Seven issues in HRM Today
Seven
issues in HRM Today
The good
news is that many of companies' most prevalent HR problems are common across
industries and companies. As such, there's a wealth of information about how to
solve them. This idea I’m presenting his article will focus on 7 of the most
common HR problems in companies and provide a solution for each one. At the
outset let’s back up to look at what an HR department, or HR Management,
actually does.
HR managers may be responsible for a
wide range of activities related to hiring and managing employees at a company.
Responsibilities found under the HR
umbrella might include:
1.
1. Job design
2. Training and
3. Performance management
4. Compensation management
5. Navigating legal
requirements
6. Health and safety
In the largest organizations, these
responsibilities are usually split across an HR organization. Smaller
companies, however, often don't have that luxury, and one or two people may
have to juggle these priorities.
This lack of resources or manpower is
at the core of many HR problems companies face. There are many jobs to be done
- all of which are important - but it may not be possible to do all of them
with the limited resources available.
The rest of this article will focus on
these challenges and offer possible solutions.
Common Issues in HRM
HR problems in companies come in many
shapes and forms. They also vary in seriousness and complexity, depending on
the challenge and where the company is located and operates.
Consider the solutions to these
problems to be guidelines. It might be necessary to seek outside help,
depending on the resources available to you at your company.
1. Compliance with laws and regulations
The first common HR problem in
companies is a big one: ensuring you adhere to all relevant laws in your
operation area. This can be a huge challenge for small HR organizations,
especially if no one on the team has experience dealing with local labor laws
and regulations.
Challenges
Key challenges that arise include:
1. The tediousness of keeping
track of all employment laws in all areas in whither company operates
2.
Ensuring that all
operations, recruiting, and employment processes adhere to local laws
3.
A lack of time and
expertise to understand the issues and nuances of the laws
Failure to fully comply with laws and
regulations can lead to serious consequences for a small company, including
audits, lawsuits, and even bankruptcy.
Solutions
Potential solutions to this challenge
include:
1.
Ensuring that at least one
person on your management team is in charge of understanding local employment
laws and regulations
2.
Giving that person the
time and resources needed to study and understand those laws and regulations
3.
Consulting a legal expert
with questions about the laws and regulations
4.
Auditing your existing
processes to ensure that everything is above board
While these solutions will require
more time and money, getting them right is critical to ensure your company's
health and future success.
2. Health and safety
Like with laws and regulations, HR
organizations often ensure all health and safety requirements are being met at
the company.
Challenges
Key challenges that arise include:
1.
Creating and enforcing
health and safety processes at the company
2.
Providing employee
training and documentation of course completion to prove compliance with health
and safety measures
3.
Monitoring and adapting to
local health and safety laws
4.
Tracking instances of
workplace injuries or safety violations to protect against potential workplace
compensation lawsuits
Like with employment laws and regulations,
failure to execute a thorough health and safety program can expose the company
to costly lawsuits and injury claims.
(Copy
right Lepak, D.P. and Snell, S.A. (2002) Examining the Human Resource
Architecture: ).
Solutions
Potential solutions to this challenge
include:
1.
Designating a health and
safety person or committee at your organization
2.
Giving them the tools and
training needed to study and understand local health and safety laws
3.
Empowering them with
absolute control over health and safety at the organization, including the
power to make changes, upgrades, or even shut down operations temporarily if
needed
Health and safety should be a top
priority for any company. As such, this challenge should be on your shortlist
to tackle as soon as possible.
3. Change management
This can be a big headache for
HR departments and their employees. This is especially true for fast-growing
organizations experiencing rapid evolution in their processes for new
employees at a high clip. Unfortunately, HR often bears the brunt of this
frustration.
Challenges
Key challenges that arise include:
1.
Adapting HR processes and
policies to match the company's growth and ambitions
2.
Balancing the needs and
wants of legacy employees with those of new employees and management
3.
Ensuring open
communication before, during, and after changes are made
4.
Dealing with negative
feedback or frustrations from employees
When done poorly, change management
can have an adverse effect on performance, and morale. It often falls on the HR department to find ways to
ensure people-centric change doesn't efficiency and effectiveness and
output.
Solutions
Potential solutions to this challenge
include:
1.
Clearly communicating the
benefits of change to all employees
2.
Implementing a change
management process that outlines how, when, and where employees are informed of
process changes
3.
Encouraging open and
honest feedback from employees when a change is made
4.
Making it crystal clear
why you are making a change and what the benefits are to the company and
employees
It's not possible to please everyone
all the time. But a few simple change management best practices can make your
life much easier when scaling or altering your processes.
4. Compensation management
Compensation and rewards are one issue
that no HR organization can get around. This is the core concern for all
employees and has an immense impact on everything from performance to
engagement to productivity.
