Most HR managers believe their companies would benefit from recruiting software.
The most recent HR Challenges Survey from Taleo found that the top three challenges facing HR managers in the United Kingdom this year are succession planning, employee retention and providing leadership with better management information and reporting.
Unfortunately, it does not appear as though HR departments will have the additional funding to help them manage talent and support business leadership. Of the respondents, about 70 percent predict that less than 10 percent of their company’s technology funding will be used on tools to help them manage talent.
Overall, only 18 percent of companies expect that their budgets will increase this year, while 32 percent expect their budgets to be reduced. Many companies simply plan to remain as they are, with 50 percent not anticipating any budget changes.
“Succession planning is now critical to ensure businesses have the talent they need to grow,” Chris Phillips, vice president of international marketing for Taleo, said. “Strategic succession planning links the leadership pipeline with top performer retention and leverage.
“As the economy slowly recovers, HR managers are worrying about short and long term employee retention,” he continued. “They are especially focused on identifying and engaging their key employees before they start to think about a move.”
A good sign for recruiting software companies – the majority of HR managers said the one thing that would help them do their jobs better this year is a software solution to improve performance management, succession and career planning.
“Given the continued squeeze on budgets, HR managers will need to be creative about saving money to help fund new projects,” Phillips said. “One tactic is reducing or eliminating recruiting agency fees by recruiting online or through internal mobility programs.
“Given even a reasonable level of turnover, these savings can fund investments in other strategic areas, such as succession planning tools,” he added. “The organizations that get succession planning right and hold on to their key talent will be the ones making the strongest recoveries in the shortest amount of time.”