A business faces many challenges due to changing environment, especially, in human resource management. Most commonly faced challenges in human resource management include the ones posed by globalization; dynamic economic and legal environments, workforce diversity, variety in educational specialization of workers and, most importantly, technological development. Now soft skills are heavily endorsed in comparison to hard skills. All this evolution in HR requires new ways and standards to manage the human resource in contemporary world. How each factor poses rigorous challenges in human resource management is discussed below.
Internationalization of human resource
Globalization has led to dynamic workforce with multipurpose set of skills and education. While recruiting a personnel, a business finds it hard to specify a criterion on which an employee would be considered suitable for the job. In this way, the initial process of recruiting in HRM faces multifarious challenges. Then determining the salary is the next biggest challenge for this dynamic force. Since the global human capital comes from different ethnicities and nationalities, managing them at a broader spectrum often become a tough nut to crack.
Dynamic economic environments
The challenges in human resource management are becoming complex with the increasing need of quality workforce. In contemporary world, the economic and legal environments have become ever complex. Much legislation has been passed for managing and facilitating workforce diversity across the globe. The HRM has to consider all of this legislative framework while formulating management strategies and development schemes for their employees.
Extended workforce diversity
Workforce diversity takes birth from geo-cultural differences prevalent throughout the world. A dynamic workforce due to globalization is hard to manage as different people have different backgrounds, ethnicities, religions, races, styles and working attitudes. This is the responsibility of HR managers to maintain conducive environment for such workforce enabling them work with greater efficiency.
High-tech industrial development
The challenges in human resource management are subject to technological advancements. With rapid development in technology, the demand for skill set changes. It is not always viable to quickly recruit the new employees with new skill set and also it is daunting to train the old employees with new industrial demands. Managing such technological developments timely without impacting the productivity of the firm is an overwhelming task for modern HR managers. Currently, 77 percent of the workforce diversity is managed through optimal use of technology.
Retention of competent Employees
With increased globalization, there are greater opportunities for employees. So retaining the employees is one of the challenges in human resource management. Offering them excellent pay packages, and equipping them with the latest skills in a timely manner is the first and foremost priority of present day human resource management.