Common HR Challenges That Companies Face

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Despite its ever-evolving nature, HR remains one of the most significant challenges for businesses. Ensuring an efficient HR operation requires intense resources, time, and money. However, a sufficient supply of these resources isn’t always enough to help businesses succeed at human resource management.

Affluent companies are lucky in this regard, as they have the ability to outsource their HR tasks to other reputable organizations. However, small businesses or those that are just starting out often can’t afford such luxuries.

The HR challenges facing small-to-medium-sized organizations are far different from the ones larger enterprises face. The first step in tackling these challenges is to be aware of them beforehand. Below are some common HR challenges facing small-to-medium-sized firms, as well as some practical solutions for these businesses to consider.

Managerial and Operational Changes

Change is pertinent to a business’s growth and success. As a business and its operations evolve, changes at the operational level should be fast and rigorous. These changes can bring about more profitability and efficient processes for the enterprise, they are often a hard pill to swallow for the staff.

For example, your employees might have a difficult time understanding and getting along with new software, or changes at the management level might seem demotivating and stressful to those working in a specific department. Challenges like these are often directed toward your HR department; any such changes would increase your HR team’s workload.


An effective way to institute a major change is to introduce the change to your staff ahead of time. Then, you can slowly integrate the change, rather than forcing it upon your employees all at once.

Make sure that the staff is clear on why you are introducing this change and how the change is beneficial to them. With this knowledge, they are more likely to accept the change, regardless of how massive it is.

Ensuring a Value-Adding Hiring Process

In today’s competitive business environment, it’s exceptionally difficult for businesses to find, hire, and retain top talent. This is one of the biggest challenges for HR professionals.

Businesses constantly evolve. You need employees who give their all despite the changes and reforms in a business’s working model. Hiring such people remains a challenge no matter how excellent your recruitment process is.

However, the challenge intensifies if your HR managers do not follow a hiring process. For a business trying to minimize challenges for its HR, sticking to an effective and consistent hiring method is the only resort.


Making sure your hiring process is consistent and fool-proof is the only way to guarantee that you’ll find top talent. Your HR department should begin working on the hiring process as soon as there is a vacancy. Choose platforms where the job posts reach only the best people.

Limiting those who apply for your position enables your HR department to put less effort into its screening process. Once the screening process is complete, your HR department should only interview the people who would fit perfectly in your position and culture.

Experts believe that HR departments can cut down on their resources easily when they only focus on the best people and only call those candidates for the interview who are the most ideal match for the overall organizational circle.

Unawareness of Regulations and Laws

Employment laws constantly change. It seems that every other month brings new extensions to existing laws. Busy with their businesses, owners and stakeholders often tend to ignore these laws and unintentionally end up breaching them. On the other hand, some owners believe they don’t have to follow every law to the letter.

This lack of responsibility is an enormous mishap for any HR department. Understanding these walls and tackling them with grace is the key to success


Regardless of your business’s size and the nature of its operations, make sure to stay aware of all regulations and the changes that these regulations undergo.

You need to understand local, state, tax, and labor laws that could inflict some change in your business and its operation. Also, make sure you know everything regarding national labor wages and the political rights of the workers.

Workforce Training and Management

Workforce and leadership development is often swept under the rug as businesses grow busier. Acquiring the resources and time needed to train and develop the workforce is a substantial task. Your laborers might be so busy that they don’t have time to learn anything at all. A failure to tackle such issues can lead to serious problems with your team members’ quality of work.


Try to come up with training and development programs that don’t take a lot of your time and resources. Also, never take up the responsibility of training the entire labor force on yourself. Rather, assign different training tasks to different heads and departments.

You can also divide your massive workforce into groups and arrange for their training at different times. If the workers aren’t interested in training, try to lure them with some incentives. Another great way to train your labor force without wasting a lot of your resources is to use a virtual training methodology.

Design courses that the people from your workforce can grasp and complete at their paces. Lastly, never forget to value and reward the workforce because they are the ones who contribute the most to your business.

Keep pushing the top management to take initiatives for the welfare of the workforce as it can be an excellent way to ensure loyalty and high working morale.

Managing Unemployment Claims

Another significant issue that HR departments have to contend with is unemployment claims management. Some companies receive hundreds of unemployment claims. It can be a massive undertaking to try and keep track of these claims, much less discern which ones are valid and which ones are not.

With Unemployment Tracker’s claims administration services, you can save up to thousands of dollars thanks to our advanced unemployment management software, expertise, and knowledge of UI laws and regulations.

Taking advantage of our services will free up your company’s time and human resources to work on tasks that are critical to your company’s success. If you are interested in our services, give us a call at (810) 201-4933 or email us at!

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