8HR’s Biggest Headaches in 2023 | How To Fix Them? | How to Keep Up with the Changing World of Work?

1. Competition for people and skills — talent attraction and retention

HRs and hiring managers consistently discuss the competitive labour market and the challenges they face in attracting candidates. This ranges from decisions about employer brand to what packages can be offered to attract the talent. Added to that is the difficulty that many organisations, especially those in the public sector, face in maintaining competitive salaries and retaining staff. As a result, organisations are now required to leverage positive internal behaviours; organisations who are authentic, with HR professionals who understand the merits of a positive culture, will be more likely to win this war for talent and skills.

Tips for attracting and retaining staff include: focusing on organisational culture and the benefits of being a ‘good place to work’; highlighting the total rewards package; going beyond the salary to other perks like flexible working, volunteering opportunities and many more.

There needs to be a paradigm shift towards visible career development and progression routes.

HR departments are required to employ AI to seek and hire the proper individuals to navigate the new and competitive struggle for talent, in addition to remote recruitment, interviewing, and onboarding. Artificial intelligence is already being used to screen resumes for the most compatible candidates. During the initial screening process, chatbots may ask applicants typical questions.

2) Cost of living — and how employers can support their workforce

People professionals have an important role in supporting their colleagues and the organisation through the cost of living crisis. Many employees will be experiencing finances which are tighter than ever — especially younger workers experiencing the first major recession or challenging economic time in their working lives.

Aprat from the financial concerns, HR practitioners and people professionals need to take account of the resultant mental health ramifications — not only from a pastoral sense but also as a business practicality. Of course, anxious and stressed employees are not as productive — Employee well-being has evolved beyond physical well-being to include the development of a holistic well-being culture. Many Studies have identified the these top seven pillars of holistic employee well-being:

1. Physical well-being
2. Career well-being
3. Financial well-being
4. Social well-being
5. Community well-being
6. Emotional well-being
7. Purpose-driven well-being

Solution — This can be achieved by creating a culture in which talking about challenges and finances is enabled and resources are provided to help employees to access practical financial advice. This is a life skill that employees will benefit from well beyond the current situation and could support both financial and psychological wellbeing in longer term.

3) Hybrid working — and how to ensure it works effectively for both employers and employees

Due to changes in pandemic conditions many org. Has faced changes in their working practices as well. So hr practitioners must help thrie org. To adapt to these changes which often requires different skill sets like establishing associated policies and practices.

Strengthening manager-employee relationships

Fostering relationships between managers and employees was a big focus in 2022 and remains so this year for HR. These relationships power the modern workplace.

With hybrid and remote work, the manager’s role has changed, with a greater emphasis on relationships. Yet most managers lack a frame of reference for what that should look like, as few managers and employees started their careers in hybrid and remote work environments. And many first-time managers enter their roles without adequate training, leading to lower satisfaction among their direct reportees.

Managers continue to struggle with hybrid and remote work. They need new skills, along with intentional support, training, and tools from HR teams.

Solution — To ensure that hybrid working is mutually beneficial, a clear policy must be developed alongside supporting guidance that reflects the organisation’s strategic position. Parameters should be clearly defined and placed within the specific organisational context. These parameters will often need to be tailored depending on role requirements.

Managers should be provided with ongoing training to enable them to support, communicate and share feedback on hybrid models and organisations must be dynamic enough to support and respond to any associated implications such as technology and people infrastructure. Attention must also be paid to social relationships and cohesion, so as not to negatively impact organisational culture or wellbeing.

HR must alleviate the pressure on managers. They must support and strengthen managers’ ability to coach employees for growth and career advancement.

Fortunately, there are many ways to help managers succeed. Managers can practice active listening and solicit ideas and perspectives from across the team. Another way to build trust is to learn about team members’ career goals. With that knowledge, managers can provide guidance and support, including insights into career paths and development opportunities. They can help employees clarify their career options and help them make connections throughout the organization.

HR plays a supporting role in encouraging and incentivizing managers to create these connections and advance their top performers rather than hoard talent. Building a talent pipeline within the company through a focus on training and skill-building is one sure way to reduce hoarding while also promoting a sustainable workforce with ever-broadening capabilities.

4) Task Automation

HR should be able to add value to the strategic areas by automating the administrative tasks that have been holding them back. The existing technology has the potential to automate 56 percent of all human resource functions.

With HCM automation, there will be more opportunities to mentor and educate employees and focus on career planning and development, which will have a direct impact on employee engagement and retention.

Technology, on the other hand, cannot replace problem-solving, teamwork, communication, or listening. Therefore, human resource specialists are required to offer a distinct human viewpoint and a deep understanding of people to the table, which is crucial in developing work relationships.

