JEDDAH: Talent management and organizational effectiveness are high on the agenda this year for Middle Eastern companies, according to Hay Group's Business Outlook study for 2012.
A statement said 600 organizations in the region took part in the study in December 2011, which takes a look at the year ahead.
The key focus for organizations in 2012 is expansion as highlighted by 36 percent of respondents as their main priority for the year.
Other priorities include improved profitability which 17 percent of companies listed as their top priority, followed by cost reductions and improving competitiveness.
Companies were asked about their aims for achieving the goals laid out in their business plans and it appears that leaders are confident of success in the short to medium term.
Thirty-eight percent of organizations feel they can accomplish their strategic objectives within the next 12 months and 58 percent report it will take 12-18 months to achieve their goals.
According to the Hay Group, Middle East HR departments are once again focusing on the market competitiveness of employee packages with 64 percent of companies naming this as their priority.
Hay Group's Vijay Gandhi says this is a change from the strategy of recent years.
"From 2009 until mid 2011 HR departments were focusing on reduction of payroll costs and cost cutting. It's a sign of recovery that efforts to retain talent are being stepped-up. Effective communication of reward is a related issue and one of growing importance; this means making sure employees understand the value of what you are providing as an employer. 32 percent of companies named this as their priority."
According to the statement, 51 percent of companies say their HR division will focus on talent retention during 2012.
This is followed by recruitment, which 33 percent of companies say, will be a key area focus for their HR teams.
Gandhi commented: "Talent retention and development is becoming more sophisticated and goes way beyond financial reward and training courses. Fit to role -- that's making sure you have the right people in the right roles and that they have career paths with planned progression -- is a direction in which a lot of companies are heading."
When it comes to cost reduction, reducing business related travel is the number one concern for companies with 40 percent of companies saying this is an area where they want to scale-back.
Gandhi said: "We see more organizations making efficiencies here rather than other controllable costs such as reducing training. This is an indicator that whilst cost efficiencies have to be enforced, employee development is still important to employers who are less willing to make cuts here. Employees who feel their company is investing in them are likely to be more engaged and therefore create efficiencies in the long-run."
As well as cost effectiveness, employee effectiveness is also in the spotlight with 42 percent of companies reporting they will have a greater focus on removing poor performers in 2012.
Participating organizations reported modest growth despite regional turbulence and global austerity with 47 percent of companies reporting a 5-15 percent revenue growth over the last 12 months. Only 10 percent reported a fall in revenue over the last 12 months.
Organizations in Hay Group's survey forecast a continuation of steady revenue growth with 37 percent of companies anticipating a 5-15 percent growth in 2012-2013. 29 percent forecast revenue growth of above 15 percent.
Only 3 percent of companies forecast a reduction in revenue.
© Arab News 2012
