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2021TalentTrendsReport
rewriteyourtalentstrategyplaybookduringextraordinarytimes.
humanforward.
AsRandstadSourcerightpreparedlastyear’sTalentTrendsReport,weprojectedthat2020wouldbealandmarkyearforfuturists.Asitturnsout,itwasamosttransformativeyearforjustabouteveryone.
Forhumancapitalleaders,therewerenumerousunprecedentedchallenges—fromdevelopingsafetyguidelinesandprotocolstokeepingat-homeworkersengagedtorevampingcorporatecommunicationsstrategies.Throughitall,HRleadersbecameaguidingforcefortheirorganizationsbyenablingtheirpeopletooperateremotelyandkeepingtalentengaged.AsCNBCpointedout,thecoronavirushasclearly
elevated
theimportanceofCHROs
duringthistime.
Fast-forwardtoanewyear:inmanywaysHRisdrivingbusinesssuccessaswepivotintoatransformedglobaleconomy.Sectorsseverelyaffectedbylockdownsandrestrictions,suchas
hospitality
andtravel,areturningtotheirchiefpeopleofficersforever-changingguidanceonoperatingsafelyandplanningfortheeventualreturnofbusinessasusual.CompaniesfortunateenoughtoprosperduringthepandemicareleaningonHR
toenablegrowththroughmassivehiringinitiatives,suchastheone
undertakenbyAmazon.
Regardlessofwhetheryourcompanyishiringorretrenching,theC-suiteiscountingonyouforleadership.Atnotimehasworkforcestrategybeenmorecriticaltobusinessoutcomesthanitistoday,andyou’llneedtoelevateHR’sfunctionfurthertomeetandexceedexpectations.Yourbiggestchallengesmaystilllieahead.Howwillyourewriteyourtalentstrategyplaybookfor2021?
MikeSmith
globalCEO
RandstadSourceright
Our2021
TalentTrends
research,whichgaugedtheoutlookof850humancapitalandC-suiteleadersin17marketsaroundtheworld,affirmsthechallengesmanyorganizationsface,butalsoshowshowbusinessesareadaptingeffectivelyinthenewnormal.Nearlytwo-thirds(65%)saytheroleofHRhasshiftedsignificantlysincetheonsetoftheglobalpandemic.
Andwhenitcomestotalent,theaccelerationofdigitaltransformationhasmeantmanyoftheskillsgapscompaniesfacedbeforethepandemichavenotgoneaway.AddressingtheneedforgoodIT,HR,andfinanceandaccountingskillsremainsahighpriority.Infact,40%saytheycontinuetoexperiencetalentscarcityinIT,while28%saytheycan’tfindenoughqualifiedcandidatesforHRroles.Nearly1in5(19%)needmorefinanceandaccountingspecialists.
Withuncertaintyeclipsingyourview,howwillyouadaptyourtalentstrategytopreparefortheroadahead?Startwithgooddataandinsightstoguideyourway.AmongalltheinvestmentsHRhasundertakeninrecentyears,talentanalyticsremainthetopareaoffocusheadinginto2021;90%saytheywillcontinuetobudgetforsuchdataplatformsafterthepandemicsubsides.
Beyondbetterinsights,flexibilitywillbecriticaltoaccommodaterapidlyshiftingmarketconditions.Rightnowwe’rewitnessinganunprecedentedpushbycompanies,whichare
tappingintomorecontingenttalent
in
responsetoeconomicfluidity.Flexiblelaborisincreasinglyviewedasapowerfulwaytoaddresscriticalskillsdeficiencies,costefficienciesandrapidaccesstoagileresources.
Ourdatashowsthatamultiyeartrendofconvertingpermanentrolestotemporaryonesreversedfor2021.In2017,nearlyone-third(29%)ofourTalentTrendsrespondentsreportedtheyhadshiftedpermanentrolestotemporaryones,butthatnumberfelleachsubsequentyearto21%in2020.Our2021researchshowsexpectedconversionstotemporaryrolesroseslightlyto22%.
Thisshifttomorecontingenttalentresourceswillnotbewithoutchallenges.Companieswillneedtoconsiderhowtoattractandretainthebesttemporaryworkersorfacelosinggreattalenttocompetitorswithinandoutsidetheirindustries.
