Trends in UK human resource management (HRM) are shaped by its cost-driven
and competitiveness-enhancing nature. The drive for leaner organisations ha
s led to increased use of labour flexibility, downsizing and outsourcing, w
hilst rewards have become more performance related and benchmarking is seen
as a tool for HRM practitioners. Such trends have received strong governme
nt support. Since 1997, and the new Labour government there have been signs
of more protective values towards employees. However it is the influence o
f EU membership that has become a greater source of initiatives aimed at em
ployee welfare and involvement. This scene must be placed in context, with
an ageing population and an uneven distribution of employment, to gain some
understanding of the challenges facing HRM in the UK.