The global financial crisis is leaving both an opportunity and a threat for HR in its wake, according to a major new study published by the Chartered Institute of Personnel and Development (CIPD).

The first report of the CIPD's Next Generation HR project recognises a far greater focus amongst senior business leaders on genuinely-sustainable performance, and identifies examples of the best HR functions seizing the opportunities this focus offers the profession. However, the CIPD is warning that more needs to be done to ensure "the rest of HR catches up with the best of HR".

The report finds that individual examples of leading-edge practice are outstripping leading edge-thinking. According to the CIPD, this makes it essential that a new, simple language, and a different way of defining and thinking about the future direction of the profession, are quickly developed. The Next Generation HR project aims to play a leading role in filling this gap.

Research released by Recruitment Process Outsourcing specialist Alexander Mann Solutions (AMS) reveals that competition for graduate roles is set to be tougher than ever in 2010, as more than half of graduates from 2009 join the hunt for jobs alongside the class of 2010. This increased competition seems to have hit 2009 and 2010 graduates' confidence, leading to less-targeted applications and a willingness to apply for positions outside their preferred field.

The study, entitled The Emerging Talent Index, was conducted online with over 300 recent graduates and current undergraduates. It found that, of the students who graduated from university in 2009, just 24% have since been working in a role that requires a degree. More than half (53%) of the 2009 graduates surveyed are planning to apply for graduate positions this year. 63% of those set to graduate in 2010 are also applying for graduate roles (compared to 50% of recent graduates in 2009), leading to far greater competition for positions than in previous years.

This increase in applicants seems to have dented graduate jobhunters' confidence, with only 26% of those surveyed confident of finding a graduate position this year. Perhaps because of their experiences last year, 2009's graduates are the least confident; just 22% are confident of finding a position this year. These low confidence levels appear to be reflected in graduates' approach to jobhunting, with one in five (18%) of 2009 graduates applying 'for any job'. In fact, the majority of graduates were found to be broadening their approach: 59% of 2009 graduates are applying for roles across a number of sectors, and just 37% of all respondents are limiting their applications to positions which tie in with their long-term career goals.

The trend is not limited to the applications stage of the process, with two-thirds (64%) of graduates admitting that they would hedge their bets by accepting more than one job offer – either by picking their preferred option nearer the time or by accepting an offer and continuing to look for an alternative. This could cause significant problems for graduate recruiters.

Clodagh Bannigan, head of Client Services at AMS, explains, "The lack of confidence in today's graduate marketplace means that jobseekers are increasingly likely to formally accept multiple offers and then make their final decision just before their joining date. This is, perhaps, understandable in the economic climate, but it represents a real challenge to employers. Organisations must factor in this kind of behaviour and ensure their strategy will not be adversely affected by applicants dropping out late in the day.

"It is certainly the case that competition in the graduate jobs market is tougher than ever this year. However, this rise in the quantity of applications has not brought a rise in quality. University leavers are adopting a 'hit and hope' approach, applying for as many positions as possible rather than carefully targeting the roles that are right for them. This type of approach can cause problems for employers. Businesses looking to hire graduates need to ensure that they have the processes and scalability in place to deal with the high volume of applications, without compromising on the human touch that is essential when looking to attract the best young talent. This is by no means an easy feat."

The research also asked graduates which sectors they perceive as offering the best opportunities to university leavers. The public sector was identified as the area that offers the best opportunities, with nearly a third (30%) ranking it as the top sector. Financial services and banking fared much worse, being ranked lowest by 28% of respondents.

Says Clodagh Bannigan, "The fact that graduates still consider the public sector to be an attractive destination for university leavers, despite the current economic and political uncertainty, is certainly encouraging. The ability to attract the best graduates is a crucial advantage for any organisation, and something that public sector bodies need to prioritise if they are to successfully manage the changes they will be facing over the next few years.

"More worrying is the damage that the recent economic crisis has had on employer brands in the banking and financial sector. Employers in this industry have been scrutinised heavily in the last 18 months, and this has, understandably, impacted on their reputations amongst graduates. Businesses in this sector will be able to repair their brands over time, but this should be a great concern to organisations that have traditionally been very attractive to university leavers, and steps should be taken immediately to restore their standing."