Theimportanceoftalentduringandafterthepandemiccannotbeoverstated.Andit’syourjobtoanswerthe"hows."Howwillyoufindandacquirethebesttalent?Howcanyoureachtheoptimalbalanceofcontingentandpermanentworkerstofuelyourbusinessengine?Howwillyouensuretimelyandcost-effectivedeploymentoftalentacrosstheorganization?Howcanyoucreateatransformedexperiencefortalentandhiringmanagers?Howareyouintroducingjust-in-caseandjust-in-timetalentsupplychainstrategies,andhowwillyouensureyourorganizationisbestenabledtodeterminehowworkgetsdone?
Thesearetoughquestionsyouprobablyaskeveryday.Butyoucandrawuponlessonslearnedin2020toprovidethedata-drivenadvice,resourcinginsightsandunwaveringleadershipthatwilldrivegrowthin2021.Addressingthe10workplacetrendsthatfollowinthisreportwillhelpyourorganizationrethinkhowworkgetsdonetoadvancecriticalmissionsthisyear.
Atnotimeinrecentmemoryhavehumancapitalleadersassumedamoreessentialroleinthesuccessoftheirbusinesses,andnowyoumustcontinuetohavethecouragetoboldlyfaceunprecedentedchallenges.Wherewillyouleadyourorganizationnext?
MikeSmith
globalCEO
RandstadSourceright
whatare2021’stoptalenttrends?
01020304
focusonskills,notjobs,
tocreatevalue.
remainflexibleinafluid takeworkforcehealth& sustainproductivitygains
economytowin. wellnesstocenterstage. withdigitaltransformation.
05
06
07
08
driveworkforce
getaheadofastill-growing
reshapethesupplychain
amplifythebusinesscasefora
decision-makingwithdata.
skillsgap.
withborderlesstalent.
cultureofdiversity&inclusion.
09
10
successstories
•intimesofuncertainty,Philipsspeedsup
buildasustainableworkforce
fuelemployerbrandstrategies
workforceinnovation.
byrepurposingtalent.
withyourtalentexperience.
•UCBimprovestimetohirewhilefillingan
unprecedentednumberofrequisitions.
01
focusonskills,notjobs,
tocreatevalue.
Canaligningyourstrategywithskillsetshelpyouachievegreaterbusinessperformance?
Foryears,humancapitalleadershavebeenconsideringhowtodrivegreatervaluefromtheirtalentstrategies,but2021appearstobetheyearthatseparatesthevisionariesfromthedaydreamers.Evenascountlesscompaniesfacecontinuedrestructuringandlooktocontrolworkforcecosts,theinnovatorsareprioritizingvalueoversavings.Theyknowthatinthelongtermtheirorganizationswillemergemorecompetitiveandagile.
Clearlythepandemichaselevatedtheimportanceofhumancapitalleadersoverthepastyear.Infact,inour2021
TalentTrends
research,65%saytheroleofHRhasshiftedsignificantly,and77%saytheirtalentstrategiesarenowmorefocusedonworkforceagilitythaneverbefore.
home
Humancapitalleaderscanmakeagreaterimpactonbusinessperformancebyadoptingavalue-orientedmindset.Withmany2021budgetsreduced,companiesarerethinkingavarietyofinvestments,includingthosethatimpacttheirworkforces.Forward-thinkingleadersaren’tjustfocusedonhowtocutcosts,however,butratheronhowtoredeploytheirspendinmoreefficientandeffectiveways.Thismeansembracinganoptimizedblendoftemporaryandpermanenttalentandfocusingonskills,ratherthanjobs.Thisholisticapproach,whichwasslowlybeingadoptedinrecentyears,isnowseeingbroaderinterest.
Theuseofcontingenttalenthasgrownsteadilyatmanyorganizationsoverthelastfewyears.Contingentworkforceprogramsarebeingthrust
intothe
spotlight,
and
StaffingIndustryAnalysts
projectsthatthestaffingmarketmaygrow10%thisyearasavaccineismadeavailable.
Butcompaniesarenowtakingafreshlookathowtheycanleverageflexiblelabortoachievebetterbusinessresultsanddriveefficiencies.Accordingto
McKinsey,
temporarylaborcanbethelinchpintoacompany’ssuccessin2021.Byrealigningstrategiesaroundthecontingentworkforce,companiesgainenhancedflexibilityandresilienceatatimewhenthesecompetenciesaregreatlyneeded.
