is love of profession as well.”

Hippocrates The institution developed its equal opportunity plan in 2004, with that unique initiative in in this field, that they include homeless people into the hospitals equal

opportunity policy by solving their housing problems, providing rooms for the stakeholders in their nurse hostel. The hospital does a lot for equality, in spite of institution‟s limited budget.

The Hospital make outstanding efforts on inclusion of people living with disability. One of the main priorities to let employees to obtain all the employer‟s informations free of barriers (for e.: job ads, job descriptions, invitations available in braille). The buildings of the institution are “designed for all”, and free of physical barriers, on both sides of the office desk, too. Starting of the “Fényközelben” program was an answer to the fact of the growing populace of people living with seeing impairment. It‟s a basic problem in Hungary for disabled people to reach certain public services like health provision and preventive services. The hospital set up this project to solve this challenge, and provides monthly healthdays with mass sport events. The services mostly visited by the employees of the hospital living with disability, the employees FŐKEFE Industrial Kft. (sheltered employment company of the City of Budapest), and of the Budapest Region Organisation of People with Seeing Impairment. With this barrier free environment and flow of information it is possible for the hospital to employ more and more qualified people living with disability. By the latest statistics, there are more than 3% of the staff belongs to this disadvantaged group, They pay attention to the participation of disadvantaged people in LIFELONG LEARNING program. All the information about the education is available for everybody. People over 40 are encouraged for learning, there are personally planned courses for them to develop their language skills and knowledge of information technology.

The employees are ed by certain services. These are mostly preventive health services or debt handling advice and crisis intervention service. There is a tradition of employees‟ health day, too. It is possible for the women coming back from maternity or child care benefit to work in part time. The organization has successfully integrated Roma employees into different jobs. Type of organization: maintenance by municipality No. of employees: 1410 persons Primary target groups: - People living with disability, - People who belong to minorities15 - Women - Parents - people over 40 - Homeless.

HEWLETT PACKARD HUNGARY KFT. We believe that the secret of our success in business is in the philosophy of our human policy, where basic keywords are diversity and equality” – citation from the company’s tender documentations.

Diversity policy is one of the basic values of the organization; they have developed a strategy ing diversity and a system of liability with contribution of their parent company. There is a well developed system of in-service training, flexible working time and plaint Furthermore, ensuring equality with regulation against discrimination, this attitude is required from their business partners as well. Every year the company develops the Plan for Developing Diversity, and there is an Equal Opportunity Coordinator responsible for implementation of the Plan, whose

job is monitorized by the Diversity Supervising Team set up of volunteer employees. The plan not only describes the strategy of the organization, but it defines particular steps, aims and standards, so it results in controllable process. They make efforts on work-life balancing, to develop the employees‟ efficiency and motivation. The company worked out a regulation for flexible work time that ensures possibilities, for employees who take care of children or old relatives, to work in part-time, flexible work time or distant work. For distant workers, the employer ensures work tools and internet connection. Important element of the company culture of HP is the “open doors” regulation that strengthens the communication between staff and management for transparency and fast problem solution. There are a Responsibility Frame System and trainings to reach all organizational levels with the company’s equal opportunity policy. Notable booklets they’ve published to develop employees‟ sensitivity about colleagues living with disabilities. Publications strengthen the inclusive attitude and give practical advices for employees in the field of communication, team work and transportation.

What are the benefits for HP to be an inclusive workplace? “Our consumers and their expectations are different, we have to understand and reflect these expectations. In most of the countries, there are changing demographical characters, a demand of workforce in many fields, and a strong competition for good workforce. The HP has to be the best work place for all to ensure business success. The engines of our organization are innovation, creativity, fast problem solution and adaptation. These can be ensured only by open minds and diversity of skills.” Type of organization: t stock company

Number of employees: 321 persons Primary target groups: - Women - Labour market entrants - Elderly employees Documents regarding equality: Plan for ing Diversity, Rules for flexible work time, Best Work Environment Rules, Business Ethical Code, Antidiscrimination Regulation, Regulation Against Harassment, Regulation of open doors, Voice of the Workforce Program, Accessibility Policy.

THAN KÁROLY GRAMMAR SCHOOL, SECONDARY SCHOOL AND TECHNICAL SCHOOL The HEASTER REPORT devotes a separate chapter to the question of equal opportunities. This is a unique arrangement both from the viewpoint of maintainer and employees. The school adopted its Equal Opportunity Plan in school year 2004/05. It includes a regulation about the process for harassment issues, established a status for an equal opportunity co-ordinator colleague. The elevator was mechanically refurbished and a renewed lavatory usable for all was opened. There were fixed two parking spaces for disabled persons. By developing the class schedules they pay attention to the needs of students living with disability, in addition, application for ission information contained the school expect the application of persons living with disability. So the school took serious steps to realize the barrier free physical environment and education and to represent this commitment. Working with the new entrant language teacher living with blindness, all of students and teachers could learn a lot about each other, and this is a good practice to

strengthen the inclusive attitude, To provide the necessary assistance for the teacher the school employs a pedagogical assistant. This good practice shows the power of personal experiences. There is a progressive regulation for HIRING AND TRAINING NEW COLLEAGUES. New entrant employees are ed by mentors. So a new employee can get to know the organization culture, habits and generally the job by a colleague’s help. The mentor’s job grounds of the “conning order”, including getting familiar both with the school and the colleagues, and with the documentation system, with holding lessons and with self evaluation. This leaded practice is a very useful help for the young teachers.