For more information, go to www.alexandermannsolutions.com

Brookfield Global Relocation Services (GRS) has announced that, for the second year in succession, one of its surveys and reports has been named a top five human resource survey worldwide by Expatica HR and Expatica.com

Expatica's panel of judges comprises authorities on human resources from the UK, the Netherlands and Australia, as well as Natasha Gunn, Expatica HR editor and editor-in-chief of Expatica.com

The award-winning survey was prepared by Brookfield GRS's Consulting Services team, which performs a variety of services for clients worldwide, including programme assessment and administration, policy review, and development, strategy and planning. The team is also responsible for knowledge sharing of generally accepted practices, publishing monthly publications that address current issues, as well as developing ad-hoc research and reports on a diverse range of issues driven by the marketplace.

"Now, more than ever, consultative services are in high demand by companies looking to maximise efficiencies from their HR and international mobility programmes," said Rick Schwartz, president of Brookfield GRS. "Our industry research and consulting services have become an invaluable resource for uncovering trends and providing insight into the complex issues that impact the global workforce."

For the past 15 years, Brookfield GRS has published its annual Global Relocation Trends Survey report, which has become the definitive study of companies' employee-relocation practices, policies and projections. The 2010 report will be released next month. Like its predecessors, the survey will paint a comprehensive picture of evolving trends and emerging issues facing companies of all sizes that rely on an international workforce. The 15 years of data enable the company to track year-over-year comparisons against historical averages.

Last year, the Global Relocation Trends Survey report was awarded a Top Five Industry Survey Award by Expatica HR; this year's award was given to a supplementary report to the Global Relocation Trends Survey. That report, International Mobility: Impact of the Current Economic Climate, and the company's knowledge centre, which provides thought leadership and analysis across a spectrum of relocation issues and challenges faced by global mobility professionals worldwide, can be found at www.brookfieldgrs.com/knowledge/

It is not the impending fiscal crunch that poses the greatest threat to public service delivery, but a related people management crisis on the front line, according to a new report series from the Chartered Institute of Personnel and Development (CIPD).

In the new Building Productive Public Sector Workplaces series, the institute highlights the sporadic, and often inadequate, quality of frontline management in the public sector, which results in high levels of absence and an inability to tackle poor performance. Compared with the private sector, on average, public sector employers:

• Are three times less likely to discipline staff
• Rate their line managers’ conflict management skills more poorly
• Take far longer to manage formal disciplinary and grievance cases

The report reveals worryingly low levels of trust and confidence in senior management among public sector employees, as well as their dissatisfaction with consultation over change. These factors, says the CIPD, must be addressed in order to build the employee engagement necessary to deliver on political and public expectations of public service reform.

The report's recommendations for improvement include:

• A thorough review of public sector management training, to identify how to improve people management capabilities amongst front-line managers
• Action to ensure that professionals involved in the delivery of public services are equipped with people management capabilities that are recognised and valued as highly as their professional skills
• Ensure public sector leaders at all levels understand the dynamics of organisational change in large organisations and are able to take and implement tough decisions while carrying people with them

Ben Willmott, the CIPD’s senior public policy adviser and one of the report’s authors, said, "Delivering 'more with less' is precisely what many organisations have had to do in the recession – and it is perfectly achievable where there are high levels of employee engagement and shared purpose. But the public sector is heading for extremely tough times, and political and taxpayer expectations are high. The challenge for policy makers is to chart a course that can motivate and engage the public sector workforce in the delivery of change, despite the need for pay restraint, redundancies and pensions reform.

"Success could bring a productivity dividend and public applause. Failure risks derailing efforts to reform public service delivery and get a grip on the public finances.

"However, there are serious question marks over the public sector’s people management capability to emulate the best of the private sector response to adversity. While there are excellent managers and examples of great performance in the public sector, across a range of aspects of management, including senior leadership, capacity to manage change, absence, conflict and performance management generally, the sector is in urgent need of improvement."

