Owing to the dynamic characteristics of human beings, the management of people has become a tricky task. Now with the inception of the digital era, the complexity of human resource management has increased manifolds. Continual software updates, social media transparency and the remoteness of international teams, all contribute to a challenging atmosphere to survive and manage requisite talent. It becomes evident here that understanding, identifying and overcoming challenges faced by Human resource teams and managers.
Top 10 Challenges Faced By Human Resource Managers
Let us have a look at the top challenges faced by Human resource teams and managers and also how to overcome them-
1. Attracting Top Talent
One of the most common challenges faced by Human Resource teams is Attracting and retaining the best talent takes discernment, time and a whole lot of work. That is why this human resource challenge tops the chart. It is a huge task to attract the right individuals according to the requirements of the job and the organization. But as job roles and expectations keep changing, and organizational culture keeps adapting, this task becomes increasingly difficult. Hence it is advisable to start with how and where you market vacancies. Attracting the right talent will eventually shorten the screening phase and thereby find candidates who are a fit with the organization, rather than their skills, industry, and job level.
2. Developing Leaders For Tomorrow
To ensure the consistency and efficacy of all team performances at the same level, it is important to select a competent team leader. Many employees consider leaving their jobs because of a poor relationship with their direct manager. Thus it becomes crucial to source and develops talented and inspiring leaders. One of the greatest flaws of most HR policies is that the current employees, who are being groomed, are not ready or competent for leadership positions in the future- which is a regular occurrence in a Millennial heavy workforce. That is why this is one of the most common human resource challenges today. It is also important to harness your future leaders to their desk and continuously find ways to motivate them.
3. Ensure a continuous learning culture
Today crowds of employees leave their jobs due to the lack of development opportunities within the organisation. Yes, training is the golden drawcard for keeping employees stimulated, engaged and loyal. Of all human resource challenges, this is arguably the most simple to address. Because relevant training to the jobs, including engaging contents and enabling flexible learning programs are important drivers of employee motivation.
If employees are not aware of the learning opportunities at their disposal, they will be demotivated in working towards the progress of the organisation because they will feel that the company is not invested enough in the development of its employees. Having a learning working culture improves employee engagement and, therefore, better productivity.
4. Looking after health and safety
Health and Safety standards are probably one of the most obvious human resource challenges. Not only does labour law govern these concerns, but they are also of great importance to the general well being of the employees. Because health in the workplace isn’t just about hygiene and safety, today, the psychological well being of employees can deteriorate due to high demands, limited time and general employee burnout. Surely periods of stress are normal, but higher levels of stress cannot be sustained. Working conditions and work culture can get nerve-wracking for the employees, which may avert them from the organizational goals and they may feel disassociated from the values of the company. That becomes a serious challenge!
5. Creating a Quality Employee Experience
Probably one of the major challenges faced by human resource teams and managers. It is not unusual to find high staff turnover in fast-paced companies. Because even though they might manage to hire the best employees, keeping them around becomes the next obstacle and one of the greatest human resource challenges. It is important to focus on creating an employee experience that is a notch above the competitive firm. Employees find themselves in a state of perplexity if there isn’t any substantial effort to create quality employee experience. So it is imperative to build a culture that is inspiring and welcoming and encourage your leaders and managers to lead by example.
6. Change of Management
Since it is generally not the lookout of HR professional training and development, change in management represents a particular challenge for personnel management. It is seen in studies that this may also be the reason why it is cited as one of the foremost issues of Human Resource Management. There might exist a substantial gap between the new management and the existing employees and thereby lead to professional discourse and lack of proper communication among various hierarchical levels. An intensified focus on training may be needed to develop added competencies to deal with change management.
7. HR Effectiveness Measurement
Measuring the effectiveness of the HR team itself is among the top challenges faced by Human resource teams and managers. It is really difficult to measure the level of improvement happening in the HR department due to top lack of substantial tools and apparatus to measure the effectiveness of the same. As with many other areas of business, this profession also needs to measure results in terms of transaction management, as well as in terms of the positive influence on business. Utilizing metrics to determine effectiveness is the beginning of a shift from perceiving HR’s role as purely an administrative function to viewing the HR team as a true strategic partner within the organization. Where the HR department has traditionally focused on measuring their own effectiveness, there is an evolving recognition that they can provide organizational value by measuring the effectiveness of the entire business concern. It is a modern approach that needs to be adopted by companies at the earliest, which most companies do not necessarily invest in.
Many companies are struggling with how best to structure employee compensation. Small businesses have to compete not only with businesses of similar size but also with corporations with big payroll budgets. In addition to that, you have to discount the cost of benefits, training, taxes and other expenses, which can range from 1.5 to 3 times the employee salary. Hence it is evident to create a system to reward employees for excellent performance as it is one of the ways to make up for low salary. In addition, it is also advisable to consider offering incentive programs such as profit sharing or bonuses, which can be a win-win for the employee and the company.
9. Workplace Diversity
Multiple generations, Ethnic and cultural differences and what not! These are just a few of the many factors that make workplace diversity a continual challenge for small businesses. The risk of lawsuits for failing to protect employees from harassment is real. Creating a culture of teamwork and respect will keep the work environment positive and productive. In addition, implementing a diversity training program is a must. Employers are responsible for setting standards of behaviour in the workplace. Standards and a system of accountability should be set up early on otherwise this issue can take the turn of a serious HR challenge.
10. Employee Retention
One of the biggest challenges faced by Human resource teams and managers. is employee retention. Competition for talented employees is fierce. Startups and small companies don’t have big budgets for retirement plans, expensive insurance policies, and other costly items that their larger competitors do-at least, not yet. Employee turnover is an expensive affair and can negatively impact business growth. So, it is advisable to have a proper employee retention program with adequate job opportunities, compensation, work culture, etc., in order to ensure proper development of the business organization. Nowadays there is a rise of AI in Talent Management for improving employee engagement and, thus, better retention.
HR management is a tough nut to crack. There are several challenges faced by Human resource teams and managers. There is an urgent need for organisations to adopt correct and workable policies that will not only ensure they alleviate these challenges but also develop mechanisms of dealing with such challenges in case they occur in future.