Human Resource Management 2019

Human Resource MANAGEMENT

2019

Linking The HR Function With The Strategic Objectives Of The Organization

INTERVIEW

MAX BLUMBERG, Ph.D., BLUMBERG PARTNERSHIP FOUNDER, VISITING PROFESSOR AT LEEDS UNIVERSITY BUSINESS SCHOOL

People Analytics Vs. The Human Touch Max Blumberg bridges the worlds of business performance and analytics to improve strategy execution, design powerful people processes and increase sales force effectiveness

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pon completing his Ph.D., Max Blumberg launched the Blumberg Partnership, a top 50 analytics consultancy which delivers analytics and machine-learning solutions to clients that include Nestlé, Hilton Hotels & Resorts, Lloyds Register, the BBC, Fujitsu, Barclays Corporate and Friends Provident.

With truly unique expertise and a practical grounding in strategy, finance, marketing, economics, computer science, mathematics and HR, he developed a full-systems approach that can be applied to diagnose and solve complex challenges arising from operating models, organisational structures, and job design. He was a speaker at the recent HR Experience conference in Belgrade, organised by Infostud, where he spoke on talent acquisition, people analytics and the challenges faced by the HR industry.

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• The overall impression is that the talent pool today plays an increasing role in a company’s success, and that the talent base is scarce.

Based on your experience, would you say that this is so, and do companies have an adequate response to such challenges?

- That’s an interesting question. Depending on the industry, wherever there is a scarcity of talent, someone will try to automate this work. Therefore, I think talent has an important role for jobs that cannot (yet) be automated.

For example, the work performed by STEM workers is not easy to automate, and hence it is widely recognised that STEM workers are an increasingly scarce resource (until technology discovers a way to automate their tasks).

In contrast, however, many routine tasks like clerical work, administrative work – and even some aspects of medical practise – are to

some extent already being automated. So, for companies, certain kinds of talent – particularly automatable talent – are not considered particularly important in the eyes of many companies.

• How can companies recruit employees with rare skills that cannot be automated?

- There are many approaches to acquiring scarce skills, but in the end it all comes down to simple supply and demand: if there is a shortage of the skills you require – like STEM skills – you can expect to pay a lot of money to acquire those resources. So, for instance, some companies build communities of these skills so that potential employees feel an affinity with the employer brand even before they join the company, or after they have left. For example, some consultancies invite STEM students to join communities even before they graduate. I also

By Miloš Belčević think that government should be encouraging more people to take on STEM education and careers – particularly from poorly represented groups based on gender and ethnicity etc.; but that’s a long-term project. Another approach for acquiring rare skills is to outsource them or use contractors – but only on condition that the skills you’re outsourcing are not among your key strategic capabilities (which you should never ever outsource). The bottom line is that, if you cannot outsource or automate, you’ll need to work hard and invest significantly to attract scarce talent. Companies that excel at this are, for example, Facebook and Google: many STEM workers – whether they admit it or not – would love to work in these kinds of innovative environments.

automate these, this is not people analytics – it is just simple task automation. For me, people analytics is not just about simple automation, reporting, pretty graphs etc., rather it is about making usable statistical models to make useful predictions.

What about AI? Someone once asked me: how can we best use AI in our company? My answer was a question: what’s the most important prediction that your managers could make so that, if they get it right, your company would make millions? For example, if you work in a gold exchange and you could predict the price of gold, that would be amazing, right? If you believe that predicting which employees would be the best to make your business profitable, that’s a

• Can digitisation and automation be used to manage teams?

- Companies tend to replace people with automation wherever they can, and this goes for managers as well, but the skills relevant for good management – like emotional intelligence, collaboration and so on – are probably among the last areas that will be automated.

Be very careful about using technology to replace certain tasks usually performed by human managers. For example, say you have the choice to invest a million dollars in management soft skills training versus building an attrition model to predict whether employees are likely to leave your company. In this instance, the ROI for manager training is likely to be much

“Be very careful about using technology to replace certain tasks usually performed by human managers.” higher, because while the attrition model will only fix attrition, the manager training is likely to improve retention, productivity, engagement, innovation etc. It has a whole range of positive consequences, whereas the attrition model will only address a single issue.

• When it comes to people analytics and AI, what are some areas where these emerging technologies could help HR? - Before we answer this, we need to be careful how we define ‘People Analytics’. If you have a thousand job applications to process and simply

great job for AI in the field of people analytics.

• There’s a lot of buzz around all the things we’ve discussed, but in reality how many companies are actually eager to really embrace scientific methods in HR? - I would say that a lot of analysis in HR has been very basic up until now. I mean, some companies have had some good results, but very few are using scientific people analytics to make predictions that make them those millions. And I think many senior managers are looking at their people analytics spend and

asking “shouldn’t we be getting more for our investment?”. As a result, business consultants like myself, with deep statistical experience, are suddenly getting a lot of calls requesting help in leveraging their people analytics investments.

But I’m very curious about why these requests are suddenly coming now. I personally believe it is because people analytics vendors have made promises they cannot keep and HR bosses are suddenly having to justify their investments.

And that’s why they are now starting to look for more sophisticated solutions.

• What’s your vision of a company in the future?

- I think the company of the future will be managed by a very small, senior executive group, and then below them there will probably be a lot of automation, outsourcing and gig work going on.

This top team needs to be very innovative and very good at working in small teams; it’s a whole different psychology; it’s the way that boards typically need to learn to operate.

I also think that we are moving from the age of people analytics into the age of resource analytics, where you are looking to determine the best balance of resource that you’re going to need across the organisation, what percentage will be automated, what will be outsourced and so on. In other words, workforce analytics will be replaced by the more general “resource analytics”.

• The way companies are surveying workforces and collecting data about them sometimes seems to be at the edge of invading someone’s privacy, or even over the edge. Are they sometimes being too intrusive? Where’s the limit?

- I think it’s about transparency. If you’re going to use your employees’ data, you must let them know. But I also have to say that, as an employee, it is naïve to think that your data is not being used by your employer.

More generally, I think it is unfair is when companies make money on the basis of employee or consumer data – selling it to advertisers – without sharing any of that profit with the people whose data they used.

