Modern day employees are concerned about their emotional well-being in the workplace rather than their earnings which creates challenges for the HR leaders.
Fremont, CA: The Human Resources sector is always on the verge of innovations to meet the demands of a digitally-driven and fast-paced environment with new opportunities and challenges every year. In the coming years, organizations will continue to find new ways to identify, nurture, and retain employees. Here are a few problems that HR managers face.
While organizations are still struggling to deploy pay transparency, which discloses the salary of all employees, organizations now have to provide CEO pay ratio, gender pay gap, and ethnicity pay gap reports. “Pay transparency will be more important in the future,” says Alan Price, Group Operations Director and HR Expert at HR consultancy Peninsula. “Pay transparency is challenging for HR professionals, as employees are concerned about their pay levels. Mishandling of these concerns can lead to unsatisfied employees who can leave the company,” adds Price. HR and People leaders must focus on the transparency about pay levels, such as introducing banding or a transparent salary framework. Additionally, it is crucial to set clear objectives and organize systematic pay reviews to reassure employees that they can discuss pay with comfort.
One of the biggest challenges of HR leaders today is attracting and retaining top talent. Experts with decades of experience believe that HR leaders must collaborate with senior managers to re-work on recruitment and retention strategies from scratch. By working together, Human Resources and management can initiate strategy and structures that create value and deliver a competitive advantage. While HR leaders must work on attracting talent, the senior management must develop a culture of retaining employees. Both teams can achieve this joint goal by working together.
Experts believe that millennials focus more on wellbeing and workplace culture. It is a challenge for HR professionals as it focuses more on immeasurable factors such as work-life balance rather than measurable factors such as salaries. Hence, experts recommend HR and People leaders to treat employees like individuals and provide personalized experiences rather than treating them as a collective. The idea of incentives differs from employee to employee. Thus, HRs must proactively provide incentives on tangible things rather than general incentives.