In the face of evolving global economy, rising competition and changing business trends, the human resources departments are particularly experiencing new and challenging situations every now and then. Developing and retaining a talent pool for companies is becoming tougher. Leadership positions are facing a serious lack of appropriate skills and, with the experienced workforce growing older and approaching retirement, hiring suitable candidates is becoming even more challenging. Besides, more and more companies are becoming multinational organizations, recruiting talent from diverse countries and cultures. Physical and emotional health of employees is also emerging as an important aspect that needs attention. Gone are the days when the employees used to stay in a company for long. Today, the employees are switching companies fast, seeking better opportunities, better work-life balance and more. Speaking of 2020, the year will be no different and the human resources needs to prepare for some big challenges, as anticipated by the experts, to be more impactful and add more value to the organization they are working for.
- Diversity and Inclusion
Developing a diverse workforce has been the focus of organizations since some time for obvious reasons but the execution still has a number of underlying problems. A work culture that understands and values the concept of inclusion is the need of the hour. The companies might succeed in attracting talents from diverse backgrounds but without a culture of inclusion, it won’t be able to retain them for long. HR professionals need to extend their strategies beyond the hiring process to ensure the development of a culture where people from different backgrounds look forward to working. This is critical for managing employees, guaranteeing retention and attracting top talents.
- Compensation Framework
The companies today are faced with an increased expectation for revealing reports on CEO pay ratio, gender pay gap and ethnicity pay gap. This demand for transparency is expected to grow and the HR professionals will have to deal with increasing questions from concerned employees regarding their pay level. Handling such concerns and queries wouldn’t be an easy job as it might upset employees and raise grievances, leading to higher employee turnover. Experts recommend that the HR leaders need to be honest and open about the pay levels by introducing a compensation framework or banding to reduce the pay uncertainty among employees. Also, regular pay review and gaol-setting is important to reassure employees.
- Employee Benefits
Reports suggest that wellbeing and work culture matter a lot to the millennials. This means the HR teams need to focus on many more factors, other than the traditional ones like salaries, for employee recruitment and retention. Also, such factors would be less measurable, hence more difficult to manage. HR professionals need to understand that every employee has different needs and in order to retain the talent, it’s important to take into account their individual needs. The HR needs to provide more personalized experiences to the employees today. A focus on healthcare benefits, personal time off, training and skill development opportunities and the likes could be more effective than offering general incentives.
- War for Talent
One of the major responsibilities of the HR department is always recruiting and retaining talent. However, in the changing business scenario, HR leaders need to work together with the business leaders and senior managers to reinvent hiring and retention strategies. This will help the HR leaders deliver more value and competitive advantage to the companies in a time where the market is experiencing the war for talent. The management and leaders create the work culture and the HR professionals specialize in attracting the talent. Thus, working together can help the organization reach goals more effectively.
- HR Investment
HR investment is another major challenge that the HR leaders face today. Sometimes, getting a budget for the HR department becomes really difficult when there is no clear business case or ROI. HR professionals need to focus more on developing business cases for HR investment by demonstrating and quantifying the benefits effectively to influence the decision makers.