Experts and entrepreneurs alike are likely to agree that compliance has now become a must. At the same time, it is clear that compliance is subject to constant change and that companies must continuously adapt their compliance management systems to new requirements. For the future, it is therefore important to know what challenges lie ahead in terms of compliance and what trends can be expected.
The year 2017 already included two important core compliance topics:
On the one hand, money laundering, which has become more concrete with the implementation of the 4th EU Money Laundering Directive. On the other hand, data protection and the associated challenges, particularly for information security. The EU General Data Protection Regulation (GDPR) was implemented in May 2018.
Aside from IT and data security, another focus is the introduction and implementation of business partner audits. "The extent to which the new ISO 37001 standard can provide impetus in the prevention of corruption will be just as interesting to observe as the continued development of the relationship between corporate responsibility, sustainability and compliance in organizations. Ultimately, the measurability of compliance measures will continue to be important." 28
Future compliance must increasingly address the expectations of the company's stakeholders. "Customers increasingly want to be able to rely on a clean supply chain. This increases the competitive relevance of compliance for companies," say the authors of the study "The Future of Compliance 2017". When asked which stakeholders have the greatest interest in a functioning CMS, the customer was named most frequently at 62%.29
Against the backdrop of scarce resources - especially in medium-sized companies - the question of an individual, tailor-made CMS is becoming increasingly important. The differences in the respective compliance functions are due in particular to the sector to which the company belongs. Many companies are still guided by the IDW PS 980 (audit standard). This is certainly justified, as it is recognized and also meets the most important requirements for an "effective compliance management system", as required by case law, for example. However, it should be noted that the requirements of specific regulatory requirements (e.g. Bafin requirements or GMP requirements for pharmaceutical companies) must also be integrated into the structure of the IDW audit standard - especially for companies that belong to a so-called "regulated industry".
In our experience, there are still very different views on what compliance means for a company. For example, many managers still believe that compliance is limited to fulfilling regulatory requirements. In order to convey that compliance is much more than this and can make an important contribution to corporate culture, we believe that companies still need to be informed and sensitized more intensively. Against this backdrop, we consider the "promotion of compliance culture" to be one of the most prominent topics to be mentioned in the context of the future of compliance. The communicative aspect is also closely linked to this, as building a compliance culture in the company requires intensive and targeted communication.
The fact that many companies also have other management systems - such as quality and/or environmental management systems - makes the integration of a CMS into existing management systems an important consideration. All the more so as this can create synergies and save costs.
28 Compliance trends in 2017, in: Compliance - The magazine for compliance officers, February 2017 issue
29 The Future of Compliance 2017 - Challenges and trends in compliance management, in: https://www2.deloitte.com/de/de/pa- ges/audit/articles/future-of-compliance
Studied law and business administration, postgraduate Master of Business Administration (MBA). In-service training as European Quality Manager (DGQ), mediator specializing in business mediation and Certified Compliance Manager (TÜV).
Eckart Achauer worked for around 10 years in the international insurance industry in the management of a Swiss insurance group in various functions (claims department, sales, assistance) before switching to management and business consulting in 1997.
As a consultant and managing director of various consulting companies, Mr. Achauer has specialized in organizational and process optimization as well as in the development and implementation of management systems - quality management, risk and compliance management.
Mr. Achauer is responsible for compliance management at the HR Consult Group. As part of compliance audits, he analyses their organizational "compliance fitness", raises awareness and trains management, executives and employees and supports companies in setting up and implementing individual compliance management systems. In doing so, he always takes into account the specific risk situation of the company. Thanks to his many years of experience as a manager and consultant, he is very familiar with the business challenges faced in practice.
If you want to offer your candidates particularly good services, you should know the needs and wishes of your target group precisely and adapt your offer accordingly. In order to be able to take this step, the HR experts at HR Consult Group AG conducted a candidate survey - in which more than 10,000 participants responded - to find out, among other things, which services candidates place particular value on.
The top answers are no surprise: at 93 percent, almost all candidates expect new career offers from recruitment consultants. Three quarters of respondents assume that their profile will be actively marketed by the recruitment agency and brought to the attention of potential employers. A similar number of participants, namely 72 percent, see a personal interview with a consultant as an integral part of the process. This is primarily about individual service and creating a basis of trust.
More than half expect a suitability diagnostic procedure / potential analysis
In 4th and 5th place in the ranking are coaching and a potential analysis with a total of 52% and aptitude diagnostics with 46%. Both procedures are aimed at working out the strengths and weaknesses of the candidate and thus possibly identifying completely new professional focuses and career prospects.