Thisrevampedstrategyshouldexaminehowworkgetsdone,insteadofhowjobsarefilled.Byfocusingonskillsthatcanbedeployedacrosstheenterprise,businessesbuilddeepproficienciesandflexibility.Thistypeofholisticapproachalignswithwhatmanyorganizationshavebeenstrivingtoachieveforsometime:creatingatotaltalentmodelthatenhancesaccesstotalent,reducestimetodeploy,andoptimizesspendandagility.
01.focusonskills,notjobs,
tocreatevalue.
CasperZoetekouw,globalcommodityleader,ExternalWorkforceforPhilips,explainsthathiscompanycallsthisapproach"rightsourcing."Aspartofthecompany’stotalworkforcedemandmanagement(TWDM)solution,itdrivestremendousvalueandacompetitiveadvantageforPhilips.
"WithourTWDMsolutions,weanticipateandhelpourbusinessinchoosingandplanninghowworkneedstobedone.Andwedothisbyintegratingallofourworkforceoptionsintooneoverallprogram."
CasperZoetekouw
globalcommodityleader,ExternalWorkforce
Philips
Amongcompanieswesurveyedthathaveadoptedatotaltalentapproach,successfuladoptionandoutcomesareexceptionallyhigh.Nearlyall
(97%)saytheyareextremelyorverysatisfiedwiththemodeltheyhaveimplemented.AsmorecompaniessuchasPhilipsexecuteontheirtotaltalentambition,it’sexpectedthatsimilarresultswillbereported,leadingtogreaterworkforcevalue.
home
77%
saytheirtalentstrategiesarenowmorefocusedonworkforceagilitythaneverbefore.
97%
saytheyareextremelyorverysatisfiedwiththetotaltalentmodeltheyhaveimplemented.
01.focusonskills,notjobs,
tocreatevalue.
"Withsomanyorganizations
undergoingtransformation
now,humancapitalleaders
shouldconsiderthisan
opportunitytoeffectchange
throughaholisticapproachfor
fulfillingworkrequirements."
SueMarcus
regionalpresident,NorthAmericaRandstadSourceright
home
3questionsyoushouldask
01.focusonskills,notjobs,
tocreatevalue.
01
Dotheworkforcemeasureswehaveinplaceorareimplementingcreatelong-termvalueorshort-termgains?
02
Areweconsultingwithhiringmanagerstoconsiderhowbesttogetworkdoneregardlessofworkarrangements?
03
Doesourtalentstrategy
empowerbusinessleaders
toreachtheirgoalsmore
effectivelyandefficiently?
5waystocreatevaluewithaholistictalentapproach
01
Considerhowtoaccesstheresourcesandskillsyourbusinessneedsthroughalternativeandscalableworkarrangements,suchason-demandtalentorpayrolling.
02
Identifyhowskillscan
bedeployedacross
yourorganization
oncross-functional
agileprojects,notjust
acrossonefunction
ordepartment.
03
Eliminatesilosthatpreventyoufromaccessingalltypesoftalenttobestachieveyourdesiredoutcomes.
04
Buildadataengine
andtechnologystack
thatcangiveyou
greaterinsight—and
control—overhow
talentisacquired
anddeployed.
05
Buildtalentpoolsthat
driverapidselection
andacquisitionof
permanenthiresand
temporarystaff.
home
02
remainflexibleina
fluideconomytowin.
Areyoureadytorespondtotheneedsofyourworkforceandshiftingmarketdevelopments?
Akeyenablerformanyorganizationsinthepastyearwastheirabilitytooperatewithgreateragilityandflexibility.Thiswasevidencedbyhowquicklycompaniesadaptedtotheconstraintsofthepandemic,whichsentmillionsofworkersoutoftheofficeandbackhome.
CompaniesthatcouldflextothechangingdynamicsoftheCOVID-19crisis—fromshiftingbusinessmodelstohiringtalentinresponsetoincreaseddemandtoreskillingandredeployingemployees—emergedasthewinnersduringthistime.Havinglearnednumerouslessonsalongtheway,manybusinesseswillhavetostayflexibleinthemonthsandyearsahead.
home
Flexibilityisespeciallyneededinmanagingtheworkforce.Althoughmillionswerelaidofforfurloughedinitially,millionsofjobshavereturnedandmanynewroleshavebeencreated.WiththeglobaleconomywitnessingasecondwaveofinfectionsinQ4oflastyear,employerswereagainfacedwithadditionalrestrictionsandreductionineconomicactivity.Innovationwasbornoutofnecessityandnowemployeeshavenewexpectations.
