Challenges of HRM

By : Neha Dhyani

Updated : Mar 25, 2022, 11:12

Human Resource Management (HRM) is no more about hiring and firing employees. Nowadays, HRM is responsible for developing the human capital of a company as it is the most valuable asset for the growth and welfare of an organization. Thus, activities like coaching, counselling, advocating, and managing employees become central to HRM.

Besides, technological developments are also changing the face of HRM with digital innovation and the proliferation of mobile working standards. These continuous transformations in the business environment drive changes in the system and create new human resources issues.

The list of these issues/challenges is long; however, we have listed the five most critical Challenges of HRM that organizations are likely to face in 2022.

What are the Challenges of HRM?

  • Recruiting a Skilled Workforce

Due to a tight labour market, organizations will have difficulty acquiring talent in 2022. This escalates challenges for HRM as it mandates managers to be more diligent in their recruitment procedures and screening to guarantee that only the best employees get hired. To a certain extent, this can be overcome by creating a recruitment process that evaluates a candidate based on the organization's overall vision, goals, and ethos.

  • Diversity Management

Diverse culture is highly appreciated in the business market. However, the ideological differences it brings to the organizations add to the obstacles of HRM. Cultural biases, differences in opinions, and identity clashes are among the many human resources issues the HR department faces due to increased diversity. Mitigating diversity issues can be done via promoting diverse leadership and encouraging leaders and employees to accept cultural differences and promote inclusivity.

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  • Employee Retention

A tight labour market will have a significant impact on employee retention. Personnel is likely to have a variety of choices with better compensation and advantages. Consequently, HRM faces a serious challenge in retaining employees. Employee development initiatives, in particular, can help the organization enhance employee engagement while also earning their trust, loyalty, and retention.

  • Employee Health and Wellbeing

According to a study, healthy employees are 67% more likely to be engaged at work. This demonstrates that having a healthy staff is advantageous to corporate growth and management. However, maintaining a healthy workforce can be challenging in the post-pandemic world. There are increasing concerns about work-life imbalance and work-related stress in a work-from-home culture. To meet this challenge, HRM can provide counselling, flexibility in deadlines, and develop family-friendly work policies. These initiatives can enhance employee wellbeing, which will foster the organization's growth.

  • Technology Development

A technology-driven business market leads to numerous human resources issues with every new technology. Managers face the challenge of employee re-training and development. The process of continuous training can be exhaustive and expensive for organizations. In this regard, organizations can adopt e-learning solutions and online certification programs for employees, enabling them to learn new technologies most effectively while also being cost-effective. This will give the company a competitive advantage and give employees the time and ease to learn new technology.

The business landscape is continually changing, creating new challenges for HRM. Remote working, technological advancements, and competitive labour markets have made it difficult for managers to develop and maintain an organization's human capital. Issues of employee retention, talent acquisition, and employee wellbeing have increased the Challenges of HRM. However, these challenges can be addressed through the strategic use of training, counselling, coaching, and planning. Specifically, to achieve their respective organizational goals of 2022, the HR managers must gear up to implement these strategies and overcome the Challenges of HRM.

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FAQs on Challenges of HRM

Q.1. Does workforce diversity increase the Challenges of HRM?

Yes. Workforce diversity increases the Challenges of HRM such as cultural differences, ideological differences, and ideological clashes, thereby causing human resources issues in an organization.

Q.2. How can work-life balance reduce the Challenges of HRM?

Work-life balance contributes to employee health and wellbeing. This, in turn, influences their productivity and performances, reducing the Challenges of HRM.

Q.3. What is the full form of SHRM?

SHRM stands for Sustainable Human Resource Management.

Q.4. How to prepare employees for the Human Resource Management issues of adopting new technology?

Employees can be prepared for the human resources issues of technology adoption through:

  • Training
  • Counselling
  • Coaching
  • Mentoring