Finally, I’m very keen on the idea of value equity for employees. What I mean is that if there is a profit improvement of 20 per cent for the investors of a company, then there should also be a 20 per cent increase in employee benefits. Why should one group win at the expense of another? ■ J U LY

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BUSINESS

MARINA MITIĆ JEKIĆ, HR DIRECTOR, STADA CEE REGION AND HEMOFARM AD

Dedication Is Always Rewarded With Trust As of this May, the Faculty of Technology Novi Sad has launched an event that it will organise annually entitled “Hemofarm Day”, which emerged as a result of cooperation between this faculty and company aimed at ensuring the better adapting educational profiles to meet the needs of the market

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ne of the activities within the scope of this year’s event was the competition “Pharmaceutical INNcububator”, which brought together undergraduate and masters’ students and tasked them with proposing ideas and creating products in the field of the pharmaceutical industry. The best of them will be rewarded with intership program at this company.

Cooperation with this college was actually established at the initiative of Hemofarm’s Human Resources Department. And here Marina Mitić Jekić, Stada CEE Region and Hemofarm HR Director, speaks about the everyday life of employees, the company’s relationship towards employees, and investments in both current and future employees.

• Hemofarm has 2,700 employees in Serbia, and almost 70% of them work in Vršac, where the company’s production complex and headquarters are located. As many as 34 per cent of your employees are highly educated.

Is it difficult to access high-quality personnel in smaller communities?

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- A trend that we notice in the world and in this region is that companies are launching their greenfield investment projects in smaller communities. During its infancy, nearly 60 years ago, Hemofarm set off from the small city of Vršac, but in the meantime it has grew to become a regional pharmaceutical giant operating on three continents.

When it comes to employment, there are high-quality workers in small communities, and the problem arises when it comes to the engagement of highly educated experts with very specific profiles, such as, for example, graduate pharmacists or technologists in our case. A significant number of employees travel on a daily basis from Belgrade to Vršac, and that’s a topic that has a constant presence around our table. The human resources sector and leaders of business have a common task in this area – to maintain the motivation of existing workers and attract new colleagues who are willing to work away from the place where they reside. At the end of the day, employees will always recognise dedication and reward it with trust, and vice versa.

• It seems that your approach to people extends beyond the legal obligation to care for employees. Do you believe that a satisfied

worker is the best worker? Is it necessary to identify with the company?

- I think that’s a general trend and that every serious employer strives to offer more than that which is required by law. Hemofarm has various benefits available to employees and we work every day to adapt them to the real needs of our employees as much as possible. Consider that we are a company founded in 1960 and that we have employees among us who have been with us for decades, as well as those that joined us relatively recently. Here we approach our job with the task of making Hemofarm a comfortable place for all of these different groups.

Furthermore, the satisfaction of employees is a relative thing; in some stages of a career and life, it is more important for someone to be able to regularly attend training and improve themselves professionally; in another stages it may be more important for them to have supplementary health insurance for themselves and their family, while in some stages striking a good balance between work and private life can be more important. As someone who’s been doing this job for years, I think it is more satisfying when you know why you are coming to work, in an environment in which people collaborate well, and where your work is recognised and appreciated.

• Companies today pay great attention to the professional and personal development of employees through continuous education. Is that an imperative of the times in which we live?

- Of course! Like other major companies, we deal with this topic on a daily basis and our goal is to have the best possible overview of the needs of the organisation, which forms the basis for all other activities. In practise, that means that all training courses are planned in cooperation with the Human Resources Department and line managers, while additional training is also organised by the HR department in accordance with the general needs of the company. An example of this second type of training is the “Leadership Campaign”, within the framework of which around 250 employees will undergo five-day training on techniques for managing teams within the company. We also pay great attention to so-called specialised expert training, because a pharmaceutical company must have something like that in its training plan. The Stada Group this year launched a talent management process that will focus additionally on personnel who have been identified as having the potential to take on future leadership roles within the company.

college. Companies also adapt to this, so submitting a CV at an employment fair is something that will gradually be replaced entirely by online applications.

We are very active on social networks and are leading the way with LinkedIn, via which we directly filled a large number of challenging job positions last year. We are

With the introduction of a modern system through the Success Factors project, it is planned for Serbia – together with Germany – to be the first country in which the Stada Group will implement this modern HR software • And while we’re on the topic of the new age and its achievements, tell us more about e-recruitment. Can candidates use digital channels to more easily find a job and establish communicate with potential employers?

- Keeping pace with trends is one of the things that you mustn’t fail to do, otherwise you’ll certainly lose the market battle regardless of the area of business, including human resources. There is an increasing number of digital solutions around us for various aspects of life and, when it comes to HR, these solutions are most prominent in the field of candidate selection. Young people today are much more focused on social networks than, for example, my generation was at the time that we graduated from

also working on the introduction of a modern selection system that is part of the global Success Factors project, and it is planned for Serbia – together with Germany – to be the first country in which the Stada Group will implement this modern HR software.

• Many young and highly-educated people abandon Serbia in search of employment, a good income and a better life. Can companies like Hemofarm bring a halt to that trend?

- In the time of globalisation, I think it is questionable whether anyone could halt this process and whether they should even try to do that. I represent the approach that societies and companies should devise a strategy for retaining quality high-quality

personnel despite outflows, which are not specific to Serbia, and thereby achieve a healthy balance. Hemofarm, as part of the Stada Group and as a large multinational

company, certainly offers the possibility to work in a large system, and that’s what candidates recognise with us.

For example, we launched a programme in which we were joined by 11 young people from the faculty for a six-month period, and all of them were employed at Hemofarm upon completion of this professional internship program. However, in this area we’re not only working as a company. The Hemofarm Foundation is also very active through programmes for scholarships, mentorship programmes and summer internship, which additionally motivates the best students of medicine, pharmacy and other faculties of science to learn from the best through direct cooperation with colleagues from Hemofarm.

In this way we’re not only impacting on the personal and professional development of young people, but also motivating them to stay in our country and acquire knowhow.