HR’s key priorities include analytics, virtual working technology, and updated learning platforms.

Accept a shift in thinking from intuition to data-driven decision-making: Incorporated policies have relied heavily on intuition, prior experience, and a general gut feeling. However, HR and leaders may make more confident decisions with the help of people analytics.

Solution — Train HR teams in analytics, strategy, and value generation: Training and implementation in people analytics can assist in bridging this gap.

Make sure there’s a culture of constant listening: Transparent communications and gaining buy-in from the entire organization for continuous listening are two ways to maximize the value of your people analytics investment.

HR employees will be able to focus on learning one core application for employee management using one-view integrated applications rather than learning numerous new hr software platforms.

Furthermore, having a central site for employee communication reduces communication gaps and information loss. Finally, cloud-compatible software will maintain track of business processes and protect businesses from data loss.

5) Strategies for tackling Uncertainity

Uncertain situations hits HR departments very hard. It could mean:

• High expectations in recruitment. Recruiting and onboarding new employees is a costly procedure. organizations will still need to hire.
• Challenges for employee morale and engagement. A recession can create an atmosphere of fear and uncertainty among employees who may worry about job security and the overall stability of the organization.
• Reduced training and development opportunities. HR may need to find cost-effective ways to provide essential employee training and foster a culture of continuous learning.
• Budget Constraints within HR. The HR department may experience budget cuts, limiting its capacity to carry out essential functions and implement new initiatives. So, HR may have fewer staff members to undertake innovative practices.

Solution — So, how do you tackle these problems?

• First, get the basics right. In tough times, you’ll need strong HR leaders, excellent communications with staff, and strong decision-making at every level. Of course, the choices won’t be easy. But when the world is uncertain, providing employees with the highest clarity you can achieve is vital.
• Be open to ideas. Will remote work for your company or other flexible work arrangements? Can you reduce employee turnover by raising salaries? Can you reduce costs by accelerating your digital transformation plans (or, indeed, by putting them on hold)?
• Don’t be “penny-wise and pound foolish.” HR departments must still invest in skilled professionals, employee compensation, and positive employee experience. When you’re looking to reduce operational costs, make genuinely efficient decisions in the long term.

In short, HR professionals should continue to do their best work.

6) Re Engagement of the workforce

One of the most significant challenges is re-engaging the workforce, as employee engagement has been declining even before the pandemic. To re-engage employees, HR and managers must have frequent performance conversations with team members. These conversations help employees understand how their work contributes to the company’s mission, vision, and values, leading to a sense of purpose.

Career development is also rising in importance, with companies needing to provide meaningful opportunities for growth and career advancement for employees. Along with this, companies must deliver flexibility, competitive pay, and employee well-being.

Not only has “quiet quitting” become more prevalent over the past few months, but employees are also returning to the office from their remote or hybrid roles, which can cause feelings of discontent.

As such, HR managers must keep employees satisfied and interested in their roles. If not, disengaged employees who are disgruntled with their roles and feel detached from their work can cause serious issues in the workplace. Not only do disengaged employees underperform, but they also negatively influence top performers.

7) Building critical skills and Upskilling

Employee upskilling is a critical challenge for HR managers today for several reasons:

Because technology is constantly evolving, the shelf life of skills is rapidly decreasing. This means that human resource managers must ensure that employees are constantly trained and upskilled in order to keep up with changing job requirements.

Upskilling initiatives necessitate a significant investment of time, money, and personnel. HRs must find ways to balance the needs of the business with the resources at their disposal.

Because not all employees are interested in upskilling, HR managers may find it difficult to motivate them to participate in training courses. HR managers must find ways to engage employees and convince them of the value of upskilling.

So, HR professionals must strike a balance between the need to upskill employees and other time demands, such as recruiting, employee engagement, and retention. This can make prioritising upskilling initiatives difficult.

8)Handling layoffs and other challenges during business transition phase

Managing layoffs is one of the most difficult challenges during a business transition. Human resource professionals must be sensitive to the needs of affected employees while also ensuring that the organisation remains legally compliant. This includes communicating clearly with employees about the reasons for the layoffs, offering support services such as career counselling and job placement assistance, and ensuring that the layoffs are carried out fairly and equitably.

Throughout a business transition, there is a risk of losing key talent because employees may be concerned about the organization’s future. During this time, HR professionals must take steps to retain top performers and keep them engaged. This may include clear communication about the transition process, providing opportunities for training and development, and creating a positive work environment.

Employees may experience low morale and reduced productivity during business transition phases. Employee morale must be maintained by HR professionals through regular communication, addressing employee concerns, and fostering a positive workplace culture.