Are you a business owner, HR manager, or someone wanting to know the challenges faced in HR? Or are you facing challenges in maintaining a good working culture at the workplace? Looking for solutions to overcome such emerging human resource management difficulties?
If so, then you have landed in the right place. Through our experience, one of the businesses’ most overlooked factors is their HR Management. While it is important to look into your sales and profit, you have to keep the “blood” of the business running.
In this article, we will narrow down some of the most common challenges organizations face and their solutions.
Humans have always been complex creatures, and with digitalization, many challenges have evolved. Companies need to put some extra effort into retaining their workforce either by investing in their training or initiating the improved candidate attraction schemes. Moreover, money, time, and effort are the most valuable asset a company can provide to its employees.
Let’s have a look at some common challenges of human resource management together with their solutions.
1. Compliance with Rules & Regulations
One of the top issues in HR management is the failure to comply with rules and regulations. If the workforce does not abide by the governing principles, they will end up with hefty charges and fines.
Such penalties will destroy the company’s reputation, which will later or sooner affect the employees’ recruitment.
It is vital that the sub-divisions in HR must ensure that they devise rules that have to be enforced within the division. Here’s what we did.
Use a Calendar
Sometimes the most basic tool is the best tool. Work with your HR team, your company secretary, and your respective legal county to understand the necessary regulations and the timeline needed to comply. After this process, all you need to do is follow the schedule and maintain it. Do keep an eye out for new regulations!
This is as simple as storing your documents and database in the cloud. Do a professional check on the security before doing that! This not only eases your storage space but it helps in releasing real-time data to respective teams and authorities. In this way, finding documents saves you more time than finding them the traditional way.
Find yourself software that suits your needs. There is plenty of software that helps you manage your HR tasks such as payroll, documentation, annual and sick leave application, etc. The best part is, some of them are free! Let us know down in the comments if you want suggestions.
2. Attracting the Talented Workforce
Recruitment of the best talent has always been a challenge for HR managers. Often, we seek highly trained professionals that fit the organization and help to grow the business tremendously. Because we recognize that employee’s skills, work ethic, and dedication are crucial for the organization.
To overcome and excel in this process, you can do these:
Boost your LinkedIn
Ensure your LinkedIn has sufficient and relevant details for your company. LinkedIn is a powerful tool when it comes to work and experiences, almost all working professionals use it for gaining experiences, listing their experiences, headhunt experienced employees in a particular company, or be headhunted. Did we mention having a LinkedIn profile provides your company credibility? You can definitely gauge the number of employees in a particular company by searching the name of the organization.
This works if you already have people employed in your company. You can encourage staff to refer acquaintances for a job opening interview. If hired, the person who referred gets paid a referral fee. This also saves up on your marketing cost in talent acquisition.
Reward Scheme to Motivate
Alternatively, you might want to also develop a reward system to captivate and retain the talent in the company. This serves as a motivation to work harder and achieve their respective targets with specific metrics to measure (KPI). Make sure to be clear of the reward scheme and the KPI set to be accurate and to avoid any possible dispute.
If done properly, you might be able to see your staff efficiency rise up the ladder to grasp the reward. Ensure it is not a competition but a reward for those deserving. Of course, in order to have the desire, the reward should be attractive as well. 😉
3. Managing Staff’ Aspiration
Do you realize some industries are beginning to hire younger employees recently? Why do you ask? This is because aspirations are significantly different from the elder ones. The younger generation is producing more ambitious and career-oriented as they have a long road ahead of them. So with time, the career orientation of the staff has changed.
What now? HR managers must evolve to become analytical and be made aware of the high-level needs of individual employees. They must devise suitable plans for their career growth.
(*You need to find out what is a motivating factor that drives the employees!)
4. Changes in Business Management
A business growth usually means team members will have a hard time in coping the changes. Because growth attracts changes in structure and strategies. Such internal advancements may decrease productivity.
Business owners should communicate the importance of changes with their staff. Communication is very important. You could start with a “Townhall meeting” and ensure all employees understand and be motivated on new changes to continue striving.
5. Leadership Development
Another significant challenge of HR management is developing and cultivating individual leadership. It is a crucial strategic initiative that HR professionals usually face. They are supposed to provide the essential tools, structures, and processes to the staff to create future leaders. HR managers must have to develop the abilities to retain the right employees that support the organizations.
To secure the organization’s long-term future, not only the managers must play the leadership role, but everyone must cultivate leadership in their work to avoid any need for micro-managing for staff not performing. It is important that everyone respects the hierarchy but also important to report any cases of abuse of power to your HR department or to the higher-ups by any individual.
6. Encourage the Culture of Continual Learning
In this modern era, some employees cannot be satisfied with the standard benefits staff in the 90s’ used to have. Aside from their salary, they are looking beyond that. To name a few, insurance, medical allowance, career progression, and more. Continual Learning is also known as Staff Development and Training can help retain quality employees.
They quit their jobs due to the lack of development opportunities. Is training sufficient to keep the staff stimulated? Well, it’s a golden drawback to engage the employees. This not only helps to retain employees but helps sharpen their skills for the company.
However, flexibility must be considered when implementing. including flexible learning and engaging content must be preferred. Training must not stop; in fact, it should happen continuously to maintain a competitive workplace environment. Some eLearning courses are also a good option to overcome the HRM challenges.
(*Consider flexibility when it comes to implementing staff development and training. You wouldn’t want to risk your company’s performance when all staff is forced to go through it, it may end up harming your business when implemented without flexibility!)
7. Performance Appreciation
Lack of performance appraisal by the organizations is also another big challenge faced in human resource management. It demotivates employees and affects their future performance which leads to poor working culture. Dreading their feet to come to work.
A good way to incentivize employees aside a compliment in words can be in the form of allowances, bonuses, and other incentives according to employees’ performance. This will relate to the reward scheme we mentioned earlier.
To keep the morale up, a letter of appreciation by their supervisors and higher-ups should be given alongside the reward. This shows your sincerity. The managers must update the latest appraisal techniques to meet the changing needs of the times.
In any organization, Human Resource cannot be overlooked.
A good HR department will know when to adopt new policies and when to remain certain policies all for the development of the employee and organization. But they are also one of the biggest challenges for any business.
The person in charge of HR should be someone that possesses business acumen, people management skills, analytical, good monitoring, managing without micro-managing, empathetic and patient.
Based on our experiences, we have mentioned some of the common HR challenges along with their solutions. Do you face some other HR issues? If so, then share it with us in the comment section below.
We hope you enjoyed the article! For more insights on “People and Culture Management”, read more here “Human Resource Management“.
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