HUMAN RESOURCE CHALLENGES

 

HUMAN RESOURCE CHALLENGES

Issues such as cash flow, competition, and revenue growth are top of mind for small business owners and their teams. Along with these challenges comes another area many companies struggle with: human resource management.

Human resource management (HRM) includes:
·         Job design and analysis
·         Workforce planning
·         Training and development
·         Performance management
·         Compensation and benefits
·         Legal issues

HRM can be a challenge for small businesses especially, which typically don’t have an HR department to rely on. They may be limited to one HR person, or this responsibility may still belong to the CEO. Regardless, small business owners need to understand the challenges facing them so they’re prepared to tackle HR issues as their company, and workforce, grows(Ashley, 2020).

#1 COMPLIANCE WITH LAWS AND REGULATION

FIgure 1. COMPLIANCE WITH LAWS AND REGULATION

Keeping up with changing employment laws is a struggle for business owners. Many choose to ignore employment laws, believing they don’t apply to their business. But doing so could mean audits, lawsuits, and possibly even the demise of your company.

Solution:

No matter how large or small your business, it’s important to make sure you’re in compliance with local, state, and federal labor laws. There are regulations on everything from hiring practices, to wage payment, to workplace safety.

#2 MANAGEMENT CHANGES

FIGURE 2. MANAGEMENT CHANGES

As a business grows, its strategies, structure, and internal processes grow with it. Some employees have a hard time coping with these changes. A lot of companies experience decreased productivity and morale during periods of change(Johnson, 2017).

Solution:

Business owners should focus on communicating the benefits of the change for everyone. Regular staff meetings are a good place to start. When your team understands the why, how, and when of the change, they’ll be more likely to get on board.

#3 LEADERSHIP DEVELOPMENT

FIGURE 3.LEADERSHIP DEVELOPMENT

A recent study showed more than a third of companies are doing an average job, at best, at implementing leadership development programs.

Solution:

Leadership development is critical in keeping your management team engaged and motivated, and prepares them to take on more responsibilities in the future. Make it part of the culture. Create opportunities for them to use their strengths every day. Accomplishing goals will motivate them and give them a chance to develop their skills.

#4 WORKFORCE TRAINING AND DEVELOPMENT

      Figure 4. Training and development 

Investing in the training and development of lower-level employees is another common HR problem. Some businesses have trouble finding the resources to do so. Employees on the front lines are some of your hardest workers, and may not have the time to take a training course.

Solution:

Training and development doesn’t have to take a lot of time or money. Recruit managers and senior leadership in mentoring their subordinate employees. You could also provide online training courses so people can go at their own pace. Invest in your workforce and you will have a loyal, productive team.

#5 ADAPTING TO INNOVATION

Figure 5.ADAPTING TO INNOVATION

Technology is constantly changing. Businesses must be quick to adapt, or risk being left in the dust by their competitors. The challenge for small business owners is getting employees to embrace innovation and learn new technology(suzie, 2013).

Solution:

Communication is critical. With any change, make sure your team understands the why, when, and how. Set clear goals for the adoption of initiatives, and provide employees with the training they need to get comfortable with it.

Conclusion

It’s important to know common HR issues so you can put the right policies and procedures in place now. Understanding the complexities of employee benefits, employment laws, leadership development, and other areas will help you stay ahead of the competition and meet your business goals this year, and in the years to come.

References

Ashley, 2020. villanovau. [Online] (1.2) Available at: http://www.villanovau.com/resources/hr/human-resource-management-challenges/ [Accessed 19 April 2022].

Johnson, 2017. shrm. [Online] (2.1) Available at: https://www.shrm.org/hr-today/news/hr-magazine/0316/pages/the-big-issues-facing-hr.aspx [Accessed 19 April 2022].

suzie, 2013. managers. [Online] (3.4) Available at: http://www.managers.org.uk/insights/opinion/2013/april/the-most-common-issues-faced-by-human-resource-managers [Accessed 19 April 2022].