There is no doubt about how disastrous 2020 has been. But as we move on to 2021, we all are looking forward with enthusiasm and sanguinity. While we slowly are overcoming the adverse effects of the pandemic and the lockdown, the realm of human resources still needs to climb a steep hill. There are several major HR challenges that 2021 will bring in front of us. The pandemic truly has changed the course of working for businesses all over the world. Remote working has been the trend since the lockdown that might never change to work from office for some organizations. However, we live in an era of advanced technologies and processes where with proper planning; addressing the big HR challenges in 2021 is possible. Organizations can manage major HR challenges in 2021 by adapting thoughtful processes and procedures. Let us learn in detail.
Challenges of Human Resource Management:
Some of the HR challenges that businesses are facing post-COVID-19 are listed below:
Discovering and Supporting Wellbeing and Mental Health Requirements –
Be it your personal or professional life, both demand a level of mental peace and satisfaction for the best output. Especially at the office, it is vital to be in harmony with oneself as everyday work can be quite hectic. The lockdown even witnessed depression among many adults that were more than usual times. So here HR challenges can crop up from two angles. First, the number of people struggling with mental health at work will be more. Secondly, employers and managers will go through a hard time detecting the signs. Since remote working is now possible with technology like Human Resource Management Software, spotting the symptoms will be truly harder. The virtual world presents everything in a limited manner which is why HR executives will need to tackle HR issues like addressing mental wellbeing and health.
Businesses of the current era must rethink the methods through which they support positive wellbeing and mental health.
HR Expenditure Alignment for Supporting the Bottom Line of Businesses –
Along with our lives, if the pandemic has posed an effect on something, it is today’s economy. This also means that many businesses are struggling to survive and they are solely depending on their capacity to avoiding bankruptcy. This also throws light on the challenges of Human Resource Management for businesses. Conventionally, the human resource department was never directly accountable for costs. It would only look after the budget and the way of preparing it. But the year 2021 will witness HR taking up more duties for profitability. So this is one of the most vital HR challenges that must be handled with care.
Businesses can start by bringing small changes in the structure of the benefits packages that can pose a beneficial effect on profitability. HR can assist with this as several businesses are now struggling financially. Irrespective of the size of an organization, the benefits package needs to be cost-efficient in the present times. Not just the business can stay profitable that way but it will offer amazing benefits for retaining employees.
Recruiting and Onboarding –
When the pandemic reached its very peak, several businesses had put a hold on their recruitment efforts. There was a surge in hiring around September, but 2021 will drive more organizations to return back to business as usual. This means that we will witness a low amount of pandemic-specific openings and more amount of conventional vacancies. However, there will be HR challenges in 2021 in context to this. The biggest HR challenge here will be coming in terms with onboarding and hiring in an environment that is remote-focused.
The traditional processes of interviews are already victimized by the catastrophic pandemic. But now it will undergo irreversible change. Hiring managers and HR experts need to begin by rethinking HR issues. They not only need to think about how individuals are interviewed but also the way of attaining new hires for speeding via digital and virtual means. HR experts must leverage technology like HRMS integration for managing this. Software from Exactlly can help maintain the employee attendance system as well. Onboarding packages also need to be more thorough for filling the gap of personal introductions and walk-throughs that new recruits usually used to receive.
Identifying the Correct Talent –
Several investments made by both small and medium businesses are today at stake. This had led to a boost in business competitions and at a rapid pace. Here in this space one of the major HR challenges in 2021 will be attracting the most skilled candidates for work. This means that the duty of discovering the correct people for maintaining all the business processes will be a complicated procedure for emerging sectors.
Important HR Trends:
Now that we have learnt about major HR challenges in 2021, it is equally vital to learn about the latest HR trends in order to cope with the challenges. The trends are as follows:
Employee Experience Reinvention –
The employee interaction landscape in the pre-COVID times was of course different. After a person was selected, the first day of the onboarding included an introduction with the team, offering flowers, etc. Now also the application, selection and interview process is all the same but minus these real-life dealings. So how will the selected candidate’s experience be if the whole process was conducted online? Nothing can be stated as a guarantee. So the HR department must redesign the workforce journey and calculate the online employee experience. Collaboration, life-work balance and well-being; everything will be instrumental for both business outcome optimization and employee contentment.
Learning as the Medium for Business Success –
Special emphasis needs to be put on the development and learning space when it comes to HR trends. HR professionals who will be working for an organization in the present times must carry future-oriented talent. However, instead of continuously attracting new talent, it is vital to upskill the present HR team. For instance, HR experts must carry the capability of making evidence and data-driven based decisions for securing success in a transforming future.
Need for HRMS:
Suppose an organization comes at par with all HR challenges of 2021, follows all the latest HR trends for addressing those challenges, but is it enough? It never is without the proper use of technology like Human Resource Management Software. Starting from attendance management, applicant tracking, and observance with legislative mandates and managing goals, HRMS features list is a rich one. Implementing the best software is vital to the success of most businesses in today’s time. However, there are challenges of HRM software too. These include HRMS software being an isolated system, software unable to connect to the business outcomes, costly integration of many data sources, etc. This calls for associating with the most reputable and dependable software vendor for attaining complete professional assistance.
Hence, how quickly a business learns about major HR changes in 2021, how quickly it adopts the vital HR trends and which HRMS software it chooses to combat the challenges are all interlinked for driving success. Choose wisely to thrive globally.
The kind of HR challenges that organizations can go through in this New Year is now clear to us. But the good news is that all HR challenges in 2021 come with a solution as we are living in the 21st century. 2021 will be one of the most fruitful years from all business perspectives after the devastating year 2020. Hence, businesses need to gear up and put people before everything as they are the biggest catalyst for bringing accomplishments and success to organizations again. Planning from before for tackling the major HR challenges in 2021 is highly important. Most importantly, keeping a track of the latest HR trends and implementing the correct HRMS software like exactllyHRMS will help in combating all the challenges. The Free Demo contains more information about the software product. To learn more, Contact Us today.
(1) What Challenges does HR face?
Challenges that HR departments encounter today are retention, leadership development, recruitment, motivation and corporate culture, etc.
(2) What are the Main Challenges facing HR today?
Change management, organizational effectiveness, development and learning, compensation and HR effectiveness calculation are the main challenges that HR face today.
(3) How do you overcome HR Challenges?
By using emotional intelligence, communication encouragement, appointing great employees and investing in leadership development, surmounting HR challenges is possible.
(4) What are the HR Challenges in the 21st Century?
The 21st century demands HR to handle many challenges like tacking multi generational employees, workforce diversity, succession planning, etc
(5) What are the 7 Major HR Activities?
Benefits and compensation, selection and recruitment, HR analytics and data, performance management, HR information systems, success planning and development and learning are major HR activities.