Three Major Challenges the HR Faces

The HR function has changed a lot over the years. With business reeling from the effect of the pandemic, the role of HR has evolved so much in the management and growth of the company. As they take on more strategic roles in addressing issues within the company, they face significant challenges in three areas. These three challenges are discussed in this article and why they emerge.

Recruiting, Retaining and Motivating

This is probably the most challenging aspect of HR today. HR professionals face the biggest problems in retaining the best employees in the organization. With people still reeling from the effect of the pandemic, it is predicted that people may be moving on to better opportunities as the economy improves. With the perception that the ‘grass is greener on the other side, employees have become more open to considering other employment options.

The lack of technical know-how for specialized positions has driven technology companies to a shortage of employees. This is the reason why employers have-to find new methods of attracting the right talent through various mediums. The use of social media listings on job boards and traditional recruitment methods such as attending job fairs and sending promotional emails are employed. Since employees are now looking for jobs that provide a proper balance between employment and family, and desire autonomy, they look for opportunities to make a visible difference within the company. The demand for diversity and inclusion has increased to generate new ideas, increase productivity and build a team on the tenets of equality.

Apart from recruiting, retaining has become even more challenging as employees expect better packages and incentives in these economically tough times. It has become necessary for employers to identify key employees from entry-level positions to upper-level management and take appropriate steps to retain them due to their unique skills. To keep the employees, measures such as performance based incentives, increasing employee responsibilities, flexibility in timing, remote work etc., are deployed. Offering positive reinforcement and feedback to team members has become an ongoing initiative for HR. HR professionals have-to learn what motivates their employees to work for the company and incorporate them into the compensation or reward systems. Finding out the reason for attrition and addressing those issues will go a long way in retaining quality employees. All these roles are expected to be played by the HR in an organization.

Development of Leadership

Leadership development has become a key challenge for HR in the last decade. With the workforce ageing quickly, it has become necessary for HR teams to plan succession and emphasize on developing leaders for the future. As companies continue to grow and expand, more people are needed to take on the leadership role, an initiative that HR needs to take. The companies that take leadership development seriously are also the ones who make strides with respect to employee retention. Human resources news online clearly show leadership as one of the top reasons for people leaving their jobs. Expectations of leadership in decision making roles necessitate training for those in management positions. However, sometimes businesses struggle to find the financial resources required for employee training and development programs that focus on leadership and growth. In times of pandemic when there is so much disconnect between the leadership and the employees, adequate planning is required for capacity building, keeping in mind the capability and affordability of the company after the crisis. Questions such as – are we returning to the way it was or are we defining a new normal and what the learning from the current working situation was where the lines between work and life were blurred, need to be addressed.

Company Culture

Several pieces of research have proved that the organizational culture influences the performance of the employees. Despite the differences in defining a successful performance, HR defines and implements organizational culture. Companies with great corporate culture are known to be more financially successful than their competitors. Since the employee turnover is low, they have an easier time recruiting top talent to fit the culture and needs. This is the result of providing top quality employee management and creating innovative products and services that contribute to overall satisfaction, whether financial or mental.

There are strong ties between corporate cultures and hiring that comes into play during recruitment, selection and retention. Checking the candidate’s culture has become important to see what they bring to the table. Active management and development of culture through hiring improves employee retention and performance significantly, which influences the organization’s profit and growth.

 As companies recognize the need for evolving HR functions, management must make strategic changes to address these three major challenges cost-effectively. Defining the new normal of work for their organization and recognizing what should be left in the past are the responsibilities that need to be prioritized by the HR department. Human resource leaders need to see all possibilities and challenges through different perspectives and identify points of disruption of work. This is an opportunity for HR to navigate the economic, social and health crisis and emerge successfully.