A survey report by Price Water Coopers finds that businesses worldwide seek sustainable growth while their targets become more demanding than ever. PWC notes that organisations must rethink their talent pipeline and transform their HR function to cope with these priorities and risks. Here are the top five HR risks and ways to mitigate them:
- Retention: Retaining employees is a great risk for HR managers. Employee retention is a fine balancing act between company culture, remunerations, and incentives. The HR department needs to provide each employee with the right combination to satisfy the employee without compromising the company and also need to keep accurate records of these combinations to ensure that the agreed packages are being delivered to employees.
- Workplace Discrimination: Managers should make sure that all the employees are treated equally. Employers should develop and implement induction programs, training, and ongoing targeted practices to address inappropriate workplace behaviour and deal effectively with any complaints.
- Recruitment: Recruiting talent is one of the major risks that HR managers face. To find the correct blend of skills and personality is difficult, especially when there are a huge number of candidates. Where there are dozens of applications, the details of each will need to be recorded for review and comparison.
- Productivity: HR managers need to know the reason behind lack of productivity. They need to understand whether the problem is caused by poor working practices or lack of resources. A study by Time and Motion can be used to identify potential efficiency gains and pave the way for future capital investment to improve productivity and conditions.
- Payroll: HR maintains records about salary, benefits, bonuses, and attachments of earnings, whilst accounts are tasked with actually making the payments. This creates a potential disconnect that can lead to the payroll being run late or employees receiving the wrong sums in their wage packet. To maintain morale and prevent future pay problems, your business should investigate the potential of using a dedicated payroll solution that interfaces directly with your HR software and account system.
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