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Restructuring of HR departments is on the cards this year

A quarter of HR departments increased their headcount in 2008 and 31% are expecting to restructure this year.

A survey of senior HR professionals by law firm Speechly Bircham and King's College London, shows more than half (58%) of the HR professionals surveyed said engagement was the biggest challenge for them this year, followed by succession planning (44%), talent management (38%), managing redundancies (35%) and managing growth and expansion (31%).

And although 42% of companies reported redundancies in 2008, 28% of HR staff are still having to deal with staff shortages due to lack of qualifications and skills.

Almost three out of 10 respondents (29%) reported an increase in employee grievances last year and 23% expect this to increase further in 2009 - and 11% think there will be an increase in grievances associated with pay and conditions.

Richard Martin, employment partner at Speechly Bircham, said: " There seems to be a real concern about grievances escalating considerably at a time when employee engagement is cited as a major concern. With the abolition of the statutory dispute resolution procedures as of April 2009, employers will have to continue to devote energy and attention to their internal dispute resolution processes. Managers must realise aggressive management is not always the way to drive efficiencies across a business."