As reported in HRI, Eastern Europe is taking call-center outsourcing action away from India in an arrangement called "nearshoring." Recent EU membership, greater proximity to customers and Western language and cultural skills superior to those of workers in India have given East European countries a competitive profile. Low wage levels are also a consideration: Though their pay levels should eventually rise through EU membership, workers in the Eastern European bloc currently receive an average monthly salary of around $610; workers in Germany and France receive three times that amount. Worldwide outsourcing continues to be a burgeoning but low-profile business phenomenon. "Only 15% of companies in Europe outsource something. We expect these numbers to grow," says Terry Wright, analyst for London-based Gartner Research. (Wall Street Journal Online [Miller - Dow Jones Newswires], March 15, 2005)

As reported in HRI, Norwegian businesses that don’t comply with a governmental mandate to increase the presence of women on corporate boards will be disbanded, according to a January 2006 report in the New York Times. The legislation, which went into force that month, puts a two-year time limit for compliance on more than 500 corporations in Norway. Many have taken steps already to up their female board representation. In the past two years, the country has seen the proportion of women on boards increase from about 8% to 16%. In addition, executive recruiters report heightened interest from businesses seeking qualified women for their leadership ranks. (New York Times [Bernstein], January 12, 2006)

As reported in HRI, short and medium term assignments are creating a different brand of stress for assignees. An assignment of one year or less often requires living out of a suitcase in a hotel room surrounded by piles of work demanding attention. Lacking family supports and familiar channels of relaxation, short-term assignees can become bored, frightened and lonely, with possible inclinations toward excessive drinking or extramarital affairs, warns behavioral psychologist Donna Dawson. Dawson says employees can help counter this form of stress and isolation by keeping in touch regularly with family and friends via phone or e-mail and by seeking out living arrangements that accommodate visiting family members. (Mobility [Keen], February 2005, pp. 43-45)

As reported in HRI, CFO Asia magazine talked to several companies about what makes them successful in their merger and acquisition (M&A) strategies. Dover, Wells Fargo, Charles River Laboratories, VF, Clear Channel Communications and CRA International all share similar M&A philosophies. The main trait that makes them successful is their strategy of frequently completing small deals. David Harding and Sam Rovit, authors of the book Mastering the Merger, found that the companies that use this approach often achieve double the shareholder return of companies that do larger, less-frequent deals. The continuous activity allows the companies to learn from their mistakes and adjust their approach to each new deal. Following are some of the techniques that make the strategy successful.

o        Always be looking for the next opportunity.

• Find companies that are the right fit.

• Have a set limit on the cost and scope of any deals.

• Research the target company thoroughly, either on your own or through a third party.

• Be able to step back from a deal in the making and say no.
  (CFO Asia.com [O'Sullivan], October 2005)

As reported in HRI, gaining the unqualified support of senior leaders is the necessary starting point for organizations seeking strategies for advancing women into their upper-management ranks, says Barbara Reinhold, an educational psychologist who directs the Executive Education for Women program at Massachusetts’s Smith College. Reinhold says that once senior leaders are on board, a push to help women advance can get underway. She recommends that firms design a program that encompasses specific plans for moving women up the management pipeline, along with a communications plan to support the strategies. Care must be taken to address any barriers to female advancement that might be embedded in the organization’s culture, and the advancement initiative should be bolstered by thorough training for managers and employees alike, Reinhold says. She suggests that initiative organizers seek input from their female employees and posits that existing leadership development efforts may require adaptation to suit the needs of women who are being groomed for upper management. Finally, Reinhold recommends that firms consider providing their future female leaders with "an all-female executive education experience." Reinhold includes checklists to help organizations implement female development initiatives in an article in the Summer 2005 issue of the Journal of Organizational Excellence. (Journal of Organizational Excellence [Reinhold], Summer 2005, pp. 43-55)

As reported in HRI, the elimination of repetition and addition of guideposts can make Web-based employment applications more user-friendly. "An automated software tool should let applicants know where they are in the process and how much longer it will take," advises HR Magazine. Well-designed tools also avoid repetition: for example, if applicants provide name and address early in the form, they should not have to enter that information again later. If space is provided in which to paste or attach a résumé, designers may wish to consider what information is usually included in the résumé and not ask for it in separate text blocks. (HR Magazine [Onley], October 2005, pp. 109-112)

• As reported in HRI, the offering of dependent-care flexible spending accounts continues to be the most popular work/life benefit offered by companies, reports the Society for Human Resource Management’s (SHRM) 2005 Benefits Survey Report. The annual survey, distributed to randomly selected SHRM members, includes responses from 386 human resource professionals. Following are the results for some of the work/life benefits offered.