The best proof of this is the fact that some former Foundation scholarship recipients are today managers and directors at Hemofarm. ■ J U LY

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BUSINESS

MIROSLAV VRANEŠ, ACCOUNT EXECUTIVE, DELL TECHNOLOGIES

IT's Main Product Is Smarts

The IT sector is one of Serbia's largest net exporters, with strong potential for future growth and average wages that are almost triple those of other economic sectors. Thanks to IT, the main product of which is cleverness, Serbia is known around the world as a country of intelligent and capable people

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ersonal careers currently develop the fastest in IT, with a high-quality market offer and above average conditions. When we add to this the constant need to improve, through additional training and education, as well as companies’ struggles to retain existing high-quality personnel, IT forms a picture that can only be desirable.

• In Serbia we see ourselves as leaders of the IT sector in this part of Europe. Do we rate ourselves correctly?

- Serbia is definitely a country that has recognised the importance of IT as an important branch of industry, because IT is being taught in various forms from the earliest age in educational institutions. However, other countries also aren’t sleeping in this respect... More important than being a leader is retaining a leadership position.

The need for IT professionals is growing constantly. However, it is also a branch that’s constantly advancing and in which the rules change often, where new players overcome old ones and new technologies 6 |

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replace pre-existing ones, so the constant training and advancement of personnel is inevitable for us.

• Many students of the University of Belgrade School of Electrical Engineering, particularly those specialising in software engineering, manage to find work already by the third year of their studies. Is that good for both them and the companies that employ them?

We also mustn’t forget the specialised courses and training constantly taking place in various sub-divisions of IT. IT is foundational to every branch of industry and, as such, is an unavoidable factor in the growth of primary industry. The current need for IT engineers exceeds the possibility of “producing” them. Companies are in a race to attract high-quality personnel, which leads to the very fast hiring of young IT professionals. This is very good

Freelancing is a model that's accepted well in the IT sector worldwide, so it is also constantly growing in our country too

- Software engineering is present as a subject in various forms in an ever-increasing number of colleges, because – apart from the School of Electrical Engineering – other state and private educational institutions also engage in the training of IT personnel...

from the perspective of companies, because they get quality “raw material” that they can later shapes to suit their needs.

It is a young branch, which has creativity at its basis, and the best results are achieved much sooner than in other

industrial sectors. Among other factors, just compare the average age of top IT engineers and top surgeons...

• Unlike doctors, IT experts don’t have to go abroad in search of work, because they can find well-paid jobs here. Does this place employers in a difficult position? They first need to find an expert, then provide them with a good salary and various benefits in order to retain them?

- The beauty and challenge of IT is reflected precisely in that fact, in the possibility of generating an income efficiently from almost any point on the planet. In Serbia it has already been established that our experts are engaged in many projects being implemented abroad, while they are employed or working as freelancers based in Serbia.

It is as difficult to find a good employer as it is to find a good expert. If an employer monitors, supports, and invests in personnel, then they will retain their staff, because nobody needs workers who don’t further develop themselves, who are unable to keep pace with constant changes and new trends.

intending to keep pace with new trends and work on good projects must select the environment in which they will build their careers accordingly.

• An ever increasing number of IT personnel are seeking “freelance” engagements. How positive or negative is that for employers?

- From an employer’s perspective, this should be the cheapest and most reliable form of cooperation, as rules and obliga-

experience, possibilities, recommendations and qualities of the person you want to engage. After all, the IT market has long been global and not local.

I think this form of engagement will also be present in other branches of industry in the future. Is a law firm that represents

Salaries are above average in the IT sector, while certain benefits are also implies, but companies' products themselves aren't cheap

multiple clients classed as a freelancer?

Or a surgeon who, based on call and needs, operates in numerous different clinics in the country and abroad? Is a professional athlete a freelancer?

• Established selection and hiring practises from other sectors aren’t applied on the IT market. Have we reached a

situation where candidates choose an employer to a greater extent than employers choose them?

- In principle, the market always dictates the rules, because here the principle of supply and demand also applies. I consider that both candidates and firms choose simultaneously, that not all demands and needs are the same, which is good. Healthy companies with good prospects must choose high-quality personnel if they want to continue having high-quality work on the market. On the other hand, engineers

tions are defined with a simple contract and usually relate to a limited set of activities, part of a project or a project as a whole. On the other hand, a freelancer has complete freedom to organise their own time, methods and intensity of work in accordance with their needs. A freelancer also holds their career in their own hands, deciding for themselves on their own advanced training and development directions. I expect this model to develop further, that a market system of supply and demand will be created in which you will publicly see the

• Is the IT sector among the key drivers of Serbia’s economic development?

- It certainly can be, because IT is a branch in which the main product is smarts. If you are in a position to sell your intellect on the global market, then that impacts significantly on the image of Serbia as a country of smart and capable people, and that’s probably what we all want. But there is a need to constantly invest in that and implement it in practise. Are we mistaken if we say that the Germans and Japanese are diligent and well organised? I would sincerely love for IT to be one of the pillars of our country’s economy in the future. ■ J U LY

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BUSINESS

OLIVERA GVOZDENOV, MANAGING DIRECTOR, ERNST KLETT PRÄSENZLERNEN OSTEUROPA GMBH – BELGRADE BRANCH

Learn And Apply Knowledge In Real Time The HR business means people, and it practically involves a whole raft of continuous activities related to company growth, organisation development and internal culture

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esides regular processes, new requirements are identified through a focus on the necessary skills, rather than on regular degrees or diplomas, motivational employee experience and defining a company brand that will attract the best talents existing on the market.

• What are the key focus areas for Klett DUAL school?

- Our mission is to equip the current and future workforce with relevant knowledge, highly demanded professional technical skills and the valued Mechatronics certificate.

Klett DUAL understands significant investments and efforts by companies aimed at achieving business objectives. Sustaining a presence locally, or expanding business to new markets, is hardly sustainable without a local workforce. Our objective is to help companies with production facilities in Serbia and Southeast Europe in satisfying their demand for a trained, high-quality workforce.

Companies do not have enough time or specific technical programmes and didactic equipment to educate, prepare or equip their workforce to operate with minimum additional support. This is where Klett DUAL offers high quality solutions – to both on-thespot problem solutions for maintenance of the Mechatronics systems and the short to mid-term dual education of employees, including future Mechatronics experts training. We 8 |

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work together with the HR and production departments of international and local companies to forge partnerships and define how to address specific needs and achieve goals.

