November 20, 2023, by HR Search & Rescue Human resources (HR) management has significantly evolved during the last century. Initially used for record management and labor law compliance, HR management now implements strategies to help companies reach operational goals and milestones. These new responsibilities have created challenges, now, more than ever, due to the labor shortage and significant organizational changes required to adopt technology. However, it is possible to successfully overcome the challenges by implementing the appropriate strategies. Challenge: Attracting Top Talent The United States labor force participation rate is declining because of demographic shifts and the continued impact of the Great Resignation. This has created an imbalance regarding the number of unemployed Americans per job opening. For instance, there was one unemployed person for every job opening in April 2021; since then, job openings far exceed the available workforce. There have been slight variations, and it sits at 0.7 unemployed job seekers for every opening as of August 2023. The smaller talent pool makes it harder to acquire top-tier talent, creating a significant HR management challenge. How to Acquire Top Talent Due to the competitive nature of today’s job market, employers must move beyond offering enticing salary and benefits packages, although both remain essential. Top talent seeks additional incentives, such as work-life balance, tuition reimbursement, and flexibility. Additionally, the most attractive talent analyzes the company’s culture before accepting job offers. Thus, HR teams should first identify the company’s values and standards and then highlight the culture when recruiting and interviewing potential hires. HR management can showcase the culture in many ways, including in the job description, through employer-branded videos, and with employee testimonials. When properly defined and showcased, applicants associate the company’s brand and culture with the job opening. Challenge: Retaining Employees Over 50 million Americans voluntarily quit their jobs in 2022, setting a new record. Gallup estimates that employers spend up to two times employees’ yearly salaries on each new hire and notes that’s a conservative approximation. Combined, companies spend a trillion dollars annually due to voluntary turnover, meaning HR must prioritize employee retention. How to Retain Employees According to the Pew Research Center, low pay and no advancement opportunities are the leading causes of voluntary separations. HR management can address these issues with regular compensation reviews and career development plans. These plans should be shared while interviewing applicants and regularly discussed during and after onboarding employees. Additionally, HR needs to determine the causes of voluntary departures within their organizations. This is accomplished by conducting extensive exit interviews when employees leave the company. By gathering feedback, HR teams have the information needed to address company-specific issues that impact retention. Challenge: Change Management Adaptive and transformative organizational change initiatives fail approximately 50% of the time, often due to poor employee management. Common problems HR management teams face include resistance to change, low morale, reduced satisfaction, and high turnover. How to Improve Change Management HR must take a proactive approach to preparing employees for changes. It’s vital to be open and transparent, including sharing with them the reasons for those changes. Once employees understand the importance of the organizational change, they will be more willing to align with the company’s goals. HR should also work alongside executives to set strategic goals and key performance indicators to track the change initiatives. Additionally, HR must gather feedback during the implementation so employees feel part of the change management strategy. HR can also improve engagement by providing incentives and recognizing those who perform well during the transition. Challenge: Promoting and Managing Diversity More companies emphasize diversity due to the benefits provided by employees with different backgrounds, cultures, and experiences. These differences promote innovation, making diverse workplaces more profitable. However, hiring and managing a diverse workforce brings its own set of challenges. How to Promote and Manage Diversity HR management must begin by creating job postings that invite a diverse workforce to apply. It’s vital to use neutral language to attract people of different cultures and backgrounds. HR teams can also promote diversity with blind resume reviews and by assembling a diverse team to conduct interviews. These steps prevent hidden biases from informing hiring decisions. Companies must also properly manage the diverse workforce; again, HR plays a critical role. Managing diversity begins with implementing a diversity, equity, and inclusion (DEI) policy and training program. Finally, HR teams should regularly discuss the importance of diversity and address any behaviors or policies that go against the company’s culture. How to Overcome HR Management Challenges HR teams aren’t always prepared to overcome the numerous challenges organizations face. However, they can adapt and grow with help from the experts at HR Search & Rescue. Our HR management consultant firm works directly with HR teams to assess obstacles and implement solutions. Contact HR Search & Rescue today to learn more about our consulting services.