Figure 1 : HR Challenges (Andriotis, 2018).

HR CHALLENGES 

Once upon a time, human resource management was just another administrative job category. However, it has developed into a strategic position to improve the working environment, prepare human resource requirements, and strike a balance between the organization and employers in order to increase organizational productivity and meet organizational goals over time. To not overstate, in the extremely competitive world of today, it has evolved into one of the most important jobs of a company. Especially in developing countries like India, it might be difficult to handle variety while maintaining unity, retain the best people in the industry, motivate them to perform better, and understand the psychology of the workforce. In addition to bringing about a number of positive improvements, globalization has also given HR professionals a great deal to worry about.

In today's competitive atmosphere and tight labor market, HR departments have significant challenges in managing a multicultural or diverse workforce. Human resource managers are continually looking for new approaches to striking a balance between employers and employees while considering current market trends. Companies may have severe repercussions if they are unable to handle their human resource issues efficiently (Management Study Guide, 2023).

What are HR challenges?

As per Alex Larralde (2023), "Employers have faced endless human resource management challenges in recent years, and each year seems to bring more than the last. This year is no different, with the continuation of many HR challenges from last year and a few new ones".

• Diversity in the Workplace :

When a company recruits individuals who are varied in terms of gender, education, sexual orientation, race, age, and other characteristics, it is said to be practicing diversity in the workplace. When working with people of different ages, genders, colors, ethnicities, educational backgrounds, geographic regions, incomes, parental statuses, religious beliefs, marital statuses, ancestry, and job experience, HR managers have a challenging issue. Managing people with different ideologies, attitudes, lifestyles, and psychological makeups may be extremely risky. Effective communicators, flexible, adaptive, and upbeat HR managers can unite a diverse workforce and retain talent for the company (Culture Amp, 2023).

Figure 2: Diversity in the work place (Touro, 2021).

• Conflict in Management :

HR management should handle conflicts between employees and employers delicately. Although it is practically impossible to avoid interpersonal conflicts, HR managers may help resolve issues by handling them effectively. They should be able to listen to each side, make choices, apersuade them in order to prevent future conflicts.

Figure 3: Conflict situation in workplace (GMS, 2021).

• Managing Relationships : 

Job happiness and productivity depend on having clear lines of communication, a fair work environment, and good working relationships between management and the workers. Employers will use feedback as a crucial element of a positive workplace and culture that establishes the vision and ideals for the welfare of everyone involved in order to foster wholesome, fruitful interactions. In order to make decisions that have a direct impact on a workforce and, as a consequence, manage relationships between employers and workers, teams, and management in advance with an effective feedback method, organizations may rely on real, accurate, and quick people data. Employers may identify issues before they become systemic by having a robust feedback mechanism in place since entrepreneurial cultures cannot destroy relationships as quickly or comprehensively as other cultures (Better works, 2023).

Figure 4: Build positive workplace relationships (Random Office, 2016).

• Developing Leaders :

More than ever, workers look to their managers for motivation and inspiration. This might be an issue, though, if those leaders-in-waiting stick around long enough to take the reins. Furthermore, firms are seeing higher-than-ever turnover rates among prospective leaders in a workforce that is increasingly dominated by millennials. As a result, leadership development is currently one of the most important HR challenges. Although there will be variations in how this problem is actually handled, incentives are ultimately what drive retention. Encouragement is essential for staff members to remain committed to training that corresponds to a certain career path since doing so shows that they value outstanding people, are aware of their leadership potential, and are prepared to actively participate in that growth (Sprigghr, 2020).

Figure 5: Developing Leaders (Insperity, n.d).

• Performance Management and Alignment  :

Even if a company is able to provide the necessary training and development to its personnel, it is crucial that it be able to monitor the effects of that training on the staff's performance. Performance management and the accompanying next steps, such as performance improvement plans, are becoming increasingly difficult due to the rapid pace of corporate operations and the lack of time for performance alignment. When it comes to comprehending how their specific job responsibilities and performance metrics relate to and advance corporate objectives as a whole, employees in larger organizations face extra challenges (Zoe tallent solution, 2023).

Figure 6: Performance Management (Vantage Circle, 2023).

In adition to all above, below are also can be idintied under HR challenges.

Figure 7: Challenges of HRM (Slide player, 2023).

Conclusion

In the past, organizations clearly paid less attention to human resources in favor of tackling bigger problems like revenue, competition, and economic instability. However, as company models and sectors have changed, HR has taken center stage, as businesses now understand how crucial it is to manage their workforces if they are to impact success and growth. This has resulted in a significant increase in the duties of human resources teams, including luring top talent, creating a positive workplace culture, creating ideal job roles and opportunities, ensuring continuous training and development, encouraging strong performance management, and providing competitive compensation.

References : 

Andriotis.N (2018) Efront:The Top 7 HR Challenges and How To Face Them [Online]
Available at: https://www.efrontlearning.com/blog/2017/11/top-7-human-resource-challenges-solutions.html
[Accessed 22 April 2023].

Better works (2023) Better works:10 of the Biggest HR Challenges in 2023 [Online]
Available at: https://www.betterworks.com/magazine/8-of-the-biggest-challenges-for-hr/
[Accessed 20 April 2023].

Culture Amp (2023) The challenges of diversity in the workplace [Online]
Available at: https://www.cultureamp.com/blog/benefits-diversity-in-workplace
[Accessed 20 April 2023].

GMS (2021) How to manage conflict resolution in the work place [Online]
Available at: https://www.groupmgmt.com/blog/post/how-to-manage-conflict-resolution-in-the-workplace/
[Accessed 22 April 2023].

Insperity (n.d) Training and Performance: Creating a not-so-formal leadership development program [Online] Available at: https://www.insperity.com/blog/creating-not-formal-leadership-development-program/  [Accessed 22 April 2023].

Management Study Guide (2023) Management Study Guide: HR Challenges [Online]
Available at: https://www.managementstudyguide.com/hr-challenges.htm
[Accessed 20 April 2023].

Random Office (2016) Random Office: Ways To Cultivate A Positive Work Culture [Online]
Available at: https://www.randmoffice.com/ways-to-cultivate-a-positive-work-culture/
[Accessed 22 April 2023].

Slide Player (2023) Slide Player: HR Challenges [Online]
Available at: https://slideplayer.com/slide/5066476/
[Accessed 22 April 2023].

Sprigghr (2020) The Top HR Challenges to Overcome in 2020: Developing leaders [Online]
Available at: https://sprigghr.com/blog/hr-professionals/the-top-hr-challenges-to-overcome-in-2020/
[Accessed 20 April 2023].

Touro (2021) Touro:How to Promote Diversity and Inclusion in the Workplace [Online]
Available at: https://www.tuw.edu/business/promote-diversity-and-inclusion-in-the-workplace/
[Accessed 22 April 2023].

Vantagecircle (2023) Performance Management: 5 Major Objectives Of Performance Management [Online] Available at: https://blog.vantagecircle.com/objectives-of-performance-management/ [Accessed 27 April 2023].

Zoe tallent solution (2023) Human Resources Training Events: Performance Management and Alignment [Online]
Available at: https://zoetalentsolutions.com/top-10-hr-challenges-and-their-solutions/
[Accessed 20 April 2023].

By : S. Satheesh