The resulting benefits are numerous and relate to actual business support delivered

by HR, employee motivation at the individual and team levels, and, hence, employer branding that’s valuable for current employees, in addition to making the employer desirable for new hires.

• How was Mechatronics chosen as the first programme in Klett DUAL School?

- Mechatronics is a multidisciplinary branch that unites mechanical engineering, electronics and informational technologies. Every industrial company that owns production facilities needs to have these specific experts in their teams, not only for everyday work,

partners and we are officially recognised by the Serbian Ministry of Education, Science and Technological Development. We can issue certificates on the basis of the Law on Adult Education.

• What are the requirements for enrolling in Klett DUAL professional courses?

- Participants in the Mechatronics programme should preferably be working in the production facilities of the respective company, working as production operators, maintenance technicians or team leaders. There are no limits regarding age or gender. Demand by employers is focused on required hard or soft skills, rather than a general diploma.

However, we are also open to high school graduates and individuals interested in Mechatronics certification, whether they are employed or not. Opening the doors to

Our programmes are developed with German partners and we are officially recognised by the Serbian Ministry of Education, Science and Technological Development. We can issue certificates on the basis of the Law on Adult Education but also to solve technical problems and equip new employees with relevant skills.

Serbia clearly has an insufficient number of certified Mechatronics professionals. Our programmes are developed with German

potential employment based on pre-agreed criteria with companies is a winning approach for everyone and addresses the long-term workforce development needs in Serbia and on surrounding markets. ■

IVAN BAKIĆ, HR DIRECTOR, NECTAR GROUP BUSINESS

We Proudly Nurture Our Winning Spirit Nectar was founded as a small entrepreneurial venture that has rapidly developed into a regional leader in the production and sale of juices, refreshing beverages, water and food. Although we operate on 10 business locations in three countries, all the employees function as one team, one family

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ectar is a family company that puts the consumer at the centre. We also insist on excellence and innovation in what we do, and care for both the environment in which we operate and for our employees. We are proud of all our successes and we nurture our winning spirit, they say at Nectar.

• Within two decades, Nectar has grown from a small family company to a regional leader with more than 1,300 people. Would the company be so successful if the people did not perceive it as their second home?

- I’ll answer right away - certainly not. We started from the production of apple vinegar and became a regional leader in the produc-

the development and growth of the company has attracted similar people - people who share the values of entrepreneurship, a positive and engaged attitude, a focus on solutions instead of obstacles and the idea of achieving the most through team work. I mustn’t forget a very important aspect in the efficient use of resources and the enormous energy of the employees that has been transferred through acquisitions of the companies that are now members of the Nectar Group.

• The business philosophy “It does matter” encourages the employees to be interested and motivated to learn, to improve and prosper?

- I can state proudly that everyone at the company is living our “It does matter” busi-

So far we have done a lot to strengthen the capacities of our people, both in technical and management skills tion and sale of juices, refreshing beverages, water and food at a tremendous speed. The great initial enthusiasm of the owner was transferred to the first “core” of the employees, who carried the company’s expansion, development and marketing of new products. It’s impressive how quickly the entire expansion took place and how high product quality has been maintained throughout the innovations.

This core group of people who carried out

ness philosophy in the way they approach the business and how they treat the wider community. I think it’s already a common phrase that continuous improvement is an imperative to develop the company through the development of individuals. So far we have done a lot to strengthen the capacities of the employees in two directions – one is development of personal resource management skills, and the other is management of others. I believe that

the best result in terms of costs and effect, or investment, can be achieved by combining external and internal training.

• A good HR manager has to understand the essence of the business of the company in which he works, but also to be well acquainted with the desires, needs and expectations of employees. How can you reconcile these two things?

- In a company that is so widespread (10 business locations in three countries), it is a great challenge to unite all the employees and create a constructive organisational culture, especially because each location and each member company has their specific organisation, management, geographical and socio-political differences and, of course, great individual differences among employees. It is imperative to be present, to have direct contact with people and, as a beautiful Japanese statement says: “Go to the source and see”. There is no HR tool or approach that can replace direct contact with people.

We have developed a whole range of tools to support our employees in achieving their maximum in the company - from a precise job introduction programme, support programmes for new colleagues, a mentoring projects, work performance assessment system, talent identification and special development programmes and a training system, to promotions and rewards. ■ J U LY

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HR, THE MOST IMPORTANT COMPONENT OF A SUCCESSFUL BUSINESS

Top Talent Knows The Difference Smart companies have already come to understand the value that HR has to offer, and ever more companies will come to rely on HR as a strategic business partner

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ach company has its own unique culture, encompassing the values, visions, ideals, norms, working language, systems and habits of a group who work together. A good HR officer or department develops and manages their company’s culture. They recruit new staff, maintain benefits and payroll, mediate conflicts and engage in training and development. The role of HR is at the core of a company’s success.

A simple breakdown of the responsibilities of HR functions would include recruiting, training and development, union negotiations and labour relations, compensation and benefits, employee relations, organisational development, legal compliance, employee engagement, human resources information systems and health and safety.

Human resources managers oversee the most important component of a successful business – a productive, thriving workforce.

This requires viewing people as human assets, not costs to the organisation. And, as with any other asset, a talented workforce can be used strategically to add value to an organisation.

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The HR team suggests how the management team manage people strategically as business resources. This includes recruiting and hiring employees with specific skill sets to meet the company’s current and future goals, coordinating employee benefits and suggesting employee training and development strategies. In this way, HR professionals are consultants, not workers in an isolated business function; they advise managers on many issues related to employees and how they help the organisation achieve its goals.

Managers and HR professionals work together at all levels of an organisation to develop employees’ skills. For example, HR professionals advise managers and supervisors on how to assign employees to different roles within an organisation, thereby help-

ing the organisation adapt successfully to its environment. In a flexible organisation, employees are shifted around to different business functions based on business priorities and employee preferences.

HR professionals also suggest strategies to increase employees’ commitment to the organisation. This begins with using the recruiting process or matching employees with the right positions according to their qualifications. Once hired, employees must be committed to their jobs and feel constantly challenged by their manager.

