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Common HR Challenges Faced by Companies
Safira Adnin
September 4, 2024

Human Resources (HR) is one of the most complex areas in any organization. HR teams handle everything from payroll and legal compliance to recruitment and employee development. Managing people is no easy task, so it’s no surprise that HR departments often face a variety of challenges.

In this article, we’ll explore some of the most common HR issues companies deal with and how to effectively manage them.

Payroll Management

Payroll is one of the most time-consuming tasks for HR, especially if done manually. HR teams need to get everything right—from salaries and bonuses to overtime, social security contributions, and income tax deductions.

Because payroll is so detailed, mistakes can happen easily, leading to incorrect payments. Late paychecks can also cause frustration among employees, with HR often being the first to hear complaints.

One way to make payroll less stressful is by using payroll software. These tools can automate much of the process, making it faster and reducing the chance of errors.

Payroll software simplifies compliance with ever-changing labor laws and tax regulations. The software is regularly updated to reflect new legal requirements, ensuring that the company remains compliant without HR needing to manually track every change. 

This automation also frees up HR professionals to focus on more strategic tasks, like employee engagement and development.

Moreover, the transparency offered by payroll software can improve employee satisfaction. When employees can easily access their pay stubs, see how their pay is calculated, and trust that it’s accurate, they are more likely to feel valued and less likely to raise disputes. This leads to a smoother HR operation and a more positive work environment overall.

Employee Retention and Turnover

High turnover rates can be costly and disruptive. HR’s job isn’t just to fill roles but also to make sure employees are happy and want to stay.

While competitive salaries and bonuses are important, they’re not the only factors that keep employees around. A positive work environment, a company culture that aligns with employees’ values, and non-financial perks like career development opportunities and flexible work hours are also key.

Improving employee retention requires a multifaceted approach that goes beyond offering competitive pay. It’s about creating a work environment where employees feel valued, engaged, and aligned with the company’s mission and values. 

One effective strategy is to invest in employee development programs that offer clear career progression paths. When employees see that their growth is a priority, they are more likely to stay.

Another important aspect is work-life balance. Offering flexible work arrangements, such as remote work options or flexible hours, can significantly improve job satisfaction. Employees who feel they can manage their personal and professional lives effectively are more likely to remain with the company long-term.

Employee Motivation and Productivity

There’s a strong connection between how motivated employees are and how productive they are. When motivation dips, productivity usually follows. This is a challenge every company faces because employees are people, not machines—they have emotions and personal lives that affect their work.

HR isn’t just about tracking performance. It’s also about creating a work environment that keeps employees motivated and engaged. This can be done through recognition programs, team activities, and offering growth opportunities.

To keep motivation high, HR needs to think creatively. This might involve implementing regular feedback sessions where employees can express their concerns and ideas, helping them feel heard and valued. 

In addition, providing opportunities for continuous learning and growth can keep employees engaged.

This could be through offering workshops, online courses, or even cross-departmental projects that allow employees to develop new skills and gain different perspectives. By investing in their growth, you show employees that they have a future within the company, which can boost both their motivation and productivity.

Finally, fostering a sense of purpose in employees’ day-to-day work can significantly impact their engagement levels. When employees understand how their contributions align with the company’s bigger goals, they are more likely to stay motivated. HR can facilitate this by regularly communicating the company’s mission and values, and showing how each team member plays a role in achieving them.

It’s important for HR to figure out why productivity might be slipping. Burnout, boredom, conflicts with colleagues, and personal issues can all play a part. By addressing these issues early on, HR can help prevent them from becoming bigger problems.

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Employee Skill Development

One common complaint from business leaders is that employees aren’t improving as much as expected, even after training. This usually means the training programs aren’t effective enough.

Investing in employee training is crucial. HR should create programs that not only help the company but also support employees’ personal and professional growth. This way, the training is more valuable to everyone involved.

Creating effective employee development programs starts with understanding the specific needs of both the organization and its employees. HR should begin by conducting a skills gap analysis to identify areas where employees need further development. This analysis should be ongoing, as the needs of the business and its workforce will evolve over time.

Once the gaps are identified, HR can design targeted training programs that address these needs. It’s essential to offer a mix of training methods, including on-the-job training, mentoring, workshops, and e-learning courses, to cater to different learning styles and preferences.

In addition, HR should encourage a culture of continuous learning by providing resources and opportunities for self-directed learning. This could include access to online courses, a company library, or even time during the workweek dedicated to skill development.

Another critical component is measuring the effectiveness of training programs. This can be done by tracking improvements in performance, gathering feedback from participants, and assessing how well the training aligns with the company’s strategic goals. Continuous evaluation and adjustment of training programs ensure they remain relevant and impactful.

Read Related Article : 7 Key Steps for Managing Human Resources in a Startup

Recruitment Challenges

Recruiting new employees is always a challenge. It’s not just about finding someone with the right skills—it’s also about finding someone who fits the company culture. HR often spends a lot of time and money on hiring, only to have new hires leave after a few months.

One of the main reasons new hires leave quickly is that they don’t fit well with the company’s work style or culture. It’s important to find candidates who not only have the right qualifications but also align with the company’s values. Losing a new hire isn’t just frustrating – it’s costly in terms of time, money, and effort.

To improve the chances of finding the right cultural fit, HR can enhance the recruitment process by incorporating more comprehensive screening methods. This could include behavioral interviews, where candidates are asked about past experiences that reflect their alignment with the company’s values and work environment. Additionally, involving team members in the interview process can provide valuable insights into how well a candidate might integrate with the existing team.

Another approach is to clearly communicate the company’s culture and values during the recruitment process. This transparency helps candidates self-select for the roles and organizations that resonate with them, reducing the likelihood of mismatches. Highlighting aspects of the company’s culture in job descriptions, on the company website, and during interviews can attract candidates who are naturally aligned with the organization’s ethos.

Furthermore, implementing a structured onboarding process that emphasizes cultural integration can help new hires acclimate more quickly and effectively. This might include mentorship programs, regular check-ins with HR, and opportunities to engage with the company’s mission and values from day one. A well-designed onboarding process can set the foundation for long-term employee satisfaction and retention.

Conclusion

HR challenges are diverse, but with the right strategies, they can be managed effectively. By using payroll software, developing strong retention programs, maintaining employee motivation, offering targeted training, and focusing on cultural fit in recruitment, companies can overcome these common HR issues.

At Glints, we get how tough HR management can be, and we’re here to help. Whether you’re looking to keep your best talent, streamline payroll, or improve your recruitment process, we’ve got the solutions to support your business every step of the way.

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This article is brought to you by Glints TalentHub. Leading companies are actively building their borderless teams in Southeast Asia, Taiwan, and beyond. However, the prospect of going borderless can be daunting due to complex regulations and cultural ambiguities. With Glints TalentHub, you’ll have a dedicated team of in-market legal, HR, and talent experts by your side at every step of the way.

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