Organisations across Europe need to invest in training to
combat falling revenues per employee and profits per employee, a report finds.
The European HR Index Report by EP-First based on a study of
more than 5,000 businesses across Europe, also reveals that:
– productivity across Europe, measured in terms of total
remuneration over costs and revenue, continued to fall over the last year
– commercial organisations provided little more than three
days’ training per employee per annum
– redundancies rose, not unexpectedly. However, more
interestingly, resignation rates also rose, probably indicating that, in times
of downturn, talented people, probably unthreatened immediately by job loss,
will nevertheless seek safer havens, whilst increasingly the so called
"war for talent" continues.
– for the first time in five years, average remuneration
levels fell, which indicates a significant reduction of highly paid senior
executive positions.
Maurice Phelps, founding partner at EP-First, advised
employers to invest in the talent they already have during times of economic
uncertainty.
"The data in the report shows consistently that
businesses are failing to learn from previous experiences. We recommend that,
when the economy begins to recover, businesses invest in the talent they
already have, rather than cramming the organisation full of additional people,”
he said.
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