Type of the organization: municipal institution No. of employees: 117 persons Primary target groups: - Persons living with disability - People starting carrier Documents regarding equality: Equal opportunity plan, Regulation of the process in case of harassment, Scope of activities for the equal opportunity co-ordinator, Regulation for quality assurance, 40+ Ethical Code, Regulation for hiring and conning of new employees.

BUDAPEST SEWAGE WORKS The enterprise created its equal opportunity plan even though it is not legal commitment for them. The plan defines the most important ethical principles and initiatives: prohibition of discrimination and promoting equal opportunities, and set up of a status for a equal opportunity co-ordinator to implement objectives.

The annual education plan defines the organization’s strategy about ing further vocational education, to develop the skills of employees with disadvantages. There is an objective to employ Roma employees at least 15% rate. It‟s more important for the company to take responsibility in trying to change or affect some certain social processes. Most of the employees are low educated persons, so it was obvious to give chance to roma applicants. Although the regulation does not include this field, results explain themselves. The organization culture establishes possibility for all to prove her/his efficiency independently from origin or social position. Type of the organization: t Stock Company No. of employees: 1184 Primary target groups: - People above 40 years - People who have family - Roma people

BUDAPEST CSEPEL MUNICIPALITY UNITED NURSERY The institution created its equal plan in 2004. There is an extremely high rate of women and people over 40 among the employees, so the organization focused their actions on these groups. In the equal opportunity plan there is a list of organizations with details, where to employees can make complaints in case they meet with discriminative behavior. The institution has succeeded to develop friendly and familiar atmosphere, because of its size and attitude of the leaders. In spite of those frames that affect the organization’s activities, like the Civil Servant Act and the limited budget, they were also able to develop good practices.

They pay special attention to employees returning from maternity leave or child care benefit or has young children. They ensure to clo loans and flexible shift regulation. The institution keeps with its employees during their Maternity leave, and ensures babysitting occasionally (in case of office duty or Trainings), and encourage them to take part in inner trainings. The institution Involves employees‟ family to participate on excursions for exchange of experiences or team building. Rate of women over 40 is overrepresented. This special group has the need of, prevent screening tests. For the appreciation of elderly employees they are honored with jubilee and service recognition award. Beside the retirement preparing programs, further employment after retiring is ed by playing serious role in mentoring of new entrants. If anybody of the public workers do satisfactory job, and they seem to be able to integrate to the community, they can gain long term contracts. This is the best way to motivate these persons.

Type of organization: Institution owned by the District Municipality No. of employees: 117 persons Primary target groups: - People with family and young children - Women - People over 40 years - Roma persons Documents regarding equality: Equal opportunity plan, employee collective agreement, education plan.

MAGYAR TELEKOM RT. Deutsche Telekom - the strategic owner of the leading domestic telecommunication provider - is one of the world leaders promoting diversity at workplaces. So do the Magyar Telekom. The basis of equity and equality have been laid down by the Ethical Codex . Equity is based on the wide welfare allowances, the objective competency-based approach, initiatives promoting equal opportunities. The Uniform Competence Standards System had been implemented in 2003, which lays down objective criteria’s to fulfill the same scope of activities. As part of this system, in case of similar scopes of activities, ensures objectivity in such areas like loans, allowances and carrier. This ensures non-discrimination and same salary and allowances for the same job. They have prepared a Unified Recruiting and Hiring Process which guaranties equal treatment and transparency for all candidates. By recruiting the “Toe the Line” trainee program is really important, since it guarantees the employment and inner education of 15-20 recently graduated young people every year. The company has initiated several programs to promote equality, for example the distant work, for those employees who live far from the workplace or take care of young children. The company has operating its Outplacement-service (Chance Program) since 2001. Nowadays they can the reemployment of dismissed employees countrywide. Dismissed employees can choose from a variety of services, for example retraining, job-seeking , legal advice on labour law matters, trainings.

Type of the organization: t stock company No. of employees: 6473 Primary target groups:

Documents regarding equality: Ethical Code, “Toe-the-line” trainee program, Report of Maintenance, Handbook of Recruitment and Hiring, Work Field Systemnormative measure.