The manufacturing industry is one of the largest employers in India. More than 22 million workers are employed by manufacturing businesses. With such a large workforce, delegating work and keeping operations smooth would be easier. But, the manufacturing sector in the country suffers due to overtime issues.
Overtime in the manufacturing industry is a problem for companies and workers. Once overtime was seen as a way to improve productivity, but now it is considered one of the most significant stress sources that lead to poor work-life balance.
This article will discuss how to reduce overtime in manufacturing without affecting output. We will list some strategies to overcome the issue.
But first, let's find out why overtime can be counterproductive.
Why should organizations try to reduce overtime?
Overtime is the number of hours employees work that exceed their regular hours. Companies and HR managers often overlook the dangers of overtime. But, when observed closely, it is startling how costly overtime issues can be. Not only can it adversely affect the company's bottom line, but it can have side effects on the workers.
1. Financial Impact
The financial burden for the company to compensate overtime can be a significant undertaking. According to the labor laws in the country, employees must be remunerated at twice the rate of their regular working hours. While some employees might need to work overtime for extra income, others use overtime rates to work unnecessarily to be compensated above their average wage rate. For a company paying employees overtime rates for work that can be accommodated during the regular shift hour is a pitfall that can profoundly affect its bottom line.
2. Impact on performance
A more visceral effect of overtime on workers is the reduced performance. In this whitepaper, J. Nevison clearly illustrates that over time can negatively affect performance. He suggests that there is little productive work done when workers need to work over and above 50 hours per week. Two other supporting studies found the whitepaper valid and showed that workforce productivity drops by an additional 10 hours with an increase of 4 to 12 hours in their work shifts.
Overworked employees are less focused on their jobs and feel alienated in the workplace. It also has an impact on their morale making them more susceptible to performance issues. Companies must be aware of the financial liability of such a decline in productivity.
3. Precursor of health problems
While financial and productivity impacts can be managed, the harmful effects of overtime on workers' health are even more severe. Countless studies link overtime or overwork to health issues. It leads to poor work-life balance that also affects personal relationships. According to one study, workers who worked three or more hours longer than the usual shift (7 hours a day) are at a 60% higher risk of heart and cardiovascular health issues. Other health issues are associated with overtime, such as high blood pressure, increased stress, anxiety, lower back problems, alcoholism, and addiction issues. All these issues bring productivity lapses in the workforce, leading to higher absenteeism rates.
6 Ways to reduce overtime in the manufacturing industry
When you identify the causes of overtime in your company, it is essential to resolve them as soon as possible. Furthermore, if your company doesn't experience regular overtime hours, you should still have measures to avoid overtime.
Here are some ways using which manufacturing companies can reduce overtime.
1. Make sure your team has the right tool, equipment, and resources to complete the work on time
To reduce overtime, you have to make all the right tools and resources available that allow the most efficient use of employee hours. Allow workers to work smarter, not longer. There are a lot many manual and administrative tasks that can be automated to free human resources. People working behind the desk often spend more than one-fourth of their day reading and responding to emails alone.
How can you expect to reduce overtime if the monotonous, day-to-day task consumes a quarter of workers' shift time? It is why it is necessary to automate such tasks to allow workers to focus on more productive tasks that add value to the company and boost productivity. You can use tools like Asana and Jira for project planning and team collaboration.
Manual attendance keeping and leave management is one task that takes much time for the HR team to manage. With the availability of attendance systems like Truein, recording and managing attendance can be automated. It has several benefits for both employees and HR managers.
Truein integrates with payroll software, so it is easy to track attendance and overtime to pay only for the hours a worker worked. As an automated face-recognition system, workers cannot trick Truein with time theft.
These are little adjustments at the outset but can go a long way to reduce overtime. When you free up human resources, they invest most of their time on actual responsibilities.
2. Create an overtime policy
Just verbal overtime instructions will not help curb overtime. It would be best if you had a well-thought overtime policy to communicate company expectations to the workers. An official overtime policy explains all the aspects of working overtime. It details how employees will be compensated for overtime hours. Discuss with the HR managers how to reduce overtime in manufacturing by implementing an overtime policy.
When preparing the overtime policy, clarify who will approve the overtime hours, manage shifts, and how much say the employees have in the matter.
