HR PRACTICES IN EUROPE

Organisations throughout Europe know how important human capital is to their

success. Yet managing people is a permanent challenge. To gain an insight into HR
management practices in Europe, various centres have conducted a survey of how
European businesses organise their HR department. This has produced a detailed
picture of the department and its functioning.
This report contains the results of this research. It helps HR professionals to identify
issues which require different solutions in different regions. It can also serve as an aid
to formulating an individual vision, and as a sounding-board for planned HR actions.
One important finding is that there is no such thing as a common European HR model.
The differences between the European countries and regions are very clear, in terms of
HR policy, the functioning of the HR department and the areas on which businesses
projects focus.
Since the year 2000 the European Union, like
other Western economies, has been resolutely
travelling down the knowledge economy path.
In the Lisbon Strategy, European leaders set
themselves the goal of making Europe the
worlds most dynamic and competitive knowledge
economy by 2010.

The shift that this has brought about on the
employment market has a substantial impact
on companies and their HR management.
Concerns about attracting and retaining
competent knowledge workers are both current
and acute. Europe will need to deploy the
full potential of its employees to safeguard
the growth and global competitiveness of its
companies.

The aim of this European survey was to obtain
a picture of the organisation of the HR department
in European organisations.

Developing knowledge in this area is vital for
the optimal long-term development of human
capital and of European organisations. In an
open economy, this is very important. Ultimately,
it is the basis for a constantly renewable
competitive advantage.

The bottom-line results are central here, and they are
partly determined by an intensive interchange
between the HR core processes (staffing, payroll,
compensation and benefits, performance,
development) and leadership, without which
no process can run optimally. The extent to
which HR contributes to the achievement of
the organisations objectives depends on the
effectiveness and efficiency of the HR processes,
but equally on good leadership. Both
ingredients are indispensable in the recipe for
a high-performance personnel policy.


For an HR strategy to tie in with the organisations
strategy, a vertical fit is needed. This
represents a critical step for the achievement
of the organisations goals. HR professionals
need to communicate closely with the top
management and hence to have sufficient
knowledge of both business and market. It
helps if they are close to the board of directors
of the business. When we look at the reporting
level of the European HR manager, it turns
out that more than half of them report directly
to the CEO.

By consolidating different departments, HR
can demonstrate that it is executing the HR
strategy in concrete terms. At the same time,
the HR department needs to provide responses
to questions from local departments or
divisions and from the personnel. It needs to
be both centrally and locally based.

Searching for human resource management(HRM) is no easy undertaking. If European
management exist, it is in the term of greater cautiousness, sophistication of method,
and pursuance of elitist reward and career systems.

European union employment policy aims at promoting a high level of employment , co-
ordinating the employment policies of EU member states, and on developing a
coordinated employment strategy. To achieve these goals, the EU publishes a yearly
schedule of employment policy guidelines of the council, monitors the employment
programmes of the member states. This all is the work of the HR departments that is
working throughout the union.

The European countries are one the most developed and economically strong countries
in the world.
Let us now discuss about the various European countries and their HR management
policies.

The countries are discussed below.

THE COUNTRY STUDIES:
IRELAND
LEGISLATION
Legislation is governed by EU regulations.
The Equality Acts 1998 + 2004 effectively ensure employers have to operate in an
equality driven environment.
THE CASE OF A PRIVATE COMPANY:
IL&P (Irish Life & Permanent): As a large public quoted bank it is in our interest to
ensure we are fully compliant with all legal requirements. Also we want our
customers to see us as a employers that value and appreciate equality in the
workplace.
As a private company we expect our suppliers to operate in a compliant manner.
Eg. In the recruitment area we request our suppliers (recruitment agencies) to have
an Equality Policy. We will not do business unless this exists.
State/regional attitude
Through FAS (government body) there is funding available of up to 80 % for
specific training. This year IL&P have received funding for our disability awareness
training which has been rolled out initially to staff in HR/Facilities/Reception areas.
The Equality Authority is a state body that promotes Diversity in the workplace.
They offer services e.g. Diversity Audits/funding to encourage organisations to
promote Diversity in the Workplace.

