Human resources departments are responsible for a variety of functions within an organization. From recruiting talent, and onboarding new employees to managing payroll and employee benefits, HR departments play a vital role in keeping businesses running smoothly. However, HR departments can sometimes be the source of issues within an organization. Here are some of the most common human resources issues that businesses face:
1. Employee Turnover
According to Work Institute’s 2019 Retention Report, 47% of HR teams acknowledge that the biggest challenge they commonly face is employee retention and turnover. High employee turnover can be a major issue for businesses, as it can lead to decreased productivity and higher costs associated with recruiting and training new employees. There are a number of reasons why employees may choose to leave an organization, such as poor pay or working conditions, lack of career advancement opportunities, or simply because they found a better opportunity elsewhere. Each year, it is estimated that 35% of employees leave their current jobs for others.
Solution: There are a few things that businesses can do to try and reduce employee turnover, such as offering competitive pay and flexible benefits packages, creating a positive work environment, and providing opportunities for career growth.
2. Poor Communication
Poor communication between HR and other departments within an organization can lead to a number of issues, such as miscommunication of policies, procedures, or deadlines. This can result in confusion and frustration for employees and may even lead to legal issues if critical information is not properly communicated.
Solution: It is important for HR departments to establish clear channels of communication with other departments and to make sure that everyone is on the same page. Improved human resources communication can be done through regular meetings, email or telephone updates, or by using an intranet system.
3. Employee Relations
Issues between employees are a common occurrence in any workplace. While some conflict is to be expected, it is important for HR to manage employee relations effectively to prevent small issues from escalating into larger problems. Poorly managed employee conflict can lead to decreased morale and productivity and may even result in legal action. On the contrary, the companies with a high employee engagement rate are 21% more profitable since the engaged employees are more willing to work hard and contribute to the company’s success.
Solution: HR departments can help to prevent and resolve employee conflict by establishing clear policies and procedures, communicating expectations clearly, and providing training on how to effectively resolve conflicts.
4. Compensation & Benefits
Compensation and benefits are often a source of frustration for employees, especially if they feel that they are not being paid fairly or receiving adequate benefits. Glassdoor Research Report 2019 indicates that salary (67%) and benefits (63%) are the two things job seekers care about the most.
Compensation is always a hot-button issue for employees, and it can be a difficult balancing act for HR departments. If your employees feel that they are not being paid fairly, it can lead to decreased morale and motivation. On the other hand, if businesses overspend on employee compensation, it can lead to financial difficulties. Employee benefits are another important part of the compensation package that businesses offer to employees. However, designing and administering benefits can be a complex and time-consuming process. Additionally, changes to laws and regulations regarding employee benefits can create challenges for HR departments.
Solution: It is important for HR departments to stay up-to-date on laws and regulations, clearly communicate compensation and flexible benefits packages to employees, and benchmark salaries against other businesses in the same industry to avoid compensation and benefits issues.
5. Employee Privacy
The use of technology in the workplace environment is constantly rising, and employee privacy has become a major concern for businesses. Any employee may be concerned about their personal information being accessed or used without their consent. Additionally, employers may need to take steps to protect against cyberattacks that could result in the release of confidential employee data.
Solution: Businesses should have clear policies and procedures in place regarding the use of technology, employee data, and cybersecurity. The employees should be made aware of these policies and procedures and should be given the opportunity to provide their consent before their personal information is accessed or used.
6. Performance Management
Performance management is a process that businesses use to assess and improve employee performance. However, the performance management process can be difficult to implement effectively, and it can often lead to frustration for employees. Additionally, the use of performance-based criteria in employee evaluations can create legal risks for businesses.
Solution: To avoid issues with performance management, you should clearly communicate their expectations to employees, provide training on how to effectively use the performance management process, and avoid using performance-based criteria in employee evaluations.
7. Recruitment & Hiring
Finding qualified candidates to fill open positions can be a challenge for businesses, especially in competitive industries. Additionally, the recruitment and hiring process can be time-consuming and expensive. Moreover, although the number of available job seekers is vast, qualified talent is still hard to find. Therefore, the shortage of good candidates poses one many challenges in the recruitment and hiring processes of any organization.
Solution: To streamline the recruitment and hiring process, businesses can use applicant tracking systems (ATS) or talent management systems to help identify qualified candidates, conduct initial screening interviews, and schedule follow-up interviews. Additionally, businesses can use social media to reach a wider pool of candidates. Moreover, business owners should consider leveraging good HR tools to help manage the recruitment process in an efficient manner.
Obviously, there are many potential human resources issues that can arise in the workplace. Fortunately, by being proactive and knowing what to do when these situations occur, you can help minimize the negative impacts they may have on your business.