"Candidates' primary expectations of a recruitment consultancy are very clear. We are supposed to help them find a job and that is exactly what we do. However, it is interesting to note that the survey participants clearly place great value on a personal and individual exchange. As recruitment consultants, we very much welcome this, as direct and personal contact allows us to define wishes and goals more quickly, better and more clearly. Supplemented by the available analysis procedures, we can find the right job and the right employer for the respective applicant very efficiently and precisely," explains Mr. Lars Osmers, personnel consultant at SENATOR.
Many personality traits are scrutinized as part of aptitude diagnostics. The so-called key criteria are particularly important.
The question often arises as to which requirements a candidate absolutely must fulfill in order to successfully meet the demands of a position. Or which personality traits are decisive for the success or failure of a job holder. The key criteria from aptitude diagnostics provide answers to these questions.
In contrast to the criteria that are defined as key criteria by superiors or personnel developers for the respective positions, the key criteria of the HR Consult Group AG aptitude diagnostics are derived from the most significant characteristics of the available comparison group.
The 10 key criteria of a standard or best practice profile are generated from the results of the group itself. These are the ones that show the least variation. This is where the level of agreement is highest.
The evaluations of the test results for the various characteristics each show different scatter (see sample evaluation above), i.e. the range of test results varies from characteristic to characteristic. This is due to the fact that the test person in a comparison group assesses the individual characteristics differently.
The decisive factor here is that the bandwidth / spread of the characteristic is very narrow, i.e. the test person forms an almost identical assessment on this topic and therefore agrees with the comparison group that this characteristic is significant for this occupational group in precisely this form. This means that personality traits with the lowest variance / range become the key criterion for the respective position- or occupation-specific norm or best-practice group.
Key criteria therefore have the highest significance (meaningfulness). These are checked using the values of the standard deviations. If the standard deviation is low, the dispersion caused by the values of the various tests is also low. This means that the values are closer to the mean value. This results in a narrower range and therefore a clearer and more significant characteristic, which is referred to as the key criterion.
If a candidate's result value lands within the colored bandwidth, as shown in the example above, the candidate is within the comparison profile. If the result is lower, i.e. to the left of the spread of the comparison group, the candidate has a clearly different assessment of this characteristic than the comparison group. In this case, it should be specifically questioned why the candidate assesses themselves in this way. This is usually a characteristic with development potential.
If the candidate's result lies to the right of the colored bandwidth, they consider themselves to be stronger than the comparison group in this point, which generally does indeed represent a strength. The percentages shown on the far right indicate the exact values of the average of the comparison group, the candidate's score and the delta calculated from this, i.e. the exact deviation from the average of the comparison group.
The key criteria can be sorted according to the degree of significance. Depending on the chosen procedure, a number of criteria are then selected and evaluated as key criteria. Various methods are conceivable and can be sensibly implemented:
On the one hand, a fixed number of criteria can be tapped, e.g. the first five or ten criteria. On the other hand, a percentage number can also be defined, so that, for example, 20% of all criteria are regarded as key criteria that have the lowest variance.
The big insight is that the key criteria for the successful performance of a position are self-evident and do not have to be determined in laborious coordination processes with the specialist and HR departments.
The next article in our series deals with soft skills, which are almost identical in a successful professional group.
After studying automotive engineering and industrial engineering, he began his professional career in the automotive industry in the areas of sales, development and marketing and also spent a year in Japan with one of the largest automotive suppliers.
He then moved to a globally renowned premium car manufacturer, where he was responsible for product marketing in Japan and South America and for marketing strategy in North and South America.
In 1994, he decided to become self-employed and founded a personnel consultancy in Munich, where he has been driving development and expansion for over 20 years. As Managing Director, his industry focus is naturally on the automotive world as well as mechanical and plant engineering.
His doctorate in the field of aptitude diagnostics ideally rounds off his areas of expertise, particularly with regard to personnel and management consulting. The dissertation deals with the identification and verification of typical personality traits of engineers as well as the definition of development areas for a successful professional career.
These are scientifically derived and presented in the book "Eignungsdiagnostik im Praxiseinsatz".
At the same time, his focus is on the development of networks and cooperation models as well as the continuous further development of systems and processes in personnel consulting.
Over the last 20 years in personnel consulting, he has developed several brands that are still operating successfully on the market today.
It's back in fashion: appreciation in corporate culture and employee management. However, it's not just about making employees feel good. Appreciative behavior, even towards "hard-nosed" colleagues, leads to greater motivation. But this is by no means the end of the chain of positive things - it has only just begun. Those who are motivated are willing to do more. Perhaps to work overtime for once, where otherwise you would have hidden behind the rules. To "take less sick leave" and volunteer for your company. To think for yourself instead of letting others do it for you.