The EQUAL Project4
The EQUAL project has provided IL&P with the opportunity to undertake a Diversity
Audit of our Recruitment & Selection practices. This has been a huge learning
curve for us. The recommendations arising from this Audit will help further improve
the way we operate and raise awareness company wide on Diversity issues.

GOOD PRACTICE
1. The recruitment team ask all applicants do they require any special
accomodations prior to attending a selection process.
2. We have organised sign language interpreters for staff members when
requested.
3. We are in the process of installing braille signage in all 110 bank branches and
ensuring they are all wheelchair accessible.
4. Next year we plan to include a training piece on Diversity Awareness in all of
our training Induction Programmes.
About Irish Life & Permanent:
The Irish Life & Permanent group (IL&P) is a leading provider of personal financial
services in the Irish market. The group formed from the merger of Irish Life plc and
Irish Permanent plc in 1999. The groups strategic focus is on Ireland and its
successful economy, with our ambition to be the number one provider of personal
financial services. The Group has over 4,500 employees and over one million
customers in Ireland.
This audit and action plan is one of a number being undertaken as part of Equal at
Work A Dublin Employment Pact Initiative and is funded by the European Social
Fund. The audits will vary and there is learning to be extrapolated from the
different conditions, circumstances, approaches and practices that will be used
About the Audit:
IL&P have engaged external consultants to conduct a Diversity Audit to:
nt policies and procedures from an Equality and Diversity
perspective.
-flows and relevant interfaces.

selection and make recommendations on how this can be achieved.


requirements of all candidates who enter the recruitment process taking account of
diverse backgrounds.

and developments that can be applied in IL&P5.

Outcomes:
To date an interim report has been produced and and final version approved during
the summer by the senior HR Management team. The report signaled the high
priority areas and included recommendations and an action plan. Since then it has
been agreed with Senior Management what actions are Short/Medium/Long term.
To date we have closed off several actions the more long term actions are been
dealt with in 2007 in tandem with the recruitment team with 3 mini project teams
managing actions. It is expected that the vast majority of the actions will have been
implemented year end.

GERMANY LEGISLATION
The anti-discrimination law has become effective from August 2006. Companies,
however, are reluctant to comply.
In relation to the size of a company a certain number of handicapped people has to
be employed, but companies can buy off from that.

INCENTIVES FOR COMPANIES
There are bonuses paid by the employment service for hiring unemployed persons,
particularly older ones. Work placements are without cost to the company.
Public services and large companies have equal opportunities officers mostly
concerned with women.
There are bonuses for the hiring of unemployed. A number of pilot projects are
mostly EU funded.
In the context of a model programme by the Federal Ministry for Employment there
is a prize given to companies.
Employers are informed in workshops and receive offers of training programmes for
older employees or migrant workers.

CONCEPTS RELATED TO INCLUSIVE HR
1. Diversity Management
38.5 per cent of German companies have DM in place (DAX and US subsidiaries),
90 per cent of which have more than 17.500 staff. 18.5 per cent additional
companies are familiar with the principles of Diversity Management. 26.1 per cent
of companies with DM are German, 70.0 per cent are US subsidiaries.


Good practice cases:
Lufthansa, Deutsche Bank, WDR (Broadcast Channel), Ford

2. Managing Employee Live Cycles
German companies are not very familiar with this concept, which comprises:
Attraction and selection.
Diverse work experience and development.
Career planning.
Work-life balance.
Re-orientation for the older workforce.
Knowledge transfer.
New professional roles: mentor, consultant
Preparation for retirement.

3. Hiring unemployed people
The case of Volkswagen Auto 5000
Deal: Employment for reduced wages
Programme: 5000 x 5000 = Employment of 5000 jobless for a salary of 5000
DM (approx. 2.500 )
Result: 3800 trained and employed at Wolfsburg
New, decentralised work organisation
Process based teamwork
Time for training on top of working hours.

