These are the biggest challenges facing the labour market - as seen by the most influential Hungarian HR leaders

Klára András, President of Egis Pharmaceuticals Ltd. HR and Communications Director

One of them is certainly recruitment, as the challenges that used to cause difficulties in white-collar recruitment are now also seen in the recruitment of - skilled - physical staff. In addition to skills shortages caused by an ageing population and foreign job opportunities, the appreciation of skilled labour and the inflationary environment have led to a large increase in wage demand, making it very difficult to find the right people.

This brings us to the next challenge, which is to address the wage gap between the wages of those who have been working here (for decades) and the wage needs of newcomers. In addition, working three shifts is very physically demanding - we know that well - and it is not at all attractive to the younger generation.

A third is the challenges of digitalisation, finding and applying the role and place of artificial intelligence. I believe that if we find this, our colleagues can focus on value-creating processes and tasks instead of routine tasks.

Gertrúd Horváth Csoknyainé, CEO and HR Director of dm

You need a very universal team -HR has become very broad-spectrum, so from creative tasks to analytical skills, you need multiple competencies and therefore multiple professionals. A marketing and sales mindset is needed, as well as a systems mindset and data-driven thinking.

In the context of the labour market, the contradictory evolution of the labour market is often a challenge, with the strong demand for wages and flexibility. It is important to follow the trends and not to sit back when the market is not so tight, and to keep the position you have achieved is as much a challenge as to gain it.

A trainee programme is of strategic importance at dm, whether it's the university apprenticeship programme at the head office or the dual apprenticeship programme linked to the dual training that is present in the store network.

We also believe that individual life situations should be supported to help employees find a healthy work-life balance. From baby boomers to Generation Z, we have employees from all age groups who together make up the dm community. Generations learn from each other, and together they develop acceptance and digital literacy. We need to recognise that these are not really problems, but opportunities to grow. We help employees to recognise the challenges of working together across generations.

Artificial intelligence: everything around us is changing, we need to change too. My motto is: "I don't believe that if you do today's tasks based on yesterday's processes and ways of thinking, you will be in the market tomorrow!\" I have already started to use dm's own internal AI and I hope that in the near future, AI will also make the work of HR staff easier - for example, in data analysis and forecasting.

Kitti Dobi, Deputy CEO HR, MBH Bank

We identify finding and retaining the right workforce and bridging generational gaps as our main challenges, so these are the areas where we have the most work to do.

MBH Bank aims to respond to the challenges of the labour market through generational diversity, community building and a unique benefits programme and an in-house MBH Academy, which we have developed in-house, as we all experience that it is difficult to find a job as a recent graduate, or just as it can be difficult to balance work and family life as a new parent, it is difficult to keep up with innovation and digitalisation over the age of sixty. We want to adapt to any challenges that affect the HR profession or the labour market, and I believe we have a crucial role to play in creating a lasting impact not only within the organisation but also within the profession, helping it to adapt to a rapidly changing environment and challenges.

K Katalin Erdei, President of Richter Gedeon Plc. HR Director

The biggest challenge is retention, and that includes everything from good recruitment to development to engagement. All of these processes come together in the hands of the leaders, which is why leadership selection - and development is a priority for us. We have a long-term succession plan to ensure that critical positions are not left unfilled. A significant part of this is internal succession, but we also have strategic relationships with e.g. universities and high schools to ensure succession. As we want our colleagues to stay with Richter for as long as possible, we support their "in-house" journey with career pathways and retraining. In the future, as part of our talent management, we will encourage even more active international rotation. At Richter, 4 generations are working together, perhaps it is this generational collaboration and managing the expectations of different age groups that is and will be the biggest headache. We are looking for tools that leaders can use to address this in our diversity programmes.

