What Are the Most Common HR Challenges?

Overview of HR roles and the industry

To say that the HR industry is big is an understatement. Because what business doesn’t need to hire people.In 2022, the global human resource management (HRM) market was valued at $21.69 billion. It’s forecast to grow at a compound annual growth rate (CAGR) of 12.7% from 2023 till 2030. (Grand View Research)But despite its size, there are many HR myths and misconceptions that plague the industry and business.A common myth is people’s belief that anyone can perform the role of an HR professional. Another one is that HR is limited to recruitment. But you know that’s not true. Recruitment forms a large part of HR but it’s not the only thing HR does

There are many HR functions and roles. HR is responsible for creating the HR strategy, supporting management in building the business development strategy, among others.They’re also tasked with creating a positive work environment and culture that contributes to increasing employee retention and reducing turnover. This may involve creating employee rewards and recognition programs.

HR are also in charge of creating the compensation and benefits strategy and its policies. They also have to create HR policies and the HR handbook.Besides recruitment and selection, HR teams are also responsible for finding and setting up training programs for employees. They also create training and development KPIs to measure the impact of these programs.

What are the most common HR challenges?

With HR playing many roles and wearing many hats, it’s natural there are many opportunities and challenges in the field.There are general or broad HR challenges and more specific types of challenges. For example, recruitment challenges are abundant in every industry and every country around the world.But sometimes challenges may pertain to a certain market or area of business. Many HR challenges emerge simply because company managers aren’t aware of their HR needs and just want to grow their company. (It’s their right, but there are considerations they need to be aware of.)

1) Attracting top talents

One of the most important HR roles is sourcing and selecting top talents to join an organization. However, as jobs evolve, the talent market is sometimes not fast enough.Another problem is the high demand in certain roles and the limited supply of employees to fill these roles. Filling tech jobs and managerial roles is one common challenge for HR professionals

Solution

One way to attract top talents is to offer attractive compensation and benefits packages. These packages can include perks such as team-building activities, employee rewards,Your compensation package shouldn’t be entirely focused on an employee’s salary. Otherwise, they may leave for a higher salary.Compensation and benefits packages can also include discounts at selected stores and restaurants, partnerships with travel agencies, discounted gym memberships, among other perks.You should also consider how you’ll retain employees who join your company or team