Organizations often face several critical challenges when managing their human resource. Notably, those firms that take time to understand the human resource challenges they face gain some advantage in planning for their human resource needs. One human resource challenges that organizations face is the need to comply with ever-changing laws in the country of operation. Like all other stakeholders, these firms are expected to conform to all business regulations and other stipulated laws ( Davidson, 2018 ). For instance, labor laws tend to change quite often, forcing the human resource department to revise its policies to conform to new regulations constantly.
Human resource managers must comply with all relevant laws to avoid lawsuits, audits, and possible company dissolutions ( Davidson, 2018 ). I firmly believe that complying with state, federal, and local labor laws is vital for all businesses, both large and small. According to Davidson (2018 ), all regulations that affect organizations at different levels of operation must also be complied with – whether they govern hiring practices, the safety of workers, or wage payment.
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Secondly, the human resource challenge affecting organizations is unprecedented changes in management. As a company grows, its internal processes, systems, and strategies also grow. This notion may sometimes prove difficult for employees to understand and make appropriate adjustments. Unfortunately, many companies experience a reduction in productivity and workers’ morale during changes brought by growth. One remedy strategy against this problem involves making a deliberate effort to inform employees about the merits of the changes ( Maharjan, 2018 ). When employees understand the reasons behind the new changes, they will embrace them.
The third challenge to human resource management is how to implement leadership development ( Davidson, 2018) . Many businesses work towards implementing proper leadership development programs. A significant number of companies in the US have below-average programs for leadership development. Many employees normally believe that poor leadership in an organization is the key reason behind high employee turnover. To maintain a motivated and effective management team, organizations must implement leadership development programs. The programs create much-needed leadership motivation among junior managers and encourage them to accept tasks from their superiors in the future. Organizations need to create many chances for job advancement so that the junior and middle-level employees can give maximum job output. I also feel that the leadership programs will allow them to develop their talents as well as motivate them.
Another critical challenge in human resource management is how to pursue training of workers and conduct career development. Many organizations find problems in investing in employee training and development of junior-level workers. They feel that much time should not be spent on training employees at the expense of doing actual work ( Maharjan, 2018 ). To correct this notion, human resource managers should find a reason to guide senior employees to mentor and nurture their subordinate colleagues. They should also create training programs for all middle-level managers to prepare them for bigger responsibilities in the organization. They can develop online training programs to enable employees to learn at their own pace. Investing in employee training enables the organization to build a firm and productive team.
The fifth human resource challenge that affects many small organizations is their inability to adapt to innovation. Today, many industry technologies keep changing - prompting many businesses to either adapt to new the new changes risk being overtaken by their competitors. For many industry stakeholders, the challenge lies in finding the appropriate strategy for hiring workers who can embrace new technological changes. Many organizations navigate this challenge by maintaining good communication ( Maharjan, 2018 ). Through good communication, the human resource manager can make the workforce to understand the technological changes involved in the industry. The human resource manager can also set clear goals when implementing new initiatives.
Lastly, human resource challenge for businesses lies in how to pursue employee compensation. This challenge affects both large and small business entities. Many businesses struggle to determine the most competitive formulas to use in paying their employees. The challenge is much bigger for small businesses because they have to compete with corporations that have huge payroll budgets and big operational sizes. When determining the levels for employee compensation, one must consider other cost factors such as taxes, training costs, employee benefits, and other expenses. These costs may vary between 1.5 and 3 times the level of employee remuneration. One solution against this challenge is to deprioritize salary as the most significant factor in employee compensation ( Klinghoffer, Young & Liu, 2018 ). I believe that any system for rewarding employees should motivate them to deliver good services to the company, even if the salary is set at low levels. Human resource managers can also implement other incentive programs to create a win-win situation for the organization and the employees.
Many organizations find challenges in retaining skilled employees. According to Klinghoffer, Young and Liu (2018), many small businesses find themselves in strenuous competition for top talent with persistent problems of high employee turnover because they do not have proper retirement benefits, and provide expensive insurance covers as compared to the offers given by large organizations. This problem normally manifests in the form of high employee turnover that becomes costly in the long term and affects the levels of business growth. This challenge for small firms can be solved by creating a structured onboarding process that encourages employees to stay with the organization.
References
Davidson, P. (2018, September 14). Challenges in Human Resource Management and How to Overcome Them. HR Technologist. Retrieved from https://www.hrtechnologist.com/articles/strategy/challenges-in-human-resource-management-and-how-to-manage-them/
Klinghoffer, D., Young, C., & Liu, X. (2018, June 14). To Retain New Hires, Make Sure You Meet with Them in Their First Week. Harvard Business Review . Retrieved from https://hbr.org/2018/06/to-retain-new-hires-make-sure-you-meet-with-them-in-their-first-week
Maharjan, P. (2018, Jan 13). Challenges and Issues in Human Resource Management. Businesstopia . Retrieved from https://www.businesstopia.net/human-resource/challenges-issues-human-resource-management
