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HR: Leading People, Leading Organizations. © 2003 SHRM. Human Capital Forecast: 2004. Society For Human Resource Management December 2003 1. Survey Methodology. 10 minute interactive survey of C-Suite Executives (102), Senior Managers (136), and HR Professionals (124)

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Human Capital Forecast: 2004


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    1. HR: Leading People, Leading Organizations © 2003 SHRM Human Capital Forecast: 2004 Society For Human Resource Management December 2003 1

    2. Survey Methodology • 10 minute interactive survey of C-Suite Executives (102), Senior Managers (136), and HR Professionals (124) • Field Dates: December 10-18, 2003 • Sample drawn using pre-identified online sample of individuals from Insight Express, an affiliate of NFO WorldGroup, Inc. 2

    3. Summary of Findings Attention to HR is fueled by the perceptions that both general human capital strategy and the successful delivery of HR services are deemed “very” important to the overall success of the organization Additionally, those interviewed feel that aligning employees with the overall business goals of the organization is “very” important 3

    4. Summary of Findings Executive management (EM), senior managers (SM) and HR professionals (HR) differ in their perceptions regarding the importance of documented human capital policies: • Accountability: 94% EM, 95% SM, 92% HR feel a documented policy on accountability is either “very important” or “somewhat important” • Business growth and development: 90% EM, 93% SM, 91% HR feel a documented policy on business growth and development is either “very important” or “somewhat important” • Leadership development: 76% EM, 90% SM, 88% HR feel a documented policy on leadership development is either “very important” or “somewhat important” • Organization structure: 56% EM, 71% SM, 90% HR feel a documented policy on organization structure is either “very important” or “somewhat important” 4

    5. Summary of Findings In evaluating the overall importance of the HR function within business organizations, the majority of respondents agree that HR has the ability to create employee loyalty to impact customer loyalty: • 66% of executive management • 71% of senior managers • 87% of HR professionals 5

    6. Summary of Findings • The economic recovery over the past year seems to be impacting human capital management • Respondents indicate they will pay increasingly more attention to the following human capital strategies: • Employee retention • Employee recruitment • Aligning compensation and benefits with corporate mission and values • Growing complexity of legal compliance 6

    7. Summary of Findings • Other 2003 trends will continue to impact human capital management in 2004, although their total impact is anticipated to be slightly less than in 2003: • Communication and need to build employee morale • Increased productivity using fewer employees • Use of technology to communicate with employees • Senior managers anticipate the demand for flexible work schedules as a growing trend into 2004 7

    8. Importance of Human Capital Strategy To Overall Company Success 8

    9. Successful Delivery of HR Important To Overall Company Success 9

    10. Importance of Employee Alignment to Organization's Business Goals 10

    11. Focus on HR Function in Coming Years 11

    12. The Role of HR 12

    13. The Role of HR – Perceptions of Executives 13

    14. The Role of HR – Perceptions of Senior Managers 14

    15. The Role of HR – Perceptions of HR Professionals 15

    16. Top Trends Impacting Human Capital Strategy 2003 vs. 2004 16

    17. Top Trends Impacting Human Capital Strategy 2003 vs. 2004 by Job Function 17

    18. Top Trends Impacting Human Capital Strategy 2003 vs. 2004 by Job Function 18

    19. Top Trends Impacting Human Capital Strategy 2003 vs. 2004 by Job Function 19

    20. HR: Leading People, Leading Organizations © 2003 SHRM Human Capital Forecast: 2004 Society For Human Resource Management December 2003 20