Human resource (HR) management is a much tougher and more expensive job than is often credited, which is also a fact that becomes increasingly apparent when a company starts to grow beyond its initial size. Like the business itself, the problems of human resource management too shall grow until they become a choking point for the company. All of that can be avoided by recognizing and solving the problems well before that point is ever reached. To that end, here are a few of the most common HR issues that may start small but have the potential to grow beyond control soon enough.
Legal Compliance
While explaining what is HR outsourcing, G&A Partners points out that a major concern for any HR department is that of keeping up with the constantly changing employment and labor laws.New laws are being introduced and older laws are being amended frequently at federal, state, city, and county levels, making it difficult to keep HR policies in compliance with it all.
Failure to do so, on the other hand, be it due to ignorance or insincerity, will eventually result in repercussions that include, but are not limited to,legal action, audits, and suspension of business operations. For SMEs, HR outsourcing is the best option to stay compliant with all regulations since the very nature of the services they offer makes it necessary for them to be always on top of every change in applicable laws.Other than that, outsourcing your HR needs is significantly less expensive than putting an HR department on the company payroll.
Demotivation: Changes in Management/Ownership
Employee morale often takes a hit when the ownership/management of a company or the concerned branch changes hands. HR is tasked with keeping the employees motivated and productive as well, so this is a problem that the management fully expectsthem to be capable of solving. Acting as a liaison between employees and executives, it is possible to remotivate the team by:
- Dispelling myths and false apprehensions about new changes that might be introduced.
- Conveying employee concerns to the management for a resolution.
- Arranging general meetings to explain the new strategies, changes, and shifts in detail before implementation.
- Bringing clarity to dispel vague apprehensions by opening up to questions.
Of course, most of it still depends on the management itself. If the new management doesdecide to take steps against the advice of their HR managers, there is very little that they can do to stop the executive decisions. However, any decent company looking at long-term successis unlikely to alienate their employees instead of bringing them in closer by opening more channels of communication.
Confusion: Modifications in Process
Technology has enabled even small businesses to compete in the market and thrive, but incorporating that tech is not always easy. For example, there is a big difference in how older forklifts used to work and how they work now. The same is reflected in how the modern generation of highly capable machines is operated, which in turn, creates a knowledge gap.
An experienced forklift operator who may have been at it for two decades may find himself completely baffled by the new controls. This would, of course, create a sense of both confusion and alarm in the experienced worker if he is expected to operate the new forklift with the same ease that he used to have with the older models. Given that doing so is impossible without due training, it creates the following situations:
- The forklift, anyone around it during operation, surrounding products and objects, and the forklift operator himself will be in serious danger.
- Despite the machine being capable of boosting productivity significantly, a lack of a trained operative to capitalize on it will lead to loss of productivity.
To prevent such scenarios from ever becoming an issue, HR must arrange for training the company’s forklift operators adequately, well before the new machines are introduced to them in the regular workspace. Irrespective of one’s experience with forklifts, it must be made mandatory for every new and old forklift operator to attend their training sessions, before being allowed to operate the new machines.
This is not just necessary for boosting productivity in the way new technology should for any business, but adequate training is also a legal requirement. Since the HR department conducts and arranges for both recruitment and training sessions, they should always be kept aware of new technology before any of it is introduced. The forklift was only an example because the same applies to any new software systems, system tools, or new company hardware in general.
Complexity: Benefits
Smaller companies may not always have benefits for their employees, of course, but establishments that do have Medicare or Medicaid policies embedded as part of their employee benefits package will attract better candidates. Payroll management is a hassle to deal with even before considering the complicated benefits system, but ignoring the benefits is not an option when they are there, making things extremely complicated to deal with for inexperienced HR operatives.
This is one of many reasons why smaller businesses usually outsource their HR nowadays. They can go on without having to pay for hiring a highly experienced human resource manager because reputed HR companies already have several of them onboard. In other words, SMEs can avail the same level of experience and expertise as they would from hiring an in-house HR team, but at a fraction of the expense. A portion of the saved funds can instead be redirected towards improving their current employee benefits. When done right, it’s a win-win scenario for both the management and the employees.
Even if medical and/or dental insurance is not something that the company can afford to offer as part of their employee’s benefits package, there are comparatively affordable ones to consider. Increased number of paid leaves and regular commuting compensations are lucrative options to consider for better human resource management and higher employee satisfaction rates.
