The top five concerns in HR, hiring, and growth in Argentina

This article was written and published in Spanish and has been translated into English via Google Translate. Click here to read the original article.

The issue that most worries those responsible for Human Resources of Argentina companies in 2019 is "labor cost growth" with 121 mentions, according to the latest survey of the human resources consultancy HuCap.

This factor of concern had occupied the first place between the 2012 and 2016 editions and was once again on the podium in the first edition of 2018.

"Undoubtedly, inflation exceeding widely the budgeted, the devaluations suffered in the year, wage negotiations on the part of the unions and the reopening of paritarias and the end-of-year bonus that the government established for the private sector, do nothing but empower that item on the podium," said Miguel Terlizzi, HuCap's CEO. 

Secondly, according to the responses of 148 companies, the "Labor Conflict" (with 117 mentions) was located, which includes aspects related to claims and social conflicts that affect the productive wheel of the business.

"The electoral year, where what is at stake is neither more nor less than the course of the country's model, will only accentuate this labor conflict," said Terlizzi.

In third place appears a new issue of concern on the podium: "Inflation" (89 mentions).

"With inflation projected at the beginning of 2018 by 15% and the parities 'closed' at an average value of 15.06%, this item did not even appear a year ago, but depending on the events of the second half of the year past organizations had to review their budgets in the face of wage increases for staff outside the agreement and thus avoid the loss of purchasing power.This makes inflation to be placed third in the podium, not only by the labor cost that as we saw it leads, but also because of the impact and growth in expenses at a general level, well above those budgeted by the organizations," Terlizzi explained. 

Fourth, the "need to reduce, suspend, unlink employees" reappears, with 64 mentions.

"It did not figure in the top five of the agenda of Human Resources managers since May 2017, where the outlook on the part of companies began to be more encouraging, insufficient, but encouraging - and product of the 'turbulence' characteristic of our country, returns to the podium," said the consultant. 

In fifth and last place of this top five, the "retention of talents, posts, and key persons" appears, with 57 mentions.

"In contexts like the present, retaining key talent becomes a priority for Human Resources managers, being that many times and despite being in a conservative labor market and where many employees continue to 'cling to their chairs', the opportunities always exist and it is necessary to establish work life balance policies and practices, as well as training and development plans that allow compensating, in those employees, what can not always be transferred to the gross salary, in order to retain them and maintain the levels of motivation," he concluded.

This article was written and published in Spanish and has been translated into English via Google Translate. Click here to read the original article.

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