72% of companies identify problems related to human resource management (HRM) among the biggest business challenges (BCG study, which includes Lithuanian companies).
Regardless of company size, leaders identify the following HRM prioritiesfor this year:
Leadership competencies
Employee engagement
Talent acquisition
Performance management
Offen happens that HRM solutions that worked perfectly well before, are not effective and does not create value any more. How to recognise a necessity for changes in HRM?
Unsatisfactory business results – one of the most important signals. Is this related to HRM? It could be. Difficulties arise when HRM decisions diverge from business goals, for example, we planned rapid expansion but are struggling with talent acquisition. Another common mistake is focusing on only one issue, forgetting the overall context that has a direct impact on it. For instance, when setting performance goals for employees’ greater efficiency, the importance of motivation and engagement is ignored, which is directly influenced by competency gaps, quality of leadership, transparent reward and many other components.
Increased employee turnover or difficulties in attracting the right talent – another "red flag" that cannot be ignored and can have direct negative impact on business results.
Rapid business growth – another reason to review existing HRM solutions. Clear and transparent processes, such as employee onboarding, performance management become increasingly relevant as the team grows. It may be necessary to find new and more effective ways of internal communication. For newly appointed managers it's important to remember that leadership competences need to be learned and developed.
Smaller companies often lack HR competencies, while HR specialists in larger companies are concentrated on urgent daily tasks. In such cases, a broader perspective on HRM is lacking, so an external consultant can help identify visible and invisible problems, propose solutions, and implement them. This creates a change that positively impacts business results.
In the end, human resource challenges rarely resolve themselves. Actively addressing them is necessary to achieve long-term company success and competitive advantage in the market.
How can ExpertLAB's Associate Partner for Human Resources, Jurgita Ruzgienė, help you?
Identify problem areas.
Set priorities, develop an action plan for necessary changes, and help implement it.
Consult managers and employees responsible for human resources on various people-related issues.
Let's connect and discuss how to turn HR challenges into opportunities for growth.
More about HR services - here.
