Over time, the HR function has changed dramatically. More companies are redefining HR’s function in order to better manage and grow their businesses at a lower cost. Some firms have decided that outsourcing some functions to third parties is the best way to free up internal resources to focus on strategic challenges. It’s reasonable to say that today’s businesses are continually scrutinizing their HR departments in order to determine best practices and time allocation.
HR is responsible for a variety of issues, but the most pressing concerns for HR departments today are recruitment, retention, and motivation, as well as leadership development and corporate culture. As far as HR is concerned
RECRUITMENT, RETENTION AND MOTIVATION
This may be the most difficult issue confronting HR today. According to a November 2012 poll by the Society for Human Resource Management, HR practitioners believe that retaining the finest staff will be the most difficult task in 2022. This aspect was listed in the top three challenges by 59 percent of respondents, up from 51 percent in 2010. When the economy improves, many individuals will be looking for new jobs, according to predictions. “The grass is always greener on the other side of the street,” as the saying goes. Employees become more open to evaluating different work possibilities during periods of economic stagnation and poor growth.
Employers must find innovative ways to recruit people nowadays, including using social media, job posts on job boards, and even more traditional tactics like visiting job fairs and sending out promotional mailings. Employees in the new generation want positions that allow them to balance work and family life, as well as autonomy and the potential to make a difference within the company. Companies would be well to seek out diversity, which can lead to fresh ideas, increased production, and a sense of equality that fosters teamwork. Companies have struggled to fill specialized roles due to a scarcity of technical talent. Even in times of heavy unemployment, technical skills are in high demand.
Retention is more difficult than it has ever been, and it has become a major concern. People are increasingly looking for positions that decrease their risks in difficult economic times, therefore companies sometimes need to give more in terms of benefit packages or incentives. Employers should identify their key personnel, from entry-level to upper-level management, and take the required actions to retain these individuals that are specific to their businesses. To keep employees satisfied, employers should consider merit pay raises, initiatives that enhance an employee’s responsibility, and other incentives such as flex time, telecommuting, or technology.
HR practitioners are constantly faced with the challenge of creating a motivating workplace. HR has made it a point to provide positive reinforcement and feedback to team members on a regular basis. Employees must be inspired and coached to become great achievers by their bosses. HR practitioners must learn what motivates employees and use this information into salary and reward systems. HR also has a role to play in determining why individuals are leaving and addressing the issues.
LEADERSHIP DEVELOPMENT
Leadership development was seen as a critical concern for HR in both the SHRM poll and a comparable one conducted by PricewaterhouseCoopers in 2010. This factor was cited as a source of concern by 52 percent of respondents, up from 29 percent in 2010. Because the workforce is rapidly aging, many HR departments are considering formal succession planning and putting a greater emphasis on developing future leaders. Developing leaders has become a crucial priority as businesses grow and expand. Companies that focus on leadership development will see improved employee retention as a result of their efforts.
CULTURE
Organizational culture is able to have a profound impact on not only customer satisfaction, attendance, safety, stock price, or productivity, but also on employee engagement. Human Resources are key to an organization’s culture.