Inlightofthis,companiesneedtoremainflexible.Organizationssuchasthe
InternationalMonetaryFund
(IMF)haveforecastedaglobalreboundof5.2%ineconomicgrowththisyear,butitalsoconcedesthisisbasedonahighdegreeofuncertainty.Thismeansbusinessesmustbeextremelycarefulintheirtalentacquisitionefforts.Mostimportantly,theyneedtobereadywhendemandreturns.
Atthesametime,employersshouldbeattunedtotheneedsoftheirworkforce.Becauseofthefluidnatureofthepandemicanduncertaintyaroundhowlongitwilltakeforvaccinestobewidelyavailable,revertingtoworkplacepracticespriortopre-pandemictimesmaytakealongtime.Humancapitalleadersfacecontinuedhighpressureofinspiringengagementandproductivityforremoteteams,whileaddressingworkforcefatigueandstressasthepandemiclingerson.
Overthepastyear,organizationshavelearnedtomanagetalentinnewways.Withsomanyworkingfromhome,dailycheck-insoverCiscoWebEx,MicrosoftTeams,GoogleMeetandZoomareapartofpeople’sdailyroutine.Forthemostpart,theflexibilityhasnotresultedindecliningproductivity.Infact,
somecompanies
suchasCiscoandMicrosoftreportedhigherproductivitylastyear,andothershave
embracedpermanentremote
work
options.
02.remainflexibleinafluid
economytowin.
Our2021
TalentTrends
researchrevealsthat64%ofhumancapitalleadersviewflexibleworkingarrangementsasimportanttotalentattraction.Amajority(59%)alsosayafamily-firstcultureisastrongemployeevalueproposition,with55%reportingthattheircompaniesaredeliveringonthispromise.Sixtypercent(60%)saytheycurrentlyoffertotaloragreatdealofflexibilitytotheirworkforce.
Supportforworkingparents
andcaregiverscontinuestobeespeciallyimportant,astheseindividualsarestillchallengedtobalanceworkandhomeresponsibilities.Employersmayoffersupport,suchasfinancialassistancetoworkingparentsandcaregiverstosupplementadditionalcareexpenses,buttheyshouldalsooffergreaterflexibilityinhow,whereandwhenworkiscompleted.Allowingcaregiverstoadjusttheirhours,blockno-callzonesandfosteringacultureofunderstandingcanmakeabigimpact.
Asthepandemicebbsinsomemarkets,morecompaniesmayconsidermandatingin-officeattendanceagain.Evenso,hybridscheduleswilllikelybepreferredbytalentastheirviewsofwork-lifebalancehavefundamentallyshifted.
Workmonitor,
researchconductedbyRandstadN.V.inthefourthquarterof2020,showsthat35%oftheworkingpopulationpreferahybridschedule,andone-quarterwantflexibleschedulestoaccommodatetheirdesiredwork-lifebalance.Mosthumancapitalleaderswesurveyedarerespondingtothisshift;80%saytheirbusinesswillconsidersomesortofpermanentwork-from-homepolicy.
Althoughcorporateleadershavemoreclarityanddirectiononwhat’saheadfortheirbusinessinthecomingmonths,agreatdealofuncertaintystillexists.Humancapitalleadersmustremainflexibletoshiftingconditions,considerhowandwhentoreturntoworksites,andbalancenewtalentexpectations.
home
64%
ofhumancapitalleadersviewflexibleworkingarrangementsasimportanttotalentattraction.
80%
saytheirbusinesswillconsidersomesortofpermanentwork-from-homepolicy.
02.remainflexibleinafluid
economytowin.
"Toensureyouhaveaflexible
andagilewayofworking,
analyzethelatestmarketand
internalsurveydatatohelp
guideyourtalentdecisions.
Knowingwhatistocomeand
theneedsofyourworkforcewill
becriticaltosuccessin2021."
GrahamTrevor
HRdirector,RandstadSourcerightEMEAHRandCorporateServicesdirector,RandstadUKandIreland
home
3questionsyoushouldask
02.remainflexibleinafluid
economytowin.
