HR challenges

Major Challenges Faces by HR – Resonating To Employee Dissatisfaction and More

Major challenges faced by HR – Resonating to employee dissatisfaction and more

Everybody is underpaid in the world and that’s why all HR departments face the wrath of the staff. Most organizations find it hard to structure the compensation strategy that satisfies all employees and that is one of the Major Challenges for HR in 20222. Small organizations are directly competing with bigger brands that have hefty budgets in place to meet bigger payrolls. As the costs of living go up steadily, so do the expectations of employees from the compensations they receive. 

Unsatisfied ones will speak up or will look out for alternative opportunities. According to the results of research conducted by Randstad Employer Brand Research, employee compensation is a factor that tops the list of the factors determining job satisfaction

However, the vows don’t end here.

Working in compliance with laws and regulations

There is dynamism in the laws with respect to employment. This is a challenge for the HR professionals as the business owners have to make sure they work in compliance with such regulations. There have been in fact instances where businesses endured heavy losses when they ignored legal compliances thereby invited lawsuits and audits. Over the past one decade, organizations in India are paying attention more than before towards regulations on everything right from hiring practices, wage payments, workplace safety, etc.

Producing more leaders from within the organization

A recent study released that more than one-third of companies are doing nothing above an average job or at best, with respect to leadership development programs. 36% of companies that were surveyed in Brandon Hall Group’s State of Leadership Development Study had to admit the low quality of their leadership development practices.

According to the Society of Human Resource Management, there is a high level of turnover that the executive roles are facing which can lead to a leadership void. This can lead to a ripple effect which may leave managers and employees in a state of confusion. Human Resources, has a greater responsibility towards producing leaders from within the organization through organized learning and engagement programs.

Containing high employee attrition rates

Events such as Brexit have clearly rendered the number of employees unsettled as fears of uncertainty have increased within the international staff in the business. Employee retention has always been one of the major challenges for HR. The average span of time for which an employee sticks with a particular job is around 4.4 years and that too has decreased. As a matter of fact, millennials and Gen Z stick for even less time, around 3 years.

The competition out there for talented employees is fierce. Small organizations and startups do not have hefty budgets to provide for the retirement plans, insurances, etc. that the bigger organizations do. As employee turnover adversely affects a business, HRs have a prime responsibility of containing employee attrition rates through boosting employee communication and resonating with their expectations.

Bringing the best talent on board

In fact, you don’t need the best talent but the most appropriate ones to join you! Attracting talent is a huge investment when time and money are the key differentiators. For entrepreneurs, it is really difficult to keep a balance between a business’ run and hiring of right candidates for the organization. Additionally, it is almost impossible to determine if the candidate will be right for the organization until he has worked for some time at the organization.

The unemployment rate has been on a steady decrease in Canada, recently having dropped below 7%. So, with a fewer number of talented employees out there seeking jobs, it comes upon HR to fill in candidates that may be the right investment for the organization. SO, attracting the right talent also becomes one of the major challenges for HR.

Manage diversified workforce

In any organization, multiple generations work at a time. A millennial will have different expectations from a workplace as compared to the older generation. They might not be comfortable sitting at a desk from 9 to 5 as their seniors did, working on daily routines. They look out for cultural fits at the organizations and expect perks such as flexible working times, casual dress codes, work from home, etc. to count a few. So, with multiple generations followed by cultural and ethnic differences, workplace diversity management becomes a challenge to tackle with continually, for small organizations.

Training and development of the workforce

Investment in the training and development of skills of employees at lower levels is another one of the crucial challenges that HR faces. Some businesses have trouble finding resources to carry out these programs. The employees at higher levels, i.e. the ones on the front lines are the ones who work the most and they might be too busy to teach at a training course organized for the ones at lower levels.

Changes with respect to management

With the growth of a business takes place the growth of the strategies, structure, and the internal processes of the business. There might be some employees who do not adapt easily and have a hard time coping with such evolution. Subsequently, organizations fight decreased employee morale and productivity during the transition phase. So, for a business, the owners should clearly communicate the advantages and positive effects of changes to the subordinates. When the team will know about the why, how, and what of the change, they can get on board with these changes easily.

The employee benefits package

In the past few years, Affordable Care Act, for many small businesses, has been a pain point. Rising costs with respect to healthcare and insurances mean organizations must either approve these costs to their employees or take, in their line, a bottom hit. Understanding good employee benefits package is the key since good benefits packages can be a key factor deciding potential hires. Yet again, smaller businesses have to face big players that have additional budgets to cope uprising employee expectations.

With rapidly evolving technology, it becomes a challenge for smaller businesses to catch-up considering the budget restraints they have. It is imperative to get employees to learn new technologies and embrace innovation else wise they will soon be left in the dust by their competitors. So, understanding how crucial communications can get must be considered. While bringing such changes, a clear communication to if the employees have a clear picture of change is very important.

Ultimately, HRs must acknowledge the trends where cost-cutting is the key while growing is still important.I wish his article will help you to know the Major challenges for HR in 2022. Please don’t forget to comment below for more information.

Gretis India

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Gretis India is a renowned name for providing top-notch HR, Payroll, and recruitment outsourcing solutions to its clients worldwide. The company came into existence in 1997 and has more than 500 clients with a total turnover of almost 500 Cr.
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