6 key HR challenges, and how to solve them

6 key HR challenges, and how to solve them

The 6 key HR challenges your business may already be facing

Are you an Australian business owner struggling to keep up with your HR processes?

When it comes to Human Resources, poor people practices can cause major disruptions to achieve business objectives, and issues can compound on a daily basis, costing businesses valuable time and money.

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1. Compliance

In 2020, 71% of employers audited by the Fair Work Ombudsman were found to be non-compliant.* This extensive list covered non-compliance in areas such as; poorly drafted (or non-existent) employment contracts and policies, limited understanding of Award coverage, misinterpreting the Fair Work Act, unfair handling of employee grievances, and an inadequate approach to managing work, health and safety.

Partnering with a proven outsourced provider can help you ensure your business remains 100% HR compliant. With an expert team, you’ll have the right tools, expertise and knowledge to ensure you remain compliant and up-to-date on all HR issues.


2. Performance Management

Your business must develop a performance management system. Underperformers can not only have a detrimental effect on your business, they can also drive away top performers. Without one, you may not be able to identify and nurture the best talent and improve on inefficiencies.

Delaying tough decisions, or getting those decisions wrong, can be damaging to staff morale and your bottom line.

Partnering with a proven outsourced provider can ensure you have access to the right HR tools to ensure role clarity, drive the right behaviours, manage performance, and develop your team so they each have the opportunity to become a top performer.


3. HR Administration

Administration can be costly and time-consuming, particularly when it comes to manual processes. In 2021, many SMEs continue to maintain manual systems, including rostering, payroll, recruiting and onboarding.

For greater efficiency and accuracy, many businesses are now turning to outsourced HR providers. Finding a dedicated team of local consultants can help you simplify your HR management and administration process with the latest cloud-based HR software.


4. Workplace culture

Businesses spend thousands of dollars and countless hours defining the values, beliefs and principles of their business. These often serve as the foundation of their management performance system and encompass various aspects of the business, including the attitudes of their employees. If these values are misaligned with the core beliefs of your team, problems become apparent very quickly.

Finding an HR partner to help you define this system can help you foster a dynamic and engaging working environment. Focus on shared vision and goals, relevant company values, leadership development, communication, employee engagement, reward systems and effective teamwork.


5. Recruitment and retention

High staff turnover can be devastating for business (particularly if top performers are walking out the door), and is often the result of deeper issues. In many instances, employees leave when they don’t grow, aren’t receiving clear direction from their managers, or don’t feel supported by their team or workplace culture.

Align your HR goals with your company objectives. Finding expert assistance can help you measure and improve employee engagement by collecting and acting on regular feedback, and promote genuine coaching and conversations between managers and employees.


6. Ineffective HR managers

How good is your HR Manager? Do they make good decisions based on your company’s objectives? Have they created a sound performance management system? Do they promote the right behaviours and ensure each of your employees has the opportunity to grow and develop? If they do, that’s great. If they don’t, it’s clear that change is required.

Finding expert assistance in hiring the right people is integral to making sure your business stays on the right track and remains competitive in today’s market. It also ensures that your team feels supported and respected at work.

*Fair Work Ombudsman Performance Report 2019-20

Source: Employment Innovations