Caution: Skills Shortage Ahead

Fit for the Future with HR Management

Demographic change is increasingly shifting the focus onto the value of human resources as the most important factor of production. A shortage of well-trained staff is already being felt in many sectors today – and the skills shortage is set to intensify. According to a calculation by the Federal Statistical Office of Germany, the working-age population will fall by millions in the coming years and decades.

Against this background, those businesses where HR management has long been neglected must now also concern themselves with this matter. Staff shortages will otherwise be looming ahead with dramatic impacts on business processes and profitability.

HR KPIs as a tool for entrepreneurial success

Though most medium-sized businesses have been compiling personnel data for a long time, very few record and evaluate their key ratios systematically. Yet HR statistics are important indicators of how a business is evolving and how fit it is for the future.

By identifying suitable KPIs, undesirable developments can be detected at an early stage to allow countermeasures to be implemented in good time. If, say, it is foreseeable that a significant proportion of the workforce will be retiring at around the same time, recruiting measures can be stepped up, the number of trainee jobs increased, and further investment made in employer branding to ward off any damage to the business.

Key ratio systems are also an essential basis for scenario analyses, evaluations and reports. With the help of HR management software, plans are quick and easy to implement even for users who are not that well-versed in IT. Best-case and worst-case scenarios provide concrete answers to questions such as what the impact of expected changes in the staff structure will be on the costs.

Perceived obstacles to professional HR management

HR management is an issue that has come to affect every company. Nevertheless, it is mostly SMEs which shy away from taking action. The obstacles still seem too large. “One of the most common objections to professional, IT-based HR management is that medium-sized businesses are unable to access the relevant data at all, having outsourced their payroll accounting to a payroll office or an accountancy firm,” Silke Gebhard, an HR management expert at Corporate Planning, reports from her own day-to-day experience. “In fact, though, the technical possibilities are now so far advanced that we can import and evaluate the data without any problems – regardless of where they come from.” Thanks to a well-thought-out authorisation concept, data protection is no longer a problem either. “Modern corporate performance management software comes with detailed and elaborate authorisation concepts ensuring that all data protection regulations are complied with,” she explains.

To sum up: not only does professional, IT-based HR management help businesses to comply with data protection regulations as a matter of course, it also enables them to deploy their human resources effectively and sustainably and to withstand demographic change.

Comment on Article

Your email address will not be published. Required fields are marked *