Challenges of Human Resource Management

Posted over 4 years ago by Charlie Robinson


"A proven track record of success."

One of the perpetual challenges in the HR field is to demonstrate (particularly to non-HR professionals) an individual's accomplishments in an organisation. From a financial perspective, HR effectiveness can be difficult to quantify, thus excessive HR funding may be viewed as a risk. This mindset stems from the fact that it is complex to establish reasonable KPIs for the HR function, particularly in the short duration. The benefits of a successful HR initiate may take several years before the effects can be observed e.g. succession planning - while the sunk cost are reflected in every accounting year. It can be difficult to convince key appointment holders and decision makers to risk additional financial burden on an "investment" that has not been thoroughly and statically analysed. Without the correct infrastructure in the company, or time and funding to study the effects, the intricacies of the HR aspects are difficult to justify, for example: What is the monetary value of a successful Compensation and Benefit restructuring initiative?

The most obvious effect, no doubt, is the alignment of financial spending on wages and salary to performance and result. Aspects that add to the complexity of measuring the value of the C&B initiative include, but are not limited to, employee morale (which boosts productivity) and employee satisfaction (which increases retention rate).

The expertise to look at corporate needs and bring in remarkable HR professionals by concisely representing their accomplishments and potential, constitutes to being an outstanding recruiter.