Just creating an overtime policy won't be enough; you must ensure that all employees and managers have access to the overtime policy. Truein can help with it as well. HR managers can create and implement overtime policy from the dashboard, and employees can access the procedure on their smartphones. An official overtime policy leaves little scope for misunderstanding and lays strict ground rules for employees. It ensures workers are not exploiting overtime.
3. Cross-train your employees
In the manufacturing industry, it is possible to cross-train employees. For instance, having all the floor workers trained in handling CNC machines can save you money. Rather than scheduling overtime or hiring additional staff, you can pull workers from other departments to work on CNC machines during busy periods.
Cross-training employees can significantly benefit your company's bottom line. It helps make schedules much more efficient and ensures workers are not working excessive overtime. You have to ensure there is no staff shortage in a department; if there is, cross-train other workers to pick up the slack instead of staff working overtime.
4. Allow flexible work schedules
It is a myth that the 9-5 work hours are the best for productivity. Many workers report that working from home is more productive than working in an office. For the manufacturing industry, it is a challenge as most of the workforce needs to be present on-site to keep the production optimal.
While the administrative staff, to an extent, can be allowed to work from home, most of the workers need to be present in the office. You can have more flexible work schedules for workers to enable them to work shifts that are adjusted to the most productive hours. Employees with flexible schedules can focus more, improving their productivity and reducing the chances of overtime.
5. Allow overtime only when required
While there are rules on how workers must get compensation for the overtime hours, there is no cap on how many hours employees can work for overtime. You must have policies that explicitly explain how many hours an employee can work overtime. As an employer, you have the authority to set overtime rules freely.
It would help if you allowed overtime only when it is required. Determine a weekly, monthly, or annual cap of overtime hours your business can afford. This will help you decide the scope of overtime employees can work when needed, ensuring that it does not become a norm. It will also help distribute work evenly amongst workers such that all employees have an equal chance of working overtime hours for extra pay.
6. Schedule shifts
Employee shift scheduling must help to reduce overtime, not increase it. It is essential to ensure that your HR team is preparing employee schedules that are organized, managed, and updated regularly. It will allow your organization to accurately match staffing levels to the work demand and eliminate any requirement for overtime. Truein can help you organize staff according to the need to distribute work and make schedules that accommodate work demands without overtime.
If your company still relies on manual sheets or Excel to manage shifts and overtime, you will benefit by switching to Truein, which completely automates scheduling and attendance management. It allows managers and supervisors to keep track of employees to ensure they are working their shifts.
Overtime can be one of the biggest profit-killers for a manufacturing company. It is essential to reduce overtime to remain profitable and avoid adverse effects on employees' health and productivity. We hope this article will provide you with all the insights you need on reducing overtime in manufacturing.
Truein has been helping some of the biggest manufacturing companies in the country reduce unnecessary overtime. Our comprehensive time and attendance management system also offers employee scheduling features. With Truein’s attendance system for the manufacturing industry, you can refine your company's scheduling process and optimize the workforce for maximum productivity without overtime.
But when do you know that employee absenteeism is too much?When unscheduled absences become a norm and impact the company's productivity, HR managers must take action. While a flexible schedule is a great way to retain employees and attract talent, rampant absenteeism can negatively impact workforce morale and create a bottleneck for the bottom line. This is why leading organizations proactively discuss strategies to deal with employee absenteeism. This article will discuss everything related to employee absenteeism and how to manage absenteeism effectively.
What is employee absenteeism?In simple terms, employee absenteeism is the frequent lack of attendance without reasonable cause or proper notification. Absenteeism is a repeated behavior and doesn't include occasional no-call, no-show, or absences in instances that cannot be controlled like illness, sudden climate change, broken car, etc. For an organization, it is essential to have measures in place to guide HR managers in dealing with absenteeism at work. Employee absenteeism is on the rise, and ever since the pandemic, it is becoming even more challenging for companies to take control of the situation when more people are calling in sick when they aren't. In the long term, employee absenteeism can affect a company's productivity. There are associated financial risks, too, as absenteeism-linked productivity losses cost U.S. companies $225.8 billion annually. HR professionals must be capable of making decisions on how to deal with excessive absenteeism in the workplace to avoid such losses.