Now a boss might say that our employees have it good with us. They shouldn't complain, after all, they get a secure salary every month. But does the workforce see it the same way? It's worth taking a look behind the facade of the employees to see whether the well-intentioned words are being received in the same way.
The reason is quite simple: we are living in a time of demographic change. The baby boomers born between 1960 and 1970 will be available to the labor market for another 10 years, and there is already a noticeable shortage of skilled workers in many sectors. What does this have to do with appreciation? People who can choose where they work are more likely to choose an employer who values their employees. Where the boss recognizes their work, where they can feel the full meaning of praise. Where communication of appreciation is cultivated between managers, employees and business partners. Where they feel like walking through the company gate again on Monday morning and find it a shame on Friday afternoon that work is now interrupted at the weekend. Where staff turnover is lower because people feel that you mean well by them.
No manager should think that the corporate culture - whether "stinky" or appreciative - goes unnoticed by the outside world. Many companies are rated on internet portals such as kununu.de by applicants and current employees. And especially in the regional environment, word of mouth still counts for a lot. This gives potential employees a realistic picture of what to expect. If it is appealing, employees will run to you. If it is off-putting, applicants will chase after you. The degree of appreciation in the corporate culture is a key factor in which direction the pendulum swings.
Andreas Otterbach is an expert in excellence in personnel and corporate management. His focus is on personnel and organizational development, especially the development of an appreciative leadership culture. He also supports specialists and managers in individual coaching sessions.
As Professor of Business Administration and Corporate Management at Stuttgart Media University, Andreas Otterbach's research focuses on the success factors of hidden champions, particularly in terms of personnel management. Many insights can be derived from this that also benefit small and medium-sized companies. His book "Leading through appreciation" (2017) provides a good insight into this topic.
Andreas Otterbach is a business trainer and systemic coach, both certified by the German Association for Coaching and Training (DVCT). These skills enable him to work with his clients in a very personal and targeted manner.
Further stages of his education include a degree in business administration and a doctorate at the University of Bamberg. He also holds a degree in banking management.
For HR Consult Group AG, Mr. Otterbach supports the area of "Leadership through appreciation". Based on the Hidden Champions research, he supports companies and their managers in implementing an appreciative corporate and leadership culture. The group of "small global market leaders" demonstrates exceptional characteristics in these core elements, which have also led to exceptional business success. And our clients benefit from this knowledge!
Candidates are often contacted directly by recruitment consultants or companies by telephone or via business networks such as Xing or LinkedIn, even without having actively applied. The HR experts at HR Consult Group AG wanted to know how candidates feel about this unsolicited contact. They investigated this topic in a survey to which more than 10,000 participants responded. The aim of the study is to get to know the candidates even better in order to tailor the services offered by recruitment consultancies as precisely as possible to their wishes and needs.
The result is clear: an overwhelming majority of participants (97 percent) agree to be contacted even though the candidate has not actively applied. Of these, 35 percent stated that they only wanted to be contacted directly in connection with a specific offer.
Only 7 percent want to be contacted exclusively via social media (e.g. Xing and LinkedIn) and a total of 3 percent do not want to be contacted at all.
"No prospective candidate wants to spend a lot of time researching job boards or filling out tedious application forms dictated by applicant management systems. In comparison, being contacted by a recruitment consultant is simple, quick and very convenient for the candidate. The recruitment consultant makes it easy for the candidate and can position themselves as a friendly supporter and partner. At the same time, the general willingness to change jobs is very high in the current job market, so that personally proposed, attractive offers often lead to an appointment," says Mr. Mirko Bahr, personnel consultant at Senator Executive Search Partners GmbH, explaining the survey results.
After studying automotive engineering and industrial engineering, he began his professional career in the automotive industry in the areas of sales, development and marketing and also spent a year in Japan with one of the largest automotive suppliers.
He then moved to a globally renowned premium car manufacturer, where he was responsible for product marketing in Japan and South America and for marketing strategy in North and South America.
In 1994, he decided to become self-employed and founded a personnel consultancy in Munich, where he has been driving development and expansion for over 20 years. As Managing Director, his industry focus is naturally on the automotive world as well as mechanical and plant engineering.
His doctorate in the field of aptitude diagnostics ideally rounds off his areas of expertise, particularly with regard to personnel and management consulting. The dissertation deals with the identification and verification of typical personality traits of engineers as well as the definition of development areas for a successful professional career.
These are scientifically derived and presented in the book "Eignungsdiagnostik im Praxiseinsatz".
At the same time, his focus is on the development of networks and cooperation models as well as the continuous further development of systems and processes in personnel consulting.
Over the last 20 years in personnel consulting, he has developed several brands that are still operating successfully on the market today.