Human resource (HR) management is a much tougher and more expensive job than is often credited, which is also a fact that becomes increasingly apparent when a company starts to grow beyond its initial size. Like the business itself, the problems of human resource management too shall grow until they become a choking point for the company. All of that can be avoided by recognizing and solving the problems well before that point is ever reached. To that end, here are a few of the most common HR issues that may start small but have the potential to grow beyond control soon enough.
Legal Compliance
While explaining what is HR outsourcing, G&A Partners points out that a major concern for any HR department is that of keeping up with the constantly changing employment and labor laws.New laws are being introduced and older laws are being amended frequently at federal, state, city, and county levels, making it difficult to keep HR policies in compliance with it all.
Failure to do so, on the other hand, be it due to ignorance or insincerity, will eventually result in repercussions that include, but are not limited to,legal action, audits, and suspension of business operations. For SMEs, HR outsourcing is the best option to stay compliant with all regulations since the very nature of the services they offer makes it necessary for them to be always on top of every change in applicable laws.Other than that, outsourcing your HR needs is significantly less expensive than putting an HR department on the company payroll.
Demotivation: Changes in Management/Ownership
Employee morale often takes a hit when the ownership/management of a company or the concerned branch changes hands. HR is tasked with keeping the employees motivated and productive as well, so this is a problem that the management fully expectsthem to be capable of solving. Acting as a liaison between employees and executives, it is possible to remotivate the team by:
- Dispelling myths and false apprehensions about new changes that might be introduced.
- Conveying employee concerns to the management for a resolution.
- Arranging general meetings to explain the new strategies, changes, and shifts in detail before implementation.
- Bringing clarity to dispel vague apprehensions by opening up to questions.
Of course, most of it still depends on the management itself. If the new management doesdecide to take steps against the advice of their HR managers, there is very little that they can do to stop the executive decisions. However, any decent company looking at long-term successis unlikely to alienate their employees instead of bringing them in closer by opening more channels of communication.
Confusion: Modifications in Process
Technology has enabled even small businesses to compete in the market and thrive, but incorporating that tech is not always easy. For example, there is a big difference in how older forklifts used to work and how they work now. The same is reflected in how the modern generation of highly capable machines is operated, which in turn, creates a knowledge gap.
An experienced forklift operator who may have been at it for two decades may find himself completely baffled by the new controls. This would, of course, create a sense of both confusion and alarm in the experienced worker if he is expected to operate the new forklift with the same ease that he used to have with the older models. Given that doing so is impossible without due training, it creates the following situations:
- The forklift, anyone around it during operation, surrounding products and objects, and the forklift operator himself will be in serious danger.
- Despite the machine being capable of boosting productivity significantly, a lack of a trained operative to capitalize on it will lead to loss of productivity.
To prevent such scenarios from ever becoming an issue, HR must arrange for training the company’s forklift operators adequately, well before the new machines are introduced to them in the regular workspace. Irrespective of one’s experience with forklifts, it must be made mandatory for every new and old forklift operator to attend their training sessions, before being allowed to operate the new machines.
This is not just necessary for boosting productivity in the way new technology should for any business, but adequate training is also a legal requirement. Since the HR department conducts and arranges for both recruitment and training sessions, they should always be kept aware of new technology before any of it is introduced. The forklift was only an example because the same applies to any new software systems, system tools, or new company hardware in general.
Complexity: Benefits
Smaller companies may not always have benefits for their employees, of course, but establishments that do have Medicare or Medicaid policies embedded as part of their employee benefits package will attract better candidates. Payroll management is a hassle to deal with even before considering the complicated benefits system, but ignoring the benefits is not an option when they are there, making things extremely complicated to deal with for inexperienced HR operatives.
This is one of many reasons why smaller businesses usually outsource their HR nowadays. They can go on without having to pay for hiring a highly experienced human resource manager because reputed HR companies already have several of them onboard. In other words, SMEs can avail the same level of experience and expertise as they would from hiring an in-house HR team, but at a fraction of the expense. A portion of the saved funds can instead be redirected towards improving their current employee benefits. When done right, it’s a win-win scenario for both the management and the employees.
Even if medical and/or dental insurance is not something that the company can afford to offer as part of their employee’s benefits package, there are comparatively affordable ones to consider. Increased number of paid leaves and regular commuting compensations are lucrative options to consider for better human resource management and higher employee satisfaction rates.
