European companies looking for sales and marketing experience in 2007
Employees are unlikely to receive large base-pay increases next year, but will benefit from more training and development opportunities, according to a European survey by Mercer Human Resource Consulting.
The survey of more than 430 companies in Europe, mostly multi-nationals, found that only 16 per cent of respondents are planning to increase their investment in base-salary raises next year. In contrast, 58 per cent say they will spend more money on training and career development initiatives for staff.
Retirement and health-care benefits will also receive little investment, with 16 per cent and 20 per cent of respondents saying they will spend more money on these benefits respectively. Instead, companies will invest more in annual cash bonuses (32 per cent) and non-cash rewards (44 per cent).
“Many organisations are reluctant to invest more in base-pay increases because they do not want to raise their fixed costs," said Paul O’Malley, principal at Mercer. "By focusing on training, non-cash rewards and bonuses, they retain the flexibility over their investments, and can ensure the highest rewards go to the top-performing employees.”
Investing in training and development will help companies build the internal capabilities needed to fill crucial skill gaps, as opposed to the costly exercise of hiring new people, said O'Malley.
The survey found that 32 per cent of participants plan to develop the talents of existing employees to fill skills gaps, while 24 per cent are relying on new hires. The remaining participants will use a combination of the two.
Skills in demand
People with sales and marketing skills are in the highest demand by European companies. The survey found that 23 per cent of organisations were particularly looking for sales and marketing candidates compared to just seven per cent who were seeking to recruit in-house human resource professionals.
Engineering and information technology skills were found to be in demand by 16 per cent and 15 per cent of organizations respectively, while employees in operations and those with global business experience were placed at the top of the list by 14 per cent of organisations. Only 11 per cent reported that people in finance and administration were in greatest demand.
The survey of more than 430 companies in Europe, mostly multi-nationals, found that only 16 per cent of respondents are planning to increase their investment in base-salary raises next year. In contrast, 58 per cent say they will spend more money on training and career development initiatives for staff.
Retirement and health-care benefits will also receive little investment, with 16 per cent and 20 per cent of respondents saying they will spend more money on these benefits respectively. Instead, companies will invest more in annual cash bonuses (32 per cent) and non-cash rewards (44 per cent).
“Many organisations are reluctant to invest more in base-pay increases because they do not want to raise their fixed costs," said Paul O’Malley, principal at Mercer. "By focusing on training, non-cash rewards and bonuses, they retain the flexibility over their investments, and can ensure the highest rewards go to the top-performing employees.”
Investing in training and development will help companies build the internal capabilities needed to fill crucial skill gaps, as opposed to the costly exercise of hiring new people, said O'Malley.
The survey found that 32 per cent of participants plan to develop the talents of existing employees to fill skills gaps, while 24 per cent are relying on new hires. The remaining participants will use a combination of the two.
Skills in demand
People with sales and marketing skills are in the highest demand by European companies. The survey found that 23 per cent of organisations were particularly looking for sales and marketing candidates compared to just seven per cent who were seeking to recruit in-house human resource professionals.
Engineering and information technology skills were found to be in demand by 16 per cent and 15 per cent of organizations respectively, while employees in operations and those with global business experience were placed at the top of the list by 14 per cent of organisations. Only 11 per cent reported that people in finance and administration were in greatest demand.