01
Areweregularlysurveyingourworkforcetounderstandhowwecansupportindividualneedsduringchallengingtimes?
02
Howarewealigningwith
businessleaderstorespond
rapidlytoworkerand
businessneeds?
03
Howwillweuseflexible
workingarrangementsinthe
longtermbasedonshifting
talentexpectations?
5waystobuildanagileandflexibleworkforce
01
02
03
04
05
Allowflexible
Considergiving
Providestipendsor
Earmarkdaysinthe
Offerjobsharingto
schedulesthatare
employeeschoices
othersupporttohelp
weektominimize
thosewhoprefer
bothmoreconducive
aroundin-office
withcaregivingor
meetings,allowing
toworkonlyafew
toindividual
attendance,whether
childcareneeds.
employeestofocus
daysperweekto
circumstances
that’sahybrid
ontheirwork.
accommodate
andtotheneedsof
schedule,fullyremote
homeobligations.
theorganization.
oralwaysonsite.
home
03takeworkforcehealth&wellnesstocenterstage.
Isyourcompanydoingenoughtoprotectphysicalsafetyandensurementalwellness?
Healthandwellnesschallengesemergedasoneofthemostpressingworkforceissuesfacingmanyhumancapitalleadersin2020.Astheglobaleconomycontinuestoadapttonewwaysofworking,theseconcernsremaintopofmindfortalentleaders.Theuncertaintycompaniesandworkersfacedlastyearledtoconsiderablestressearlyon,butayearsincetheoutbreak,itappearsthatorganizationsareeffectivelymanagingthesafetyandemotionalneedsoftheirworkers.
home
Accordingto
Workmonitor,
71%ofworking-ageadultsfeeltheyareemotionallysupportedbytheircompanies.Fromtheemployers'perspective,ascapturedbyour
TalentTrends
research,62%sayawellnessprogramisextremelyorveryimportanttoattractingtalent.Thisincreasedattentiontoworkforcewell-beinghasresultedinsurprisinglygoodoutcomes.
Accordingto
HRDirector,
whichstudied10millionemployeesurveyresultsinJulyoflastyear,engagementactuallyrose2%globallybetweenJanuaryandJuly2020.Benefitssuchasflexibleschedules,saferworkenvironmentsandmoreautonomywerecitedasfactorsfortheenhancedscore.Oursurveyshowsthatnearly39%ofcompaniesbelievetheirworkforceismoreproductiveworkingfromhomethanbeforethepandemicoutbreak.Anadditional30%saytheirpermanentworkforceisasproductivefromhomeastheyareintheoffice.
Whilethework-from-homemovementof2020deliveredbetterresultsthanmanyanticipated,itisn’tallgoodnews.Accordingtoastudyconductedby
HarvardBusinessSchool,
theaverageworkdayincreasedby8.2%(48.5minutes)earlyoninthepandemic.And69%ofthosesurveyedby
Ginger
said2020has
beenthemoststressfultimeoftheirentirecareers.Soeventhoughremotearrangementshaveproveneffectiveforgettingworkdone,someemployeesarestrugglingwithitssideeffects.
JonathanBerlan,globalheadofCandidateExperienceforUCB,saysheencourageshisteamtoobserveahealthyworkscheduletoavoidstressandburnout,andtoensuretheyhavepersonaltimeseparatefromworktime.
03.takeworkforcehealth&
wellnesstocenterstage.
"Companieshaveadutytopromoteemployees’abilitytoswitchofffromworkwhileworkingathome."
JonathanBerlan
globalheadofCandidateExperience
UCB
Lastyearwasaperiodofhighstressformost,whetherquarantinedathomeoron-siteatwork.Despitevaccinesnowrollingoutaroundtheworld,ensuringworkplacesafetyisstillatoprequirementformany.Accordingto
LinkedIn,
talentwillprioritizesafety,securityandhealthwhenconsideringjob
offers.Companiesthatfailtomeettheseexpectationswillloseoutoncriticaltalent,andsmallchangescanmakeabigdifference.Recognizingthestressofvideocalloverload,employerssuchasGooglearepromotinghealthierworkscheduleswith
"nomeetingweeks."
