Riding the winds
of change
The coronavirus crisis was a bolt out of the blue that left us all bewildered. Enter the new normal. As many organisations were taken by surprise, they quickly had to make a series of far-reaching decisions, sometimes even fundamentally changing their business models or strategies.
During this period of disruption, we considered it quintessential to remain vigilant and up to date. After all, organisations can only adapt when they know what’s going on and where they are heading. To gather that information for our customers, we set up a brand-new project: ‘The Future of Work and People in Europe 2020 – HR, Fluid as Hula-Hoop Shaking’ – a European survey covering 7 key HR topics.
What?
Online survey by iVox on behalf of SD Worx
When?
June 2020
Who?
3,000 companies from 11 countries
Topics
Payroll
Outsourcing
Reward policy
Digital HR
Employee experience
Workforce management
Talent management
With the insights we gathered from the survey, we published several e-books and other publications in autumn 2020. The goal: to help our customers to assess and benchmark their operations while providing them with concrete tips to successfully ride the winds of change. Additionally, it helped us to instantly finetune our offering to fully meet the new needs and wishes of our customers.
The main takeaway of our survey?
HR was undeniably upgraded in 2020. No surprises there, after all, HR is responsible for a company’s most important resource – its people.
“Workplace changes resulting from COVID have been so drastic and sudden that they have placed HR at centre stage – right where it should always be. The change agent potential of HR has long been underestimated.”
Cathy Geerts,
CHRO at SD Worx
Curious about the other the key takeaways? We’ve listed them here by topic so you can start building a futureproof HR department today. The bottom line: a fluid approach is the best recipe for solid success.
Payroll
Smooth, efficient payroll calculation and payment is top of mind
Establishing efficient payroll processes that allow you to pay your staff on time and correctly is the number one priority in all countries, except for Austria (2), Switzerland (2) and Ireland (6). This won’t change any time soon, judging from the payroll projects that companies have planned in the next months and years.
50%
About 50% of companies actively tried to set up a more efficient payroll in June 2020.
30%
and another 30% planned to tackle this topic in the short, medium or long term.
Our advice:
Companies seem to agree on this new principle: if you don’t have smooth HR systems and processes in place, it is almost impossible to be agile. A lack of agility is a major handicap when change is the only constant. Luckily, you are not on your own.
How SD Worx makes a difference
SD Worx calculates the salaries of over 4 million employees across the globe, making us one of the top 5 payroll services providers in the world. Our strength: 75 years of experience, top-notch local payroll engines and our eagerness to find solutions in collaboration with clients.
“Working with SD Worx, we can now rest assured that we are in compliance with all the formalities for our international employees and that they will receive their salaries correctly and on time.”
Frank Heuts,
General Manager of HR at Komatsu Europe International
Outsourcing
Outsourcing eases the administrative burden on personnel
When it comes to outsourcing, European companies certainly differ in their approaches. We expect these trends and differences to continue: some countries want to outsource more after COVID, others less. If you are still weighing your options, you might, however, find inspiration in what your competitors are up to.
Top reasons for payroll outsourcing:
36.9%
#1
Less administrative burden on personnel
29.7%
#2
Continuity of HR activities
27.3%
#3
More time for staff to focus on value-adding tasks
Our advice:
Those who already reap the benefits of payroll outsourcing are particularly pleased with the administrative gains. Are you ready to hand repetitive, time-consuming and error-prone tasks that come with payroll to external experts? Look for a seasoned HR partner.
How SD Worx makes a difference
We guarantee peace of mind by offering right people, expertise and technology to support any company’s aspirations, from legal compliance to scalable software solutions and vast country-specific expertise. This allows you to concentrate on other value-adding tasks.
“By fully outsourcing our payroll to SD Worx, we’ve reduced the time it takes to complete our payroll calculation and administration to one day a month. That’s six days less than it used to take. In short, outsourcing has led to more automation, while we don’t need to worry about being understaffed or about dealing with new regulations.”
Evelyn Willems,
People & Culture Director at Roche Diagnostics Belgium
Reward policy
Flexible remuneration is
slowly kicking off
The long-announced trend towards more personalised remuneration packages still needs to gain momentum, as most companies still compensate their workforces the same way they did two decades ago. But change may be on the horizon, according to our survey.
48.6%
Almost half of European companies were running ‘flex reward projects’ in June 2020 or planned such projects within the next 12 months.
Our advice:
We are convinced that employee recognition – the positive acknowledgement of hard work and performance – will become increasingly personalised in the years to come. Starting with a remuneration system that reflects life stages, preferences and personal needs can give you a head start.
Due to the crisis and the current tendency to freeze salaries, raises have become a delicate matter. Why not focus on offering customised benefits to show your appreciation for your workforce?
Michael Custers,
Chief Marketing, Alliances & Portfolio Officer
at SD Worx
How SD Worx makes a difference
SD Worx offers a combination of tools, expertise and benchmarking data to help you develop and maintain a compensation and reward policy that is aligned with your business strategy – while staying flexible and cost-conscious at the same time.
