Companies
which publish their corporate values and HR strategy experience more
significant growth than those which do not, according to research by Arthur
Andersen.
There has
been an 84 per cent increase in total shareholder returns in FTSE 100 companies
which have promoted corporate values and HR strategy, but only 20 per cent of
FTSE 100 companies have an HR director on the board.
But Brett
Walsh, head of people strategy and HR management at Arthur Andersen, believes
it indicates that more companies need to develop their HR strategy,
particularly if they are going to recruit successfully in the future.
Walsh
said, “It is a clear indication that those with a clear HR strategy outperform
those without one. Dynamics are working where people are a significant engine
for business growth, and that attracting and retaining talent is going to be a
major business issue for all organisations.”
He
believes that new economy companies, such as software and Internet businesses,
are outperforming long-established blue-chip companies in the war for talent,
particularly through the offer of stock options.
The
research claims that between 1990 and 1997 there was an 11 per cent fall in 16-
to 29-year-olds entering the job market. In the corresponding period, UK GDP
grew by 17 per cent.
Ian Davidson,
HR director of Nomura International, said, “There is a war for talent. There
isn’t the pool of high-calibre graduates available to investment banking as
there was before.
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“It is not
just a problem for us. Employees are now balancing pay with other work-life
issues and we are having to respond.”
By Mike Broad
