The realm of business is an ever-evolving world and employers have to continue to adapt. Otherwise, their companies can become irrelevant. With running a business, challenges go much deeper than ensuring to produce quality products and services.
Underneath the entire umbrella of running a business, employers have to overlook the condition of the workforce, market trends, competition, cash flow and much more. Today, the top challenges employers are facing are problems relating to the HR landscape.
As work culture changes, the needs and wants of employees do so as well. With this, employers need new strategies to attract, keep and motivate employees to be more engaged and perform at their peak.
Here are the top challenges employers are facing for 2020:
Leaders affect so much of an organization. As the saying goes, “leaders can make or break an organization.” With an excellent leader, the company can be propelled towards success. Meanwhile, with a bad leader, the company can have poor performance and even face its demise.
Here’s a shocking fact about leadership: there are more bad leaders than good ones. According to a poll from Gallup, 82% of leaders do not possess good leadership skills. Moreover, according to Elucidat, 77% of organizations are experiencing a leadership gap.
There are a couple of reasons why organizations are beginning to experience a leadership gap. Here are but some of them:
- Around 10,000 baby boomers are retiring each day. This is according to the Washington Post. The effect of this is the loss of organizational knowledge.
- Lack of leadership training. According to HRPA’s study on HR and Millenials, 63% of millennials think that their employers are not developing their abilities with leadership. Millennials are a key ingredient to this topic as they make up 50% of the workforce. By 2025, they’ll make up 75% of the global workforce population.
- The mistake of promoting employees who are the best at their work for leadership roles. While excellence at work is needed in leadership, it requires a lot more to identify a potential leader.
With the mass baby boomer exodus and the fast influx of millennials in the workforce, leadership development and continuity has become an issue. Being able to integrate leadership development can help better prepare future leaders of organizations.
The importance of good leadership shouldn’t be taken for granted. Moreover, leadership training helps with creating a positive company culture, improving employee retention, morale and boosting productivity.
Employee benefits now have become a key element in the war for people. As a lot of people now regard benefits as their main consideration whether to accept a job offer or to stay at their company, organizations have adapted by offering competitive employee benefits.
But this is easier said than done. For a small business, this can be a daunting challenge as they don’t have to compete with just other businesses of their size but also with large corporations.
Offering good benefits can get super expensive. If an employer offers great benefits but end up still having high turnover rates, the effects can be detrimental.
According to Eric Koester of MyHighTechStart-Up, “estimates range from 1.5 to 3 times of salary for the ‘fully-baked’ cost of an employee – the cost including things like benefits, taxes, equipment, training, rent, etc.”
Employees want more benefits. Workers now are more conscious about the basics and importance of employee benefits. Being able to identify and implement the right employee benefits is key in attracting and keeping employees.
Retaining Talented Employees
Before, employees were more loyal to their jobs. Employees before could keep their first jobs until they retire. Now, with a myriad of job opportunities and consciousness for work-life balance, employees have become harder to keep.
Here are the statistics about employee loyalty:
- According to LinkedIn, there’s a 76% chance of employees still staying at their job after 1 year. After 2 years, the likelihood drops to 59% and 48% at 3 years.
- A study by Ajilon has found that 88% of American full-time workers who changed their jobs in the past 2 years are open to pursuing a new job opportunity.
- According to CareerBuilder, 29% of employees look for new job opportunities even while employed.
- According to Bankrate, 26% of employees intend to look for a better job in the next 12 months.
Job seekers now have high standards wanting organizations with a positive company culture, competitive benefits and salary, opportunity for career advancement and more. To attract the best candidates and in keeping them, employers have to become more employee-oriented.
If employees know that they can trust their employers through the benefits given to them and their overall experience with their jobs, they’ll stay. This is why top companies strive to foster a positive company culture and invest a lot in employee satisfaction and happiness.
By knowing the solutions to the top challenges employers are facing today, you can have an edge over your competitors. There are a lot of guides on the internet on how to deal with the top challenges employers are facing now.
Build an effective strategy on how you can deal with these trending issues and your business can produce ideal results. Begin to formulate them before it can be too late.