Today, professionals from all generations want tailored reward packages. According to our own research, about 4 in 10 employees would consider leaving their employers if they don’t have a say in the reward system. Flexible rewards effectively counter that sentiment and boost employee engagement.
Leen Scheepens,
Senior HR Manager BeNeLux at Robert Half
Digital HR
SMEs have yet to fully embrace (new) technology
While companies in some countries, like the Netherlands and the UK, are performing slightly better, less than half of the 3,000 polled companies are satisfied with the automation level of their HR and payroll processes and systems, and their digital HR tools. In particular, SMEs with fewer than 100 employees can still take big leaps by investing in emerging technologies to gain a competitive edge in the attraction and retention of talent.
1 out of 3
SMEs rate their HR automation level as high or very high, leaving a lot of room for improvement.
Our advice:
The figures are striking, because technology can reduce expenses while rendering processes more data-driven and efficient at the same time. Moreover, digitalising day-to-day operations results in more time to focus on your core responsibilities. Why wait?
How SD Worx makes a difference
As a seasoned HR and payroll partner, SD Worx offers software solutions for the whole employee lifecycle, from recruitment and onboarding to digital assistants, learning and performance tools. Together with our specialised partners, we make digital easy.
Because of budgetary constraints, the automation and digitalisation of HR isn’t a priority for most companies during COVID. But from an HR perspective, it is absolutely critical. Advanced digital maturity allows you to focus on strategic tasks that would otherwise be put on hold.
Ferdi Claes,
MD of HR Europe at Computer Task Group
Employee experience
Employees get
renewed attention
The global pandemic has directly impacted employees and their working environments, introducing mass remote working, a renewed work-life balance and new management methods. Fortunately, most companies understand the seriousness of the situation and are acting accordingly.
57%
of European companies were actively trying to improve the employee experience in June 2020, either with running projects or with projects to be carried out within the next 12 months. Another 20% had mid- or long-term plans to tackle this issue.
Our advice:
You have to find ways to create company-wide strategies while at the same time catering to the new needs and demands of individual employees. This calls for a flexible approach comprised of low-effort, low-cost initiatives as well as high-effort, high-cost projects. The goal: making each employee count.
Some companies struggle with making their increased efforts emotion-generating, scalable and business-aligned. Reaching out to experienced HR consultants might just be the missing link in fully living up to your employees’ renewed expectations.
Peter s’Jongers,
Chief Executive Officer at Protime
How SD Worx makes a difference
Many companies need to accelerate from the back of the pack. Dividing their energy and resources over an increasing number of priorities may be too demanding. SD Worx can help by providing digital assistants, onboarding support, personalised L&D tools and much more.
Workforce management
Employing flex workers
is gaining appeal
Although flexibility in workforce management remains rather limited, COVID is inspiring more and more companies to be creative with non-payrolled workers, their ‘flexible shell’. Why? Freelancers, temp workers, seconded staff and other types of flex workers can all add value to the business at the right time.
60%
of European companies employ flex workers or consider doing so in the future.
Our advice:
Over time, the value that a worker can provide to the business will become more important than their employment status. Making this mental shift sooner rather than later can give you a competitive edge, so don’t discount the value of having a flexible shell.
“For every new hire, you should ask yourself some questions. What type of expertise do you need? How long do you need it for? Which objectives do you have in the long term? And how much would it cost to onboard and train the employee? The answers will define the most adequate type of employment. By applying this method, you’ll be able to organise your flexible shell in the best possible way, both in terms of costs and return on investment.”
Christophe Petit,
CEO of SD Worx Staffing & Career Solutions
How SD Worx makes a difference
Fluid workforce management is becoming a requirement for solid success. SD Worx assists you with temporary and project-based staffing, including supportive software such as planning platforms, time registration modules and self-service tools.
Talent management
Organising for key future skills requires fluid talent processes
Which employee skills will carry the most weight in the years to come? It’s no surprise that digital skills are high on the list, but because of COVID, soft skills are considered equally important. The consensus is that employees who know how to handle uncertainty and change well will thrive.
The top 5 skills for 2025
#1
Analytical thinking and innovation
#2
Active learning and learning strategies
#3
Complex problem-solving
#4
Critical thinking and analysis
#5
Creativity, originality and initiative
Source: Future of Jobs
Survey 2020,
World Economic Forum
Our advice:
This shift has far-reaching implications for all talent processes, such as recruitment, learning and development, performance management, compensation and benefits, and strategic workforce planning. Make sure you have a plan.
To thrive in the new world of work, soft skills that set humans apart from machines are just as important as hard, digital skills – think of critical thinking, creativity, emotional intelligence and flexibility.
Lorenzo Andolfi,
HR Advisor at SD Worx
How SD Worx makes a difference
In 2020, SD Worx acquired Adessa Group and extended its capabilities in providing SAP HCM and SAP SuccessFactors services. From local best of breed to ERP based, SD Worx provides talent management suites tailored to your company’s processes and needs.