Companieswillbetakingacloserlookathealthandwellnessneedsin2021.Thisisimperativebecauseemployersthatoffercomprehensivesupporttotheirstressedworkerswilllikelyseereturnsontheirinvestmentintheformofahealthierand
moreproductiveworkforce.
home
62%
sayawellnessprogramisextremelyorveryimportanttoattractingtalent.
69%
believetheirworkforceisasproductiveormoreproductiveworkingfromhome.
03.takeworkforcehealth&
wellnesstocenterstage.
"Workforcewellnesshasnever
beenmoreimportant,so
companiesshouldconsider
theevolvingneedsoftheir
employeesascircumstances
change.Morefrequent
communicationsand
assessmentsshouldbeapartof
youroveralltalentstrategy."
WesleyConnor
vicepresident,GlobalLearningandDevelopmentleaderRandstad
home
3questionsyoushouldask
03.takeworkforcehealth&
wellnesstocenterstage.
01
Whatkindsofdataareweusingtoguideourworkplacesafetyandwellnesspolicies?
02
Doourmanagersregularlyassesstheworkloadandstresslevelsoftheirpeopleandtrackchangesovertime?
03
Haveweimplemented
measuresthatenableworkers
tolimitthetimetheyspendon
worktoavoidburnout?
5waystokeeptalentengagedandpreventburnout
01
02
03
04
05
Mandatemoretime
Assessyouremployee
Buildexercisetimeinto
Createmore
Nurtureacultureof
awayfromthe
assistanceprogramto
eachdaytoallowyour
transparencyabout
empathytoprovide
desk—eitherthrough
trackutilizationandjob
teamstomentallyand
yourcompany’s
moreemotional
additionalpaidtime
satisfaction.
physicallyunwind.
plansaboutlayoffsor
supporttoworkers
off,opportunitiesto
furloughsandother
whomaybesuffering
performvolunteerwork
organizationalchanges
fromCOVID-19fatigue.
orevenshorterwork
toreducestressand
weeks—andbesure
buildtrust.
thatworkloadsare
adjustedaccordingly.
home
successstory:
intimesofuncertainty,
Philipsspeedsup
workforceinnovation.
IfyouaskPhilips’CasperZoetekouwwhatkeytakeawaylessonshehas
learnedduringthepast12monthsofthepandemic,hemighttellyouto
checkbackinthesecondhalfofthisyear.That’sbecause,astheglobal
commodityleaderforthecompany’sexternalworkforce,Philipsisstill
learningandimplementingsolutionstoamyriadofchallengesthat
continuetocropupeveryday.
"Weareinthelearningandimplementationphase.Welearneachand
everydaymoreandmore,"Zoetekouwaffirms.
Philipsisinthemidstofcreatinganewparadigmaroundtalent
managementandutilization.Inhelpingtooverseetherolloutofthe
company’stotalworkforcedemandmodel(TWDM),Zoetekouwispartof
ateamthatiselevatingPhilips’abilitytoinnovatemorequickly,bemore
competitiveinitsbusiness,andcreatemoreexcitementandengagement
foritstalent.
home
TWDMlaunchedaheadofCOVID-19
Whentheoutbreakinitiallyoccurred,Philipswasalreadyworkingtowarditsgoalofbringingtotaltalentmanagementtolifeatitsoperationsaroundtheworld.Explorationandimplementationofthisholisticapproachtotalenthavebeenontheriseinrecentyears,butfeworganizationsaredoingitatthescaleandbreadthseenatPhilips.
Totaltalentmanagement,whiledeliveringexceptionalbenefitstoitsadopters,canbehighlycomplexandtime-consumingtogetright.TogetherwithTalentAcquisition,thebusinessstakeholdersandtheMSPpartner,procurement’sjobistogetitright.
RandstadSourceright’s2021
TalentTrends
researchfindsthat69%ofcompaniesintendtoimplementatotaltalentmodeloverthenext12months,andtheywilldosoforavarietyofreasons.Amongthetopexpectedbenefitsare:creatingefficienciesinthehiringprocess(citedby35%),buildingforthefuture(34%)andbringingstrategicfunctionintotheHRfunction(33%).Andamongcompaniesthathaveimplementedtheirtotaltalentvision,97%saytheyareextremelyorverysatisfied.
AndthatisZoetekouw’sgoal—tocreategreatersatisfactionfo
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