11 Strategies for Handling HR Management's Biggest Challenges

The round-up of an HR professional’s job description is solving people-related problems. 

From problems only spotted on annual performance management reports to the more minor day-to-day stuff, Human Resource managers face many challenges. 

In this post, I will be touching on 11 of the most pressing HR management challenges and how to handle them efficiently and competently.

1 — Talent Acquisition 

Problem: Attracting top talent and finding the right fit for your organization can be daunting. With many big companies like Google and Amazon vying for the best talent, how do you compete and recruit the best?

Solution:

Invest in building a strong employer brand using HR Cloud. With it, you can centralize all your social content on the intranet so your employees can easily pick content to share on their social profiles. The platform also provides employees with the tools they need to distribute content with easy sharing options. It also has a mobile app for employees to share content on the go. 

Some of the content ideas you can use include stories and testimonials from happy employees. Film a “day in the life” working in your company and post it on YouTube. Take aesthetically pleasing photos of company swag and show them off on LinkedIn or Instagram.

There are many ways to let people into your company's culture. Another company may provide the same service as yours, but the atmosphere will never be the same. Building an employer brand can help you attract qualified candidates and those who are an excellent cultural fit.

2 — Employee Retention and Engagement

Problem: Retaining top talent and keeping employees engaged are ongoing challenges for HR managers. According to SHRM’s State of the Workplace Study,  “maintaining employee morale and engagement” is the top priority for HR professionals in 2023. 

Solution:

Using Employee Net Promoter Score (NPS) and other relevant metrics, measure employee engagement occasionally. Essentially, engaged employees are committed to and excited about their job and the success of their company.

Pay is not everything, but to keep engaged employees around, provide reasonable and competitive pay and benefits. Ensure that compensation packages are sustainable for the organization, appealing to employees, and well above the market average to retain the best talent. In the same SHRM study, this is the number 1 priority for employees.

3 — Diversity and Inclusion

Problem: With how connected everyone is, the world has never felt smaller than it feels today. Hence, embracing diversity and promoting inclusion within the workplace is an upward-trending topic and a significant challenge for HR workers. 

Solution:

• Diversity initiatives: Establish programs and policies to attract and retain diverse talent. Ensure diverse representation at all levels of the organization.

• Education and awareness: Conduct workshops and training sessions to promote awareness of the benefits of diversity and address unconscious biases.

• Inclusive work environment: Foster an environment where employees feel safe and empowered to share their perspectives and contribute authentically by conducting diversity activities.

4 — Performance Management

Problem: Getting your employees to perform at their highest level is a challenging task for HR teams.

Solution:

It is essential to clearly communicate each employee's role in fulfilling the company's vision, goals, and KPIs to avoid employees working aimlessly or with a vague understanding of their responsibilities. This provides employees with clear performance expectations, which can help them to be more productive and successful in their roles.

Promote regular feedback between managers and employees to acknowledge accomplishments and address areas for improvement. Additionally, implement a fair and transparent performance management cycle emphasizing development over evaluation.

5 — Conflict Resolution

Problem: Dealing with employee conflicts and maintaining positive employee relations can be complex and sensitive.

Solution:

First, HR must be impartial, fair, and unbiased in all conflict situations.

Instead of taking sides, provide open communication channels across the board. Establish a platform for employees to express concerns and grievances. Make sure this platform is confidential and without fear of retaliation. 

Managers and employees should also be trained in effective conflict resolution techniques, such as active listening and mediation.

6 — Compliance and Legal Issues

Problem: Staying compliant with employment laws and regulations can constantly challenge HR professionals.

Solution:

HR compliance is a complex and ever-changing field. The best way to stay compliant is to stay informed about changes in local, state, and federal labor laws and regulations. As new laws are enacted, update your internal policies and procedures to comply with the latest requirements. Periodic internal audits can help you identify and address potential compliance issues early on.

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7 — Managing Remote and Hybrid Teams

Problem: A fascinating finding from SHRM's State of the Workplace study is that 56% of remote/hybrid employees would suggest their company to outsiders as a "great place to work." However, these same employees are more likely to change jobs (9% more likely than in-person employees).

This may be due to several factors, such as the increased availability of remote jobs, the desire for more flexibility, or the perception that remote companies are more innovative. 

As remote and hybrid work becomes more prevalent, effectively managing dispersed teams poses new challenges.

Solution:

Promote team building. It’s much easier for employees to leave when they feel no emotional connection to the job. Organize virtual team-building activities and social events to foster a sense of camaraderie among remote and hybrid team members.

For example, you can introduce a virtual "coffee break" initiative, where team members are randomly paired for informal video chats. This initiative helps remote employees connect personally, leading to increased team performance.

8 — Optimizing Employee Spending

Problem: HR managers face the challenge of reducing overall expenses without sacrificing employee satisfaction.

Solution:

HR should be involved in the budget allocation, focusing on areas that directly contribute to employee well-being and productivity.

HR analytics and expense data can be used to identify spending patterns and optimize employee spending. Conducting an expense audit can provide insights into which contracts need to be renegotiated and which processes need to be financially downsized.

9 — Mental Health and Employee Well-being

Problem: Promoting mental health and well-being in the workplace is increasingly recognized as a critical HR responsibility. It is reported that 37% of employees experience negative stress at work, which impacts their productivity. 

Solution:

HR needs to foster an environment where mental health is openly discussed, reducing the stigma associated with seeking help. As an HR professional, you can also do more by offering Employee Assistance Programs (EAPs) that provide confidential counseling and mental health support.

You can offer flexible scheduling, remote work options, and vacation policies to promote work-life balance. According to this post by Attrock, setting clear expectations, investing in HR tech, and creating Standard Operating Procedures (SOPs) are some ways to make remote work successful.

10 — Succession Planning and Talent Development

Problem: Identifying and nurturing future leaders is a vital challenge for HR managers. According to the latest SHRM study, 36% of HR professionals prioritize “Creating succession plans for key roles” in 2023. 

Solution:

The first step to solving this problem is identifying employees with a high potential for leadership roles. Do this through regular talent assessments and evaluations. 

The next step is creating and implementing a detailed succession management strategy. A succession plan is a plan to develop and groom potential leaders for key organizational positions. It is incomplete without mentoring programs and leadership development training to cultivate leadership skills in potential successors.

11 — Embracing the Power of a Virtual HR Assistant

Problem: Managing HR tasks efficiently and maximizing productivity can be challenging for HR professionals.

Solution:

Delegate routine tasks. Hire a virtual HR assistant to handle repetitive and time-consuming HR tasks, such as candidate screening, scheduling interviews, and onboarding paperwork.

Wrap-up

HR is as important as people are to any company. By working proactively and striking the delicate balance between the well-being of the company and that of its people, HR teams can conquer any challenges they’re thrown at. 

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Author Bio:

Gaurav Sharma is the founder and CEO of Attrock, a results-driven digital marketing company. Grew an agency from 5-figure to 7-figure revenue in just two years | 10X leads | 2.8X conversions |  300K organic monthly traffic. He also contributes to top publications like HuffPost, Adweek, Business 2 Community, TechCrunch, and more.