Hi Reena,
Just trying to list out few challenges in front of HR in this new world:
In today's world, the focus on people and knowledge has steadily increased. Today organisations face new challenges in dealing with issues such as the scarcity of talent, the value of ideas/knowledge and the changing preferences of the labour market. Consequently, successful HR strategies are needed more than ever.
Looking at successful HR practices today, a number of areas where HR professionals can make an important contribution to the overall success of their organisation can be identified and worked upon.
1: Fostering organisational flexibility
The only thing that is certain is change. The rapidly changing business environment has increased the need for organisational flexibility and, instead of thinking in terms of job positions, HR needs to think in terms of projects and tasks. By doing this, the HR department can organise the workforce around specific assignments - and change them when necessary. With the use of cross-functional teams, a wide range of competence and other similar functions, HR can build up a much more flexible workforce while applying the collective competence to its fullest extent.
2: Putting information technology at HR's service - One of the tools that HR can use to enhance its services is technology. It can be used for a broad spectrum of applications such as knowledge sharing, automating routine personnel administration etc. Clearly, implementing IT-intensive solutions is not a simple process. By using 'needs analysis' to identify the areas benefiting the most from technological solutions and the subsequent need for training, the likelihood of success is increased dramatically. Ideally, the HR system should also be co-ordinated with other business systems in order to gain synergic advantages.
3: Mobilising the organisation's knowledge - Knowledge is an asset that does not appear in the balance sheet. Nevertheless, it is one of the most important assets of an organisation, and this is particularly true for professional services companies. In order to capitalise on this asset, companies need to build up a knowledge management (KM) system that is able to gather, store and distribute knowledge. Most efforts in this area, however, focus on technological aspects at the expense of behavioural issues. In order to build an efficient KM system, it is important to think beyond technology and to consider the impact of corporate culture, incentives to use the system, and how to assure the quality of information in the system.
4: Facilitating professional and personal development - A growing number of employees see their professional and personal development as going hand in hand. More and more companies are therefore taking a holistic view of the development of their employees. At the same time, employers are realising they can no longer assume the responsibility for designing development plans for each member of staff. This initiative is rapidly being transferred to the employees themselves and HR must therefore find tools to facilitate the mass customisation of individual development.
5. Supporting managers in their role is not what it used to be. In facing new groups of employees, many seasoned managers have found their traditional style of management out of date. At the same time, due to the large number of people working in projects and temporary work groups, many 'non-managers' find themselves in positions where they have to lead. The successful HR department has to develop strategies for preparing managers and non-managers alike for this changing managerial landscape.
6: Designing new compensation packages - Since traditional compensation, namely salary, has lost its prominence as a tool for attracting and retaining talent, it has to be adapted to new needs. Compensation will increasingly be tied to results. Stock options and bonus systems are popular for this purpose. The challenge lies in designing a system that has a measurable impact on people's behaviour.
7. Attracting and retaining the best - One of the great challenges for companies today is attracting and retaining talent. Companies need to specify and address specific market segments and offer a differentiated product - the job. It is no longer sufficient to rely on a competitive compensation package - many of the most talented candidates take this for granted and instead look for an attractive corporate image, shared values and a stimulating corporate culture. In order to retain talent, companies must also offer opportunities for skills enhancement.
Thanks