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6 Common HR Challenges and How to Approach Them

5 min read
Last Updated on 28 January, 2021
6 Common HR Challenges and How to Approach Them

Challenges are sure to arise in every business and every job role. It is also essential since it provides us with the motivation to learn more and hone our abilities. This is well illustrated in the challenges that the HR has to face, making it one of the toughest corporate positions.

The hurdles that HR personnel face differs every day and helps them be better professionals. These can range from company norms, employee grievances, new hires, etc. However, amidst these numerous obstacles, some HR challenges are more distinct.

One can address these problems as fundamental that every person in this field needs to master. After all, the success of a company depends a lot on the human resource department. They are the ones in charge of the most valuable asset in business; the workforce.

Therefore, to handle this enormous responsibility, an HR professional must understand the everyday challenges of the job and its solutions. Here are six of the HR challenges in the business world today and how to approach them.

Common HR Challenges and How to Approach Them

1. Rules and Regulations

This is one of the top priorities of a human resource specialist; compliance with government rules. In the dynamic business space, changes are the only constant. Therefore, a company needs to be in full accordance with it.

Failure to do so can result in hefty penalties and fine. It will not only result in extra expenses but also tarnish the company’s reputation. This will later affect hiring and retaining the workforce. So, you must always be one with these rules and also ensure that the company follows them.

Approach: To ensure this, all HR teams must continuously refer to the governing corporate rules in their respective country. This is different for every country. For example- if you are in the US, you must always check on the US Department of Labor for updated regulations.

2. Hiring

Hiring is one of the first things that come to mind while thinking about human resources. Though this is not the only one, it is undoubtedly an essential aspect of the work. A company’s success depends a lot on its workforce.

So, it is crucial to have the best hiring strategies in the labor market at play to employ the best. While doing so, one must not only focus on competency. There are many other things: cultural fit, employee persona, career goals, etc., that an HR professional must lookout.

Approach: To get the best hire, human resource management should check-up on many things. Some of these are skills tests, past work experience, future goals of the candidates, employee persona, etc. In implementing these, recruitment tools are a great help in this matter.

Due to the fast-paced business world, it is also not uncommon for HR teams to hire a third party in this process. These third parties are specialists in staffing that place temporary or permanent hires in companies whenever necessary.

3. Changes in Company Rules

Changes are never easy, but it is the nature of the business space. To stay afloat, a company must adapt, and this means bringing about changes. It is safe to assume that the workforce won’t accept all these changes with pure support.

Sometimes, these changes may bring favoritism in the workplace, new hardships in work, disrupt the team balance, etc. The HR team needs to ensure these shifts in rule come about smoothly in these times.

Approach: You must be transparent in your company rules to tackle this HR challenge. Instead of bringing a change abruptly, it is better to put the new rules through trail with a grace period. This will help smooth things in the workforce. It will also give them time to adjust to the changes as well.

Also, emphasize the benefits of the change and how a shift in the company’s working can help the employees.

4. Employee Training

Employee training and development programs are a big part of workforce grooming. Training is vital as it helps cut the cost of bringing in new specialists for every new opening that may arise. It also helps improve employee motivation.

The most common problem associated with this aspect is the resources required for training the team members. It is crucial to find the right course and person to teach a workforce. Failure to do so will only cost extra money with no fruition at all.

Approach: One of the easiest ways to get around this HR challenge is by implementing a mentorship program both for the seniors and juniors in the company. It works by having your senior executives coach the junior, and this has a twofold advantage.

First, by mentoring the juniors, the senior executives can enhance their communication skills. This will help ascertain their leadership style and skills for the future. Secondly, the juniors get guided by industry experts in a cost-effective method with nearly no extra expenses.

5. Compensation

The compensation is an area that HR personnel gets questioned most frequently. It is a big part of keeping an employee happy. Here, one must be careful to keep an individual motivated and keep the payroll costs in check at the same time. You must be extremely cautious here.

Approach: Compensation doesn’t always have to be about salary. Instead, you can design different employee rewards and recognition programs. This will compensate for your employee’s hard work, minus a continual rise in the payroll.

It is because integrating a rewards program doesn’t require adding to a worker’s regular paycheck. Instead, it is a gesture of employee appreciation for a job well done. This will not only motivate your employees but also improve employee engagement at the same time.

6. Employee Retention

The last one in our list today is the problem of employee retention. It is a significant problem because as harsh as it is in making a hire, the same is in retaining one. With a wide variety of employment options today, employees now have many available opportunities.

This means, if you don’t treat them well, there are plenty of other options that will. It is why employee attrition is becoming a real menace to companies everywhere. This turnover not only harms the working environment and productivity but also increases costs as well.

Approach: In retention, the first few days of onboarding is a crucial part because, as they say, the first impression is the last impression. A study shows that hires with proper onboarding procedures are 58% more likely to serve upto 3 years than ones that don’t.

Therefore, it is vital to carry out proper processes in the first few days of the hire. This includes having a structured plan, proper job description, designation playbook with duties, mentor matching, feedback.

These were some of the standard and biggest HR challenges that managers face every day. This is excluding all the other unique employee grievances, which an HR will have to look after.


The challenges of human resource professionals are never limited to certain areas. These challenges arise from diverse areas and your HR department faces these every day. Therefore, it is essential to understand a few of these hurdles with their best industry solutions.

In our attempt to do so, we found that those mentioned above are some of the most frequent HR challenges. Based on our experience, the approaches cited above should get you started just fine.

This article is written by Jyoti Prakash Barman. He is an in-house Content Marketer at Vantage Circle with interests in music and automobiles. For any related queries, contact