Challenges
Key challenges that arise include:
1.
Knowing how to structure
compensation packages to stay competitive in your industry
2.
Monitoring the recruitment
landscape to see what others are offering
3.
Matching compensation
demand in the market, especially if you're trying to compete against larger
competitors
4.
Providing competitive
perks, and bonuses that align with what your ideal candidates want
It takes a lot of time and money to
ensure that your total compensation packages are appealing and competitive. In
reality, small companies will struggle to compete against large corporations
and their limitless budgets.
Solutions
Potential solutions to this challenge
include:
1.
Looking for free tools
like Pay scale and Glass door to create benchmark salaries that are based on
aggregated real data
2.
Shortlisting competitors
to watch and analyze what they promote on their in terms of perks,
benefits, and compensation
3.
Focusing on and culture
messaging to create intangible benefits for candidates
4.
Being creative with
compensation to make up for less-than-competitive salaries
The bottom line is that larger
companies can and likely will outspend smaller ones to land the best talent. To
combat that reality, smaller companies should look to pitch what's unique and
appealing about their company.
5. Landing top talent
Like with compensation, smaller HR
organizations often get muscled out in the fight for top talent. This is
another major HR problem in companies that don't have the resources to
aggressively go after the best candidates.
Challenges
Key challenges that arise include:
1.
Being overtaken by a large
amount of competition for top talent in skilled roles
2.
Having to spend lots of
time, money, and effort to find top talent, all of which are in short supply
3.
Devoting the time that's
needed to while also juggling
all of the other requirements of an HR manager
4.
Spending lots of resources
to court a top candidate, only to have them leave early in their term with you
or get scooped up by a competitor during the hiring process
Competition for top talent is fierce.
Large organizations use every resource at their disposal to find and hire the
best in the industry. Unfortunately, that means smaller organizations are often
financially disadvantaged when hiring.
Solutions
Potential solutions to this challenge
include:
1.
Beefing up your employer
brand to stand out from other companies
2.
Recruiting directly from
colleges and universities to give new and hungry employees a chance to shine
3.
Leveraging networks and to directly pitch candidates at no cost
4.
possible and letting
them do their jobs
Smaller organizations will need to
pick and choose their battles when competing for top talent. If budget and
resources are limited, then it might make sense to only go after the best
candidates for strategically critical roles or ones that will drive long-term
success.
6. Retention
Landing top talent is one thing, but
retaining them long term comes with a new set of HR challenges for companies.
Challenges
Key challenges that arise include:
1.
Focusing the bulk of your
time and energy on
2.
Balancing the cost of
hiring top talent, with the risk of them leaving prematurely
3.
Accounting for the variety
of factors that might cause retention issues, including:
4.
External
5.
Lack of engagement
6.
Lack of growth
opportunities
7.
Non-competitive salaries
or benefits
8.
Monitoring and adapting to
issues that are leading to increased employee departures
9.
Maintaining productivity
levels while balancing all of the above
Solutions
Potential solutions to this challenge
include:
1.
Finding a fine balance
between culture, compensation, and incentives that boosts loyalty and
retention: this will require some experimentation and lots of honest feedback
2.
Continuously monitoring
employee sentiment via pulse surveys, meetings , town halls, etc.
3.
Keeping an eye on the
market to ensure that your compensation packages are competitive
4.
Monitoring employee churn
rates and and adapting to what the data is telling you
5.
Addressing red flags
before they become major issues
If you break down a month-to-month
workload for most HR managers, employee retention is likely one of, if not
their most important, priority.
Keeping employees happy and performing
at a high level is incredibly important for a company's success and comes with
many challenges for HR professionals.
7. Monitoring productivity and performance
performance is a shared
responsibilities between managers and the HR department. Managers are
ultimately responsible for their team's performance, but it will fall on the HR
department to make tough decisions if certain departments or teams aren't
performing at the level they need to be.
Challenges
Key challenges that arise include:
1.
Monitoring performance and
productivity levels to ensure that the business is operating efficiently and
hitting output goals
2.
Identifying problems areas
and taking necessary actions to turn things around
3.
Working cross-functionally
to find root causes for low performance and identifying potential solutions
4.
Reporting human resource
issues back to the executive team, who will then make strategic decisions
Keeping an eye on productivity and
performance involves monitoring key indicators, engaging in candid
conversations with managers and employees, and generally acting like a detective
to find problems. While part of the job, it's a time-consuming responsibility
and a common HR problem in companies.
Solutions
Potential solutions to this challenge
include:
1.
Using HR platforms that
integrate performance management, goal management, and engagement tracking
2.
Looking for teams who are
hitting their goals, studying what they do right, and presenting those
processes as potential changes to the executive team
3.
