The rapid evolution around the globe highlights the possibility of more challenges in Human Resource Management than there are now. As Human Resource Management is a business-driven function, the effectiveness of the workforce depends on a thorough understanding of the strategic direction of the organization.
CHALLENGES IN HUMAN RESOURCE MANAGEMENT
Due to the rapid fluctuations in the economy and technological advancements, the probability of challenges and issues for HR Managers indicates an overall uptrend. These challenges can be categorized into broad categories of Individual Challenges, Environmental Challenges, Organizational Challenges, etc.
TOP 9 CHALLENGES IN HRM
1. Engagement of the Workforce
2. Talent Acquisition
3. Maintaining Relationships
4. Training and Development
5. Talent Retention
6. Diversity in the Workplace
7. Inevitable Change
8. Benefits cost
9. HR Effectiveness Measurement
1. Engagement of the Workforce
Employee engagement has been a matter of concern for Human Resource Managers for decades. Engagement of the workforce holds great value when it comes to retention of talent, fostering customer relationships, and boosting organizational performance.
High levels of engagement with the workforce indicate more transparency and better communication between employees and managers. Connecting with your employees helps to keep everyone on the same page. You can easily direct them towards achieving the organizational goals, Moreover, create more value for your stakeholders.
2. Talent Acquisition
Talent Acquisition is a priority for every human resource manager. The more value something holds, the more difficult it gets to retain it. The most essential component in attracting employees is to offer employee compensation and benefits packages. However, to really retain skilled employees you need to create value and offer meaningful experiences to your employee. In this way, you will be able to create a greater sense of purpose within your employee which will benefit you as well as them. You need to be attractive only to those who align with your requirements.
3. Maintaining Relationships
Supporting relationships is one of the major challenges that HR Managers face. Fostering healthy work relationships helps employees to develop a sense of loyalty and trust which encourages employees to work together effectively as a team. The level of relationship between employees determines their understanding level and hence allows one to perform better at his job. Although maintaining relationships can be a hectic task but in long term, it can be of great value to the organization.
4. Training and Development
Rapid upskilling and reskilling requirement is another major challenge when it comes to HR Management. You have to ensure that all employees are up to date as per the skillset requirement of the organization. A challenge for HR managers is to evolute their strategies with the rapid advancements in technology. They need to identify new solutions for employee training and professional development. An effective training and developing strategy incorporate the rapidly evolving technical skillset requirements.
5. Talent Retention
Due to globalization, an uprush in opportunities has increased the likelihood of losing an employee, as a result of more viable options available for them to choose from. In order to retain talent, as an HR Manager, you need to ensure that you cater to all your employee’s concerns. You need to address all those factors which might lead to an increase in turnover and create strategies to overcome them.
6. Diversity in the Workplace
Diversity is still a Hot-Button issue in regard to Human Resource Management. Incorporating diverse policies within an organization can be a great challenge for an HR Manager. Diversity is a major aspect to move the needle in your organization. Diversity allows you to broaden your vision and ensures a broader strategic plan which caters needs of your all onboard employees. Diversity in the workplace ensures employee branding and attracts more talent, as more employees want to work where they develop a sense of belonging and feel valued.
7. Inevitable Change
One of the greatest Human Resource Challenges is coming to terms with reality. HR Manager needs to develop long-term strategies that account for rapid changes and agility. In regard to change, an intensified focus is needed on the training and development of employees to ensure they are capable of performing in diverse situations. The HR team needs to be certain about the presence of competencies within employees to deal with changing situations.
8. Benefits Cost
With the continuous evolution around the globe, employees have developed a need to personalize their benefit plans as per their own wants and needs. To strive in such intense competition, organizations offer much-varied benefit plans to retain talent. They have now even extended the employee benefit plan to cover all your mental health services as well. But an employee benefit plan is not enough to ensure the health and well-being of your employee. You need to prioritize employees’ health and well-being in your daily work routines too. For instance, you could offer them more flexible working hours, more paid time off, and better managing schedules. As an HR Manager, you have to take care of your employee’s needs as your workforce powers you’re your business.
9. HR Effectiveness Measurement
How can measures be taken for improvement without the right tools to measure HR effectiveness? On the basis of certain criteria, it is possible to measure the effectiveness of an HR Manager. The criteria include;
- Labor productivity report
- Labor Turnover Report
- Employee Satisfaction
- Cost-Effectiveness.
- Recruitment Cost Report
In most organizations HR Managers focus merely on measuring their own effectiveness, However, a more precise report could be generated if they focus more on the value they add up for the organization.
HR Leaders have significant challenges ahead of them. Focusing on strategic planning from an initial stage can pave the way for HR Managers from striving in the competitive region to leading the way out for everyone else.