What are the Biggest Challenges Facing Human Resource Managers?

According to a survey conducted by the Society for Human Resource Management in November 2012 regarding human resource management challenges, nearly 60 percent of respondents said that “retaining and rewarding the best employees” was one of the key issues facing HR departments over the next decade. But finding good employees isn’t the only concern among human resources professionals. The survey also cited fostering corporate leaders and creating an attractive corporate culture as two important challenges to the modern HR team. Read on for more information about the top three challenges that human resources departments face today.

Hiring the Right People

With a slowly recovering unemployment rate, it may seem odd that human resource managers would cite “retaining and rewarding the best employees” as their top concern over the next ten years; however, the key word here is “best.” Despite the inflated pool of job seekers, companies have been struggling to find employees who meet educational, training and skill requirements. In today’s competitive business world, employees need to stand out just to be seen.

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Hiring the right people isn’t enough to ensure a company’s success; human resource departments need to recognize talent and reward it when appropriate. Happy employees yield better work, and happy employees depend on well-timed incentives to stay motivated. Just as companies compete for the best employees, workers compete for the best jobs by deciding who appreciates them most.

Developing Strong Leadership

The second most pressing issue among the human resource management challenges cited by the SHRM is the need for better leadership. Forbes contributor Meghan M. Biro points out that the need for strong leadership has jumped significantly since 2010. In today’s tough economy, companies need strong leaders who can think differently and act aggressively to promote continued growth. This may mean a shift in the way that human resources find and hire future leaders. Strong leaders propel companies forward, and in recent years many large and traditionally stable companies have crumbled under shaky or insufficient leadership. Implementing policies that promote leadership from within may be the best solution for some companies, but other businesses may need to look beyond their immediate workforce for a fresh perspective.

Attracting Modern Workers

The old corporate culture doesn’t cut it anymore, and companies that rely on outdated principles will continue to wonder why they can’t find the right hire. The current trend shifts toward promoting an engaging and welcoming corporate culture — one that emphasizes out-of-the-box thinking and innovative problem-solving. Companies don’t have to change their entire business model just to attract millennial workers; instead, they just need to create opportunities for new employees to become part of something larger. Human resources departments will need to focus their hiring and on-boarding strategies on embracing new ideals and original ideas.

Companies that invest in effective hiring strategies will succeed where others fail, but how do these HR challenges affect a business’s overall performance? In essence, the right staff produces the best work. Modern job seekers look for more than a typical 9-to-5 work day with basic benefits. Millennials want jobs that reward passion and creativity, and they won’t settle for stagnant corporate careers. On the flip side, human resources departments need to engage a new generation of workers by offering innovative incentives while targeting future leaders for developmental programs. Only then will the aforementioned human resource management challenges be resolved.