HR Challenges: Top 9 Challenges & How to Address them

Recruitment Strategies

Written by H2R.ai

April 11, 2024

Behind every successful company is its amazing Human Resource Management (HRM) which has established protocols that allow each employee to shine and work at their best capacity. Ironically, this is also the department that faces several HR challenges for day-to-day operational tasks.

All the way from attracting and retaining top talent to maintaining a positive and healthy work culture, HR challenges are multifaceted and require strategic solutions. While some can be resolved with the right workflow implementations, others might need a digital HRMS platform such as H2R.ai.

Let me tell you about the 11 most common HR challenges that are still prevalent and how you can overcome them for your organization.

1. Tracking Time & Attendance

Accurately tracking employee time and attendance is one of the biggest HR challenges that every company comes across at one point. Conventionally, it often involves paper timesheets, manual calculations, and administrative overhead. While it may have been sufficient in the past, it’s becoming increasingly inefficient and prone to errors as business environments are picking up pace, faster than ever.

An alternative to manually tracking employee attendance can be HRMS platforms such as H2R.ai. It can provide real-time access to employee attendance data, allowing for better monitoring and management.

2. Leadership Development

Placing the proper people in leadership positions is one of the largest human resource challenges that organizations worldwide are confronting. While it’s true that developing a leader is a continual process that calls for constant funding and attention, your HR staff also has to periodically evaluate the success of their programs in order to make any necessary improvements.

3. Employee Engagement

Another one of the challenges of human resource management is to create a healthy work environment where people are treated fairly and equally. In order to do this, HR staff must be involved in putting policies and initiatives that promote worker well-being into action, like employee assistance and wellness programs. In addition, they must guarantee that the opinions and concerns of the staff are taken into consideration.

A digital HRMS platform like H2R.ai can help address this issue through its grievance management section. It makes it easy for your HR team and employees to raise their issues and to ensure satisfactory resolution.

4. Employee Well-being and Mental Health

As human resource challenges evolve, HR professionals will continue to play a vital role in harboring a supportive work environment that focuses on the overall health and well-being of your employees. For this, it is essential to implement comprehensive mental health resources that make it easy for your employees to seek help when needed.

While tackling the common HR challenges, companies need to keep promoting a healthy work-life balance so employees can manage their professional and personal lives more effectively. Workplaces also need to proactively address stress through various initiatives—such as stress management workshops and open communication channels. These can significantly improve the work culture, employee morale, and overall productivity.

5. Compensation and Benefits

HR specialists are crucial in building outstanding teams, but they also have a responsibility to ensure that benefits and compensation plans reflect shifting market trends.

It is one of the challenges of human resource management inherent in human resource management that HR professionals, no matter what company or sector they work in, will face.

The best way to overcome this is by understanding the industry marketplace and its compensation and benefit standards. Your HR team will also have to consider diverse employee needs, such as health benefits, retirement plans, and work-life balance perks when they are formulating the right benefits to offer for each role.

They will have to balance all these with your organization’s budgets and offer appealing packages that promote employee satisfaction, which will lead to long-term retention and success of the company.

H2R.ai helps your organization fast-track growth and success.

6. Compliance with Regional Labor Laws

Adherence to local labor rules is another challenges of human resource management that has emerged during the past ten years as a difficulty for human resource management. Employers are increasingly eager to take on bright candidates who can work from home.

One of the ways H2R.ai can help you comply with regional laws and legal requirements is through its Regional Configuration feature, making it easy for you to manage your remote workforce.

7. Changing Workforce Expectations

As we are stepping into a changing work environment, one of the HR challenges that is on the rise is changing workforce expectations. As we all know pandemic has shaken up the standard protocol for organizations around the world. And it is still continuing to mold the changing requirements of employees.

One of the ways in which you can overcome this human resource challenge is by offering remote work and flexible working hours as and when genuinely needed. Not only does this benefit your organization by overstepping the conventional boundaries of hiring talent from your region, but it also opens doorways to being more inclusive and having a diverse workforce.

8. Performance Management

One of the easiest ways in which a company can improve its output and amp up its revenue is through strategic performance management. Yet, performance management is also one of the common HR challenges that is faced by many large and small companies.

When it comes to designing and implementing performance management workflow parameters that are fair, clear, and suitable to the profession, your HR team will play a big role in executing it right.

However, when it comes to large organizations instances of performance issues can arise. One of the best ways to solve this would be to take a corrective and supportive approach which can help employees to improve their performance.

9. Asset Management

Asset management, though a very important part of HR responsibilities, can easily become one of the tedious HR challenges. Asset management is necessary for ensuring that daily resources are properly accounted and managed for. Your team also needs to oversee expenditure spending and approval, regular asset maintenance, and provide the right tools in the right hands to maximize productivity.

H2R.ai is one of the user-friendly HRMS platforms that can help your HR team in asset management. It allows you to track assets with complete accuracy, manage payments, and control your financial budgets.

Make remote team management
easier than ever!

How to address HR challenges?

Human resources are what can make or break your company’s growth and success. As the workforce environment is changing with each passing day, one of the things that needs to change is your HR Management protocol.

One of the ways to manage HR challenges and solutions would be to add an HRMS platform, such as H2R.ai. It can help HR teams with fast and quick On-boarding as well as Off-boarding.

H2R.ai also allows your employees to apply for time off, address their grievances, and digitally sign documents for your organization. Even if you are a large organization or a small company, the established workflows allow you to fast-track growth.

Conclusion

Human Resource Management (HRM) faces numerous challenges, from time tracking and leadership development to employee engagement and well-being. As workforce expectations shift, future challenges for human resource management will focus on performance management, asset management, and mental health support.

Advanced HR tools like H2R.ai allow companies to tackle these issues the right way, boost productivity, and create a better work environment that supports employee growth.

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