The Biggest HR Challenges

 

                The Biggest HR Challenges

                               CONTEMPORARY ISSUES IN HRM

 

In today’s era, organizations are coming across various challenges about 21st century human resource that includes employing new technology, globalization, everyday innovations, political as well as economic instability and ethical & ecological challenges (Thaurissan, 2007). Change management is one of the biggest challenges of today’s era.

Recruiting and hiring while the nation struggles to recover from the coronavirus pandemic is HR professionals’ top concern going into 2021, according to new research.

The last of our top human resource issues of 2022 is fostering both a psychologically and physically healthy working environment. In addition to a competitive salary and positive working experience, employees also want a high level of workplace safety, sustainable average stress levels and interpersonal emotional maturity.

Online HR resource site Expert HR asked 563 U.S. employers in September 2020 to rate expected workplace challenges in 2021 and found that recruiting and hiring sits at the top of the list, followed by workforce planning and workplace health and safety.

Human resources (HR) professionals are facing more challenges than at any other time in history. A global health crisis, layoffs, mental health crises, social unrest and an economic downturn are just a few of the key issues keeping HR professionals up at night.

 

 

 The Top 13 HR Challenges of Today

 

 

 

HR professionals can employ their experience, skills and technology to address most of these challenges to drive greater employee engagement, development, satisfaction and improved performance.

1.     Culture

More than half of the 5,000 respondents to a 2019 survey say company culture is more important than higher pay in determining job satisfaction. Furthermore, more than 75% of people around the globe would consider a company’s culture before applying for a job. Increasingly, employees prefer to work for organizations whose culture aligns with their values.

There are many ways HR can foster a positive organizational culture. A few ideas include encouraging two-way communication between employees and management, making sure employees understand how their work contributes to the business’s objectives, having executives reach out to individuals for exemplary work, hosting company-wide volunteer days and offering fitness center stipends.

2.     Work-Life Balance

The pandemic brought far greater emphasis to employees’ work-life balance, and that won’t go away anytime soon. Nearly half of companies have now implemented flexible work schedules.

Revising your policies can help employees better manage work and their daily lives. They can include a focus on productivity rather than hours clocked and regular reviews of workloads to ensure they remain reasonable. In addition, encouraging employees to actually use their vacation time helps counter any unspoken perceptions that working long hours is expected or rewarded.

3.     Health and Wellness

While employees’ physical health remains important, nearly two-thirds of employers are emphasizing employees’ emotional well-being, according to a benefits survey from Gallagher.

Many of the tactics that help employees balance their work and personal lives can, not surprisingly, foster physical and mental well-being as well. They include flexible working hours and the ability to work remotely, at least part of the time. For employees working on-site, offering standing desks, holding “walking meetings” and providing healthy snacks can boost wellness at a relatively low cost.

4.     Cross-Generational Team Building

Today’s workforce often encompasses multiple generations. The upside? Organizations gain a broader range of ideas for solving problems. However, different age groups can vary in their approaches to technology, how they interact with others and their work-life balance. These differences can lead to ineffective communication and collaboration.

HR can take several steps to prevent generational miscues. One is to avoid stereotyping. Not every older employee resists technology and not every millennial is demanding of their employer. Another is using a range of communication tools, such as, email, text and calls, to reach all employees through they’re preferred channels.

Finally, teams should be structured to include employees from various age groups to foster and encourage diversity in thinking and task execution.

5.     Change Management

Less than one in five HR managers say their workforce can change direction due to shifting needs or priorities, Gartner reports.

One common reason is outdated work design. To address this, jobs need to be designed to fit the way in which work actually happens. Cumbersome approval processes also need to be streamlined to adapt to a company’s current needs. Technology plays a central role here and can make your employees’ jobs much easier.

By working with other departments, HR can foster a culture that helps employees embrace change. Among other actions, this requires including employees in decision-making and communicating the rationale behind changes.

6.     Training and Development

The number of skills required for any job is increasing by 10% each year, Gartner notes. Human resources can work with others in their organization to identify skills gaps and help employees develop the skills needed for current and future roles.

One trend is upskilling, or improving current employees’ skill sets, so they can assume different roles. Upskilling enables organizations to meet evolving needs while also keeping current employees engaged. And, the proliferation of quality online courses allows for cost-effective training.

7.     Compensation

Given recent economic instability and uncertainty, it’s no surprise that compensation has come into focus lately. Roughly 43% of organizations planned salary freezes for managers and executives, while 42% planned freezes for non-management workers, per Gallagher.

While most workers have some understanding of their employers’ financial situation, HR professionals can find other ways to motivate workers in the absence of salary increases. They can accommodate requests for flexibility and remote work, offer training and provide development opportunities.

Also, expect to see a greater focus on initiatives to close gaps in compensation between employees of different genders or races, as well as greater use of variable pay tied to performance.

8.     Benefits

Organizations continue to do all they can to ensure the benefits they offer are helping employees, while remaining cost-effective for the business.

Nearly 60% of employers are considering tools that can help reduce health care costs, according to one human resources consulting firm. These include telemedicine (44%), chronic condition management (29%) and prescription drug management (24%).

 

 

9.     Recruitment

As companies eye continued growth, an effective recruiting strategy is imperative. One step is meeting potential candidates where they are. This requires recruiting using multiple social media and job posting sites and holding remote interviews via video conferencing applications.

HR teams also need to present a consistent and compelling message. A range of communication tools, including a quality human resource management system (HRMS), scan help. An HRMS can automatically post your open positions to job boards, manage resumes and track applicants.

10.                        Retention

Staffers are spending less time at companies than ever before. At any time, nearly three-quarters of employees are open to new opportunities, and about one-third are actively looking.

To improve employee retention, most organizations need to boost employee engagement. The top drivers are typically opportunities for learning and development, a clear link between employees’ work and the company’s strategic objectives and recognition for exceptional work. All of these can be accomplished at a modest cost.

11.                        Employee Experience

A positive employee experience—which refers to the employee’s perspective of his or her interactions with the organization—can drive engagement. Higher engagement can boost productivity, sales and other performance metrics.

Organizations can improve the employee experience by soliciting and listening to feedback and investing in employees’ career development. A strong culture goes a long way toward improving the employee experience, as well.

12.                        Managing Remote Workers

Thirty-five percent of organizations will have at least half their workforce continue to work remotely after many employees started working from home in 2020.

While many employees are productive remotely, it does bring new challenges. The lack of face-to-face interaction can lead to misunderstandings. Employees may spend more time hunting for information that previously was easily accessible.

But HR teams can take several steps to help manage remote workers . These include scheduling regular check-ins in with employees and using multiple communication methods, such as email, real-time or instant messaging, phone and video, for meetings. Additionally, leaders who communicate a belief that the organization and its employees will get through difficult times together can help calm fears and instill confidence.

13.                        Measuring HR Effectiveness

HR professionals especially need to ensure they’re adding value to the organization, and one way they can do that is by tracking key workforce trends and KPIs.

A starting point is monitoring HR metrics like absenteeism, recruiting conversion rate, and employee turnover and employee satisfaction. HR departments need to establish the KPIs that are best suited to their business, gather those metrics and compare them against industry benchmarks and the company’s past performance.