In the last decade, the Australian organizations have had different transformations which have led to significant impact on employees. The demands placed on employees are greater than even before, standards expected are higher and duties have become more sophisticated (Fitz-Enz, 2010). These transformations have not had an impact on the employees but have also impacted what the management does to ensure they feel appreciated and valued by the organization.
The rapidly transforming business environment indicates that there are many human resource management challenges which might continue to evolve Australia in the future. As a result of the unstable economy as well as local and global advancements, many changes are occurring and impacting human resource management in different ways (Muller, 2013). According to researchers, Human resource departments are facing some challenges that affect them from adding real business value. The following are some of the major challenges which hinder human resource in Australian organizations from performing better.
In the Australian, change-resistant in organizations is very common. People are used to doing what they are used to and never want to accept the introduction of new things. This factor makes the human resource managers to experience challenges because for an organization to succeed, change must be incorporated in the management of human resources. Employees resist change for different reasons including the fear of the unknown, fear of losing jobs and so forth (Muller, 2012). According to business experts, the process of change management has an influence in the whole organization and all people who work there and therefore if the right process is not used it may negatively impact the employees and other aspects concerning the organization.
Change is required for different reasons aimed to improve the performance of either the employee or the organization as a whole. The challenge which the HR professionals face in managing change is trying to explain to the employees the reason for the change or other strategies of minimizing change resistance (Rivenburgh, 2013). Another challenge comes when employee resist a change that has already been implemented because it causes the employees to behave in a manner which does not favor good performance. The work of the HR professionals is to ensure employees performs as expected and therefore when this happens they must use the proper strategies to ensure they accept the change, and they can perform better.
The number of new job seekers has been growing in Australia over the years because the digital era has made many people to realize the importance of education. This factor has made companies to receive many job applications when a vacancy is announced, hence making the human resource professionals to experience challenges in finding the suitable candidates from a large number of applicants especially when they have similar academic qualifications and job experience (Chintalapati, 2013). The increase in the number of job seekers in the recent years also made the HR managers to experience challenges in selection because they must adjust their selection procedure from time to time so that they can ensure the candidate selected from these broad numbers fulfills the job requirements.
This is one of the biggest challenges which Human resource managers face in Australia. In most of the organizations, human resource managers are expected to provide the fundamental structures, tools, processes and points of view to make the best solution and develop the future leaders in their organization (Savtchenko, 2012). In Australia, leadership development is classified as a critical strategic initiative in ensuring the right staffs are retained, the culture of the company supports performance from within to attain good market position, and managers can take leadership roles in the future so that the organization can be viable in the long term.
Leadership development includes exposing the best employees to an immersive leadership environment. Sometimes, choosing the best employees for this purpose may be challenging because every employee feels he or she is the best fit. The rising employee turnover rate in this country is also giving the HR managers tough time in coming up with practices to promote employee engagement and motivate them to stay for long in the organizations (Andrew, 2012). The issue of excess turnover rates is also making these professionals to experience challenges in building the next generation organizational leaders because the ones trained leave the organizations within short period even before gaining the required experience.
Improvement cannot happen without the right tools to measure the effectiveness of Human Resource. Just like the other departments in an organization, the human resource also requires measuring outcomes regarding transaction management, as well as with regard to positive impact on the company (Hussain, 2012). In the wake of excess competition in the Australian companies, the human resource strategy is linked to the strategic success of an organization as a whole, but most of the senior executives in some of the companies think of HR’s effectiveness as unquantifiable. Just like other professionals or departments, the performance of HR professionals can be measured and analyzed, so as to allow them realize their strategic importance in the organizations
As a result of competition in the Australian job market, it is becoming challenging for the human resource managers to identify the right people who can assist their organizations to succeed. The major issue, in this case, is identifying skills beyond those shown in the CVs and resumes (Bhatt, 2012). This is because all job applicants present CVs with different types of skills but not all of them bear them in the real sense. Identifying the desired competencies in a pool of job applicants is a significant challenge for the HR in Australia especially when the position is very competitive.
The HR professionals must be adept in finding and securing the best employees, even when the job market seems to be in the candidates’ favor. The HR professionals also face the challenge of marketing their organizations to the most potential employees in Australia because the number of job seekers is increasing as time goes on and targeting all of them is difficult.
