Top 8 Challenges in HRM and Strategy to Tackling Them

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Human resource management is one of the most talked about term today as happy employees drive a better organization. In the times when organizations are focusing more on employee retention and rapid organizational growth, letting the employees be satisfied and happier is the key to streamlined operations and smarter workplace.  
Let’s explore the basics of human resource management, HR challenges associated and the effective remedies to fix it.  

What is Human Resource Management(HRM)

HRM is a strategic and streamlined approach to manage employees within an organization. The process includes recruiting, hiring, training & development and, retaining employees for a longer run. The key functions include the entire employee lifecycle functions such as recruitment & selection, training and development to maintaining employee relations and adhering to compliance.  

Key Challenges and solutions of Human Resource Management

There are multiple HR challenges in the process human resource management, here are the top 8 challenges and their possible solutions.   

1. Recruitment and Selection

Marking as the first stage of the process, recruitment and selection often comes with the challenge of finding the right candidate while adhering to the fairness and efficiency in the process. It takes huge time and effort and require qualified recruiters to participate in the looking for top talent.  

Solution-

With the power of AI recruitment tools and RMS platforms, the process of recruitment and selection can be automated and the regular operations like screening, resume-JD matching etc., can be streamlined more effectively.  

2. Employee Engagement and Motivation

Non-engaged employees can never build a successful organization, it becomes important to let the employees feel valued, supported and seen throughout their tenure in the organization.  

Solution- Try engaging employees on a regular basis, for instance, one can run pulse surveys, recognition programs and personalized communication in order to bring a more vibrant and recognized culture.  

3. Training and Development

Not every employee brings in the perfect skills to match the organization’s dynamic requirements. However, training and development can conveniently help in developing the required skills or even letting the employee's upgrade. As skill gaps can lead to lower work productivity impacting the organization’s overall growth.  

Solution- Organizations can implement regular/periodic trainings with the help of LMS platform or simply implementing mentorship sessions/personalized upskill programs to retain the best talent.  
 

4. Performance Management

Many organizations today aren’t investing time in giving the right briefs or work feedback which can increase the probability of rework/ multiple updates and so on. Setting clear goals becomes necessary as it can directly impact employee’s performance in the longer run.  

Solution- Switch to real-time performance tracking, focus on setting SMART goals and always involve in regular feedback loop, it constructively helps in maintaining the best business outcomes. Organizations can invest in better performance management systems that can help streamlining the process and foster 360-degree transparency.  
 

5. Adhering to Law & Compliance

Another challenge in the process is navigating complex labour laws or geography-based laws that can cause legal risks. Especially if the organization is having global employee force, labour laws can differ. It is imperative to adhere to the laws and stay well into the decided guidelines.  

Solution- Choose the HRMS which can help you switch the labour laws based on geography, modules like payroll/ performance management etc., can be automated and managed by these well-equipped systems. The best solution in this case could be automating documentation and policy tracking with a smart HR software which can adhere to global regulations and keep your regular HR operations smooth.  
 

6. Adapting to Dynamic Technology Upgrades

It's the era of evolution and change, technology is advancing and upgrading every single day! Organizations often face challenges as their systems are resistant to new tools, and the legacy systems often fail/slow down the process. 

Solution- To get this simplified, invest in a user-friendly, technology enabled HR solution which can not only upgrade with the advancements but also effectively help in improving efficiency through regular trainings and tech-upgrading solutions.  
 

7. Work Setup- Remote & Hybrid

It might sound favourable to employees but, organizations need to add in a lot of effort in maintaining good collaboration, culture and productivity across all employees who are either on remote or hybrid settings. However, most organizations today have opted for a work from office schedule, some find remote setting more useful as it saves a huge infrastructure costing.  

Solution- To make it convenient and efficient, make use of mobile applications, chatbots and virtual engagement platforms can help the employees in being aligned and streamlined towards the work. Even the regular standup meetings, offsite settings etc., can be an effective way to increase team bonding which in turn helps in elevating team productivity.  
 

8.Talent Retention

Top talent will only stay in a recognized and vibrant environment. For retaining the leading talent, it is important to make them feel recognized and reward them either in monitory or non-monitory terms. Many organizations today face lack issues in talent retention as they fail to let their employees feel satisfied during the working journey.  

Solution- Focus on creating clear paths, offering smarter benefits to the employees and build a culture that cultivates positivity amongst your workforces. It is imperative to foster a fair and recognized environment within the organization that can value employee contribution and let you have the best results.  

Read Here: Key Functions of Human Resource Management

Final Thoughts 

As HRM is a dynamic field, updates and upgrades are an integral part of the process. Understanding the challenges and taking the necessary steps can help an organization in not only creating a positive work environment but foster organizational growth for a longer run.  

Invest in a future-ready HCM suite that can help you with each HRM facet, handling human resource management issues and being in the positive outcomes at every step.  

Ready to elevate your regular HRM operations by overcoming HR problems with AI-driven automation and digitally advanced techniques? Get started with HONO, a fully equipped HCM suite to streamline HR operations and increase productivity all at the same time.  

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