Keeping clear lines of
communication open with all managers to ensure that issues are addressed before
they snowball
The HR department is often one of the
busiest in most companies. That becomes even more apparent in smaller companies
with fewer employees dedicated to these mission-critical tasks. This is a very
multifaceted role that brings with it many unique problems and challenges.
Like with most business challenges,
focusing on strong communication, technology, processes, and goal tracking can
help you overcome these common HR problems in companies.
Reference
· Boon, C. et al. (2017)
‘Integrating strategic human capital and strategic human resource management’,
The International Journal of H R.
· Delery, J.E. and Roumpi, D. (2017) ‘Strategic human resource management, human
capital and competitive advantage: is the field going in circles?’. Human
Resource Management Journal 27: 1, 1–21 Jackson, S. E.,
· Jiang, K. and Messer smith, J., (2017) ‘On the shoulders of giants: a meta-review of strategic human resource management’, The International Journal of Human Resource Management, Oxford press India. New Delhi Accessed online 0n 23rd March 2023 .available at HTTP//:www.humanresourcesource.com
· Kamoche, K., (1996), Strategic Human Resource Management Within A Resource‐Capability View Of The Firm," Journal of Management Studies.
·
Mulla,
Z.R., and Premarajan, R.K., (2008), Strategic Humurce Management in
Indian it Companies: Development and Validation of a Scale, Vision-The Journal
of Business Perspective 12(2):35-46
· Niati, D. R., Siregar, Z. M. E., & Prayoga, Y. (2021). The Effect of Training on Work Performance and Career Development: available from HTTP//:www.humanresourcesource.com.
· Schuler, R. S. (1995). Understanding human resource management in the context of organizations and their environments. Annual Review of Psychology London McMillon PRESS.uk.
Employee well-being, legal compliance, organizational reputation, and cost control are all directly impacted by employee health and safety, making them essential components of HR management. To build a secure and healthy workplace, HR professionals must prioritize and proactively manage employee health and safety.
ReplyDeleteDefinitely agree with you. Employee well-being, legal compliance, corporate reputation and cost control are all at their disposal as well as employee job security. In some of the existing high-level organizations, the decisions to be taken by HR are taken by the top officials and they make decisions based on the likes and dislikes of the employees.
DeleteAs you correctly said, "The HR department is often one of the busiest in most companies. That becomes even more apparent in smaller companies with fewer employees dedicated to these mission-critical tasks. This is a very multifaceted role that brings with it many unique problems and challenges."
ReplyDeleteWhat suggestions would you like to give to enhance the efficiency and effectiveness of the HR department in smaller companies?
Outsourcing a part of the HR function would be ideal in most cases. What do you think?
You are indeed right. But as you say, there is no need to be an outsider to such an institution. What you need to do is to consider what is in your company as your own. Also, employing people with backbone. The need to privatize the HR departments of companies and some businesses in Sri Lanka arises from the number of employees employed and the amount of work to be done. Otherwise, this section does not need to do so. Rather than the legal work, it will be important for an organization if this department does the related work without being subject to the main management of the organization with employee rights. And efficiency will increase.
DeleteI totally agree with on the statement that "The HR department is often one of the busiest in most companies". The solutions to the challenges you have provided gives a very clear idea on how to handle matters related to an organization.
ReplyDeleteAnd I too think that outsourcing a part of HR functions will lessen the burden on small scale companies.
You are correct. But I think the HR of the company is the same thing as the heart. In some cases, the institution can be revived when you do as you say. But thinking may change.
DeleteThe article "Seven Issues in HRM Today" is accurate in identifying and addressing some of the most common HR problems faced by companies. Lepak and Snell (2002) stated that HR responsibilities include job design, training, performance, compensation management, and navigating legal requirements. However, HR departments may not be able to manage all responsibilities with limited resources available. The article highlights the need for companies to comply with laws and regulations and ensure the safety and health of their employees. Dickmann and Baruch (2011) discuss how companies need to develop international HR strategies to manage global careers. The article's solutions to the HR problems are practical and involve allocating resources and time, seeking legal advice, and auditing existing processes. Overall, the article provides a useful guide for companies looking to address HR challenges.
ReplyDeleteThank you for agreeing with me. Lepak and Snell (2002) stated that the concept that human resource responsibilities include job planning, training, performance, compensation management and navigating legal requirements is very important. I have argued that HR departments are unable to manage all responsibilities with the limited resources available to companies in terms of compliance with laws and regulations. I agree with you regarding the points you have made in this regard. thank you
DeleteVery detailed article Seneth . The top three priorities for 2023 among HR professionals, HR executives and workers reflect the recruitment and retention challenge: Maintaining employee morale and engagement. Retaining top talent. Finding and recruiting talent with the necessary skills.
