S Group - Human resources strategy adapts to working life changes
An extensive HR strategy update was carried out in the S Group. The vast project demanded much work, but provided a good starting point to human resources work from 2009 to 2015.
Since the operating environment of companies is not static, the operations and goals of companies also have to be up-to-date.
“It was important to update the strategy. We have had good success in the ‘Most desired employer’ research, but we have to work for it constantly. The surrounding world continues to change and, therefore, we have to react to those changes in time,” emphasises SOK HR Director Leena Olkkonen.
The most significant changes in the near future of human resources work are the ageing of the working population and diverseness as well as society’s change to increasingly function round the clock. A large part of the working population will retire, which will cause a rivalry between competent employees.
“Many service sector units operate 24 hours daily, which increases the need for staff. Multiculturalism brings linguistic and sometimes cultural challenges. Employing the disabled involves separate issues that need considering. In addition, it is important to take care of the ageing workforce’s ability to cope with work,” Olkkonen recites.
Previously, a suitable employee was searched for in order to fill an opening. In future, responsibilities will be increasingly tailored based on the employee’s skills and life situation. This is challenging for both the employer, who should be able to tailor responsibilities, and the employee, who should operate in different kinds of tasks and units.
In order to work out these diverse challenges, the S Group established a work group with the task of updating the company’s HR strategy. The work group consisted, in addition to human resources professionals, of representatives of the different business sectors and chains.
Measurable goals
Work on the HR strategy began by performing a thorough analysis of the present state, which included the strengths and issues in need of development as well as contemplation on the purpose, vision and values of the human resources work operations. These were based on the strategy of the entire S Group.
The target state was dissolved to strategic goals, which included the best competence in the service sector, realisation of customer promises, motivated and committed personnel, the most desired service sector employer and efficient running of human resources work.
These goals were dissolved to the so-called Balanced Scorecard level, where every strategic goal was set a concretised goal, critical success factor as well as indicators and target level for 2015.
“The entity is measured annually, some parts even more often. As a new indicator, we have adopted internal mobility. It tells us to what extent we can offer growth possibilities to our employees, for example through our internal Manager programme,” says Olkkonen.
Superiors implement the strategy
The work group discussed a lot about the importance and urgency of the development targets. Five points were raised above others. One of these was competence development, which is also a development target in the strategy of the entire S Group. Commodity trade competence, superior work development and everyday management, human resources work operations models as well as supporting diverseness, among others, were included in it.
“Since the S Group has many different sectors, the personnel and business managers of each company and co-operative society will reflect the updated HR strategy to their own situation. Superiors will implement the strategy, i.e., make it a part of everyday work through common goals and development projects. They do responsible human resource work beyond measure,” Olkkonen adds.
The update of the HR strategy went very well, despite the large amount of work required.
“The participative work method of the work group and contemplation of different views was especially great. In addition, the concrete development projects have helped significantly in implementing the strategy to everyday work, so it has not been only froth,” Olkkonen sums up.
Economic growth increases rivalries in the workforce
Economic growth causes hustle in human resource work. Recruiting speeds up, and so does rivalries in the competent workforce. Now is the time to invest in human resources work. The S Group has collaborated with Psycon Oy for a long time.
“The S Group has a cooperative background and values. We do not seek profit but rather services and benefits for our customer owners. This is also our advantage in human resources work and it is reflected in everything we do,” describes SOK HR Director Leena Olkkonen.
The goal is to make recruiting easier in the S Group with the help of new practices.
“Traditionally, every unit has recruited their own team. In future, we will increasingly consider whether the employees could obtain additional hours from other units. This kind of flexible use of personnel is a new way of tackling recruiting challenges. At the same time, the competence, motivation and commitment of the personnel can be increased.”
The effects of changes in the economic situation vary according to sectors. Retail trade also recovered late after the previous recession, whereas the car trade shows the changes in the economic situation among the first sectors.
“Sales of the past six months were positive but changes are not yet large. The effects on us have not been as great as in many other companies. We also made investments during the recession, and the upturns and downturns have not been very steep,” Olkkonen says.
Expectations of the management change
In addition, HR professionals are faced with another kind of change.
“Management expects increasingly more personnel planning from HR as regards the numbers and quality: what are the needs regarding the employee numbers and competence now and especially in the future? Anticipation is important.”
HR should also provide support and competence in the implementation of changes and management work. According to Olkkonen, previously in human resources 70% of work time was spent on administrative work and 30% on development. At present, more focus is put on development, and the aim is to handle administrative work in other ways.
In the S Group this has meant investing in systems as well as increasing automation and self-service. It is in this way that administrative work is still handled efficiently and with quality, but more time is gained for development work.
“Expectations have risen to the next level. It would be great if this could be seen not only as a challenge but also as a wonderful opportunity for personnel competence development,” Olkkonen wishes.
Olkkonen states that companies need experts of a profound level in human resources work, such as experts in the labour market situation and pension matters. On the other hand, there is a need for extended HR professionals who are capable of a business partnership.
“However, do they have to be the same person,” Olkkonen throws in for contemplation.