Balázs Fremda, HR Director, Morgan Stanley Budapest

One of the main changes is the slowdown in the labour market over the last 1-2 years. Available opportunities are more limited, turnover has decreased, while the inflationary environment has put pressure on both companies and employees. We are not immune to these phenomena, and we are trying to meet the challenge by paying more attention than ever before to the individual, to the people who are of greatest value to us. It's important that every employee feels that they are counted on and have the opportunity to progress in their career. We encourage internal mobility and always try to provide them with projects that challenge and motivate them.

AI and automation also pose significant challenges for companies and the HR profession. This is an area that we talk about a lot, but we are really at the beginning of the process of integrating them into our day-to-day operations. We are focusing on aligning two main goals in the application of AI: to increase productivity and to identify and address skills and job roles that appear potentially vulnerable.

Friedl Zsuzsanna, CHRO of T-Systems International

As one of Europe's largest IT services companies with a global presence, I encounter many challenges - one of the most exciting is how to improve international collaboration within the HR organisation and beyond. What should be a common platform, standard and what should be country-specific. There are many generations working together, in Germany typically with older age groups, where you need to build an employer brand among young people. Meanwhile, AI and automation will significantly change the workforce mix in the next 2-3 years, we need to get our workforce used to continuous learning and retraining. Labour costs are the biggest challenge - as a global company we have the opportunity to increase profitability, but it is not something that can be done overnight. India will have a huge role to play in our future as well.

Andrea Horváth, HR Director, McDonald's

Recently, during a roundtable discussion, I heard a very good idea in this regard: new expectations are constantly coming to HR, but somehow the old ones never stop. Many areas were a challenge to be solved a few years ago, but now they are practically embedded in our daily operations. Five years ago we had a turnover reduction project that improved our results in our corporate restaurants by more than 30 percentage points. Now we don't have a specific project for this, but we can keep it at that level within the framework of our day-to-day work. I see the key to success in this way of working: for me, a project is only successful if we can maintain the results years later. In addition, keeping up with change is of paramount importance to me. For me, the best way to do this is to draw inspiration from the world outside HR. These can be events, lectures, or even just reading an article. Within my team, I started a cinema club a few weeks ago, where we focus on generations. We watch screenings together and process what we hear there. As well as starting huge nostalgia conversations about dial-up internet or the workbook, the team also gets some very useful knowledge that they can incorporate into our operations.

One last thing I have to mention: I think a good HR leader understands what their organisation needs. He doesn't do anything because it's trendy now and other people are doing it. We need to be able to translate global or local labour market trends into our own environment.

Akos Kalmar, HR Director, Continental Group, Hungary

In the labour market, I think the most topical issue right now is financial sustainability, certainly in the automotive industry. It is difficult to compete with the Chinese car industry, their models are of very high quality and on average cheaper than European cars. And European carmakers and automotive suppliers will need to make serious cost-cutting efforts if they are to keep pace with the price competition. Moreover, market players must do this in a way that does not drive employer competitiveness far away from employee/candidate expectations and does not escalate employee relations. At Continental, we are also working to find this balance.

[page Kinga Németh, Member of the Board of AUDI HUNGARIA Zrt. responsible for Human Resources and Organisation]

In the HR profession, digitalisation and automation is a big task. There is a strong emphasis on competence building, because I am a good HR manager, but I am not a good HR manager if I cannot identify the right tool for the process and business model from the technological solutions due to lack of competence. We have a lot to do with this today.

The challenges in the labour market are that there is a shortage of skilled labour. This is a European phenomenon. We can respond to this with fast, efficient, mini-credit qualification content that develops the competences effectively, even in a real work environment.

Idikó Szőke Ráczné, Head of Talent Management at the European Central Bank (ECB)

Designing, attracting and retaining a workforce has become increasingly complex in recent years, regardless of sector. And I'd also say it requires quite a lot of creativity from HR to meet the challenges and expectations of the business.

