Human resources professionals have faced many challenges in the last few years. These issues have intensified, and this year is shaping up to continue those issues. However, new challenges are emerging as well.

What is HR?

In the simplest terms, HR is the management of human resources. In practical terms, it is the management of the workforce.

Human resource is a function responsible for many issues in a company, from assigning employee benefits to managing employee relations. This can include hiring, payroll, benefits, compensation, employee training and development, employee counseling, and employee discipline. Besides these secretarial tasks, the year 2022 comes with a lot of practical and cultural obstacles for HR personnel that come with embracing the new generation of workforce.

Here are the five of the biggest challenges for HR in 2022:

1. Managing the Millennials

The Millennial generation will make up 50 percent of the workforce in just eight years. They differ significantly from previous generations.

Millennials are more educated and more diverse than previous generations. This generation also expects a lot more from their jobs, particularly when it comes to businesses operating in a socially and ethically responsible manner. And they are not afraid to leave companies if they are not getting what they want.

Millennials want to be heard, feel valued, and recognized. They want to be able to contribute and make a tangible difference to their employers and organizations. They want to work for employers that offer flexible schedules and work/life balance.

2. Attracting, Retaining, and Engaging Employees

The war for talent has been intensifying for some time. However, the competition is intensifying. The talent pool is shrinking, and it is getting harder to attract and retain the best employees. Every company is fighting hard to attract and retain the best employees, but what do today’s employees want? We’ve seen an overwhelming trend advocating for employers to provide enhanced mental health support. 

It is known that employee satisfaction has been at the lowest point in the last decade.

When a company is not engaged, retention becomes a problem. The average employee turnover rate is still close to 15 percent — meaning that 15 percent of the workforce leaves every year.

The competition for the best and the brightest is increasing, and companies must find new ways to attract and retain them.

3. Diversity in the Workplace

The workforce is expanding beyond borders and is growing increasingly diverse. Businesses are struggling to find strategies to recruit, compliantly hire, and engage this multinational and multicultural workforce. Accessing global talent allows recruiters to tap into deeper talent pools. However, this comes with the challenge of overcoming learning curves like shifting time zones, varying local regulations, international payroll requirements, compliance, language and cultural barriers.

Further, employers who refuse to engage in difficult conversations to address and acknowledge inequality in the workplace and beyond will soon find themselves on an island, unable to authentically establish connections with the modernized workforce.

4. Protecting the Company Reputation

Companies must protect their reputations in a connected world. Employees have the power to do significant damage to a company’s reputation using social media.

The public is more aware of company news and public relations issues in today’s global marketplace. Companies must have solid public relations strategies.

Companies that take swift action to address misconduct or fraud are more likely to recover from the incident and see less impact in terms of exposure, damages, and loss of customers.

5. New Technology

In recent years, several new technologies have been introduced. Nonetheless, these technologies have posed numerous new issues to HR.

One example is the rise of artificial intelligence (AI). AI is predicted to take over many jobs in the coming years. This can be seen in the transportation industry, where self-driving vehicles are being rolled out. 

Among the most glaring issues today are cyber security and employee privacy. Companies should be proactive about maintaining cyber liability policies and training their employees and managers how to avoid breaches to protect IP, employee data, and sensitive client information. 

Companies need to be aware of this and educate their employees on the appropriate use of technology.

Conclusion

HR has made great strides in the last decade. However, there is still a lot to be done. These are just a few major issues and challenges that human resources professionals will face in the coming years.

HR professionals must respond to the changing needs of employees and find new ways to attract, engage, and retain the best employees. In particular, HR professionals will continue to face challenges in employee retention, diversity, and protecting the company’s reputation.

In order to meet the unique demands of our customers, POPS Enabled is a human resources consulting firm that provides customized HR consulting services. Our wide range of services includes systems design and process development to employee engagement, worldwide growth, and employer branding. Contact us today and schedule a free consultation to see how we can support your unique needs!