Who is affected by employee absenteeism?The answer might seem straightforward. Companies are at the most loss if they cannot control absenteeism, but they are not the only ones at a loss. While the costs to the company are pretty high, absenteeism affects employees too. It paves the way for poor work ethics that sets a dangerous precedent for new employees to follow. Employees who are regular with their attendance feel discouraged to continue to be so as they witness absenteeism. Speaking of monetary losses, according to the publication titled Absenteeism: The Bottom-Line Killer, companies across the globe lose roughly $3,600 per year for each hourly worker and $2,660 each year for salaried employees due to unscheduled absenteeism. Apart from these direct losses, there are indirect costs such as wages paid to absent employees, poor quality of goods/services resulting from understaffing, and administrative expenses of managing absenteeism.
5 Reasons for employee absenteeismWe understand that employee absenteeism is too high of a risk of being left unattended. Still, HR professionals must know what factors result in absenteeism to nip the evil in the bud.
1. Low employee engagementNo company can have a dedicated workforce without ensuring employee engagement in the work culture. If there is a lack of activities to bring employees closer to their workplace, they will feel disengaged at work. It is essential for employee engagement and productivity that they feel connected to the workplace. When your workplace lacks employee engagement, the chances of absenteeism are high.
2. Time theft can also be considered absenteeismCompany productivity is affected when employees are absent without informing, but time theft also results in the same losses for the company. When employees take unnecessarily long breaks, are frequently late to work, or leave early, they are essentially committing absenteeism. It is a practice that raises a question for the HR manager about the dedication and commitment of the employees. If unchecked, time theft can hurt the sentiments and morale of honest employees, further worsening the situation.
3. Lack of a flexible workingSince the pandemic, employees are more discerning of the work-life balance and seek opportunities that allow them to focus on both. If a company has too rigid shifts leaving little scope for flexibility, it can be a significant reason for employee absenteeism. Lack of flexibility can be one of the biggest reasons employees miss work without prior notice.
4. Workplace burnoutBurnout leads to ill-performance among employees. When there are no measures to avoid rigorous and unscheduled working conditions, employees face burnout that results in unscheduled absences. Employees must get breaks to rejuvenate. If a company overexposes its workforce to work, it can lead to the degradation of their interest in work.
5. Substance abuse and stressAn issue that is widely known but less discussed, substance abuse among employees, can be a real problem. Employees succumb to substance abuse in some industries to relieve work stress and rejuvenate. Alcoholism is one typical example of substance abuse among employees. However, such abuse is detrimental to the employees' physical and mental health. It degrades their motor functions and thinking ability, leaving them unfit for performing their duties.
8 Ways to deal with employee absenteeismNow that we know the main reasons let's discuss how to deal with staff absenteeism.
1. Create an employee attendance policyEmployee attendance policy helps the company communicate what is expected of the employees for attendance. This policy is a document that clearly states what is considered absenteeism and how will be the consequences of unscheduled absences. Employees must be aware of what the company expects from them to stick with the rules.
Take employee opinionsCompanies can understand how the workforce thinks and feels through employee opinions and surveys. The insights gained through surveys can help tackle the question- of how to deal with absenteeism in the workplace. Ask employees about commuting to work, schedule, personal issues, job satisfaction, etc.
3. Adopt a flexible work scheduleAs we mentioned above, that lack of flexibility can disengage workers. Adopt a flexible work schedule to allow workers to find a work-life balance and have more time for themselves and their loved ones.
4. Do employee engagement programsIdeally, the workplace should not only be about work but should provide opportunities for employees to bond and engage on a personal level. Employee engagement programs are excellent at bridging the gap between employees and their employers. Such programs make employees feel acknowledged and appreciated for their work.
5. Start employee wellness programsWellness programs can help address health issues that employees face due to work. Such wellness programs fit within an employee's regular work schedule. When you start a wellness program in the workplace, workers are encouraged to stay fit and healthy, ultimately providing you with a solution to how to deal with employee absenteeism.
6. Give rewards or incentives to employeesIf unscheduled absences must be punished, then you must incentivize an excellent attendance record, and punctual employees must be rewarded. It will keep their morale high and let others know that their presence in the workplace will be highly appreciated.
7. Provide one to two weeks of paid time offThe work schedule must not bound employees; that's why flexibility is a must. However, it is vital to provide paid time off to employees to let them have time for themselves and family. Paid time off is an excellent way to reduce employee absenteeism.