Work/Life Benefits Offered, 2005

Source: SHRM 2005 Benefits Survey Report

(2004 Benefits Survey Report [Society for Human Resource Management], June 2005, pp. iv, 9, 10)

As reported in HRI, nearly half (49%) of 128 global firms surveyed expect a rise in corporate international relocations between 2005 and 2007, while 45% anticipate no changes ahead, as reflected in the 2005 Saunders 1865 Survey of Nine Major Trends in Global Relocation. Of the 128 top global corporations polled, only 6% expected global relocations to decrease. As in years past, the most frequently selected countries for expatriation remain the U.S., the UK and nations in continental Europe. The Asian Pacific region, however, is emerging as a strong choice for expat assignments, with 31% of corporate respondents indicating they have set up employee transfers in India, China, Korea, Japan, Malaysia, Singapore, Thailand or Taiwan. According to the survey, most relocation difficulties were associated with international assignments in East Europe, East Africa, the Middle East, Latin America, China and the Caribbean. (The Nine Major Trends in Global Relocation [Saunders 1865 Organization], June 2005)

As reported in HRI, globalization will intensify competition for the limited pools of managers who can deal with diverse cultures and languages, forecasts Mark V. Mactas, chairman and CEO of Towers Perrin. And businesses will increasingly treat employees and markets as part of a "global village." As organizations become more entrenched in the workforce cultures of developing countries, managers will have to tackle not only foreign labor regulations but educational deficits and cultural barriers among local populations as well. Mactas expects a heightened demand for cutting-edge IT workers, global market experts and highly skilled engineers who can help a global organization achieve "competitive differentiation" - the process of continually making products better and cheaper. (Leaders Magazine, December 2005, pp. 106, 107)

Fewer than two-thirds of employees (64%) in the UK are satisfied with their jobs, according to the preliminary findings of a new survey by Mercer Human Resource Consulting covering over 1,100 workers. This figure represents a reduction of 10% since the survey was last conducted, three years ago. Furthermore, fewer than 6 in 10 employees (59%) feel a strong sense of commitment to their organization – a 5% decline since 2002.

Dr. Patrick Gilbert, Head of Organisational Research and Effectiveness at Mercer, commented, “The employment market has become more buoyant in the last two years, so more employees are feeling restless and dissatisfied in their jobs. With more opportunities available, people often think the grass is greener elsewhere. When employment opportunities are limited, employees tend to have lower expectations and feel more satisfied with their jobs.”

Mercer also found that just 60% of employees are proud to work for their organization, and only 65% believe they have a long-term future with their current employer. “If employees respect senior management and feel their organization is performing well, they’re more likely to feel proud and committed,” said Dr. Gilbert. “Senior managers can help build long-term commitment by communicating a clear vision of the company’s future and by defining career paths for their staff. This approach can have a profound impact on organizational performance, as committed employees deliver superior service, leading to improved customer satisfaction and a long-term source of competitive advantage.”

Just half of the survey respondents thought managers understood the problems facing employees in their jobs. “Organizations that encourage two-way communication are more likely to appreciate the problems facing employees. Staff loyalty will increase if employers demonstrate empathy and support for their employees,” commented Dr. Gilbert.

The survey also found that fewer than half the respondents (46%) felt encouraged to come up with new and better ways of doing things. “The culture in many organizations is for management to give orders rather than gather ideas, so employees often feel unable to suggest improvements to work processes. Organizations that fail to listen to employee suggestions could be missing a trick,” said Dr. Gilbert. “Employees are closest to operational issues and customer concerns and can provide timely information on how to improve business performance.”

Note on the survey
The results of Mercer’s What’s Working Survey are based on data collected from a survey of 1,119 working adults representing a broad cross-section of industries. Respondents completed a survey about their perceptions of their job, organization, work environment, compensation, benefits and the management of their organization. The weighted survey results are representative of the entire British workforce and individual industry sectors. A similar survey was carried out in 2002.