1. Business Consulting Services © Copyright IBM Corporation 2003 Global Human Capital Survey 2003 – Summary

2. Business Consulting Services © Copyright IBM Corporation 2003 Background & scope of the survey

3. Business Consulting Services © Copyright IBM Corporation 2003 12/3/033 Background of the Human Capital Survey  The first survey was conducted in 1992 within the Coopers & Lybrand Management Consultants organisation, together with Berenschot  International scope since 1994  Bi-annual survey, with in each of the editions the full spectrum of HRM was surveyed: - Business and HR strategy - HR Ratio and time usage of the HR function - Use of (modern) HR technology - HR service delivery - HR processes, like recruitment, education and training, performance management

4. Business Consulting Services © Copyright IBM Corporation 2003 12/3/034 Scope of the Human Capital Survey  The survey was predominately completed by HR professionals  International survey: - 1056 organizations from over 40 countries worldwide; - 648 organizations in Europe, Middle East and Africa (EMEA) - Survey represents over 6 million employees; - A mix of private companies and governmental organizations.

5. Business Consulting Services © Copyright IBM Corporation 2003 12/3/035 Responses by region and industry. The size of participating organisations ranges from less than 200 employees (12%) to more than 50,000 (2%). The average number of employees per organisation is just over 6,000.

6. Business Consulting Services © Copyright IBM Corporation 2003 12/3/036 Belgian sample  13 Valid responses  Belgian sample represents almost 70 000 employees - <200 employees: 1 - 200-1200 employees: 4 - 1200-5000 employees: 4 - >5000 employees: 4

7. Business Consulting Services © Copyright IBM Corporation 2003 12/3/037 The Survey model of the Human Capital Survey Business strategy/Values HR Strategy Operational HR strategyPeople strategies and policy HR Function  Process  Technology  Organisation  People HR Outcomes  Improved human capital  Cost and efficiency Business Performance  Cost  Revenues / Profits  Brand value  Capital For each of these components, we have gathered information

8. Business Consulting Services © Copyright IBM Corporation 2003 12/3/038 Most important business issues Global Belgian respondents

9. Business Consulting Services © Copyright IBM Corporation 2003 12/3/039 Business issues – how do we compare globally? %

10. Business Consulting Services © Copyright IBM Corporation 2003 12/3/0310 Exhibit 17 Most important business issues for 2001 and 2002 per industry.

11. Business Consulting Services © Copyright IBM Corporation 2003 12/3/0311 Exhibit 18 Most important HR issues for 2001 and 2002.

12. Business Consulting Services © Copyright IBM Corporation 2003 12/3/0312 Most important HR issues for 2001 and 2002 per industry.

13. Business Consulting Services © Copyright IBM Corporation 2003 12/3/0313 HR priorities – how do we compare globally? %

14. Business Consulting Services © Copyright IBM Corporation 2003 12/3/0314 Areas where HR has improved business performance  6 out of 13 respondents - Improvements to employee satisfaction  5 out of 13 respondents - Development of internal brand  4 out of 13 respondents - Cost control - Continuity of service during acquisitions or disposals  3 out of 13 respondents - Quality improvement - Regulatory compliance - Implementation of new organisational model - Provision of timely and pertinent management information  2 out of 13 respondents - Business process re-engineering - Ability to handle growth

15. Business Consulting Services © Copyright IBM Corporation 2003 12/3/0315 HR FTE ratio: number of employees in the organisation serviced by 1 HR FTE.

16. Business Consulting Services © Copyright IBM Corporation 2003 12/3/0316 Percentage of HR FTE staff by staff category

17. Business Consulting Services © Copyright IBM Corporation 2003 12/3/0317 Average percentage of HR FTE’s by HR process

18. Business Consulting Services © Copyright IBM Corporation 2003 12/3/0318 The chief of HR primarily reports to… (per industry).

19. Business Consulting Services © Copyright IBM Corporation 2003 12/3/0319 Satisfaction with the influence of HR on the business strategy.

20. Business Consulting Services © Copyright IBM Corporation 2003 12/3/0320 Categories covered by the HR management report.

21. Business Consulting Services © Copyright IBM Corporation 2003 12/3/0321 HR budget and spend per employee per industry.

22. Business Consulting Services © Copyright IBM Corporation 2003 12/3/0322 Percentage of companies that use Employee Self Service (ESS) and Manager Self Service (MSS) per industry

23. Business Consulting Services © Copyright IBM Corporation 2003 12/3/0323 Percentage of employees with access to the HR Self Service System per industry (if HR Self Service System present)

24. Business Consulting Services © Copyright IBM Corporation 2003 12/3/0324 Features of HR Self Service System (if present).

25. Business Consulting Services © Copyright IBM Corporation 2003 12/3/0325 Goals of implementing an HR Self Service System (if present).

26. Business Consulting Services © Copyright IBM Corporation 2003 12/3/0326 Recruitment & Selection Most important recruitment methods per staff category.

27. Business Consulting Services © Copyright IBM Corporation 2003 12/3/0327 Most important selection methods per staff category.

28. Business Consulting Services © Copyright IBM Corporation 2003 12/3/0328 Performance management Completion of performance review per staff category per industry.

29. Business Consulting Services © Copyright IBM Corporation 2003 12/3/0329 Employee aspects reviewed during performance appraisal.

30. Business Consulting Services © Copyright IBM Corporation 2003 12/3/0330 Components of performance based pay.

31. Business Consulting Services © Copyright IBM Corporation 2003 12/3/0331 Compensation & Reward Applied salary systems. We asked the direction participants expected their reward system to take. 58% of participants indicated that the variable proportion of compensation will increase.

32. Business Consulting Services © Copyright IBM Corporation 2003 12/3/0332 Performance related pay as a percentage of total salary per industry.

33. Business Consulting Services © Copyright IBM Corporation 2003 12/3/0333 Percentage of employees who attend Management Development programmes, per industry.

34. Business Consulting Services © Copyright IBM Corporation 2003 12/3/0334 Training Average number of training days per employee per year by industry.

35. Business Consulting Services © Copyright IBM Corporation 2003 12/3/0335 Methods for delivering training.

36. Business Consulting Services © Copyright IBM Corporation 2003 12/3/0336 Levels of evaluation of training.

37. Business Consulting Services © Copyright IBM Corporation 2003 12/3/0337 Programmes to support work/life balance Work/Life balance programmes are mostly evaluated by employee surveys (71%) and anecdotal evidence (48%).