8. Keep track of employee absencesHR managers can take steps and decide how to handle employee absenteeism only when they know the severity of the situation. It is essential to track employee absences properly to make the right decisions. For this, the Truein face recognition system can be highly effective. An AI-based cloud attendance and leave management system, Truein comes with in-built features to help managers and supervisors keep track of employees. As it is GPS based and can be deployed with an app on a worker's phone, it is much easier to keep track of employee attendance.
ConclusionEmployee absenteeism is a real nuisance that requires well-thought strategies to tackle challenges before they consume revenues and nose-dive productivity. We hope this guide will provide you an insight into what is causing unscheduled absences at your workplace and the strategies to deal with employee absenteeism.
Every company needs an adequate time and attendance policy to inform employees about the expectations of the organization and the consequences of failing to meet them. Employee attendance is a critical factor in the overall performance of an organization, and if not kept under check, it can lead to significant problems.
According to the Center for Disease Control (CDC), productivity losses resulting from employee absenteeism cost employers $225.8 billion annually, or $1,685 per employee. When your workers are aware of the attendance policy in place, it helps boost the productivity of your business.
HR managers must remember that unexpected absence once in a while is alright, but regular absenteeism can severely impact the bottom line. Even if your company does not have an attendance problem, an effective attendance policy can help keep things organized. It communicates the attendance requirements to the employees.
Here in this guide, we will explore the attendance policy in detail.
Let's start with the basics.
What is an attendance policy?
An employee attendance policy is a document that defines the set of rules to reduce absenteeism, improve employee productivity and clearly explain expectations for employees in a consistent language.
An employee attendance policy indicates the time to arrive and leave throughout the defined workweek. Furthermore, it clearly explains the violations such as arriving late, leaving early and being absent. It should also contain information on how employees should report their arrival and departure. The policy should help employees distinguish between acceptable and unacceptable absences.
A comprehensive attendance policy also provides the logic and reason behind the creation and enforcement of the policy.
Why does an organization need an attendance policy?
As mentioned above, an attendance policy is essential to establish professional expectations from your staff. Still, most importantly, it provides a formal structure for reprimanding repeated non-compliance to the guidelines. Here are other benefits of implementing a well-defined attendance policy in your organization.
When there is an attendance policy to instruct employees, it becomes easier to allocate your human resources, such as employees, efficiently. For instance, a policy can include specific instructions for the workforce to report on the floor 10 minutes before a shift change to ensure that the assembly line runs smoothly. You can also have a specific notice period before taking a leave to allow enough time for HR managers to bring in replacement staff. An attendance policy can help efficiently use the workforce and distribute workloads to keep the operations up unabated.
Employee absenteeism or lateness cost companies revenue which is why it is essential to keep a check on it. For example, suppose a staffer who is expected to open the business at a particular time is regularly late; it can tarnish the reputation of your business and make customers think of it as unreliable. With a strict attendance policy, you can modify such behavior and address it immediately to resolve the issue from becoming a problem.
When the managers do not handle employees who are not punctual and take too many off, it demoralizes other staffers who come to work on time. It is also unfair to other employees to cover for regularly late staffers. With an attendance policy, you can prevent repeated absenteeism, eradicating any instance of infighting between staffers.
By implementing an attendance policy, you send a message that you don't take frequent absenteeism lightly and always take a formal approach to deal with the attendance issues.
How to write an effective attendance policy?
A good attendance policy takes an organization's culture and needs into consideration. Depending on the industry, the requirements of your employees can differ and soak in the business environment. While every business has its unique requirements, here are some tips for creating an attendance policy for employees that is comprehensive and effective.
Don't use ambiguous definitions
It is essential to have clear and concise definitions in an attendance policy so that employees can understand the requirements. Avoid using ambiguous terminologies at all costs. Clearly define tardiness, accused absence, unexcused absence, sick leave, paid time off, and half-day. For instance, when you describe tardiness, explicitly inform employees how much late they can clock in, like recording the attendance of more than 10 minutes late will be tardiness.
Create employee protocols
There should be a clear protocol for all the workers when requesting leaves, time off, or going to be late. The attendance policy should fairly outline how an employee should alert managers and what actions will be taken if an employee does not show up without advance notice.
