European Influence.

Effect of The Euro on HR.

The implementation of the Euro as a working currency from 1st January 2002 will have repercussions on how employees receive salaries, benefits and pensions.

Apart from the obvious implications on an HR department of the Euro on employees' salaries, benefits and pensions, European wage negotiations by Works Councils will become more likely. The Euro could also heavily influence labour mobility within Europe. HR departments would therefore have to consider how to harmonise their practices and ensure training and compensation packages are competitive with those of other parts of Europe.

HR departments will also have to look at how payslips are printed. They might consider how to put the natinal currency and the Euro conversion onto the same slip. There should also be an explanation of what the conversion means.

Works Councils from different parts of Europe may join and request wage negotiations across the whole of Europe.