The top 7 HR issues for employers
From recruitment to change management, employers commonly face seven HR issues, no matter what industry they operate in.
Recruiting suitable candidates
Recruitment is one of the core HR functions at any business, but it is not as simple as hiring workers to do the job.
HR is responsible for ensuring the people who are brought into the business have the right skills to do the role they need to fill. This includes soft skills such as teamwork and time management as well as the technical skills, qualifications and experience to perform job tasks.
However, HR may also need to juggle other factors when recruiting suitable candidates. They may need to work within a budget, meaning they may not be able to offer the salary desired by the most suitable candidate. They may have to compromise on desired skills to find a candidate willing to accept the available salary. There may be a shortage of suitable candidates available in the labour market, meaning they may have to headhunt and poach suitable people from other employers or change their preferred criteria.
There are several tools that businesses can leverage to help them recruit suitable candidates. Applicant tracking systems can help organise the job applications received and provide a shortlist of suitable candidates to employers. Hiring through a site such as Indeed also gives users tools that they can use to help screen applications and schedule interviews.
Businesses can also engage recruiters to secure suitable candidates that they can consider.
Remuneration
Remuneration naturally follows recruitment as an HR issue, as once employees are hired they need to be compensated for their work.
This can be a tricky HR issue for small to medium businesses in particular, as financial constraints can mean these businesses cannot always pay a salary comparable to what can be offered by larger businesses. Therefore, consider the total remuneration package including benefits that can be offered.
Employers should use awards and enterprise agreements as a guide to the minimum salaries and allowances they should be paying. Then, businesses can consider the extras that they may be able to provide employees, particularly those that may be unique to the business. For example, a café may like to provide staff with a meal allowance, providing them with a free meal during their shift. Or, the employer may host Friday night drinks for employees each week.
A bonus is another way that employers can financially reward staff when budgets allow for it.
Retention
Staff turnover may be a natural part of the business, particularly if it relies on a casual workforce. However, for most organisations, retaining good workers is important to ensure consistency, sustained business performance and positive workforce morale. Turnover of permanent staff also comes at a cost in having to recruit, train and onboard new employees that businesses often want to minimise.
HR can help by ensuring employees are happy and satisfied in their roles. Staff satisfaction surveys and performance reviews are two ways it can record employee sentiment as well as identify measures that can improve engagement. For example, a survey may identify that younger employees crave development, so a mentoring program can be implemented. Senior employees may crave flexibility, so part-time work may be offered to help them attend to life obligations while also keeping their skills in-house. Performance reviews are not just a measure for the business to assess employee performance – they can provide employees with the chance to provide their feedback to the business, too.
Software can help identify retention issues by keeping track of staff tenure and resignation rates. However, tackling this HR issue will usually take a more hands-on approach. Employers who regularly speak with their employees informally will be able to gauge their engagement in their roles, while also getting a sense of morale. Exit interviews are a more formal method that may help to identify issues that can be resolved to prevent more staff from leaving in future.
Performance management
This HR issue is not always about managing a poor performer. It involves managing the performance of every worker to ensure they are working to the best of their ability.
For example, a high performer may crave constant challenges to continue performing at a high level. An average performer may require mentoring and training to improve their performance. A poor performer may need intensive support to get them up to speed, such as a performance improvement plan.
Performance management may also involve dismissing a worker who does not meet expectations or does not improve to the level required.
The employer needs to understand what level the employee is operating at or what professional and personal issues are affecting performance before they can take steps to improve or enhance it. This is where HR can help. Software can keep track of whether an employee is meeting their key performance indicators (KPIs) while a performance review can provide insight into the challenges an employee is facing.
Health and safety
Under Australian law, employers must provide a workplace that ensures the health and safety of its employees but this can mean different things to different businesses. For example, construction employees are exposed to many more physical safety risks each day than a marketing employee in an office. However, offices can still have some physical safety hazards.
There are other common health and safety risks that are not so obvious to employers, such as bullying, harassment and burnout.
HR will handle compliance in both of these areas, and deal with incidents if they do arise.
There are federal government departments such as Safe Work Australia that can help employers meet their obligations as well as provide advice on how to create a safer workplace. Health and safety consultants can also be engaged to provide advice and develop training programs for employees if required.
Employment law
In addition to health and safety, there are a range of employment laws that employers need to be aware of and adhere to at all times. From superannuation and sexually inappropriate behaviour to flexible work arrangements and family-related leave entitlements, the laws are varied. Not complying can have significant ramifications for businesses. Employers can be charged for breaching employment law and financial penalties can also be applied.
Employment laws are often changed and updated, so consider the best way to stay informed about new developments. Regularly reviewing the Fair Work Ombudsman website will provide insights, and employers can subscribe to email updates to be notified of upcoming changes. Engaging an employment lawyer may be worthwhile, especially if the business is new, to review or ensure it is abiding by all relevant laws.
Change management
Every business will experience change at some point in time. It may be a new product or service is introduced, the workforce is expanded or reduced, a long-standing senior leader retires, or the long-term strategy is altered.
Employees can fear and resist change, or they may require additional support, which is where HR can be beneficial. HR can provide everything employees need to positively navigate the change, such as coordinating outplacement support and counselling sessions or providing succession planning and training.
Change management is the HR issue that may not be the easiest to overcome. It may require engaging a temporary HR consultant if a permanent HR employee is not on staff.
HR issues are experienced by every business, but pleasingly, not all issues are negative. Setting aside some time every day or each week to consider these seven common HR issues, or engaging an HR specialist to help manage them, will be time and money well spent. After all, a business’s main asset is its people, so ensuring they are well looked after will reap rewards for employers.
