Management Programmes in Human Resource Management

Vlerick expertise in Human Resource Management

1. Millennials still have high expectations of employment market, but Covid-19 dampens optimism

   The expectations final-year students have of their first job are still high. Good communication with their colleagues, a sociable atmosphere and plenty of opportunities for training are at the top of the list. What is more, these millennials prioritise career security over job security. They consider their relationship with their first employer to be temporary, expecting to work for a whole range of different companies during their working life. However, the Covid-19 outbreak has toned down their optimism about the future. Now afraid that fewer jobs will be available to suit their skills and qualifications, they are once again attaching greater importance to job security.

2. Variable remuneration for top managers may have negative impact on profit

   If companies want to boost their short-term profitability, the best way to do it is to grant a high remuneration level and commit strongly to incentives such as bonuses and share-related reward schemes. It is striking, however, that this has a boomerang effect on the company’s longer-term financial performance. As it turns out, high variable pay and a strong emphasis on profitability criteria have a negative impact on company profits. This is a remarkable finding in the annual survey of top salaries by the Executive Remuneration Research Centre.