Don't publish a policy draft without collaborating with employees
Once the first draft of the attendance policy with all crucial definitions and protocols outlined is ready, it is time to explore all possible scenarios. Add multiple sections and distinctions for workers and managers wherever necessary. The policy must include medical emergencies, climatic obstructions, and other unforeseen circumstances. The idea here is to create a fair attendance policy that managers should not use as a weapon against the employees; instead, it should protect their interests.
To achieve this goal, you may want to share the draft with employees and seek their feedback within a limited time. Set up open discussions with employees to address any concerns or requests. It is essential to ensure that the attendance policy does not alienate employees.
Enact the policy
After workers have reviewed the attendance policy draft, the final step is to enact a plan. You must ensure that both existing and new workers have access to the policy. It is also essential to train the HR managers to enforce the policy consistently and fairly for all employees if there are violations.
These are the basic steps to writing an attendance policy, and we have provided them as a general guideline. To guide you further, here is a sample attendance policy.
Attendance policy template
Add a logo of the company here
Introduction to Employee Attendance Policy:
At [NAME OF BUSINESS], good workplace attendance is one of the primary expectations from all employees. We expect every employee to take full responsibility for their attendance without compromising on the company's policies. All employees are expected to arrive on time, be present, and work for the entire duration of all scheduled shifts. Any requirement for leaving work early, absences, and late arrivals must be arranged in advance by contacting prospective supervisors and managers. Placing "fill-ins" or coverage for missed shifts is the employee's sole responsibility.
Absence: Supervisor must be notified by the employee at least [duration] in advance. The employee will be absent from the assigned shift if the employee fails to notify supervisors [duration].
Unscheduled absence: An employee informs the supervisor immediately before the shift starts that they will be absent from the shift due to an emergency or other unexpected causes. Failure to notify the supervisor can result in the absence being counted as a "no show" or result in [consequence].
[Number] unscheduled absences will result in [consequence].
Tardiness: When an employee arrives at work at least [duration] minutes after the scheduled shift start. If the employee shows up later than [duration] after shift start time, tardiness will be recorded as an absence.
After [number] tardies, the employee will be subject to [consequence].
No-show: If an employee fails to show up for a shift without notifying the supervisor, it will be a no-show.
After [number] no-show, the employee will be subject to [consequence].
After [number] consecutive no-shows, the employee will be terminated.
Sick days: Employee is absent from shift due to illness or doctor's note. The employee's sole responsibility is to notify the supervisor in case of illness or medical emergency. Otherwise, the absence will be counted as a "no-show."
Include additional guidelines about your company's visions, goals, and responsible management. Information can include why it is essential to enact this policy.
How to track employee time and attendance?
Drafting and enacting an attendance policy is just one part of the job. To fully benefit from the procedure, you should have measures in place to track the time and attendance of the employees. For this purpose, you can install an attendance system. However, before you choose a product, it is essential to:
Identify the tracking needs of your business
There is a significant difference in tracking the needs of businesses as their requirements differ. Several solutions are available to track employees' time and attendance, but the choice depends on your requirement. For instance, if your company is in the IT industry, you will need an attendance system to track employee working hours and busy times on desktops. If you are in a domain like manufacturing and mining, your workforce will be distributed over a large area, and a standard attendance system will not work. You will need an attendance system with GPS-enabled tracking that can be used with minimal hardware.
It will also help to choose a time and attendance management system that integrates with your accounting or payroll software to increase the productivity of the HR team. Such an attendance system will make dealing with time theft, absenteeism, and attendance regularization easier.
Choose the right time and attendance system
Depending on the requirements above, you must choose an attendance system that can handle the HR requirements.
Truein is a new-age face recognition attendance system that utilizes the power of AI to track and record attendance. The attendance system is cloud-based, enabling businesses to deploy its solutions for remote sites and field workers. It has GPS and geo-fencing features that track employees using their smartphones. Furthermore, it offers features like mobile punching, leave management, the ability to create reports and set alerts, and easily integrates with accounting systems.
We hope this guide provides you with a proper guideline for writing an attendance policy for your business. Irrespective of your business nature, it is essential to create an approach that boosts productivity and helps employees understand the attendance expectations without making them susceptible to exploitation.
The modern working environment is changing at an unprecedented faster pace. HR leaders encounter many challenges as organizations get impacted by the disruptive change of priorities among employees due to the adoption of new business models.