"High levels of absence and poor performance need to be addressed as an absolute priority. Front-line managers need to be equipped with better people management skills. In addition, public sector leaders also need to give managers at all levels, as well as front-line staff, greater opportunities to understand and 'buy in' to change. But ministers also need to lead by example. Political leadership, direction and accountability are essential. But so, too, is a strenuous effort to avoid the understandable tendency to micromanage – a tendency that can sap motivation and crush innovation and dedication on the front line."

In the latest quarterly Employee Outlook survey from the Chartered Institute of Personnel and Development (CIPD), workers report plummeting job satisfaction and falling standards of living.

The survey, conducted by YouGov and covering more than 2,000 UK employees, shows job satisfaction levels have hit an all-time low of +35, down from +48 in Summer 2009*, with a large proportion (29%) reporting a worsening of their standard of living in the last six months. However, fewer than one in 10 (9%) say their standard of living has improved, compared with 14% last quarter.

Younger workers are particularly unhappy at work, with job satisfaction among 18- to 24-year-olds falling to just +5 from +44 in Summer 2009, and generally increasing proportionally with older age groups. Those aged 55–64 are the most satisfied at work, with a score of +55, exactly the same level as in Summer 2009.

Claire McCartney, CIPD lead adviser and co-author of Employee Outlook, said, "Even though the economy is no longer flat on its back, the 'real economy', as experienced in the day-to-day lives of workers, is crippled. If the economy does 'officially' emerge from recession today, employers are going to have to continue to work hard to rebuild motivation and commitment among employees bruised by job insecurity, lack of consultation over change, pay freezes or cuts, as well as increases in stress and conflict.

"Job satisfaction among young people has been decimated by this recession. The fact they've grown up in an era of plenty, and have not seen anything like this before, may well partly explain why they're so much unhappier than their older colleagues. But the lack of opportunities to learn new skills or make their first steps up the career ladder is also likely to be grinding them down. The stagnant labour market means people are not moving on and up as they would like, leaving many young people stranded in entry-level jobs.

"Current high levels of youth unemployment are well documented, but our survey lifts the lid on the simmering discontent caused by the recession among even those young people fortunate enough to have a job."

Key findings include:

• The vast majority of workers (63%) believe it would be difficult, or very difficult, to find another job if they lost their current one. Almost a fifth (19%) think it is likely, or very likely, that they could lose their job as a result of the recession
• Employees, and particularly those in the public sector, are more likely than last quarter to report their organisation has made, or is planning to make, redundancies. 30% overall have made redundancies (29% last quarter), with public-sector redundancies increasing from 19% last quarter to 23%. 15% overall are planning redundancies (14% last quarter), with public-sector plans for redundancies increasing from 24% last quarter to 31%
• The proportion of people reporting an increase in conflict at work between colleagues, and bullying by line managers, as well as an increase in stress and people taking time off sick, has edged up again. Half (49%) of respondents report an increase in stress, a fifth (24%) say there has been an increase in sick leave, while 18% of employees report an increase in conflict and 14% think bullying by managers has increased
• A large proportion of employees (41%) say they feel under excessive pressure, either every day or once or twice a week
• Employees are particularly unhappy with the opportunities to learn new skills and progress at work as a result of the recession, with almost a quarter (23%) saying their organisation have cut back on training in response to the recession. Just a quarter (25%) agree they are learning new skills; however, almost half (43%) disagree, and only 6% say there are more opportunities to progress compared with the vast majority (64%) who disagree

*Score is the percentage of employees agreeing minus the percentage disagreeing

The complete survey can be downloaded from www.cipd.co.uk/subjects/empreltns/general/_employee_outlook

With official figures due to be released this week likely to show that the UK economy is growing again, the latest Work Audit –The jobs recession in 3D – from the Chartered Institute of Personnel and Development (CIPD) finds that the overall impact of the recession on the UK workforce has been much deeper than the headline employment and unemployment figures indicate.

