Retaining key staff is the number one concern for HR managers.

This is according to Taleo, a talent management solutions provider that quizzed 200 senior HR managers about their biggest challenges in 2008. Topping the poll is retention with 30 per cent citing it as their number one concern, closely followed by hiring talent (23 per cent), attracting candidates (11 per cent) and complying with new legislation (11 per cent).

Additional challenges include succession planning (10 per cent), career development management (5 per cent), cutting recruitment costs (4 per cent), gaining boardroom support for HR (4 per cent), and increasing the internal mobility of staff (2 per cent).

According to the survey, almost half of HR is looking to improve performance management with improved systems, whilst 21 per cent are looking for an easy way to measure the effectiveness of HR processes such as recruitment, followed by 15 per cent seeking better visibility into employee’s skills.

Additional responses include: reduced dependency on recruitment agencies (8 per cent); systems that aid compliance with regulations (8 per cent); and a system to improve the effectiveness of the recruitment process (4 per cent).

Despite the urge for improved systems and measurement methods, 46 per cent of respondents expect their budgets to remain the same, yet it’s not all gloomy news as 33 per cent actually expect them to be increased in 2008.

“HR is experiencing sustained pressure to recruit and retain the best people in a market where employees are increasingly calling the shots. In response, boards are increasing HR budgets and HR executives are looking for technology solutions to help them solve their recruiting and retention challenges,” said Neil Hudspith, SVP, international for Taleo.