According to the Today and Tomorrow survey conducted by PricewaterhouseCoopers for the World Federation of Personnel Management Associations (WFPMA), 48% of the surveyed HR professionals feel a need for change in management policies. Also, most respondents agree that nurturing 'human skills' is the second most crucial challenge after 'building trust.' Furthermore, 91% of respondents agree that employees see being part of an organization trusted by society as critical to their future.
Keeping these developments in mind, in this article, we will explore the challenges faced by HR as new work cultures rise and better work/life balance becomes mandatory.
1. Attracting and retaining good talent
More than 4.3 million people voluntarily quit their jobs by the end of 2021, as per the US Bureau of Labor Statistics. Employees have gone more discerning about what they want from their jobs, so they are looking for opportunities that better match their talent and offer flexibility.
Attracting and retaining a good workforce is a significant challenge for HRs in 2022. It is even more difficult for small and medium enterprises since workers seek opportunities that offer better benefits, where more prominent brands often shine. Attracting talent is one part of the challenge, but it also goes beyond recruitment. Retention of blue-collar workers through various initiatives like offering better increments, health benefits, work-life balance, and opportunities to learn is also essential.
HR leaders should build a stronger employer brand to overcome this challenge. They should check social platforms like Glassdoor and Great Place to Work. These platforms can help create a solid and positive employer brand as the information shared about your organization here is privy to prospective employees. Active Corporate Social Responsibility (CSR) activities can help build an emotional platform for prospective employee-employer bonding. For instance, presenting employees with opportunities to contribute to causes they are passionate about. Companies can arrange for skills-based micro-volunteering opportunities through platforms like Catchafire where employees can contribute with their skills rather than donating money.
Furthermore, HR managers should create a structured onboarding process that helps recruits get accustomed to the new work environment quickly.
2. Making Diversity, Equity, and Inclusion (DEI) a strategic goal
According to Gartner, 69% of companies have identified that workforce diversity and inclusion are essential for strategic development in the wake of the hybrid work culture. Yet, only 35% of HR leaders prioritize DEI for the coming years. In 2022, challenges faced by human resource management include DEI-related issues. HR leaders will have to diversify the workforce to create an inclusionary working environment.
To create a diversified workforce, you have to be strategic and person-specific. You can leverage diverse job boards like Recruit Disability which helps locate people with disability looking for work. A recommended move is to highlight diversity on the career page of your organization's website to let prospective employees know you support DEI.
3. Compensation and Benefits
Amid growing competition to hire talent and the great resignation, employees revisit the compensation and benefits requirements. Companies offer pay increases, more benefits, and going beyond the norms to provide perks like health benefits and flexibility. If HR leaders are not ready with a strategy to match talent expectations, it will be tough to recruit and retain top talent in 2022.
The solution lies in designing a compensation structure that best fits your organization and meets industry standards. One of the significant challenges HR managers face is deciding what benefits matter in 2022; you should do some market research. Workers want more flexibility; it is a substantial benefit to offer. Another way to ensure a return on investment is to provide variable performance-based components. Such performance-linked rewards will keep employees motivated to perform at their best.
4. Prioritizing employee mental and emotional well-being
In the wake of the pandemic, workers' mental health and resilience are at the forefront in 2022. Employee well-being is no longer just about physical well-being but has mental and emotional well-being as essential aspects. As the hybrid work environment blurs the line between work and personal life, companies will be required to invest heavily in improving employee well-being to remain resilient and confident.
There is a need to make arrangements for a positive and healthier work environment for field staff. They should not feel the stress of too drastic changes in work culture due to the adoption of new technologies.
Employee well-being has evolved beyond physical well-being to include the development of a holistic well-being culture. Future Workplace has identified the top seven pillars of holistic employee well-being:
- Physical well-being
- Career well-being
- Financial well-being
- Social well-being
- Community well-being
- Emotional well-being
- Purpose-driven well-being
HR managers should focus on these pillars and create a strategy to address all seven.
5. Equipping future leaders
In a survey, the leadership consulting firm DDI surveyed 368 CEOs and 2,102 HR professionals to understand how ready their leaders are to take more responsibility in the future. Surprisingly, the respondents rated only 38% of their mid-level leaders as "very good," or "excellent" rest were not satisfactory in the role. In 2022, one of the biggest challenges faced by HRM is the global talent shortage. The onus is on the HR leaders to nurture talent within the organization for long-term success.
