Standing at this juncture of the 21st century, digitization is the key concept of any business across the globe. With every passing day, we are witnessing the digital upheaval reaching new heights. Each and every single entity requires to make a signature mark for themselves. Therefore the cut-throat competition is getting tougher in due course. Such challenges and competition are no longer limited to any particular sector of business. It is dominant in advertising, human resources, outsourcing, in-house management, etc. The challenges faced by the HR department a of any business house needs special mention. There are certain typical types of HR challenges. For smaller business houses, the more important tension factors in this competitive market include cash flow, revenue growth. But more or less, every company face one or more issues with Human Resource Management. Combating HR challenges has become the order of the day in the contemporary global business scenario.
Human Resource Management requires a specific skill. Critical analysis of the aspects can resolve the HR challenges before it gets too serious. The sectors that come under the purview of the HR department include
● Analysis and designing of job
● Monitoring the performance of the workforce
● Efficient planning of work and workforce
● Developmental and training facilities of the team members
● Perks, compensation, and benefits allocated for the workforce
● Handling of legal obligations
The small business ventures typically lack a reliable and commendable HR sector. But that does not lessen the number of challenges generally faced by the sector. Be it big or small, all business houses must possess a skilled workforce in order to combat the obstacles in an efficient manner.
In this essay, we will discuss some of the most popularHR challenges and their solutions.
#1. Following the legal norms
Every business owner is supposed to abide by the legal terms. As per the up-gradation of the laws, the legal norms of the company is also required to be upgraded as per the requirement to eliminate the risk of facing a tough HR challenge. If the newer laws are not implemented accordingly, the business may face lawsuits, negative remarks at the audit or even total liquidation of the company. In order to avoid such consequences, all the business companies, irrespective of the size of the business, must abide by the legal terms and norms of the nation and state.
#2. Necessary Managerial Changes
When a business expands, the growth can be observed in the structure, strategies as well as the in-house rules and procedures of the business. The implementation of such changes in the regular course of the business process creates a trying time for most of the employees. Studies have revealed that during such a transformational phase, a lot of companies face challenges related to lower production rates. It is best to make the team members understand the importance of such a transformation. A clarified account of the needs of the business is essential to reduce the risk of HR challenges. A board meeting might be advisable to prepare the workforce to work efficiently and effectively especially during such a weaker phase for long-term benefit in the future.
#3. Development of Leadership
One of the most common HR challenges includes the lack of efficient leadership development. Implementation of efficient leadership management staff has become a cause of major concern for around one-third of the business houses that are under circulation. The companies are basically doing an average performance in this sector.
Proper motivation and active engagement are essential for developing leadership skills among the workforce team. This prepares the team to partake in important responsibilities for better business prospects to lessen the risk of prospective future HR challenges. Creating proper room and opportunities for the resource team members to exercise their skills and capacities is an essential factor for accomplishing targeted business growth. This provision highlights the strengths and weaknesses of each of the individual members and gives them scope for further improvement according to the business needs.
#4. Training and Development of the Workforce
This is another very popular HR challenge. The development and training facilities of the employees of the junior grade often pose a problem for the business house. Several businesses lack the proper infrastructure or resources to conduct such training facilities aggravating the nature of HR challengesalready faced by the businesses. Such training provisions become difficult for front-office executives to undertake because of their busy work schedules.
But, to keep pace with the rapidly-changing technology, businesses need to keep themselves updated to prevent themselves from becoming obsolete. This is a severe HR challenge to make the entire workforce adapt to the changing techniques according to the needs and demands of the business.
The training programs of the workforce can be arranged through online modes or from senior-level executives. To possess a talented and skilled workforce team, effective investment is required in the sector. A competent team can deftly handle HR challenges in a more efficient manner. They become comfortable with the initiatives when a clear target and goal is set in front of them. Such steps give them the opportunity to understand the importance of their training and their application.
#5. Compensation and Benefits for the Employees
Proper structuring of best packages for the employees is a tough HR challengein today’s competitive market. It becomes more difficult for the smaller business houses because their competition lies not only with the small-scale business houses but also with larger corporations.
At any stage, salary is the most important factor for any employee of any business house be it big or small. But for the business perspective, along with the employee’s salary, training factor, tax implications all these factors are also taken into consideration. All such complicated factors combined may pose difficult HR challenges for the business.
Performance-based employee reward is a system to lower the salary package. Moreover, other perks and benefits might include bonus plans, the offering of bonds, shares or incentive packages. Such techniques are profitable both for the employee as well as for the business.
Small businesses with less than 50 employees, generously offer healthcare opportunities for their employees. It is also helpful for offset cost factors as well as it is eligible for tax credits.
Other important and popular perks enjoyed by the workforce of the current era include
● Ample time for a vacation
● Opportunities for free snacks
● Healthcare and wellness facilities
● Conveyance benefits
#6. Recruitment and Retention of Skilled Management Team
To run the business smoothly, attracting and hiring the proper talented members is of utmost necessity. It becomes a tough challenge for any HR team whatsoever. This procedure involves a huge investment of time and money. Moreover, the talent of a candidate remains unknown until and unless he/she gets a proper opportunity to exercise the necessary skill. This again is dependent on time factor. It is a tricky HR challenge for any business.
Employing experienced staffing companies is advisable in this case. They know the requirements of the company and can provide a solution with little risk thereby focusing on tough HR challenges with ease. It is more or less a safe bet for hiring the required talent. It is far less time-consuming than any manual labour and also cost-effective. It does not even hamper the sale of the business.
Setting high standards at the workplace creates a positive aura for the business minimising the risk of HR challenges and threats. Moreover, incorporating all the employees of every rank to follow the decorum creates a positive work culture. This improves business production. Although the employees belong to different socio-economic strata but despite such diversities, once unity is developed between the team members, the results get reflected in the performance of the business.
Bizex is a software that has been created and developed for assisting business teams of various sizes across the country. This is an interface used for website and mobile. Bizex encourages the implementation and assistance irrespective of the level of business. It is one of the most user-friendly interfaces of India, designed to solve HR challenges in a far less complicated manner.
Over 300 business houses have so far used this business software for better management of HR challenges. This high-tech software solution is designed for mobile-enabled team members. Starting from recording the attendance of the team members in a geo-tagged process to ensure the smooth running of the business works, Bizex has simplified the HR challengesto a large extent.
The facilities provided by Bizex for addressing the common HR challengesinclude
Attendance based on geofencing technology
Self-service portal for the employees
Efficient management and handling of the tasks
Effective data sync technology across multiple devices
Acceleration in the decision-making process
By removing unnecessary paperwork and manual workload, Bizex has proved to be bliss by cost-effectively automating the business process and eliminating the risk of several complex HR challenges. An entire centralized database devoted to the workforce with an active tracking system for the employees integrates and encourages both career and business growth healthily. Handling HR challenges has become an issue of far lesser concern with the advent of Bizex.
It is important to understand the nature of the HR challenges in order to eliminate them tactfully. The better the understanding of the problems, the better the designing of the policies for the benefit of the employees as well as for the healthy growth of the business. A planned approach is a primary necessity to outrank the competitors by efficiently handling and solving the HR challenges.