More than one industry is competing for the same skills and knowledge at the same time, so the competition is becoming more intense and the potential for internal recruitment, retention and development is becoming more and more valuable. Skills are now referred to as the new internal "currency". They define the whole HR value chain, from selection to development to internal-external mobility

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I continue to see AI as a promising opportunity, with a double challenge for HR: on the one hand, how HR exploits the potential of AI in its own operations. On the other hand, how it helps the organisation to acquire the right skills and mindset, how it shapes and fosters a culture of innovation and experimentation, how it encourages the use of AI tools and applications.

We are working on a comprehensive learning portfolio that demystifies AI and provides the right foundations for safe experimentation and use. We also offer higher level development programmes for those working on concrete transformations of their own domain processes and working methods based on AI.

Csilla Simon, HR Director, MVM Group

The average age of MVM Group employees is around 45. We can say that as a truly multigenerational organisation, we have four age groups working together. Although we could typecast each generation, I believe that the individual differences between people are more important. It is not necessarily age differences that determine whether a leader can work successfully with a multi-generational team. From an HR perspective, this is addressed by offering leaders a range of development and diversity approaches, and by offering leaders more choice in terms of both programmes and benefits.

We have taken a generational approach to the classification of benefits and employee care as a need and have mapped out a lifelong arc, from MVM daycare to retirement support by allowing young MVM families to bring their children to our daycare and we are also looking at ways to bring a retirement home to life at the end of their careers. And in between these two extremes of life, we are there with career guidance in primary and secondary schools, with Watts.Up in universities, and with all our HR activities among our active employees.



I believe that where four generations are working together, we need to offer the right solution for everyone, because the same benefit is not motivating for the 50s or the 20-somethings of today and the same programs are not appealing to them.

AI is a difficult issue, but in any case I try to have a good attitude towards both the potential and the dangers it presents. I believe that as a tool it can help us work creatively and quickly.

András Somogyi, Bosch Group Vice President Human Resources Hungary and Adriatic Region

One of the biggest challenges for managing the differences between generations. We are increasingly addressing this issue. Each generation has different needs and expectations of the workplace. Our company is constantly improving the work environment and benefits to provide an attractive and supportive environment for all ages.

AI and automation are playing an increasingly important role in the world of work. We see this not only as a challenge but also as an opportunity. Automation can help us increase efficiency and reduce monotonous, repetitive tasks, allowing our employees to focus on more valuable, creative tasks. We also believe it is important to keep our employees up to date with technological advances through continuous training.

Social issues are also increasingly important to us. We focus on diversity and inclusion in the workplace and sustainability goals, which are also part of our strategic objectives. We strive to create a corporate culture that supports diversity and promotes sustainable development. We believe that corporate social responsibility and sustainability are the foundations for the long-term success of our company.

Steininger Zsolt, Deputy Chief Human Resources Officer, MÁV-Volán Group

Is it very mainstream to say that implementing AI will be the biggest HR challenge? The challenges of the labour market and the development and rise of AI require a completely new way of thinking.

At the MÁV-VOLÁN Group, we strive to preserve our traditions and try to adapt them to the expectations of today's times, and we are already flirting with the use of AI-enabled solutions. With all the technology, new methodologies and the use of artificial intelligence, listening to people remains a key success factor

Marianna Szalavics, Deputy President for Resource Management, National Tax and Customs Administration (NAV)

In the wake of the COVID epidemic, HR areas have had to face the fact that employees' expectations now include aspects such as teleworking with real flexibility, the possibility to work from home, continuous learning and development opportunities. Strong financial incentives and above-average benefits are also crucial, while the economic situation is forcing employers to be cautious and often to rationalise costs. All these factors need to be addressed and decisions taken together.

It's also important to strengthen managerswithin the organisation, so training managers is coming to the fore. The ability of the organisation to deliver maximum performance depends primarily on motivated leaders.

Creating strategic thinking, embracing new digital technologies and ensuring employee well-being are key.

In order to engage the younger generations, we are increasingly open to the opportunities offered by social media, so we are no longer only present on Facebook and YouTube, but also on Tik-tok and Instagram, where we show our achievements and our posts and short videos related to the provision of training.

