September 2009, Ljubljana Vanda Pečjak, president of HR Association of Slovenia HRM DEVELOPEMENT FROM THE PERSPECTIVE OF HR ASSOCIATIONS IN CSEE Vanda Pečjak, president HR Association Slo Ljubljana, September 2009

September 2009, Ljubljana Vanda Pečjak, president of HR Association of Slovenia Agenda 1. Socio-economic view of present situation in the world 2. Present reactions of politics and business 3. HR view on crisis and beyond 4. Alpe Adria forum 5. HR Association of Slovenia

September 2009, Ljubljana Vanda Pečjak, president of HR Association of Slovenia SOCIO-ECONOMIC VIEW OF PRESENT SITUATION IN THE WORLD Crisis present in financial and real sector all over the globe Crisis present in financial and real sector all over the globe Stock exchange prices drop, slowly recovering Stock exchange prices drop, slowly recovering Credit crunch Credit crunch Increased number of closed businesses Increased number of closed businesses Some bright exceptions: pharmaceutical, special services, high tech Some bright exceptions: pharmaceutical, special services, high tech The unemployment rate still growing The unemployment rate still growing Increased state depth in many countries Increased state depth in many countries Stable or negative growth of GDP Stable or negative growth of GDP

September 2009, Ljubljana Vanda Pečjak, president of HR Association of Slovenia Long term development and trends Population aging in more developed countries Population aging in more developed countries Negative ratio between active and non active population, push on public funds Negative ratio between active and non active population, push on public funds Structure of economy changed in favor of service and high tech sector Structure of economy changed in favor of service and high tech sector Big gap between labor demand and labor supply Big gap between labor demand and labor supply More employees effected by changing or losing jobs More employees effected by changing or losing jobs

September 2009, Ljubljana Vanda Pečjak, president of HR Association of Slovenia LABOR MARKET : More flexible types of employment contracts and working time More flexible types of employment contracts and working time Permanent upgrading and changing of education, knowledge and skills Permanent upgrading and changing of education, knowledge and skills No guarantee for permanent employment, risk for unemployment is big, fast changes of jobs No guarantee for permanent employment, risk for unemployment is big, fast changes of jobs High disproportion between competences of unemployed and demands of modern businesses /low qualified, no soft skills, rigid etc./ High disproportion between competences of unemployed and demands of modern businesses /low qualified, no soft skills, rigid etc./ High percentage of jobs on low level not allowing enough earnings for normal living High percentage of jobs on low level not allowing enough earnings for normal living

September 2009, Ljubljana Vanda Pečjak, president of HR Association of Slovenia PRESENT REACTIONS OF POLITICS AND BUSINESS on crisis POLITICS State guarantees for banks State guarantees for banks Supporting new investments in the companies or supporting the purchase of some products Supporting new investments in the companies or supporting the purchase of some products Change of legislation: labor, retirement, health insurance, unemployment, income tax, company taxes etc. Change of legislation: labor, retirement, health insurance, unemployment, income tax, company taxes etc. Saving in public sector /organization, employment, salaries / Saving in public sector /organization, employment, salaries / Agreements with Trade unions – social pact, depending on quality of social dialog in the country Agreements with Trade unions – social pact, depending on quality of social dialog in the country More funds for active and passive measures on labor market /shorter working time, temporary unemployment, trainings, help in employment of specific categories with limited skills, starting an own business/ More funds for active and passive measures on labor market /shorter working time, temporary unemployment, trainings, help in employment of specific categories with limited skills, starting an own business/ State support for education /scholarships/ and prequalification State support for education /scholarships/ and prequalification

September 2009, Ljubljana Vanda Pečjak, president of HR Association of Slovenia BUSINESS Level of activities in all business areas adjusted to the level of orders Level of activities in all business areas adjusted to the level of orders Some parts of businesses are closed temporary or permanently Some parts of businesses are closed temporary or permanently All processes are being revised and cost reduced All processes are being revised and cost reduced Mostly hiring freeze, exceptions for special experts Mostly hiring freeze, exceptions for special experts Working time temporary reduced /week hours, shifts/ Working time temporary reduced /week hours, shifts/ Restructuring in business Restructuring in business Agreements with trade unions /could be workers council in the company/ on sector or company level on working time, vacation, salary reduction, temporary freeze of bonuses and some benefits Agreements with trade unions /could be workers council in the company/ on sector or company level on working time, vacation, salary reduction, temporary freeze of bonuses and some benefits less money for sponsoring, less money for sponsoring, reduced budgets for training. reduced budgets for training.

September 2009, Ljubljana Vanda Pečjak, president of HR Association of Slovenia HR VIEW ON CRISIS AND BEYOND GENERAL It is an opportunity to ex ray all activities on the level of : state, company or each individual and change fast It is an opportunity to ex ray all activities on the level of : state, company or each individual and change fast Human resources development must have the right focus also in difficult times Human resources development must have the right focus also in difficult times It is the right time to think about values – values are like glue It is the right time to think about values – values are like glue It is the right time to see the quality of managers It is the right time to see the quality of managers It is the right time to show the role and quality of HR function in the company It is the right time to show the role and quality of HR function in the company HR should be part of leading team, partner for long term decisions as there is no guarantee for long term success without including the capability, motivation and engagement of associates in the company. HR should be part of leading team, partner for long term decisions as there is no guarantee for long term success without including the capability, motivation and engagement of associates in the company.