THE EQUAL PROJECT FAIR PLUS
Inclusion in the FAIR plus project means mainly older workers, one of our projects
addresses unemployed persons.The municipality of Nuremberg offers through its
labour service company (NoA) temporary placement for disadvantaged people (i.e.
longterm unemployed) in different municipal departments to acquire job practice.8
Other projects are concerned with training older workers in companies, so as to
give them better chances in their jobs and protect them from being laid off.
Good practice:
1. The public transport organisation offers intercultural training for bus drivers
and ticket inspectors (many of them are older), supported by our project.
2. The public transport organisation are retraining their bus drivers for a healthy
worklife until retirement. Our project gives consultancy.
3. Siemens are retraining older redundant staff for employment within or without
Siemens by using our innovative learning programme.
4. A Telecom call centre offers a programme of improving their employability to
its agents. Learning support is offered by the EQUAL project.9

POLAND
ASSETS OF THE PEOPLE AGED 45+
extensive professional experience
time availability
ability to work in group
According to their immediate superiors, people aged 45+ may count on equal or
even better employment possibilities in comparison with the younger ones in
managing, specialized and scientific positions. Managers believe it is worthwhile to
establish age-combined teams. Such teams prove to be more efficient, mainly due
to the sharing experience and know-how by the employees aged 45+.

PORTFOLIO THE BEST CANDIDATES FOR YOUR EMPLOYEES
Since 2001 the Institute for Local Partnership and Cooperation has developed many
actions helping people suffering discrimination on the labour market. A lot of these
people are unemployed, have low qualifications, obsolete trades. Some of them are
disabled.
One of a splendid idea of the Institute was to create a website with the information
about people who are looking for a job. Each candidate prepares a short
presentation of ones own qualifications, skills and important information that could
encourage and convince an employer to choose and engaged just this person. Many
people aged 40+ put their portfolio on this website. The important thing is the
portfolio of person aged 40+ is among others, much younger. In this way they are
treated equal.

THE THIRD AGE INSTITUTION
Olsztyn University of the Third Age is a university unit of Warminsko-Mazurski
University, which was brought to life on the basis of University Senate resolution
adopted in 2000. The idea of the Olsztyn University of the Third Age is to include
elder people into lifelong learning throughout propagating social activity on the
basis of the development of interests.
The main assumption is, therefore, widely understood intellectual, mental and
physical stimulation of seniors, as well as leading educational and cultural activity,
not forgetting about propagation of gerontological prophylaxis.
During the education many Students aged 50 60 come back to work or re-start
very active life an local labour market.

SPAIN
SUBJECT GROUP: INTEGRATION OF GOOD PRACTICES IN COMPANIES
HUMAN RESOURCES (MANAGING DIVERSITY)
1. What activities or methods does the EQUAL project promote to raise
employers awareness?
From the South Madrid DP the following activities are carried out:
- Meetings with company heads and their middle managers to raise awareness
and for inclusion of groups that have difficulty in integrating into the labour market
in HR hiring policies.
- Carrying out of information days, seminars and sessions on the importance of
managing HR policies that incorporate diversity in organisations.
- We stress demographic and organisational trends and the need to adapt to
changes.
- Publishing in the press and participation in the communication media, radio,
television, etc.
2. Some local examples of good practice (companies that promote human
resource policies that improve the quality of life of their workers, afford them
ongoing training, which promote reconciliation policies, etc.).
The example of good practice closest to home is an associate who participates in
the South Madrid DP.
The Los Nogales Group are residential centres that are integrating the beneficiary
groups of the South Madrid project and have an Internal Training Plan, which
includes introductory training for new staff and the drawing up of career plans. For
example, last years Training Plan included actions to build on personal skills
(Communication, social skills, laughter therapy, etc.)

