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Top Human Resource Management Challenges That You Need to Look After
The business world is constantly changing, giving rise to a number of human resource management (HRM) challenges.
By: escalon services
Here are eight HRM challenges that startup owners have to face.
1. Attracting Top Talent: Attracting the best talent takes time, sound judgment and a whole lot of work. This is why this human resource task tops the list of challenges faced by HR professionals. To attract the right people for a position, they must know the demands of the job and the company. But as job descriptions and expectations keep evolving, this task becomes even more challenging.
2. Employee Compensation and Benefits: Many small businesses struggle with how to best structure employee compensation and other benefits. They have to compete not only with other small businesses, but also with corporations that have huge payroll budgets. They must factor in the cost of benefits, taxes, training and other expenses, which can range from 1.5 to three times an employee's salary. According to a report by PricewaterhouseCoopers, small- and medium-sized companies spend an average of $2,000 per employee each year to handle payroll.
3. Retaining Hired Talent: Since most small businesses and startups don't have massive budgets for expensive insurance plans, retirement plans and other costly items, employee turnover can be costly and can negatively impact business growth. And when HRM issues aren't handled efficiently, it can be even more difficult for small businesses to retain quality employees.
4. Workplace Diversity: Thanks to globalization, the make-up of the workforce has become diverse. Diversity can be seen not just in terms of gender, age, religion and educational background, but also in terms of the personality, nature and background of employees. However, with more workforce diversification, issues related to harassment, bullying, discrimination and the like have also gone up, and this calls for businesses to reexamine their policies, practices and values, in order to protect the interests of all employees.
5. Compliance with Laws and Regulations: Small businesses, just like large corporations, are required to adhere to such federal regulations as the Equal Pay Act, Fair Labor Standards Act (FLSA), Americans with Disabilities Act (ADA) and others. And keeping up with changing employment laws can be a struggle for many startup owners. While the consequences may vary for non-compliance errors, these can be costly and may even lead to lawsuits.
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