September 2009, Ljubljana Vanda Pečjak, president of HR Association of Slovenia WHAT IS THE ROLE OF HR FUNCTION NOW? Execute all HR processes according to the law, professional standards and with objective communication to the individual and to the others Execute all HR processes according to the law, professional standards and with objective communication to the individual and to the others Be flexible and proactive in processes of hiring, training, working time, communication and, compensation policies Be flexible and proactive in processes of hiring, training, working time, communication and, compensation policies Take care for good relations with trade unions and workers council Take care for good relations with trade unions and workers council Fight for training budgets to keep associates well trained, to get new knowledge and skills to be more flexible Fight for training budgets to keep associates well trained, to get new knowledge and skills to be more flexible Care for high potential experts and managers, to give them opportunity to grow and be rewarded according to the market levels and results Care for high potential experts and managers, to give them opportunity to grow and be rewarded according to the market levels and results

September 2009, Ljubljana Vanda Pečjak, president of HR Association of Slovenia EAPM RESEARCH: Major HR challenges during crisis and beyond The main question is: how to use crisis as an opportunity to increase the importance of human factor for long term success and to see what HR professionals should do to be seen as business partners to the top management. The main question is: how to use crisis as an opportunity to increase the importance of human factor for long term success and to see what HR professionals should do to be seen as business partners to the top management. 1.STRATEGIC WORK FORCE PLANNING- planning future demands and competences and match with structure of present associates 2.PRODUCTIVITY CONTROLLING - more sophisticated indicators 3.WORK FORCE FLEXIBILITY – create several scenarios /including cost impact/ 4.RESTRUCUTRING - selective approach, cut on right places 5.PERSONNEL COST MANAGEMENT - create innovative compensation models

September 2009, Ljubljana Vanda Pečjak, president of HR Association of Slovenia 6. FOCUSED RECRUTING OF KEY PERSONNNEL- upgrade talents 7.RESTRUCTURING HR ORGANISATION – simplify processes and be lean 8.PERFORMANCE MANAGEMENT : move from short to long term approaches 9.EMPLOYEE ENGAGEMENT – focus on motivation and accountabilities 10.LEADERSHIP CAPABILITIES - train managers on models how to handle critical situations 11.CHANGE MANAGEMENT – adopt a systematic and cascading approach 12.COMMUNICATION - talk the walk

September 2009, Ljubljana Vanda Pečjak, president of HR Association of Slovenia HR MANAGER IN THE NEW ROLE Professional areas: strategy, insights and solutions strategy, insights and solutions leading and managing the function leading and managing the function organization design organization design resourcing and career planning resourcing and career planning organization development organization development training and talent development training and talent development performance management and rewards performance management and rewards employee relations employee relations employee engagement employee engagement communication communication

September 2009, Ljubljana Vanda Pečjak, president of HR Association of Slovenia Accountibilities : split on the basis of organization structure from the entry level to the level of HR director or board member for HR split on the basis of organization structure from the entry level to the level of HR director or board member for HRBehaviours: curious curious decisive thinker decisive thinker skilled influencer skilled influencer driven to deliver driven to deliver collaborative collaborative credible and with high ethical-moral standards credible and with high ethical-moral standards courage to challenge courage to challenge role model role model

September 2009, Ljubljana Vanda Pečjak, president of HR Association of Slovenia HRM CHALLENGES FOR THE FUTURE age management age management motivation for lifelong learning motivation for lifelong learning flexible employment and working time flexible employment and working time coaching as a job to develop and to be developed coaching as a job to develop and to be developed employee engagement employee engagement motivation for innovation motivation for innovation talent management /find and develop/ talent management /find and develop/ management management social dialog - new contract between labor and capital – how to get more for all? social dialog - new contract between labor and capital – how to get more for all?

September 2009, Ljubljana Vanda Pečjak, president of HR Association of Slovenia ALPE ADRIA FORUM started more than 20 years ago : HR Association from Austria, Italy, Slovenia; last 3 years also invited Hungary, Slovakia, Croatia, Srbija,Romunija, Bolgarija started more than 20 years ago : HR Association from Austria, Italy, Slovenia; last 3 years also invited Hungary, Slovakia, Croatia, Srbija,Romunija, Bolgarija participants : HR managers, members of country HR Association, researchers participants : HR managers, members of country HR Association, researchers model: rotating role of a host country model: rotating role of a host country The purpose: to exchange political, economic and professional information and views on all measures which impact the labor market and employees. Each country presents also the good practice according to the title of each event. The purpose: to exchange political, economic and professional information and views on all measures which impact the labor market and employees. Each country presents also the good practice according to the title of each event.

September 2009, Ljubljana Vanda Pečjak, president of HR Association of Slovenia Key topics from last 5 years: talent management talent management outsourcing outsourcing flexible employment flexible employment motivation motivation change management change management managers development and training managers development and training age management age management labor legislation labor legislation response on crises in 2008/09 response on crises in 2008/09

September 2009, Ljubljana Vanda Pečjak, president of HR Association of Slovenia HR ASSOCIATION OF SLOVENIA Started in 1981 Started in 1981 Status: 14 HR clubs in all regions, 1350 members : all sectors and all HR jobs Status: 14 HR clubs in all regions, 1350 members : all sectors and all HR jobs Leadership: president and 8 board members, mandate for 2 years. Leadership: president and 8 board members, mandate for 2 years. Mission: to promote, enlarge and develop knowledge and good practice in HRM and HR function in Slovenia Mission: to promote, enlarge and develop knowledge and good practice in HRM and HR function in Slovenia

September 2009, Ljubljana Vanda Pečjak, president of HR Association of Slovenia Activities: HR conference: Good practice sharing HR conference: Good practice sharing HR conference: Study days HR conference: Study days Alpe Adria forum Alpe Adria forum Expert council Expert council Lectures and meetings with local clubs Lectures and meetings with local clubsLiterature: 1.BCG research, Creating People Advantage, March People Management, HR magazin, April Reports: HR Association SLO, Alpe Adria

September 2009, Ljubljana Vanda Pečjak, president of HR Association of Slovenia THANK YOU Vanda Pečjak