Also, as a work and home life reconciliation measure, workers have a crche for
workers children under 3 years, and this includes the provision of crches for their
companies workers in each new work centre that opens.
Another example of good practice is the realisation of the SKILLS BALANCE by
Madrid Councils Employment Agency and the Randstad Foundation.
This aims to offer a training area where students can put into practice the
knowledge, skills and attitudes throughout their occupational training, based on
learning while actually working and in work simulations for each job, so that they
are able to carry these out correctly, safely and efficiently.
The methodology is basically participatory and dynamic, made up of a series of
dynamics adapted to the content of each of the training actions- which will deal
with the elements involved in each job (telemarketing, receptionist, customer
service, etc.), giving special emphasis to role playing feared situations.
Here, different situations related to the carrying out of daily work duties are
represented, where students will have to roleplay what they learn throughout the
course and develop skills with which to tackle contexts with different degrees of
difficulty.
Students will thereby be ready for the work environment with a greater degree of
preparation and, above all, with a real practice of specific situations that, because
they can be solved with the help of the trainers, will give them very useful tools for
their working futures.
The group work is also digitally recorded in order that the role-plays can be worked
over later, giving particular emphasis to verbal and non-verbal communication.

A CD will also be made of all the material studied in the session including a
selection of best moments, which is provided to participants as part of the
Workshop material.

At the end of every session, an ASSESSMENT dynamic will be carried out, which will
consist of a questionnaire in which participants will assess the Workshop and the
knowledge and practical skills acquired.
The workshop lasts 12 hours.

HUNGARY
THE INCLUSIVE WORK PLACE AWARD

The INCLUSIVE WORK PLACE AWARD has been firstly announced by the Equal
Opportunity Office of the Municipality of Budapest in 2005, supported by the
European Social Found and the Hungarian Government in frame of the EQUAL
community initiative with the of the European Social Found and the Hungarian
Government.
The aim of the award is to express appreciation of the City of Budapest for
employers who make an active role and set example in strengthening and
developing equal opportunities at the workplaces. There is an Equal Opportunity Act
to protect disadvantaged groups, discrimination is penalized officially by a special
authority, however, good practices are rare on the labour market. These creative
and sensible employers deserve attention and appreciation of the experts and the
public as well.
Members of the Commitment deciding on the award as follows: the Municipality of
Budapest, the Budapest Chamber of Commerce and Industry, the National
Organization of Non-profit Human Services, municipal, employer and employee
Sides of the Budapest Labour Council, members are further the representative of
the granter, the representative of the EQUAL support program of the Ministry of
Social Affairs and Labour and Ildik Kocz specialist and journalist. The award will
be announced in every year again.

The award winners in 2005:
Uzsoki Street Hospital of Budapest, budget and non-profit organisations category.
Hewlett Packard Hungary Kft., for-profit enterprises category14
UZSOKI STREET HOSPITAL OF BUDAPEST
If there is humanity, there is love of profession as well.

Hippocrates
The institution developed its equal opportunity plan in 2004, with that unique
initiative in in this field, that they include homeless people into the hospitals equal
opportunity policy by solving their housing problems, providing rooms for the
stakeholders in their nurse hostel. The hospital does a lot for equality, in spite of
institutions limited budget.

The Hospital make outstanding efforts on inclusion of people living with disability.
One of the main priorities to let employees to obtain all the employers informations
free of barriers (for e.: job ads, job descriptions, invitations available in braille). The
buildings of the institution are designed for all, and free of physical barriers, on
both sides of the office desk, too.
Starting of the Fnykzelben program was an answer to the fact of the growing
populace of people living with seeing impairment. Its a basic problem in Hungary
for disabled people to reach certain public services like health provision and
preventive services. The hospital set up this project to solve this challenge, and
provides monthly healthdays with mass sport events. The services mostly visited by
the employees of the hospital living with disability, the employees FKEFE
Industrial Kft. (sheltered employment company of the City of Budapest), and
members of the Budapest Region Organisation of People with Seeing Impairment.
With this barrier free environment and flow of information it is possible for the
hospital to employ more and more qualified people living with disability. By the
latest statistics, there are more than 3% of the staff belongs to this disadvantaged
group,
They pay attention to the participation of disadvantaged people in LIFELONG
LEARNING program. All the information about the education is available for
everybody. People over 40 are encouraged for learning, there are personally
planned courses for them to develop their language skills and knowledge of
information technology.
The employees are supported by certain services. These are mostly preventive
health services or debt handling advice and crisis intervention service. There is a
tradition of employees health day, too. It is possible for the women coming back
from maternity or child care benefit to work in part time.
The organization has successfully integrated Roma employees into different jobs.
Type of organization: maintenance by municipality
No. of employees: 1410 persons
Primary target groups:
- People living with disability,
- People who belong to minorities15
- Women
- Parents
- people over 40
- Homeless.