Szijjné Kállai Ildikó, Director of SPAR Hungary Trading Ltd. Head of HR Development and HR

The HR profession faces the challenge of dealing with generational differences. In our case, this issue was already emerging among our colleagues in the network in 2018 and, having been perceived as a significant challenge, we had to respond quickly. We first prepared our own trainers to manage the topic. Today, all the training programmes we offer include generational skills as an element. We also invite emblematic representatives of the new generation to speak in person at our various programmes, such as our Leader Café series or our Marketing Day, to bring the different generations even closer together.

We have also started to address the issue of AI, which is emerging at a tremendous speed in all aspects of life. We already have solutions where we are applying it (e.g. engagement measurement, or our new recruitment ATS), but for now our main task is to get a broader understanding of the application and select areas where implementation is relevant. HR will have a significant role to play in this, as it needs to prepare managers to understand that in a few years, or perhaps even less, competitiveness will be greatly influenced by who exploits the opportunities offered by AI. Of course, this will require educating managers to become as knowledgeable as possible in this regard as well.

László Szőcs, HR Manager of bp's European Shared Service Centres

The shared service centres employ more than 100 000 people in Hungary. Not only for repetitive jobs, but also for increasingly high value-added tasks. In the past, our competitive advantage in the region was the presence of a highly skilled workforce, fluent in many languages. Unfortunately, we have lost this advantage: we need more graduates who speak more languages and we need to improve mobility within the country.

To bring the numbers up and recruit the right number and skills from 15 languages, we need to open up to third countries. 15% of our colleagues are non-Hungarian and come from 50 different countries. It is not easy to bring workers to Hungary or even keep them here quickly enough under the new Aliens Act. This could be simplified and speeded up.

Klára Tatár-Kiss, Citi Country Human Resources Officer

For me, one of the most important questions is what will be the future of HR as a profession. In my view, a path to the disappearance of HR is conceivable. Specifically on the issue over explosive AI and automation in terms of what I see as a possible way for managers to "take control" of HR tasks. Anyway, it seems that compared to my experience 25 years ago, managers have been empowered to be "mini HR" in charge of their people. One half of me sees such a future with no HR function.

The other half of me refutes exactly that. I wonder a lot whether this explosion of AI and digitalisation would really be easy for humanity to digest? Is the human psyche capable of adjusting so quickly to a new world and accepting that an AI/chatbot will be talking to it instead of an HR person? My college-educated daughter only reads paper, printed books, even though we thought a few years ago that wouldn't be available anymore either. Yet she consciously reads that way because she needs the "smell of paper", the feel of the book. As a mother, I see this, as a professional, and in the HR analogy, it resonates with my thought above, namely that her connection with HR people is eternal, as is the paper smell of the book. Well, so my other half says that there will be an appreciation of this profession. Obviously the make-up of our work will change, but human relations will become even more important, and so will HR. Sometimes I think it might be worth putting these issues in a time capsule

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And on the corporate side, I can tell you that digitisation, automation and understanding generations are all there.

Zoltán Varga, Regional HR and Legal Director, Magyar Suzuki Zrt

Stability, competitiveness, loyalty to employees and intergenerational and intercultural cooperation are the answers to the changes in the world and to finding and training the right workforce. Magyar Suzuki is currently undergoing a generational change, or more precisely a generational transformation. In the production areas, in the offices and among the management, there are many colleagues close to retirement, while there are also many young people, and our task is to build a bridge between them. However, we must find ways to make our company attractive to young people. At the same time, it is important to place the same emphasis on all generations and to nurture team spirit and pass on existing knowledge to future generations, not only for economic reasons. In the meantime, there is much to learn from the younger generation and their drive and freshness is much needed.

At the same time, we are aware that new professions are constantly evolving thanks to digitalisation, the increasing use of robots and AI, and that knowledge that is currently not taught anywhere is expanding, so it is important to be ready for the continuous self-improvement that will be the key to success in the years to come.