The Society for Human Resources (SHRM) conducted a survey among human resource (HR) professionals to discover the challenges that employers expect to face in the next 10 years.

The Society for Human Resources (SHRM) conducted a survey among human resource (HR) professionals to discover the challenges that employers expect to face in the next 10 years.

 

Three Biggest HR Challenges

 

The top three issues that HR professionals are concerned about:

 

• Retaining and rewarding the exemplary employees: In order to compensate, HR professionals are implementing strategies so that they can attract the best workforce possible. According to SHRM’s survey, the most popular tactic at 40% is to provide a flexible work schedule. While 37% of HR managers feel that promoting a company culture of trust and fairness came in a close second. This should not be a surprise because of the increasing amount of Millennial employees engaged in the labor market. According to Fast Company, by 2025 Millennials will account for 75% of the workforce. This large group of workers want to work with a purpose (not just for a paycheck) and they have a desire for the company’s goals to be aligning with their own.
• Encouraging the next generation of C-Suite leaders: SHRM’s survey found that HR managers will prefer hiring leaders who are strong in business acumen, organizational leadership, and relationship management. To develop these qualities in managers, more and more companies will implement on-going HR training and education programs in the coming years.
• Developing a culture in the workplace that will attract the best and brightest employees: The days of solely top-down management are disappearing in the office. Millennials value open communication and collaboration. This is a generation that does not want to sit on the sidelines and watch. They want to be involved and part of decision making. An article from Forbes pointed out that this generation grew up in a school system that rewarded team activity rather than individuality in sports with ribbons that supported participation, not winning. HR professionals are taking note and creating corporate structures around this idea.

 

HR Investment Challenges

 

Most HR managers are most concerned with how to obtain human capital and optimize human capital investments. Acquiring financial capital came in second.

 

The HR Takeaway

 

HR departments are worried about attracting not just competent employees, but also exceptional ones. HR managers believe that retaining the best and brightest will ensure organizational success.

 

The lesson from SHRM’s findings are simple. With an aging workforce and Millennials growing in numbers, it is imperative for small business owners and HR professionals to constantly evaluate and update HR policies and procedures to retain their ever-evolving talent.

 

Need help updating your HR policies? Contact StaffScapes, a PEO hr solutions provider that is well-versed in HR solutions and outsource your HR today for administrative relief.

 

Read the full study from SHRM here.