The study finds that:

• 1.31 million people were made redundant during the recession – double the net fall in employment and equivalent to 4.4 per cent of people in work before the downturn
• There were 6.2 million fresh claims for Jobseeker's Allowance between April 2008 and November 2009 – 7.5 times the rise in the unemployment claimant count during the recession, highlighting the degree to which many people are struggling to find permanent jobs
• Two-thirds of people made redundant during the recession who subsequently found work were paid less in their new job. The average pay penalty was 28%

Dr John Philpott, the CIPD's chief economic adviser, comments, "Although the scale of job loss in the recession is much less than originally feared, and much less than might have been expected given the scale of the contraction in the economy, it is evident that the direct experience of redundancy, repeat spells of unemployment and pay penalties has nonetheless been widespread. Moreover, given that redundancy also affects the families, friends and former colleagues of those made redundant, the full experience of the jobs recession has been wider still. This is likely to have a much greater impact on perceptions of job security and consumer confidence during the recovery than the simple 'unemployment situation is better than feared' story of the moment would suggest."

A new research report from executive education and research institute Roffey Park finds that only 6% of UK managers believe their organisation can thrive at this time and ride the wave of the global economic crisis.

Now in its twelfth year, the annual Management Agenda – a survey of over 850 managers – reveals the impact the current economic climate is having on the workplace:

• 59% of managers say that work pressure has increased as a result of the current economic climate
• 58% feel the economic climate has had a negative impact on their organisation
• 41% believe the economic downturn is one of the biggest issues facing their organisation at the moment

Jo Hennessy, director of research at Roffey Park, says, "Managers are increasingly aware of cost spending restrictions in reaction to the economic downturn. Even those who do not report any impact as yet on their businesses are looking to cut costs. It’s this, and the uncertainty in the workplace, which makes it difficult for managers to motivate and develop staff."

The report is one of the first to capture management views before and after the October 2008 crisis. The findings show the key concern for all managers and employees is feeling under pressure at work, with 31% reporting increased pressure (August 2008 survey results compared to results of a follow-up survey in November 2008).

However, this year’s Management Agenda reveals that just 25% of organisations plan to downsize, compared with 36% last year. This suggests, says Jo Hennessy, that organisations have been less ‘gung-ho’ in their reactions to this credit crunch and are doing what they can to protect their core businesses and workforces, although the situation may change as the recession takes grip.

Jo Hennessy says, "It’s clear that retaining skilled employees and top talent is one of the key differences between this economic crisis and the nineties. During the last recession, many organisations navigated their way through tough times by carrying out massive cost-cutting exercises, including large-scale redundancies.

"Our report indicates that managers have learnt lessons from the past – many continue to value their people and the contribution they make to the business. Instead, many managers are making changes to existing growth strategies – with many businesses putting a hold on outsourcing and acquisition activities to help manage financial costs and survive the difficult economic climate."

Strategies for the future

The Management Agenda 2009 shows that leadership development is still the most common strategy for the future. The research finds strategic and financial success to be clearly related to the quality of their leadership, how well organisations manage change and the extent to which there is collective purpose among their staff.  Other strategies for the future include talent management, building strategic alliances and focusing on project management.

Jo Hennessy concludes, "Motivating staff to ‘go the extra mile’ and supporting the business is vital if organisations are to endure these tough times; and the quality of leadership throughout the organisation will play a vital role. Retaining and engaging talented employees is crucial, not only to survive the immediate future, but also to avoid an intensified ‘war for talent’ after the recession."

A preoccupation with personnel change and structural reorganisation as a key to improving performance is undermining the investment made by European businesses in developing leadership talent and making more difficult the challenge of retaining high-potential individuals.

This insight features among the key findings of Executive Guidance for 2010, a new research report published by global executive network and consultancy Corporate Executive Board (CEB).

The limited impact of organisational changes as a route to improved effectiveness is reflected by the report's revelation that only one in six (16%) of surveyed organisations which made at least one senior-level personnel change have succeeded in outperforming their key performance objectives (KPOs) during 2009. In contrast, 39% of leaders in organisations which have resisted leadership team personnel changes have succeeded in outperforming their KPOs in the same period.

