A study from Alexander Mann Solutions (AMS) found although the worst of the recession may be over, HR and recruitment departments will still have to manage with limited resources to achieve business objectives.
A lack of budget was identified by 36% of respondents as the biggest challenge to HR in 2010, with ongoing restructuring programmes still having an impact, as the second most concerning issue (32%). There are more positive signs for the new year, however, with nearly one fifth of HR managers expecting their budgets to increase in 2010.
The top four investment areas for 2010 were employee retention and engagement programmes, training and coaching, candidate attraction programmes and recruitment and technology investment in HR.
The findings suggest HR departments are anticipating job movements among employees as the economic climate improves, and are seeking to counteract this by boosting their retention and development strategies. But the emphasis on technology and candidate attraction suggests that, with recruitment budgets expected to remain the same, businesses are looking to maximise their expenditure by investing in the tools and expertise that will help get them value for money.
Tom Marsden, director of professional services at Alexander Mann Solutions, said: "HR departments more than ever need to add real business value to their organisations. Although the restrictions of the recession aren't over yet, companies are recognising that in 2010 they will need to take steps to retain their workforce.
"This could be through an increased emphasis on training and engagement programmes or by investing in areas that will optimise expenditure, such as integrated technology systems or improved candidate attraction schemes. The signs are that HR departments are preparing to maximise their resources and staff as organisations look to grow."
While the majority of businesses are using services from external recruitment suppliers, more than two thirds (67%) of HR departments are using multiple suppliers, with as many as 22% using more than 10. A fifth of HR departments are working with one supplier.
