3 Challenges HRs may face in FY 2016-17

The role of an HR is highly challenging and to effectively handle the crucial responsibilities can be tedious. The modern day business scenarios keep transforming rapidly and are sure to evolve in the years to follow. However, HR department holds a stake that requires to continue adding value to the business and organization on a whole. The definition of “adding value” may not limit to hiring, scheduling training sessions or conducting engagement. It rather includes activities for cutting down of expenditure, optimizing resources and technology.

Considering the fluctuations that may affect the economy and also the global trends in FY 2016-17, the HR departments are subject to face numerous challenges. Let us take a closer look at what these challenges could possibly be-

  1. Offer pay-scale as per the industry standards

Between the demand and supply of skilled resources, companies are striving hard to pull in talent, nurture them and associate with them for a long-term. The pay-scale plays a vital role in deciding if the resource will or will not continue for a longer tenure. As a result, retaining loyal employees may become difficult if industry standards are not met. By maintaining the standards, HRs can offer their employees financial security and can in return control the attrition ratio. For this, they need to efficiently manage their budget such that it does ‘good’ to either party.

  1. Rising complexities in compliance

The complexities concerning income and tax regulations will continue to increase in 2016 and beyond. With a new budget released each year, all the HR processes needs to be changed as per the legal norms so as to avoid penalties and lawsuits. To cope up with the lengthy list of compliances, it is important for the HRs to exploit the exclusive technology for human resource management and stay up-to-date by automating exhaustive processes and using extensive payroll solutions for business needs.

  1. Talent acquisition and management

To acquire talent, the first step is to make the organization attractive. An attractive organization is that which has a healthy environment, good work culture, growth opportunities, challenging roles, provides learning and training etc. To manage talent, every process from sourcing candidates to hiring and retaining them is handled by HR. All of these associated processes have been and will always be a challenge for HRs and any fall short in them can affect the organization adversely thus adding to loss of skilled manpower, increased replacement costs, underutilized resources etc.

There is a need for organizations to follow a strategic and systematic approach for Human Capital Management to cope up with the above and any other probable challenges. A dedicated amount of focus should be given to areas like HR planning, change management, global HR practices, compensation and payroll.

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