An HRM team helps a business develop a competitive advantage, which involves building the capacity of the company so it can offer a unique set of goods or services to its customers. To build an effective human

resources department, private companies compete with each other in a “war for talent”. It’s not just about hiring talent; this game is about retaining top people and helping them grow and stay committed over the long term.

HR management requires strategic planning to address not only the changing needs of an employer, but also a constantly shifting competitive job market. Employee benefit packages must be continually assessed for costs to the employer. Tweaking the packages also provides an opportunity to increase

employee retention through the addition of paid leave days, flexible working arrangements or retirement plan enhancements. For example, many human resource professionals have in recent years overseen the addition of preventative health components to traditional health plans for both employment recruitment and retention efforts.

One of the most indispensable ingredients of a business is its employees. The human capital serves as the ambassador of your organisation, as it is the employees who put procedures into practise.

The HR department is a significant contributor to organisational success, since they are mainly responsible for maintaining and organising the workforce. They oversee the people operating within the organisation and deliver HR services that meet the needs of both the company and its employees.

HR practises are implemented in order to enhance the human capital of an organisation

and decrease the financial risks. Employees must be considered human assets and not costs to the organisation.

The HR management team usually offers suggestions on how to strategically manage people as business resources, and these include the recruitment/hiring process, employee benefits and skills training.

HR’s role is vital in keeping employees focused on achieving the company’s goals while providing opportunities for employee growth and advancement.

HR personnel are no exception when it

of hiring managers, who help them make informed decisions.

An effective hiring process builds the foundation for all tactics, with companies positioning themselves to choose candidates that are a good fit for both the job and the organisation: they make sure to determine what competencies and skills are required for success, and then use valid hiring tools to identify individuals who possess these characteristics. This ensures companies are rewarded not only with a strong employee retention rate, but also with loyal employees who contribute to the organisation’s long term success.

After putting in the time, effort and investment to hire the best employees possible, there is then a need to retain that talent.

Salary level, retirement plans and holiday benefits are high on the list of reasons why those great employees took the job, but they are not reason enough to keep them employed for the long haul. Job satisfaction, however, will increase employee retention rates.

Companies need to create an environment that makes employees feel like they are an asset to the company. In making the expectations and goals of the company

To build an effective human resources department, private companies compete with each other in a “war for talent”. It's not just about hiring talent; this game is about retaining top people and helping them grow and stay committed over the long term comes to training and development, as they serve as the medium between employees and the company. They develop HR strategies to help address demands of change management and integration, as well as measurements of performances that are in line with strategy implementation.

A human resources department is much more than the place to go for employee assistance, employee conflict or compliance issues. In general, hiring managers are in charge of hiring processes, while recruiters are the trusted consultants

clear, creating an open and honest working environment and providing opportunities for employees to grow and learn, organisations let their employees know that there is room for advancement in the company and that good work is recognised and rewarded.

Monetary bonuses are always nice, but recognition of a job well done goes a long way to creating good will and loyalty.

However, the feedback and praise must be sincere. Top talent is smart enough to know the difference between sincere appreciation and platitudes. ■ J U LY

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BUSINESS

SONJA ĆETKOVIĆ, DIRECTOR, POSLOVI INFOSTUD

Employer Branding – How To Begin There is talk on all sides about employer branding (EB), and it's long been clear to you that this is today the most effective way to attract (and retain) high-quality employees. You have also made the decision to finally engage in activities. However, where do you start?

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here are three possible approaches that can be led, depending on the resources you have at your disposal and the current situation in your company.

• Systemic approach to employer branding - A systematic approach requires that you have the commitment of the entire company, primarily top management, to deal with the creation and advancement of conditions, a climate and culture in which employees will be satisfied and that will make your company a place where people will want and love to work . This is very important, because real change and improvement can only come if the decisions brought at the highest level of the company integrate aspects that show employees that they are respected and important. By entering into such decisions, expectations, processes and practises across the entire company, we actually engage every employee in creating a desirable workplace.

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• Before any action, it is important to make a diagnosis, in order to find out if, and to what extent, your company is already a desirable place to work and why, or if it’s not then why not.

- In order to determine this, you can use research of the current status of your brand as an employer that exists on our market, but a basic picture can also be given to you by your immediate environment – simply

the main factors of dissatisfaction for them.

When you get this analysis of the current situation, define a strategy and set of coordinated, systemically-planned activities.

Focus on improving those factors that most negatively impact on your brand as an employer. That can sometimes be simpler things like purchasing new equipment, unburdening employees by hiring a few new people or introducing more flexible working hours.

The first thing that it's important to be aware of is that you already have a specific employer brand; that a pulic perception about your company as an employer already exists. This image is primarily built by your employees

ask around. It would be very useful for you to also conduct employee satisfaction surveys or, again, at least to try to get honest feedback from colleagues regarding what they like about the workplace and what are

When you have your first results, you can define what and how you will communicate externally. Consider who you primarily want to address, where these people move, and with which channels and messages you want

to reach them in order to show them that you are a company where it is great to work.

For this purpose use job advertisements, job interviews, employer profiles, social networks, articles on relevant portals, offline activities etc., every relevant point of contact with your target group.

• Question that additionally imposes itself is - who will primarily push this story?

- There is often, in practise, a lack of understanding of the role between human resource departments and external communications departments - who should be involved in which stage of employer branding, who should do what, what is the responsibility of whom, and who makes the final decisions.

Given that employer branding is actually a mix of HR, marketing and PR, you can try to create a working group in which the HR department will define goals and content, while the marketing, PR and corporate communications departments will find the best channels and ways to present that content to target groups. The second option is to hire an employer branding specialist who will lead employer branding activities and

The first thing that it’s important to be aware of is that you already have a specific employer brand; that a public perception about your company as an employer already exists. This image is primarily built by your employees.

To find out “what’s said about you”, you can use the methods explained in the systemic approach – tools for researching the employer’s brand and employee satisfaction, or by investigating the immediate environment and questioning colleagues from the company. Then you will have the possibility

If you don't have anything to boast about at the current moment, and if negative aspects within the company prevail, call a halt to marketing activities regarding employer branding, as a false image will not bring good effects

cooperate on implementation with the noted departments.