HR leaders must work on strategies that upskill mid-level managers to prepare them as future leaders for better promotional opportunities. The focus must be on nurturing empathy-driven managers who consciously address the needs of their subordinates.
6. Not being able to automate routine tasks
HR responsibilities are shifting in the hybrid work culture. The HR managers should be focusing more on the strategic areas that lead to business development rather than wasting time on repetitive administrative tasks. Interestingly, according to McKinsey, we have the technologies available to automate 56% of human resource functions.
Automating routine administrative tasks can help you focus on aspects that directly impact employee engagement and retention. While technology cannot replace teamwork, communication, or collaboration, it can help human resource specialists focus on understanding people, which is crucial in developing work relationships.
An example of how automation can help HR is by using software-based time tracking and attendance management. Recording employee time and attendance can be automated with solutions like Truein which is a face recognition attendance system that automates the entire process and integrates with most payroll solutions. Implementing such systems help HR leaders make payroll more effective and increase productivity while minimizing human errors.
7. Being well-versed with people analytics
People analytics will give organizations a lead in the competition. In 2022, deploying analytics, virtual work technology, and using more comprehensive learning platforms is essential. HR managers can no longer make decisions based on their intuition; rather, the success lies with data-driven decision-making.
For a long time, organizations have relied on gut feeling, intuition, and prior experience policies. HR should take up the challenge to introduce people analytics in the Workplace to make more confident decisions. HR managers can move beyond administrators and become value generators by implementing people analytics. To maximize the value you get from people analytics investment, make sure you establish a culture of constant listening. Transparent listening help over challenges faced by HR in team building.
8. Positive change management
Over 54% of HR leaders Gartner surveyed on their 2022 goals reported change anxiety. The survey found that little day-to-day adjustments like adjusting to the new hybrid work environment, new teammates, a new boss, or tiny process shifts caused 2.5 times more exhaustion in employees than any significant revolutionary changes.
Given that change is inevitable in the fast-paced, ever-changing corporate world, change management is one of the biggest challenges facing human resource management in the 21st century. These changes can be structural, economic, geographical, managerial, procedural, and, most commonly, technological. Inability to foresee, plan or predict these changes can lead to lower productivity, unpreparedness, and high attrition.
Businesses that survive unforeseen disruptions like the COVID-19 epidemic are the ones that proactively embrace changes rather than reacting to external causes. Since the pandemic, organizations have adopted an "adapt or perish" mentality, but actual sustainable survival is only possible when companies embrace change as part of their culture.
The best practice to manage change positively is to predict it and prepare the workers to adapt to these changes. Not every employee will react positively to sudden change, which is why communicating the changes early on is better so that employees can make adjustments at their own pace.
9. Upgrading the recruitment and onboarding tools
As hiring the best talent becomes fiercer, HR managers have to adopt new technological tools like AI and Machine Learning to refine the recruitment process. AI is making it easier for HR to hire talent remotely by assisting with remote recruitment, interviewing, and onboarding.
Most companies are already using artificial intelligence to screen resumes through Applicant Tracking Systems. The requirement for a human viewpoint will always be there as AI can speed up the hiring process, but issues like discrimination and unequal hiring practices still need human intervention.
10. Continuous learning and succession planning
In the end, HR is responsible for providing an environment that stimulates the growth and success of employees. But when the work culture is becoming more and more hybrid, it is challenging to promote upskilling and continuous learning. HRM is responsible for fostering an environment of learning to match the rising ambitions of employees. It is essential because 94% of employees agree that they will voluntarily stay with a company longer if it invests in their learning and upskilling.
Therefore, HR managers must identify training relevant to the current trends. Also, they need to adopt a practical rather than theoretical approach to upskill employees.
In 2022, the challenges faced by HR leaders will be complicated, and so organizations need employee integration, cooperation, and transparent communication to grow in a hybrid work environment. HR managers must manage the challenges we have listed here to help their organizations succeed through a diverse and productive workforce.
Human Resource Management remains a crucial aspect necessary to building a unique workplace culture in the current scenario. Proper management of these challenges will eliminate employee uncertainties, providing the organization with a competitive advantage.