HEWLETT PACKARD HUNGARY KFT.
We believe that the secret of our success in business is in the philosophy of our
human policy, where basic keywords are diversity and equality citation from the
companys tender documentations.

Diversity policy is one of the basic values of the organization; they have developed
a strategy supporting diversity and a system of liability with contribution of their
parent company. There is a well developed system of in-service training, flexible
working time and plaint Furthermore, ensuring equality with regulation against
discrimination, this attitude is required from their business partners as well.
Every year the company develops the Plan for Developing Diversity, and there is an
Equal Opportunity Coordinator responsible for implementation of the Plan, whose
job is monitorized by the Diversity Supervising Team set up of volunteer employees.
The plan not only describes the strategy of the organization, but it defines
particular steps, aims and standards, so it results in controllable process.
They make efforts on work-life balancing, to develop the employees efficiency and
motivation. The company worked out a regulation for flexible work time that
ensures possibilities, for employees who take care of children or old relatives, to
work in part-time, flexible work time or distant work. For distant workers, the
employer ensures work tools and internet connection.
Important element of the company culture of HP is the open doors regulation that
strengthens the communication between staff and management for transparency
and fast problem solution. There are a Responsibility Frame System and trainings to
reach all organizational levels with the companys equal opportunity policy.
Notable booklets theyve published to develop employees sensitivity about
colleagues living with disabilities. Publications strengthen the inclusive attitude and
give practical advices for employees in the field of communication, team work and
transportation.

What are the benefits for HP to be an inclusive workplace?
Our consumers and their expectations are different, we have to understand and
reflect these expectations.
In most of the countries, there are changing demographical characters, a demand
of workforce in many fields, and a strong competition for good workforce. The HP
has to be the best work place for all to ensure business success.
The engines of our organization are innovation, creativity, fast problem solution and
adaptation. These can be ensured only by open minds and diversity of skills.
Type of organization: Joint stock company
Number of employees: 321 persons
Primary target groups:
- Women
- Labour market entrants
- Elderly employees
Documents regarding equality:
Plan for Supporting Diversity, Rules for flexible work time, Best Work Environment
Rules, Business Ethical Code, Antidiscrimination Regulation, Regulation Against
Harassment, Regulation of open doors, Voice of the Workforce Program,
Accessibility Policy.

THAN KROLY GRAMMAR SCHOOL, SECONDARY SCHOOL AND TECHNICAL
SCHOOL
The HEADMASTER REPORT devotes a separate chapter to the question of equal
opportunities. This is a unique arrangement both from the viewpoint of maintainer
and employees.
The school adopted its Equal Opportunity Plan in school year 2004/05. It includes a
regulation about the process for harassment issues, established a status for an
equal opportunity co-ordinator colleague. The elevator was mechanically
refurbished and a renewed lavatory usable for all was opened. There were fixed
two parking spaces for disabled persons. By developing the class schedules they
pay attention to the needs of students living with disability, in addition, application
for admission information contained the school expect the application of persons
living with disability. So the school took serious steps to realize the barrier free
physical environment and education and to represent this commitment.
Working with the new entrant language teacher living with blindness, all of students
and teachers could learn a lot about each other, and this is a good practice to
strengthen the inclusive attitude, To provide the necessary assistance for the
teacher the school employs a pedagogical assistant. This good practice shows the
power of personal experiences.
There is a progressive regulation for HIRING AND TRAINING NEW COLLEAGUES.
New entrant employees are supported by mentors. So a new employee can get to
know the organization culture, habits and generally the job by a colleagues help.
The mentors job grounds of the conning order, including getting familiar both
with the school and the colleagues, and with the documentation system, with
holding lessons and with self evaluation. This leaded practice is a very useful help
for the young teachers.

Type of the organization: municipal institution
No. of employees: 117 persons
Primary target groups:
- Persons living with disability
- People starting carrier
Documents regarding equality:
Equal opportunity plan, Regulation of the process in case of harassment, Scope of
activities for the equal opportunity co-ordinator, Regulation for quality assurance,
40+ Ethical Code, Regulation for hiring and conning of new employees.