ReplyDeleteThe concept that the top three priorities for 2023 among HR professionals, HR executives and workers reflect the recruitment and retention challenge is taking people down a very important path. Employee morale is a very demanding theory, and the retention of highly skilled employees. You have also realized that finding and hiring talent with the right skills is critical.
DeleteThe author has highlighted 7 HR issues through this article, and out of the highlighted 7, the most important challenge for the companies in Sri Lanka is employee retention, as most of the companies are currently struggling due to the current economic crisis situation, and staff turn over seems to be very high as most of the employees have lost trust about the company's operation and their monthly earnings are not enough to manage their living expenses, which are very high due to the current food inflation situation, which is around 54% (Central Bank of Sri Lanka, 2023, https://www.cbsl.gov.lk). Further, employee's monthly earnings have drastically dropped with the current pay tax policies that are implemented by the government. Hence, all companies should concentrate on increasing their involvement with the employees in order to retain them in the organization, and I think the author should have included this practical situation in this article.
ReplyDeleteMotivation is related to employee retention because it drives an employee’s success and plays a vital role in employee engagement and employee satisfaction. Leaders use strategies that boost motivation, resulting in employees that are more invested in their jobs and more loyal to their organizations. (Tenny,2023, https://businessleadershiptoday.com/). But in this article, the author has not highlighted that motivation is one of the key strategies for employee retention, and this article should have been more productive if the author had considered including practical information related to employee retention.
the truth. The most important challenge for companies in Sri Lanka is employee retention. Because, talented employees often move to other substitute organizations to increase their salary and advance their position. The saying is true that the turnover seems to be very high as many employees have lost faith in the company's performance and the monthly earnings are not enough to manage their living expenses. But in some cases, the organization understands and the parade ends.
DeleteHi great article, in my opinion, the Lack of growth opportunities and Non-competitive salaries or benefits are the main practical problem nowadays employees undergo. If the organization is addressed for that matter, then the common goal can be achieved easily. What do you think about that?
ReplyDeleteThank you very much. According to your opinion and your question, I think the reason for this could be that the right people in the company are not getting the right salary and the right position value. It can also be said that it should be remembered that the company's wealth rests with the oldest employees.
DeleteThis is a good article to identify different types of challenges when working in HR and the related solutions. This will be very useful to new joiners to the field of HR for them to get an idea of what kind of problems they might face and how they can tackle them. Also, this article may be useful to a person already in the field, who is looking for a solution to problem they have encountered.
ReplyDeleteThank you and your words. Appreciate the comment. Actually yes you are right. It is hoped that this design will be helpful to everyone, both pre-service and current service recruits.
DeleteI appreciate how this article highlights overview of the current issues in HRM. In today's dynamic business environment, HRM faces challenges such as adapting to changing labor laws, dealing with increasing workforce diversity, and leveraging technology for talent management. It's crucial for HRM leaders to stay updated on these issues and develop innovative solutions to address them.
ReplyDeleteIt's true that in today's dynamic business environment, you face challenges such as adapting to changing labor laws, dealing with increasing workforce diversity, and leveraging technology for talent management. It is critical for HRM leaders to stay up-to-date on these issues and develop innovative solutions to address them. I think this design is more important than anything else.
DeleteIt is clear that the HR department has a difficult and essential job in ensuring the success of the organization. These solutions provide a good starting point for addressing the common HR problems in companies, but it is important to remember that each organization is unique and will require tailored solutions to address its own specific challenges.
ReplyDeleteInevitably, it is clear that the HR department has a difficult and essential task to ensure the success of the organization. That's true. These solutions become a common human resource problem in companies due to the weakness of the organization's key personnel in relation to the organization's goals.
DeleteThis comment has been removed by the author.
ReplyDeleteThe article talks about the common HR problems in companies and offers solutions to each of them. The HR department has various responsibilities, including job design, training, performance management, compensation management, navigating legal requirements, and health and safety. The article highlights three of the most common HR problems: compliance with laws and regulations, health and safety, and change management. The article is helpful as it provides a guideline for companies to tackle their HR problems effectively.
ReplyDeleteThis comment has been removed by the author.
DeleteI commend you on your understanding. There are various responsibilities including job planning, training, performance management, compensation management, navigating legal requirements and health and safety. Definitely, arrangements should be made regarding this. Thanks and appreciate your comment.
DeleteIn the article, you have discussed the responsibilities under HR activities, common problems and challenges, and compliance with legal regulations. Are HR managers and companies able to successfully meet the HR challenges they face today?
ReplyDeleteYou are well said in this article about the problems that HR has to face and how to come out from this issues. And you are said about the main responsibilities of HR and finally this gives guideline for organizations to face the challenges
ReplyDelete