However, additional CEB research reveals that, amongst European companies, an estimated 40% of the barriers to effective leadership are linked to shortcomings imposed by their surrounding working environment and have little to do with individuals' leadership ability.

Commenting on the findings, Christoffer Ellehuus, managing director EMEA, Corporate Leadership Council, CEB, said, "European companies are rightly reappraising their readiness for outstanding future performance as the global economy exits recession, but the collective focus needs to be on ensuring that the impact of structural changes upon the ability of individuals to do their jobs effectively is factored into the planning process."

The CEB findings further suggest that the resources which companies have and are dedicating to developing tomorrow's business leaders are being undermined by a widespread failure to ensure today's leaders are suitably equipped to operate in the economic marketplace.

Moreover, the spotlight is on training investment and why succession plans have not delivered all that they promised. Almost four out of five (84%) of identified successors are not ready to step into the executive roles they have been nominated for.

Further, in a worrying development for European businesses, designated high-potential employees are also found by the report to be unsettled. Whilst these individuals perform 21% better than non-high-potential colleagues, they are 10% more likely to leave their organisations today than a year ago – in fact, one in four indicate that they plan to leave in the next 12 months.

The report confirms that, despite the supposedly brighter economic outlook, more than four in five (82%) senior decision makers in European businesses do not expect to exceed their KPOs during the first half of 2010.

Says Christoffer Ellehuus, "The areas of weakness among today's leaders are precisely those which are being cited as key areas of focus in the training of high-potential staff in European businesses. But this rather begs the question of precisely what current trainees will inherit if shortcomings among current leaderships are not addressed. The past decade has seen European firms invest huge amounts on high-potential programmes, but the risk of history coming to view this as nothing more than a scorched-earth policy is seemingly increasing."

Further information is available from www.exbd.com

Global information services company Experian has released its latest mergers and acquisitions (M&A) and equity capital market (ECM – flotation, rights issue and placement) data for the UK, covering Q4 and year-end 2009. According to Experian's Corpfin business, which specialises in the provision of corporate and financial information, the figures reflect the trend of a traditionally slow Q4 and show the following:

UK

• The UK saw a 24.5% decrease in UK M&A and ECM transactions announced during 2009. There were 4,269 deals announced, compared with 5,656 in 2008
• £272.6bn worth of transactions were announced in the UK in the year, up by 0.22% on 2008
• There were 8.4% fewer deals announced during Q4 2009 compared with Q3 2009. Deal volumes decreased from 1,098 transactions in Q3 to 1,006 in Q4
• JP Morgan Chase & Co announced the most UK deals in 2009, advising on 82 transactions
• Credit Suisse was the best-performing financial adviser by value of deals (£100.5bn)
• Eversheds was the leading legal adviser by volume of deals (90), with Linklaters the leading adviser by value (£111.8bn)

The European picture

• Europe saw a 23.5% decrease in UK M&A and ECM transactions announced during 2009. There were only 10,905 deals announced, compared with 14,250 in 2008
• €811.4bn worth of transactions were announced in Europe in 2009, down by 30% on the €1.159bn recorded in 2008

Brian Rarity, strategic consultant for Experian's Corpfin business, commented, "The UK, like the overall European picture, has seen deal volumes continue to decline. Deal values in the UK have remained largely constant year-on-year, with some encouraging signs in Q4. The UK large-cap scene is relatively buoyant, and there are good signs in the mid-cap market."

For more information, visit www.experianplc.com

It might sound too good to be true, but there really are ways of saving money during the relocation process that you might not already have thought of.

Inspired by a session on this topic at the ERC Symposium from the other side of the pond, we suggest some ‘smart ideas’ to make your relocation budget go further, whether you’re managing domestic or international moves. We’d welcome your ideas and suggestions, too, so please contact us via www.relocatemagazine.com, so we can share them on our website.

Defining what you’re after

It may seem obvious, but clearly defining what you mean by short-term assignments, long-term assignments, business travellers and so on – and making sure everyone understands those classifications – can make a huge difference to what your organisation spends. Banish those expensive exceptions, but remember to keep communicating. See Sue Shortland’s article for useful advice on assignments.