Previous Article Next Article Comments are closed. The CIPD has warned employers that the introduction of the euro means HRdepartments will have to be more innovative to prevent a ‘brain drain’ of topstaff. Philpott, the CIPD’s chief economist, said employers will have to competeeven harder to recruit and retain the best workers because the euro will makepay rates across the eurozone increasingly transparent. He said: “While we don’t really know the full consequences of theintroduction of the euro, it will certainly impact on personnel and HRfunctions. It could mean a brain drain as workers compare pay rates across theeurozone.” “HR will have to construct more sophisticated reward systems to attractand retain talent and where necessary establish mechanisms for dealing witheuro-wide bargaining.” Philpott also expressed concerns that UK companies may fall behind theirEuropean counterparts while the country remains outside the new currency. “As consumers compare prices across Europe, the pressure onorganisations to become more efficient and produce higher quality goods willincrease. “This could be tackled by applying good people management througheffective on-the-job learning, team-working and non-hierarchicalstructures.” Euro could lead to staff brain drainOn 22 Jan 2002 in Personnel Today Related posts:No related photos.
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