The labor market is undergoing irreversible changes, and with it, the role of the HR department is evolving. New job positions that did not exist until recently are emerging, various processes are being digitalized, employee retention periods are shortening, and attracting new talents and potentials is becoming increasingly challenging.
The transformation of HR from a personnel-focused function to a strategic one is now the key difference between excellent and average employers
Besides having a flawless understanding of the labor market and its dynamics, HR professionals in successful companies must be familiar with industry regulations and business plans. Some recruitment projects are so specific that there are simply not enough competent specialists in the market. These projects sometimes require creating entirely new educational programs and conducting training to prepare the future workforce for the industry's evolving needs. In such an environment, HR consultants are expected to act as strategic partners, key support, and advisors who can align business and employee needs and create new opportunities. Naturally, internal HR teams may not always be able to respond to all demands, leading to the engagement of external experts, especially those offering comprehensive HR services.
Organizations in Croatia typically engage HR consulting firms as strategic partners to support projects related to recruitment, restructuring, acquisitions, and expansion into new markets. HR consultants develop long-term relationships with clients, offering services that provide a comprehensive overview of what the client can offer the labour market and what can be gained from it, considering the market dynamics, industry specifics, and desired employee profiles. HR firms that understand the nuances of various industries are in high demand for projects involving the development and retention of a large, specialized, and often highly skilled workforce, including managers and executives.
Excellent HR systems can lead to a 56% increase in work performance
The processes that internal HR teams handle daily are becoming more complex not only due to market changes. The dynamics are also shaped by new generations of employees who are more informed and have higher expectations regarding the company's investment in well-being and corporate social responsibility. This is where internal HR professionals step in, acting as a bridge between employees, management, and the executive board.
Satisfied employees significantly impact business results, as numerous studies confirm. According to research by Forbes, a quality HR system strengthens corporate culture, potentially leading to 400% higher revenues, while organizations with high-quality HR systems may have up to 50% lower employee turnover risk and a 56% increase in work performance. Therefore, it is beneficial for management and executives to recognize internal HR as a key partner in making strategic decisions.
Regular evaluation of HR systems and organizational climate and employee engagement survey are necessary for improving HR processes and corporate culture. Based on the well-known Employer Partner methodology, more than 20,000 company HR systems from almost all industries have been evaluated and improved over the past 19 years.
As part of the Employer Partner project, the development of the HR system is evaluated and a detailed report with results is created. Benchmarking data derived from years of experience and numerous evaluations serve as a useful comparison method with other companies in the same industry. Companies with excellent HR systems hold the prestigious and unique HR excellence certificate – Employer Partner. Apart from Croatia, this certificate is awarded to companies in Slovenia, Serbia, Macedonia, Bosnia and Herzegovina, Montenegro, and Hungary, where HR is included in strategic projects at the organizational level.
Employee well-being must be a top priority for HR
Currently, there are around sixty companies in Croatia with the Employer Partner certification, and over 80% have held it for more than five consecutive years. 75% of these have increased their revenues by 30% over that period. The excellence of the HR system needs to be proven each year, meaning that companies holding the Employer Partner certificate strive to meet the ever-higher expectations of their employees each year. This also includes investments in employee well-being. One of the key areas in human resources development among outstanding employers is employee well-being. Employees are increasingly valuing work-life balance, which is why one of the requirements for obtaining the Employer Partner certificate is the regular implementation of initiatives and HR practices that promote balance and ensure overall employee well-being.
Some companies with the Employer Partner certificate ensure this through a hybrid work model. Last year, these companies highlighted that the option to work from home emerged as a non-monetary benefit with the greatest impact on employee motivation. Many companies have included co-financing psychological support as part of their well-being benefits, sometimes offering it through external programs like Future Resilience, which provides anonymous counselling with psychotherapists. Employers are paying more attention to employees' mental health, especially after the COVID-19 crisis, when mental health ceased to be a taboo topic in the business environment. Top employers help break the stigma associated with depression and dissatisfaction and actively work on preventing burnout.
Above and Beyond – High standards set by Employer Partner certificate holders
For years, the top 10% of Employer Partner certificate holders, who are also some of the largest employers in Croatia, have had a positive impact on numerous workplaces and have influenced other organizations to adopt advanced HR practices. These companies hold the Above and Beyond certificate because they recognize innovative, bold, and top-notch HR practices. These companies develop unique and successful methods for achieving employee engagement and retention, contributing to building a more stable and profitable future for the organization. Compared to companies with the Employer Partner certification that have proven excellent HR practices, Above and Beyond certificate holders promote an innovative approach to HR and have 22% lower employee turnover. This number is particularly significant considering that, according to the State of the Global Workforce report, 16% of employees in Europe are openly dissatisfied and disengaged at work, and replacing an employee can cost up to 20% of their annual salary.
Above and Beyond certificate holders are the most prestigious group of employers in the region and stand out in one or more of these five categories – Impact, Satisfaction, Inclusion, Innovation, and Future. In the context of market development, the "Impact" category is the most significant, confirming the influence of an organization's HR on business success. In such organizations with a modern human resource management system, HR professionals measure and track the impact of HR initiatives on business growth and employee attitudes. Therefore, Above and Beyond companies are trendsetters in HR practices, which other companies in Croatia will adopt only in a few years.
This year's certificate holders are A1 Hrvatska, Atlantic Grupa, Coca-Cola HBC Hrvatska, Dukat, Hrvatski Telekom d.d., INA – Industrija nafte, d.d., JGL d.d., Kaufland Hrvatska k.d., Pliva Hrvatska, Span d.d., and TDR d.o.o. Congratulations to the leaders of positive change!