• Ad hoc approach - This is the approach for you if you don’t have sufficient resources to deal systemically with employer branding or if you don’t have a clear commitment of the entire company that it wants to create, advance and promote your company as a great place to work. Don’t be concerned, because even without that commitment you can have a positive impact on employer branding, certainly much better than if you don’t do anything.

to influence your brand, by discovering: • the main negative perceptions of your company as an employer that you need to change, • what makes you good and different from others that you need to communicate and highlight, • what could you introduce to make your brand more positive and ensure the best employees choose you specifically.

You might realise that you’ve taken for granted some things that really mean a lot to employees – and which will also mean a lot to potential future employees. Perhaps it is

a fact like employees being able to be absent from work without complicated procedures whenever they have a private situation or obligation, or perhaps them having paid lunch or the possibility of working from home. Note that you provide such things in job advertisements or company profiles on various portals and social networks.

• Temporary halts - If you don’t have anything to boast about at the current moment, and if negative aspects within the company prevail, call a halt to marketing activities regarding employer branding, as a false image will not bring good effects. Work on internal activities that will lead to improvement; to more satisfied employees. With growing shortages on the Serbian labour market, this is the only long-term sustainable way to get to employees with whom you will ensure your company’s growth.

In the end, don’t forget that what you do within the company and how your employees feel is of essential importance. Start improving your situation as soon as possible and never stop. A systemic approach is perhaps demanding, but it is much more fundamental, shifting and improving the entire company, so results are better and more enduring.

However, if your current situation doesn’t allow more, start with a little. Even a little is better than nothing. ■ J U LY

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BUSINESS

DRAGAN REŠČIK, HEAD OF HR AT PROCREDIT BANK

Our Bank Promotes Diversity “ProCredit Bank is not for everyone, because it takes a much broader view of banking. To this end, and for the last 18 years, it has been developing two key qualities among its staff. These are expertise and human warmth, i.e. understanding, empathy and a selfless desire to be of assistance not only to clients, but also to colleagues

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t is important for us to empower innovation and willingness to look at challenges from a new angle, to reconsider previous solutions. This is the road to progress in which we firmly believe, reveals Dragan Reščik.

• Your website says: “ProCredit Bank” is not for everyone... What does this mean?

What does the process of selecting candidates to work with your bank look like?

- Indeed, it is true. Although there is a belief that all the banks are the same, ProCredit Bank takes a completely different approach to banking, starting from the selection of new team members. It is commonly believed that banks should employ brutally ambitious people who have graduated in economics, finance or management, but in our team we want to see colleagues of all profiles, from all faculties, with different interests, and above all those who share our values.

Our staff are expected to adopt an all-round and critical approach in recon14 |

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sidering decisions, to have an attitude towards the dilemmas that surround us and to bring their personal characteristics into the daily life of the institution.

Individual differences give us strength and make us unique as an organisation – we have a flat structure guided by direct and clear communication, in which the distinction between formal and informal interaction does not exist and in which everyone makes a selfless contribution.

All ideas are welcome and personal development is a must.

• Tell us about your Onboarding process?

- The Onboarding process is a unique programme intended for new members of our team. Over a six-month period, new colleagues have an opportunity to get acquainted with our company and their future colleagues in an international group.

They together undergo theoretical and practical training in the field of banking, philosophy, ethics, environmental protection and many other areas. All this takes place at our Training Centre on Mount Avala where, in addition to their salary,

Banking is first of all people, emotions, communication, and only then figures, projections, balance sheets...

What’s more, we have no problem saying that we are not a bank for everyone.

We are here for those who are willing to adopt a much broader view of banking than the one usually taken.

the Onboarding participants are provided with accommodation, recreation, food and all they need.

• Why is a cover letter important? What

does it tell you about a candidate?

- Based on the cover letter, we actually assess the person applying for a job at ProCredit Bank. A CV speaks volumes, but as we have in our ranks colleagues who have graduated in philology, philosophy, mechanical engineering or sociology, the cover letter helps us gain an early understanding of the emotions and motivations that prompted a candidate to apply.

• Do you expect employees to fit into a standard profile or do you appreciate differences?

- Our bank promotes, encourages and inspires diversity in ideas, understandings, views and approaches. It is important that these views are based on common sense and clear arguments, that they are not threatening or insulting for people, but are creative, engaging and critical. We live in a time where challenges await us at every turn. The truth is that education or previous work have not prepared us for many of these challenges. And in order to have different and new viewpoints, it is important not to restrain our employees but to encourage them to differ from market stereotypes, to be free and creative

advisor have, in addition to expertise?

- In communication, there are two key qualities that people first recognise in each other. These are expertise and human warmth, i.e. understanding, empathy and a selfless desire to provide assistance.

ProCredit Bank has been inspiring these values for almost 18 years. We therefore expect every member of our team to be engaged, open in communication and responsible, both toward the team and the clients with which we work. Understanding the clients’ needs and opportunities is

We expect every member of staff to be engaged, open in communication and responsible, both with the team and with our clients

in the work they do.

We are building a team of people whose business backgrounds and personal interests can differ completely. In private life, our colleagues are poets, mechanics, farmers, successful sportspeople, tattoo artists etc. Their different life experiences make us special and bring advantages compared to all others, who demand monotone and almost identical behaviour among their staff.

• Both people and companies have high expectations of bank staff. What qualities should a good bank clerk or key account

what truly lies behind the figures and all projections. An excellent knowledge of mathematics or spreadsheets is often insufficient for a proper understanding of this. It is important to have the strength and courage to say YES and sometimes NO to clients.

• Former HR departments used to deal only with recruitment, salaries and labour disputes, while today’s HR departments and managers have far more tasks and functions. What is your role?

- The role of our HR team is to select the candidates we believe will be satisfied

working for ProCredit Bank, and will therefore provide an important contribution to our team. It is important to actively encourage staff to educate themselves, to boost their satisfaction with the bank, to have open discussions about everything that bothers or upsets us, and to always be there for each other. That is the team and that is ProCredit Bank.

• HR is an area in which many skills and knowhow converge. Is there any room for improvisation and what do you think about employee leasing?

- Improvisation is not necessarily a bad thing. Moreover, it is very desirable in business, including HR. Of course, here I am speaking about improvisation that is not associated with lacking professionalism.