BUDAPEST SEWAGE WORKS
The enterprise created its equal opportunity plan even though it is not legal
commitment for them. The plan defines the most important ethical principles and
initiatives: prohibition of discrimination and promoting equal opportunities, and set
up of a status for a equal opportunity co-ordinator to implement objectives.
The annual education plan defines the organizations strategy about supporting
further vocational education, to develop the skills of employees with disadvantages.
There is an objective to employ Roma employees at least 15% rate. Its more
important for the company to take responsibility in trying to change or affect some
certain social processes. Most of the employees are low educated persons, so it was
obvious to give chance to roma applicants.
Although the regulation does not include this field, results explain themselves. The
organization culture establishes possibility for all to prove her/his efficiency
independently from origin or social position.
Type of the organization: Joint Stock Company
No. of employees: 1184
Primary target groups:
- People above 40 years
- People who have family
- Roma people

BUDAPEST CSEPEL MUNICIPALITY UNITED NURSERY
The institution created its equal plan in 2004. There is an extremely high rate of
women and people over 40 among the employees, so the organization focused their
actions on these groups. In the equal opportunity plan there is a list of
organizations with contact details, where to employees can make complaints in case
they meet with discriminative behavior.
The institution has succeeded to develop friendly and familiar atmosphere, because
of its size and attitude of the leaders. In spite of those frames that affect the
organizations activities, like the Civil Servant Act and the limited budget, they were
also able to develop good practices.
They pay special attention to employees returning from maternity leave or child
care benefit or has young children. They ensure to closing up loans and flexible
shift regulation. The institution keeps contact with its employees during their
Maternity leave, and ensures babysitting occasionally (in case of office duty or
Trainings), and encourage them to take part in inner trainings. The institution
Involves employees family to participate on excursions for exchange of experiences
or team building.
Rate of women over 40 is overrepresented. This special group has the need of,
prevent screening tests. For the appreciation of elderly employees they are
honored with jubilee premium and service recognition award. Beside the
retirement preparing programs, further employment after retiring is supported by
playing serious role in mentoring of new entrants.
If anybody of the public workers do satisfactory job, and they seem to be able to
integrate to the community, they can gain long term contracts. This is the best way
to motivate these persons.

Type of organization: Institution owned by the District Municipality
No. of employees: 117 persons
Primary target groups:
- People with family and young children
- Women
- People over 40 years
- Roma persons
Documents regarding equality: Equal opportunity plan, employee collective
agreement, education plan.

MAGYAR TELEKOM RT.
Deutsche Telekom - the strategic owner of the leading domestic telecommunication
provider - is one of the world leaders promoting diversity at workplaces. So do the
Magyar Telekom.
The basis of equity and equality have been laid down by the Ethical Codex . Equity
is based on the wide welfare allowances, the objective competency-based
approach, initiatives promoting equal opportunities.
The Uniform Competence Standards System had been implemented in 2003, which
lays down objective criterias to fulfill the same scope of activities. As part of this
system, in case of similar scopes of activities, ensures objectivity in such areas like
loans, allowances and carrier. This ensures non-discrimination and same salary and
allowances for the same job.
They have prepared a Unified Recruiting and Hiring Process which guaranties equal
treatment and transparency for all candidates. By recruiting the Toe the Line
trainee program is really important, since it guarantees the employment and inner
education of 15-20 recently graduated young people every year.
The company has initiated several programs to promote equality, for example the
distant work, for those employees who live far from the workplace or take care of
young children. The company has operating its Outplacement-service (Chance
Program) since 2001. Nowadays they can support the reemployment of dismissed
employees countrywide. Dismissed employees can choose from a variety of
services, for example retraining, job-seeking support, legal advice on labour law
matters, trainings.

Type of the organization: Joint stock company
No. of employees: 6473
Primary target groups:
Documents regarding equality:
Ethical Code, Toe-the-line trainee program,
Report of Maintenance, Handbook of Recruitment and Hiring, Work Field System-
normative measure.