Tech growth, changing economic times, and many other critical forces in business are changing how human resource (HR) departments across industries operate. The processes of hiring, firing, compensating, and training employees are all very different in this time and age. We look at the five top challenges that HR companies are facing today.
1. Technological evolution
The world of technology is evolving at a rate never witnessed before. And because technology and business are two intertwined worlds, the latter has to cope with the pace of the former otherwise it runs into chaos. Businesses are now adopting new technologies in real-time and ditching outdated machines on a daily basis, but the human resource of a company can remain unchanged for decades.
The challenge, therefore, is ensuring that the employees cope with the technological changes as they should.
To effectively deal with this challenge, human resource managers have to find a balance between innovation and experience. On one hand, experienced workers will always help a brand maintain its image and avoid being caught up in the dust of tech evolution. On the other hand, innovative workers have the ability to get the best out of any new technology while still keeping the important aspects of the “outdated” technology.
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2. Cybersecurity concerns
As we mentioned, technology is evolving fast, which is largely a good thing. But the evolution is introducing new cybersecurity issues every day. Traditionally when all company data was stored in physical files, it was practically impossible for someone to steal data from those files unless they were working in that particular company.
With technology, such as bring your own technology (BYOT), securing company data has become a headache to HR managers.
In 2018, nearly half of all SMEs in the world lost their critical data to cyber criminals. Some of the avenues through which these criminals gain access to classified files are by hacking into employees’ personal devices, spying on employees’ social media activity, and hacking into data stored in the cloud. Without investing in strong data security mechanisms and educating employees on the importance of data security, HR departments across the world will have big problems on their hands going forward.
3. Building a cohesive culture
With companies recruiting the best talents from all over the world, it is difficult to build and maintain a workable, cohesive company culture. Provided that companies mainly benefit from cultural diversity within the company, it is yet a challenge to lead a team with diverse cultures as there is potential for clashes among workers from diverse backgrounds. A workplace comprised of people from different backgrounds and beliefs drives innovation and creativity, boosting the probability of achieving success.
How do people from vastly different backgrounds relate to their counterparts, and work towards the same goals without either of their cultures and customs being trampled on? “The good thing is that HR managers can always turn to a recruitment agency whenever they need help in determining the best cultural approach for their diverse workforce” say experts at Sky Executive.
4. The millennial factor
There is a very interesting generation of workers known as the millennials. Millennials are categorized as the young adults, who are born between the early 1980 to the mid-1990s or early 2000s. Around 10 thousand baby boomers (individuals born between 1946 and 1964) reportedly retire each year, meaning they open room for the millennial generation. As compared to other generations, millennials have an edge over everyone else when it comes to the workplace.
Due to their time of birth, millennials are quite familiar with technology. Also, when it comes to education, statistics have revealed that they are the most educated generation in history. Yet again, they have brilliant minds when it comes to creativity and innovation which benefits every company nowadays. However, millennials are prone to have a more diverse mindset and work ethic as compared to traditional structures. The real challenge for companies and HR departments is to make a favorable work environment for them, and to integrate the contemporary work practices into traditional ones.
The main challenge is that no business can stand today without the input of millennial employees. According to the US Bureau of Labor Statistics by the year 2035, millennials will make up around 75 percent of the population. Therefore, finding a balance between impressing this group – while at the same time accommodating the needs and preferences of employees across different generations – takes time and deliberate effort to achieve.
5. Talent retention
Companies in the same niche are in constant competition for the best talents. And because the prevailing economic times are too harsh for anyone to reject a good employment offer elsewhere, employees are constantly hopping from one company to the other. The challenge becomes even more pronounced when a company trains new employees, facilitates them through their path of career growth, and then just when they are ripe for the industry, someone else snatches them away.
The real challenge remains: how do we keep talents within the company? Well, first of all, the image of the company plays a crucial role in keeping someone on board. Delivering a strong image among your new workers and making them feel that they are part of a company that really makes a difference out there can make them feel important. Secondly, employees like to feel appreciated and valued for what they do. Invest in them by offering career development opportunities, such as trainings, presentations, mentoring. Thirdly, praise them for their achievements. Give them motivation. This will encourage them to do better and feel attached to the organization.
Ultimately, there will always be workers who are willing to leave the job and search elsewhere. That can either be because they want to move from one place to another, they change their career path or even start their own business. The turnover cannot be completely minimized; however, you can lower it by providing a workplace were employees want to stay.
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The information provided here within should not be construed as formal guidance or advice. Please consult a professional for your specific situation. Information provided is for informative purposes only and may not capture all pertinent laws, standards, and best practices. The regulatory landscape is continually evolving; information mentioned may be outdated and/or could undergo changes. The interpretations presented are not official. Some sections are based on the interpretations or views of relevant authorities, but we cannot ensure that these perspectives will be supported in all professional settings.