Although employee leasing is still not sufficiently regulated by law, I would not call it improvisation. At our bank, this method of engaging young people through specific tasks and cooperation is an excellent way to meet candidates who have great potential for our Onboarding process. Furthermore, this form of engagement allows many young people to learn the details about our bank and its qualities, and then to apply for the Onboarding process with positive and warm recommendations from colleagues with whom they already work. ■ J U LY

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BUSINESS

MIRA MITROVIĆ, DIRECTOR, BIZPLIZ

Our Massages Are Unique BizPliz is a physiotherapy treatment devised to relax employees in the workplace and to relieve stress, muscular blockages and back pain in just 15 minutes.

Workers who use this service are more satisfied, with an improved mood, able to concentrate more and achieve better results for their companies

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his original programme and unique service is the brainchild of Mira Mitrović, a physiotherapist. Today she has a team of professional and trained physical therapists who travel to clients’ workplaces with special chairs and massage their staff members for a affordable price.

• Japanese employers have begun introducing “sleep rooms” and mandatory workplace naps in an effort to boost productivity. However, you are offering employers something better...

- The topic of productivity optimisation is an eternal one in business circles, and after many stages of a strict approach, with fixed working hours and models of rewards of a purely financial nature, it has somehow been understood globally that employees can and must be motivated in a variety of ways, primarily with a view to their health and, of course, their mood and level of relaxation. Our model places massages within the scope of working hours, in an acceptable and flexible way. It doesn’t cost a lot, either in terms of time or finances, and its returns are manifold – in terms of productivity, the satisfaction of employees, and their positive mood.

And all this requires is around 30 minutes in a working environment, without special requirements and conditions.

• You use special, mobile massage chairs that enable your physiotherapists to relieve a client’s neck pains and back stiffness in their 16 |

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own office. How did you come upon the idea of expanding your business to the corporate segment?

- Essentially, demand defined the scope - when you sit down to speak with people in business, they are aware that they can afford to give themselves – individually and collectively – a short break during working hours, at the level of a 30-minute break. It is important for the service be adapted to the workplace, without some special preparation, and ultimately for the

easily and without problems, and mounted in a few seconds in a minimum free space. We think that all of this ensures that our offer is really different and unique on the market. And even more so given that our therapists have been trained, among other things, for this kind of work.

• Which employers offer their employees this instant relief from physical stress and pain?

Could it be estimated how much employee satisfaction and positive health impacts on a company’s operations and results?

- The companies that engage us vary, coming in all sizes, and the list comprises those that have modern and motivated managers who care about their employees. Moreover, we’ve received only positive comments, from both individuals and companies. We consider that as confirmation that our work has been recognised and accepted in the right way. We are working on the creation of adequate questionnaires that could realistically measure operational improvements following the introduction of this benefit for employees. We believe that we’ll be able to apply it by the end of this year,

The treatment doesn't require that the client prepares; it lasts 15 or 30 minutes, is performed through clothes, without any kind of preparatory assistance, and has been adapted in terms of pricing to suit the present reality price to be relatively low so that it is acceptable to both the individual and the company. These limits defined our business model and in some way forced us to be creative.

The chair is such that it can be transported

and to include it in the measurements taken by companies in this context. For us, this is certainly just additional motivation to work even better on the quality of our services and their improvement. ■

IVANA VLAHOVIĆ, HR DIRECTOR, BEL MEDIC BUSINESS

A Good Team Is The Key To Our Success Bel Medic has been the leader in private healthcare for 24 years, a high-quality service institution, with top specialists in all fields of medicine, nurses and orderlies who, in addition to their professional skills, above all show that they are good, caring people

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he key to their success is perseverance, persistence, clear goals, good control and management of all processes and procedures that guarantee quality service, security and safety for patients. Their patients know that they can get the best doctor for their problem at any moment in Bel Medic .

• Bel Medic has been the leader in private healthcare in the region for almost a quarter of a century. How do you get to the top and how do you survive there?

- From the very beginning of her career, dr Jasmina Knežević had the idea of providing the patient with a better service – high-quality treatment, security and a human touch, which was quite lacking in state practice. The key to success in this way of development are perseverance, persistence, clear goals, good control and management of all processes and

and on developing empathy, dedication and patient care. People are the key to the success of each company and this synergy of all our employees has contributed to Bel Medic being a leader in private healthcare in Serbia.

• Your healthcare system has 400 permanent staff and nearly 400 consultants, eminent experts of all specialties. Is it a privilege to be part of the great Bel Medic family?

PROF. DR ĐORĐE BAJEC WITH HIS TEAM

When we employ new team members, in addition to expert knowledge and reputation, we expect them to be good people whose value system is compatible with Bel Medic's procedures that guarantee quality service, security and safety for patients. Patient care is at the forefront with the possibility for a patient to get the best choice of doctors at any time for his or her problem. We place great emphasis on the education and development of professional skills of our staff,

- When you work in the company of good people who are top experts in their field, it’s definitely a privilege and the honour to be a part of such team. We are trying to hire experts in all areas that support the whole system because the system cannot function perfectly without excellent people in finance,

marketing, quality control, sales, human resources and other related operations. Of course, a special emphasis is given to medical personnel, we try to employ the best doctors in Serbia, to motivate them and provide good working conditions and an environment in which they will be most satisfied, so they will give the best possible results so we can cooperate on a long-term bases. This certainly applies to the middle layer of medical staff, we have top nurses and orderlies, anaesthetists, radiologic technicians...

• Twenty four years ago, the founders of Bel Medica wanted to create an institution better than its individuals. Does this mean that the selection of a candidate for each workplace is approached with extreme care?

