Paradigm shift in HR: regional best practices and the path to strategic value

The challenges facing HR professionals across the Visegrád Four (V4) are strikingly similar, yet their localized responses offer a wealth of shared intelligence.

Regional macro trends: converging under pressure

Despite cultural nuances, the V4 region is seeing a convergence of development indicators driven by shared economic headwinds.

Before delving into our core topic, it is essential to consider the key economic indicators defining the V4 landscape:

The populations of the Czech Republic (10.9 million) and Slovakia (5.45 million) have seen growth, contrasting with the declines observed in Poland (38.4 million) and Hungary (9.6 million). Across the board, GDP growth has slowed significantly, now hovering between 0.5% and 2%.

Unemployment patterns remain consistent with historical trends: the Czech Republic maintains the lowest rates (2–3%), while Slovakia records the highest (5–6%). Historically, Hungary’s unemployment rate has generally exceeded Poland's, with the exception of the last few years. Regarding the cost of labor, the Czech Republic leads the region in both minimum wage and hourly labor costs, followed by Slovakia, Poland, and Hungary.

Labor shortages have made foreign talent a cornerstone of the regional workforce. Poland leads with 1.1 million foreign workers, followed by the Czech Republic at 935,000, while Hungary and Slovakia both remain below the 150,000 mark.

Against this backdrop, the workshop highlighted five critical pillars of HR evolution.

1. The strategic mandate: beyond administration

The strategic role of HR is no longer a matter of internal debate; it is a prerequisite for competitiveness. Research indicates a direct correlation between the presence of a dedicated HR leader and the implementation of a formal HR strategy. When HR heads sit on the executive board and participate in corporate development, the function shifts from a cost center to a driver of modernization.

2. From tasks to talent: the skills-based pivot

There is a regional consensus that job descriptions are evolving away from rigid task lists toward competency-based profiles. While technical expertise remains vital, "human factors"—such as emotional and cultural intelligence—are now primary differentiators. However, empirical data shows that the "up-to-date" status of job descriptions in the V4 remains low, representing a significant area for improvement.

3. Ending the "1:50 rule": technology as a force multiplier

Digitalization is creating a widening gap between SMEs and large enterprises. Currently, 26% of respondents utilize Employee Self-Service (ESS) systems. This digital shift is fundamentally altering the "HR-to-employee" ratio:Traditional benchmark: 1 HR professional per 50 employees.Modern leaders: 1 HR professional per 70–90 employees.This efficiency gain is not resulting in mass layoffs. Instead, it is triggering a wave of upskilling and reskilling, allowing HR professionals to move into high-value advisory roles.

4. Performance Management: moving past formalism

Data from over 2,000 organizations confirms that while Performance Management (PM) is primarily tied to compensation, its second most frequent use is now training and development. Experts emphasized that effective PM is driven by leadership culture and active presence, rather than the mere administrative application of HR tools.

5. The new era of learning

The momentum of e-learning, accelerated by the pandemic, remains robust. Despite economic volatility, a significant majority of V4 organizations have maintained or even protected their training budgets, recognizing that continuous development is essential for retention in a tight labor market.

The bottom line: evidence-based HR

The workshop's core business takeaway is clear: regional HR data is not just for academics; it is a decision-support tool for executives. By benchmarking against regional patterns, HR practitioners can identify maturity gaps and pinpoint which investments will yield the fastest ROI.

As the project moves toward its final transnational summary and online conference, the goal remains to provide the V4 with a customized, evidence-based toolkit that transforms HR from a reactive function into a proactive business partner.

Kálmán Edina (ügyvezető igazgató Knowhouse Consulting) - Prof. Dr. Poór József (MTA doktor, MATE, Hites menedzsment tanácsadó, brief coach és mentor)

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