Letting an employee go is usually one of the most challenging things which HR professionals go through. The greatest percentage of HR professional in Australia says termination or layoffs are an emotionally draining process which affects them (Shiri, 2012). Firing an employee with different responsibilities like taking care of his/her family make the HR professional feel some sense of guiltiness. The legal issue to consider when firing an employee in Australia is also stressful for the HR professionals because a single misstep may lead time-consuming and even expensive lawsuit for an organization.
Job competition in Australia is increasing, and each company wants to retain its employees (Andries, 2015). Other enterprises that do not have sufficient workforce try to attract the most skilled applicants from other organizations through promising better pay and good job titles. This factor makes the Australian HR professionals face the burden of ensuring the workers are not lured by better pay or notable titles from other companies.
As time goes on, the Australians tend to feel that providing salaries and wages to employees is not adequate in today’s world. This means the human resource managers are required to maintain proper emotional balance of staff members. Upholding this balance is not an easy job because the human resource managers must understand the requirements, attitudes, requirements and the feelings of staff members in order to motivate them whenever required.
As time goes on, the responsibilities of human resource are changing in different perspectives. This means balancing the interests of management and employees is becoming a burden to these professionals (Srimannarayana, 2013). Profits, loyalty, cooperation, and are expected by the management whereas good salaries, safety, career development, participative working and good working conditions are some of the factors expected by employees from the management. Unlike marketers, accountants other professionals, human resource managers experience a challenge in trying to balance the management expectations and what the employees expect to get from the management
Employee health insurance, disability, paid leave, and company benefits as well as perks programs are complex and challenging to manage (Bhatt, 2012). Sometimes when employees expect to get them, and the company does not have enough resources or other departments do not give full support, the HR professionals end up experiencing challenges because it is their responsibility to ensure employees gets what they can motivate them to work better.
The growing demand for then sound management of human resources is increasing the challenges faced by HR professionals in Australia. The increasing in job competition is affecting both the job seekers and HR professionals in different ways. Some of the challenges which the HR professionals face because of the increase in competition in the Australian job market include identifying the right skills, and Ensuring there is internal and external compensation equity.
Other challenges which the HR professionals face in this country include Managing job benefits and perks, training programs, Conducting employee terminations or layoffs at work, HR effectiveness measurement, balancing employee and management Leadership development and managing change. Although the seriousness of these issues differs, they make the HR professionals to experience challenges in ensuring the organizational goals and objects are met through providing the required workforce.
Andrew, B., 2012. HR Outsourcing Can Boost Savings and Service. The Public Manager, 41(3), pp. 678-710.
Andries, D. P., 2015. Evidence of the Changing Activities, Goals and Roles of Hr Practitioners. Journal of Community Positive Practices,, 15(1), pp. 123-200.
Bhatt, P., 2012. Understanding HR and Development Paradigms: Changes and Effectiveness, an Employees' Standpoint. Organization Development Journal, 30(3), pp. 65-90.
Chintalapati, N., 2013. Protecting the Competitive Advantage Derived through HR: Challenges for IT Industry. IUP Journal of Management Research, 12(3), pp. 34-89.
Fitz-Enz, J., 2010. The New HR Analytics: Predicting the Economic Value of Your Company's Human Capital Investments. New York: AMACOM.
Hussain, F., 2012. The Chief HR Officer: Defining the New Role of Human Resource Leaders. South Asian Journal of Management, 21(3), pp. 34-89.
Muller, M., 2012. The Legal Side of HR Practice. New York: American Management Association.
Muller, M., 2013. The Manager's Guide to HR: Hiring, Firing, Performance Evaluations, Documentation, Benefits, and Everything Else You Need to Know. New York: American Management Association.
Rivenburgh, D., 2013. The New Corporate Facts of Life: Rethink Your Business to Transform Today's Challenges into Tomorrow's Profits. New York: AMACOM.
Savtchenko, A., 2012. Emerging HR Leaders Help the Public Manager. The Public Manager, 41(3), pp. 67-90.
Shiri, S., 2012. Strategic Role of HR Audit in Organizational Effectiveness. Journal of Management and Public Policy, 3(2), pp. 765-800.
Srimannarayana, M., 2013. Human Resource Competencies as Perceived by Executives. Indian Journal of Industrial Relations, 49(2), pp. 45-89.
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