HR directors believe that increasing regulation, the growing demand for limited resources, and intensifying competition for global talent will have the most negative impact on their organisations within the next five years.
In a survey of 127 HR directors and practitioners to mark the anniversary of HR's Make a Difference campaign, 54% say increasing regulation of business will have a 'very' or 'somewhat' negative impact on their organisation while 55% believe demand for limited resources, such as oil, water and metals, will negatively impact them.
However, other trends will be beneficial for business, HR directors believe. Top of these is increasing technological connectivity, which 86% think will have a positive impact on their business. More scrutiny of business is viewed as another positive trend, with 58% thinking that growing consumer demand for companies to contribute to the broader public good will have a positive impact. Collaboration is also expected to rise in importance, with 61% believing that organisational boundaries will continue to blur.
The research, conducted in conjunction with Ashridge Business School, finds that many HR leaders believe their organisation has already changed in response to these trends, particularly in the field of knowledge and skills of leaders. However, nearly a third say there has been little or no change in organisational culture and values, and in organisational structure.
Employee engagement, performance management and review systems, and learning and development are believed to be the most important ways of grasping the opportunities presented by the trends while volunteering and green benefits are seen as least important. In a survey last year to launch the campaign, more respondents ran volunteering schemes than built CSR into performance measures.
