Cutting back on Company Events hampers Employee Commitment.

Almost 2/3 of all companies in Europe are cutting back on company events. This action is not so effective and reduces employees’ commitment to their company. HR executives should take into account not only the likely effectiveness of their actions, but also their probable impact on employee commitment. A crucial test of a company’s culture is how it treats its employees in bad times. Companies should be careful about going after the so-called quick hits or low hanging fruit without recognizing the full consequence.

Yesterday we visited a major company and global player in The Netherlands. It was refreshing to see that in spite of the recession and negative results, this company has recently published its new plans for company events for the year to come. It goes without saying that the company mentions the bad times and asks for understanding that not all events are continued, but company culture enforcing actions like Santa Claus parties for the children of employees, the family summer event, a spinning marathon, and the annual meetings for the retired employees will be continued as usual. The most foolish cost cutting action seen in another company was to take away personal e-mail addresses…

Let us know if you have seen even more uncomprehensible actions and examples in your own networks.

The Practise of International HR Management

On June, 16, 2009 a new book ' De Praktijk van Internationaal HR Management' will be launched in Hotel Jan Tabak in Bussum, The Netherlands. The authors are Pieter van Gent, Alain Camonier and Henk Verhoek, all of them with a broad and in-depth experience in the international HR practise. The book will be published (in the Dutch language) by Kluwer. 

 An English translation will be available in the autumn of this year.

For HR professionals in Small and Medium sized Enterprises (SME) this practical guide, when being confronted with an international reorganization, merger, joint venture, take over or carve out will be a great help and practical guideline. 

The first copy will be presented to Pieter Haen, vice president of the European Association for People Management EAPM.

The long memories of Elephants and Employees

Top priority and the most common actions with companies now is cost reduction by making employees redundant, firing them, cutting back the budgets for company events and bringing down the costs of training and education. In a recent White Paper ' Creating People Advantage in Times of Crisis, How to Address HR Challenges in the Recession' published by the Boston Consulting Group (BCG) and the European Association for People Management (EAPM) in March 2009 most frequently used actions are listed. All these actions have an impact on employee commitment. Some have a positive impact, such as making layoffs dependent on individual performance and increasing the use of early retirement. Others like laying off full time employees and reducing base salaries have a strong negative impact.

Whatever actions taken, companies should not forget the long term. Talent will remain a scarce article and the demographical developments will not be stopped. In a few years, when there will be a new demand for talented people employer branding will be back in the top 10.

Employees will remember how they were treated in the recession. They have a very long memory and will not forget.

How is this element handled in your company? Let us know.

HR in Uganda

Just back from a visit to the first African HR conference in Kampala, Uganda. Fascinating to see how eager young HR-professionals are in adapting and adjusting to common HR policies and instruments to their own culture and local companies.

In a time where company budgets for traveling and trainings are cut, the added value of a personal presence at such meetings is highly appreciated and valued.

I am very happy to have been able to build new relationships and find new friends on a continent, that is developing fast.

When you have a chance or opportunity to go to Uganda, don't miss it!!!

When you have experiences of your own in fast growing or developing economies, please share.