What are the Challenges Faced by Human Resource Management

By Colin Gordon | 21.02.2022

HR Professionals have many tasks in organizations, including work planning, recruitment, training and development, performance management, compensation and benefits allocation, etc. However, managing these tasks is not easy, and HR professionals must strive to ensure organizations achieve their objectives. This also means that employees must be comfortable and have access to the right tools that contribute to maximum productivity. While human resource management faces plenty of challenges, it is essential that you fully understand them to be prepared to tackle them as they arise before affecting your business’ bottom line.

Challenges Faced by Human Resource Management Includes:


1. Recruitment and Selection

One of the major challenges faced by human resource managers is recruitment and selection. As technology advances, new HR management tools and techniques are developed. As a result, HR professionals find it challenging to find a suitable candidate who fits job requirements and adapt to technological changes. They will have to make some changes in their recruitment methods, including offering new training services to ensure quality results. 

2. Leadership Development

Leadership development is another one of the biggest challenges for HR in 2022. You see, it is crucial that you nurture employees with leadership skills and help them advance their careers. This is a strategic initiative that should be handled carefully to retain the best employees. In addition, HR professionals must ensure they provide essential tools and structures to select and develop future leaders of their organizations. 

3. Managing a Diverse Workforce

Hiring a diverse workforce means that you bring onboard employees with a broader range of skills and different experiences that can maximize productivity. However, managing such workers is one of the HR challenges in many organizations. For instance, handling frequent disagreements and encouraging effective communication between a diverse workforce with different backgrounds can leave other employees feeling neglected. In this regard, HR professionals must develop an organizational culture through various team-building activities. 

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4. Compliance With Employment Laws

Employment laws keep changing, and it is upto the HR professionals to stay abreast with the latest laws to avoid audits and lawsuits that could affect your business performance. Employment laws are regulations that assist in effective hiring, employee management, and workplace safety.

5. Engaging Employees

Besides talent acquisition challenges, HR departments struggle to keep their workforce engaged and maximize productivity. You see, as your business grows, you will also alter its structure, work plan, and even internal processes. Getting your workers to adapt to this change require effective communication. Let them know the benefits of the changes and why their input is crucial in taking the business to a higher level. Consider having frequent meetings and let them know about recent developments. Regular feedback is also essential to identify areas that need extra attention.

6. Compensation and Benefits

Structuring employee compensation and benefits is another emerging challenges of HRM. Businesses have to keep up with their competitors to retain the best talent. This can cause a strain on small businesses that are yet to generate the same revenue large organizations do. In this regard, HR managers with small payroll budgets should consider employee rewards programs for the best-performing individuals. Incentive programs can also be a solution to low salaries and employee benefits. 

7. Trade Union Demands

Some trade unions have unrealistic demands that contribute to human resource management challenges. Therefore, you need to be skillful in handling trade unions that oppose your company’s policies and procedures. This is so that you can easily reach an agreement that benefits both parties. 

8. Retaining the Best Talent

This is one of the most common challenges of HRM faced by organizations. With employers competing for the best employees, retaining them requires a structured onboarding plan. Remember that employee turnover can be costly and have an adverse effect on your business growth. To maintain the best talent, you should also create a conducive work environment, provide room for career development, and motivate them to perform better. 

9. Maintaining Workers’ Health and Safety at Workplace

HR professionals must ensure that the workplace is conducive enough to accommodate employees without affecting their health. For instance, if there are types of machinery that require skills to operate, let the employees know the dangers of using them. Their health should also be a priority since healthy and safe workers will keep your business running and growing. Workload and stress levels are also other human resource management issues and challenges that can be handled by allocating tasks equally and planning for activities that help manage stress. 

10. Organizational Data and Integrity Management 

Businesses are becoming more digitized, using electronic devices to manage various tasks. However, while they enjoy the benefits of the advancing technology, their data are at risk of leaking into the wrong hands. These challenges for HR people make HR professionals struggle to secure their companies’ data and maintain their integrity. Therefore, you need to ensure the data security department is on its toes to secure data. Also, consider communicating with your employees about data security best practices such as the use of passwords, phishing emails, desktop rules, etc. 

Best Tools for Human Resource Management

Here’s an overview of each of these Human Resource management tools and why they are considered among the best in the industry:

1. BambooHR

Bamboo HR

BambooHR is widely regarded as one of the best HR management tools for several reasons:

  • User-Friendly Interface: BambooHR offers an intuitive and user-friendly interface that makes it easy for HR professionals and employees to navigate the system. This ease of use reduces the learning curve and increases overall efficiency.
  • Comprehensive HR Functionality: BambooHR provides a wide range of HR management features, including employee record keeping, time tracking, onboarding, performance management, and benefits administration. It covers almost all aspects of HR management in one platform.
  • Scalability: BambooHR is suitable for both small and large organizations. It can scale with your company’s growth and adapt to your changing HR needs.
  • Reporting and Analytics: The tool offers robust reporting and analytics capabilities, allowing HR professionals to gain insights into employee data, track key HR metrics, and make data-driven decisions.
  • Integration Options: BambooHR integrates seamlessly with various other HR and business software, enhancing its versatility and allowing it to fit into your existing tech stack.

2. Hibob

Hibob logo

Hibob is another highly regarded HR management platform known for the following strengths:

  • Employee-Centric Approach: Hibob focuses on the employee experience, offering features like employee self-service, a social feed, and recognition tools. This approach enhances employee engagement and satisfaction.
  • People Analytics: Hibob provides powerful people analytics tools, allowing HR professionals to gather insights into workforce trends, engagement levels, and other critical HR data.
  • Customization: The platform is highly customizable, enabling HR teams to tailor it to their specific needs and workflows.
  • Onboarding and Offboarding: Hibob streamlines the onboarding and offboarding processes, ensuring a smooth transition for new hires and departing employees.
  • Integration Ecosystem: Hibob integrates with various third-party applications, making it easy to connect with other HR and business tools.

3. OnPay

OnPay logo

OnPay is a top HR and payroll management tool with several key advantages:

  • Simplified Payroll Processing: OnPay excels in payroll management, offering a user-friendly interface for processing payroll, handling tax filings, and managing benefits.
  • Tax Compliance: The platform ensures tax compliance by handling payroll tax calculations and filings, reducing the risk of errors and penalties.
  • Employee Self-Service: OnPay includes self-service options for employees, allowing them to access pay stubs, tax forms, and other HR-related documents.
  • Cost-Effective: OnPay is often considered a cost-effective solution for small and medium-sized businesses, making it an attractive option for companies looking to manage HR and payroll efficiently without breaking the bank.
  • Integration with Accounting Software: OnPay integrates seamlessly with popular accounting software, simplifying the reconciliation process.


HRM challenges faced by HR managers are plenty, and the above are the most common ones in most organizations. Understanding these human resource management problems and solutions is the first step towards building a solid and productive organization. What’s more, you and your staff will be prepared to handle any issues before affecting your company’s bottom line. In addition, working on human resource management challenges and solutions helps you develop the right business policies and procedures. As a result, you will achieve your business goals and stay ahead of the competition.