There are several challenges that a growing organization faces when it comes to managing human resources, the growing organization always has a cost constraint to spend on the HR department, and they may not have qualified HR professionals to manage their Human Resource Department.
Some of the common Human Resource Management issues growing organization faces are mentioned below:
Setting up the right organisational culture
In a growing organization, it is important to set up the right organisational culture. Most growing organizations do not focus on creating HR systems and processes at the initial stage of their organization and they manage their team informally over a period of time informal culture gets set up which is very difficult to change later on and that becomes a bottleneck for many growing organizations for their growth.
HR plays an important role in setting up the right organizational culture as they define company policies, procedures & guidelines by aligning them with various governmental requirements such as labour laws etc.
maintaining appropriate documentation & records that help managers make informed decisions related to human resource issues faced by their organizations on daily basis; implementing programs aimed at improving employee morale across all levels of management hierarchy ensuring the smooth functioning of day-to-day operations while satisfying both internal & external stakeholders’ needs simultaneously.
Hiring Right Talent
Hiring the right talent is challenging for every company, but it’s especially crucial for growing organizations. Hiring the wrong person can have a negative impact on your organization and its growth.
There are several challenges associated with hiring the right talent for growing organizations:
- Growing organizations often don’t have enough cash flow available at any given moment in order to pay higher salaries.
- Growing organizations do not build the right HR policies and systems and hence it becomes difficult for them to attract the right talent.
- Growing Organizations do not have higher employer brand recall.
Employee Engagement & Productivity
Employee engagement and productivity is the key to success for any organization. However, your growing organization may not have a large budget to spend on HR.
In addition, there may be no defined process to measure employee performance or provide continuous feedback.
The lack of these processes can lead to disengaged employees who are less productive than they could be if they had access to information about how they are performing and what they need to do differently in order to improve their performance.
Employee retention is an important factor in driving the growth of a growing organization. Employees are the backbone of any organization, and retaining them is essential to your company’s sustainability.
Without employees who are dedicated to their work, dedicated to the vision of your organization, and committed to making it succeed—you won’t stay afloat for long.
Retaining employees can be a challenge for growing organizations because they often don’t have the resources that larger companies do when it comes to recruitment, training programs and incentives.
However, if you can create a better organisational culture and create better employee engagement programs you can successfully retain top performers then this will have positive effects on both employee satisfaction as well as profitability for your company.
Keeping up to date with changing compliance
HR professionals in growing organizations work as generalists and the not necessarily have exposure in all areas.
With limited or absent HR resources in growing organizations, it is very difficult for them to keep themselves updated on changing compliances.
Non-compliance can cost very dear to growing organizations and hence it is important for growing organizations to partner with the right compliance partner who can help them to manage these compliances.
As a growing organization, you should be well aware of the fact that HRMS is an integrated suite of HR applications which can help you to manage all your employee data in one place.
Most HRMS implementation fails in growing organizations due to the non-availability of dedicated HR resources to implement HRMS tools and the lack of implementation knowledge of HR professionals.
Technology implementation is change management that, if not managed properly, will not give you desired results.
HR should be able to communicate the benefit of HRMS implementation and should be able to drive this change smoothly to get the return on investment on the HRMS tool.
Before implementing the HRMS or automating HR processes it is essential to ensure all your HR processes are well defined which is configured right in the HRMS tool to give you desired result.
As an organization owner, it is important to understand the challenges that come with growing teams in terms of human resources.
As the founder of your organization, you might find yourself taking on more roles than expected and hiring new people can be equally challenging.
HR is not just about hiring and firing but rather a strategic partner to the organization. It is important that you utilize your HR team as they can help increase productivity while keeping costs low.
Your HR department should be treated as an extension of your leadership team and not just another department at work.
CEO needs to ensure that he/she has a strong relationship with their employees because this will result in reducing employee turnover rates, improving productivity levels as well as providing job satisfaction among employees (which can lead to better morale).
Human Resources are the most important department for any organization. In the current scenario of cutthroat competition, your people are your only differentiator and advantage against your competitors.
Creating the right Organization culture by building the right HR Processes and systems will help the Growing organization scale faster.
At Emgage we help Startups and MSMEs to simplify and streamline their Human Resource Management.
Set up a free consultation call with our team of HR experts to get the right guidance on Human Resource Management for your growing organization.