Human capital management is a process of managing people in companies in a thorough and structured manner. This covers training, development, trust, and teamwork that enhances human capital development and ultimately affects the outputs of organizations.

However, due to the fluctuating economy and global advancements, there are rapidly occurring changes that affect HR in a wide range of issues. A survey conducted on behalf of the World Federation of Personnel Management Associations (WFPMA) by Price water house Coopers found that there are several management challenges faced by supervisors and global talent managers.

Top 5 human resource management challenges

Managing employees has never been easy, but the changing technology and digital age have complicated this effort substantially. The challenges are:

Recruitment of skilled candidates

A common HR management challenge is the recruitment of skilled candidates as you cannot be sure that you have hired the best candidate for a particular job position until they work for a certain period.

Solution: Effective screening of candidates and accurately determining their experience and skills with the job position is vital. This can be ensured via aptitude tests, and in-depth interviews to ensure that the best candidate has been hired.  In addition, organizations can use recruitment data and metrics to improve this process and make informed decisions.

Change management

Change management has been cited as the foremost issue as human resources continue to attempt to help organizations move forward. Changes these days happen due to globalization and technological advancements as global talent managers try to build a cohesive and persuasive environment. Even the smallest change in some companies can bring disruption, for example, Wistia, a video marketing software company implemented unclear change management strategies to move from internal efficiency to business growth, Employees were not provided any kind of briefing and training about the implementation of these strategies that further led to employee job dissatisfaction and burnout.

Solution: – Intensified training and change management tools like fish bone diagram, Change Gear, and Fresh service can be applied to develop the required competencies to deal with this challenge. Fish bone diagram will help employees get a clear picture of the goals set and what is expected from them.

Employee retention

Competition for talented human resources is fierce. Small companies and startups don’t have big budgets for expensive insurance and recruiting plans compared to large organizations. Sometimes, bureaucratic leadership by HR managers in such companies causes employee turnover which can negatively impact business growth.

Solution: – HR managers need to highlight the hard work done by the employees and offer them real-time recognition that celebrates their efforts and success. In addition, trans formative leadership is a must in every company these days to encourage innovation and creativity that boosts employees’ confidence to stay and succeed.

Compliance with regulations and laws

Business owners struggle to keep up with the changing employment laws. Many organizations ignore these changes, believing they do not apply to their company. This can lead to a lot of issues such as company winding-up, lawsuits, and audits causing extra burden to the human resource teams.

Solution: Regulations are everywhere whether it hiring employees or workplace safety. HR professionals need to navigate and understand these laws to help their companies to remain compliant and avoid paying fines or any penalties.

Workplace diversity

Diverse human capital, especially when a business is operating on a global platform has its own merits. This is also a common HR challenge when organization fails to bring in diversity. When organizations do not hire people from different cultures and backgrounds in the age of globalization, they miss opportunities to implement innovation and creativity.

Solution: It is a must to implement a diversity training program to overcome this challenge by human resource managers. This is because employers are the ones who are held responsible for setting standards of behavior in the workplace. For example: If an organization is doing business with China, having an employee well worse in Mandarin is an asset to the firm which can lead to improved workplace relations.

Conclusion

Significant changes in the business world are constantly happening. A critical challenge for leaders is being able to adapt to those changes, however daunting or unfamiliar they are, and managing human capital with these changes. Updated skills and the right candidates for jobs are important as human capital is what adapts to these environmental influences.

HR challenge when organization fails to bring in diversity. When organizations do not hire people from different cultures and backgrounds in the age of globalization, they miss opportunities to implement innovation and creativity.

HR managers need to highlight the hard work done by the employees and offer them real-time recognition that celebrates their efforts and success. In addition, trans formative leadership is a must in every company these days to encourage innovation and creativity that boosts employees’ confidence to stay and succeed.