The benefits of best-in-class people management are indisputable, yet companies struggle to translate their ambitions for their HR practices into concrete actions. For this year’s Creating People Advantage report, The Boston Consulting Group, in partnership with the European Association for People Management (EAPM), used an empirical approach to quantify the differences between companies with high capabilities in managing people and those with low capabilities. In this way, we identified specific practices, in ten broad HR topics, that can lift companies’ people management to a higher level. The report presents these specific practices in full detail, as well as some overall trends that we observed across most people-management areas.
First, companies must align their HR strategy with the overall company strategy along the complete HR value chain. Long-term strategic workforce planning, recruiting, performance management, and employee development require a holistic approach and systematic investments. The gears that drive HR activities need to mesh effectively.
Second, companies should break down the silos and ensure that business units and regions do not act on their own. Instead, they need clear governance and a structured HR model. Steering HR activities in a consistent manner across the complete organization calls for the proficient use of HR communications, including social media.
Furthermore, companies should continually monitor their HR activities and ground their decisions in objective data. They need to build predictive models on the basis of data that give an accurate picture of workforce supply and demand and that track HR KPIs. In this way, they can develop and channel their talent effectively and adjust their recruiting and training efforts to match business needs.