5 Common HR Challenges & their Solutions in 2020

Posted 7-Jan -2020

Concerns such as budget planning, training and development, and revenue growth are on top of mind for start-ups and small business owners. On the contrary, the established brands and successful businesses struggle with a different set of challenges of human resource management such as performance analysis, legal issues, and compensation & benefits.

The story doesn’t end here as there are many more problems faced by an organization concerning human resource and planning, but here we’ve listed down the five most common challenges and their solutions in 2020.

“HR goes way beyond hiring and firing.”

Compliance with Laws and Regulation

With the changing Employment & Labour Law, it’s a challenge for the small and mid-level businesses to abide by it, and many of them do not even pay attention to these amendments, believing that they do not apply to their business. But the ramification of it can be the demise of the audits, lawsuits, and even the company.

Irrespective of the strength and size of your organization, it’s requisite to comply with the local, state, and federal labor laws. These regulations include everything from wages and hours worked, hiring practices to safety and health standards, employee compensation and benefits.

Workforce Training and Development

Training and development of lower-level and new employees in a company is a crucial subject of matter for talent developers. Time and budget remain to be the constant and biggest barrier in the process of employee learning and development.

Compared to 2016, 59% of HR experts spent more of their budget on online learning and measly 24% spent more on instructor-led training in 2019. Online training is more preferred by the employees as it allows them to self-manage their regular work and upskilling simultaneously.

Adapting to Latest Technology & Innovation

In the age of digitalization and transformation, it becomes a challenge for a brand to identify what works for it and how to implement the same within the existing work culture. The bigger challenge is for the HR personnel to encourage and empower their employees with these technology trends and embrace them to improve work efficiency and productivity.

The only solution to this problem can be better and advanced communication between HR talents and employees. Provide them with insights and advantages of adopting these changes for their self-growth and overall performance of the company.

Compensation & Benefits

Many HR professionals still struggle with how best to structure their compensation and benefits policy, owing to limited budget and additional costs such as training and taxes. In the case of small businesses and start-ups, the issue is prodigious as they have to compete with both same level businesses and organizations with big payroll budgets.

Offering lucrative incentive programs and rewards for meeting designated targets and excellent performance is one way to make up for a lower salary. Buying a plan for healthcare benefits that allows the brand to take a tax credit can also help offset costs.

Employee Retention

Retaining top talent has remained a constant concern for both small and mid-level businesses over the years. According to various surveys and workplace reports, the reason for the same is the lack of employee engagement programs and work flexibility.

Onboarding is a highly attractive feature for employee retention. According to recent research, employees are 58% more likely to stay for three years or more, with a company having a structured onboarding process.


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