- Developing Bel Medic, dr Knežević concluded that the system cannot rely on the conscience and responsibility of the individual. That is why it is very important to set clear rules and procedures at every level and it is necessary to form a good team of people who will respect and implement the defined procedures in their daily work. The HR department has eight members who are, among other things, engaged in recruiting and selecting top experts in their fields. Each candidate has several rounds of conversation, often certain tests too, in order to increase the chance of employing a person who will be an important member of Bel Medic and will create additional value for Bel Medic with their work, regardless of the workplace they are assigned. ■ J U LY

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BUSINESS

TAMARA STANIVUK, HR MANAGER AT EWE

Bound By A Common Vision For almost quarter of a century, the company Ewe has been a leader in distribution of computers and computer equipment, white goods, home appliances, security equipment and mobile devices, and in creating solutions for clients on the markets of Serbia, Montenegro, Bosnia and Herzegovina and Macedonia

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eam spirit, respect, enthusiasm and integrity are the values promoted by Ewe, both internally and in communication and relations with partners and clients. They believe that this attitude towards their staff contributes to their own understanding of their value to the company.

• Ewe is a leading distributor for major world brands in the IT / tech industry that is developing daily. Do we have enough professionals in Serbia for more sophisticated client demands?

- The challenging business environment we have been operating in for 25 years has led to the development of high-quality staff in the IT / tech industry. In every sense, the professionals here do not at all lag behind their colleagues on the world market.

The market is changing rapidly and setting new demands, and another challenge is the continuous emerging of new companies in our industry, so we need to follow these changes at all levels. We therefore try to be ready for what is coming through proper development of the HR sector, especially when it comes to young people with different perceptions and understanding of the business environment.

• Ewe has been operating for 25 years and has a team of 300 people. Many of 18 |

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them have been in the company for a very long time, which is not typical for the IT industry. What does this say about you as an employer?

- In times of rapid development and globalisation, we have to follow novelties in all areas of the business, including human resources.

Our company deviates from traditional approaches to human resources where the competencies and capabilities of the staff

suggestions, we have built together a profitable company with stable growth.

• Can the strategy of any company, small or large, be implemented if employees do not share the same vision, values and goals, if they do not see themselves as an important part of a community?

- We at Ewe pay special attention to this issue.

We believe that each family has its own vision

Our desire is to build and develop young people through our business environment and the system of values we set

are balanced with the requirements of the position. A different approach has proven more productive and sustainable – we organise our staff in such a way that we recognise their capacities, desires and needs, and then assign them to the positions where they will contribute the most to the development and profitability of the company. We deeply believe that this attitude towards our staff has contributed to their own understanding of their value to the company, and as a result we can be proud of a large number of employees who have long been part of our team. With the assignment of responsibility and appreciation of their opinions, ideas and

and goal, even if they talk about daily errands, so every successful company must have a vision and goals that it strives for. We insist that those unspoken visions and values, that are often intangible and not clearly defined, still be embedded in everyday organisation in carrying out tasks and achieving targets.

Team spirit, respect, enthusiasm and integrity are the values promoted by Ewe both internally and in communication and relations with partners and clients. We have proved that it is possible to implement exactly these values in our everyday work, so our company is made up of motivated staff who understand their importance in our team. ■

NEWS

Sleeping at Work

Work-from-home

Global Meetup 2019

Forced to Smile at Work

One in five employees reports falling asleep at work, according to a recent Gallup survey of more than 1,000 employees across various industries.

Seventy per cent of tech workers—the highest percentage of all workers surveyed—admitted to sleeping during working hours and reported spending more than 11 per cent of their workday sleeping.

The construction industry had the next highest percentage of workers who reported sleeping on the job— 68 per cent, even though 66 per cent of them admitted that sleeping while at work is prohibited.

Other industries that saw more than 50 per cent of employees report sleeping at work included government and public administration, finance and insurance, information services and data processing, manufacturing, transportation and warehousing, and medical and healthcare workers.

“It’s not about where you live, talent is everywhere around the world” – it was with these words that Global Meetup cofounder Hendrik Halbe opened the Global Meetup 2019, held in Belgrade on 17th June. The event saw 150 start-ups and more than 300 corporates, network partners and investors arrive in the German capital for three days of networking, unlocking business opportunities, being inspired and, of course, exploring the city and having fun.

An informal dinner preceded events, as a way to ensure everyone was acquainted before starting to do business together. Organisers emphasised the importance of forging valuable personal connections, and not merely diving straight into business meetings.

The official two-day programme focused on unlocking business opportunities, with each participant carefully and strategically placed to match their expertise and field of interest. Together, start-ups, corporates, and key industry players explored the future of different industries.

Amazon posted a recent job listing in the U.S. for customer service associates, which revealed that the role pays $15 per hour, offers overtime pay and also covers healthcare after 90 days of employment. Amazon’s offer is open to 3,000 worker candidates living in 18 American states: Oklahoma, Kansas, North Dakota, Wyoming, Wisconsin, Washington, Texas, Tennessee, South Dakota, New Mexico, Nebraska, Missouri, Mississippi, Louisiana, Iowa, Arkansas, Arizona, and Alabama.

The work-from-home part-time role covers between 20 and 29 hours per week, with remote employees expected to work up to 60 hours a week when there is a customer need, says the job listing. Workers are also expected not to live in a location within 50 miles of an Amazon customer service centre.

The offer is unique for a work-from-home customer service role due to the health coverage aspect.

If you are working in the service industry, then you must be aware of how much weight the phrases, “the customer is always right” and “service with a smile” carry. But all this forced smiling can come at a price. Researchers at Penn State have found a link between forced smiling at work and increased instances of heavy drinking after hours.

The study clearly reveals how the “service with a smile” policy hampers the mental well-being of workers. Hiding emotions and being obliged to behave in a particular way negatively impact on workers, and employers must take steps to resolve this issue. Employers may want to consider allowing employees to have a little more autonomy at work, like providing them with some kind of choice on the job. And when the emotional effort is clearly linked to financial or relational rewards, the effects are not so bad.

Agile is becoming more common

Agile ways of thinking, working and organising are becoming more common all over the world. This was first identified as an HR trend in 2016. Since then, HR departments and professionals have been experimenting with the introduction of agile principles, practises and ways of working, in their work and within their organisation. In some cases, HR is called upon to support an enterprise-wide agile transformation. HR instruments around performance, feedback and learning often have to be redesigned to support an agile organisation.

To provide insights into the role of HR in agile organisations, Organise Agile and the HU University of Applied Sciences launched the first international State of Agile HR. It provides insights into current developments and trends and various agile and HR frameworks are the basis of a survey, including HR trends for 2019.

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