Today’s world of talent management is plagued by several issues. A tighter talent market, financial uncertainty, and globalization are the prime ones. These issues, along with ever-evolving technologies, are likely to play a big role in shaping up the workplace as well as the HR profession in the next few years.
This article delves deep into the top 5 challenges to human resource management.
- Fierce competition for the right talent: With the gradual improvement of the global labor market and growing requirements for skilled and educated professionals, organizations are increasingly finding it hard to attract the right talent. It makes it more important for HR to assist in building a stringent employer brand. New-age HR professionals are focusing on the cultures that integrate the basics of a great place for work, comprising various initiatives related to corporate social responsibility, stringent safety for workers, various security measures, and so on. With the rising competition for talent, HR professionals are feeling the pressing need to tweak their various strategies related to compensation and benefits, global relocation, and immigration policies.
- Technological advancements: Thanks to various latest tools, including internal social and crowd sourcing networks and talent networks, there is a gradual improvement in employee productivity and work flexibility. However, their use in creating a virtual workforce will keep making team building and employee management challenging.
- Demographic transformation: Demographic changes are having and will have immense impact on different aspects of HR practices. Some of these challenges comprise the multi generational workforce, growing cultural diversity, the nature of parental and family roles, the aging workforce, and so on.
- Data-based HR practices: The rising importance of Big Data provides HR professionals with a challenge and opportunity as well. Increasingly, business leaders are demanding that their HR team should use different metrics and in-depth analysis to take sound decisions and show the ROI of their main expenditures.
- Economic impact:It’s true that various economic indicators have improved in many countries. However, still, many companies keep running on a shoestring budget. No doubt, it leaves a big impact on recruitment strategies and many other HR-related decisions. Further, growing globalization and political uncertainty in various regions are adding fuel to the prevailing economic instability. And HR professionals need to work keeping all these things in their mind.
These are the 5 basic challenges posing a threat to HR professionals. However, apart from them, many other issues are adding complexity to human resource management. Exploring innovative methods for employee engagement always tops the list. This is followed by devising an effective talent management strategy, adding various training and talent development requirements of individual employee and teams, and last but not the least; conducting performance review on the quarterly, half-yearly, or monthly basis.
In view of the growing complexity of HR management, companies—these days—are preferring to recruit HR professionals having specialized knowledge and skills. Given this, the importance of HR certifications has gained manifold. With HR certifications, one can easily stay abreast of the latest transformation taking place in the global business area and lead the organization to the right direction. So, when it comes to bringing excellence to employee performance, employee engagement, talent management strategy, and training and talent development, certified HR professionals always hold the winning card.