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HR Issues

Your company’s human-resources department may face many day-to-day issues in assembling a strategic HR and retaining old and new hires. These issues can be overwhelming to deal with and require many resources and tools to fix them, therefore it’s important to stay cautious to avoid them in the first place! Let’s discuss some of the main issues in human resources functions, how to look out for them, and most importantly how to solve them to have the best human resource management!

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What are the Top 5 HR Issues?

The human-resource department can face several issues in the HR field, but today we will talk about 5 key issues to have the best personnel management, policies and procedures. These include compensation management, HR software issues, low productivity rates, recruitment issues, employee development, compliance issues, compensation and benefits. We will also cover how to solve these issues whether it’s through upgrading HR platforms, implementing task tracking systems and social time, communicating with employees or ensuring accurate documentation. 

Compensation Management Issues

Compensation issues can happen in many organizations due to the constant changes in the market. Compensation issues can have a negative impact on employees where their productivity and motivation levels can drop. The HR department has to first make sure that the compensation offered is aligned with compensation laws and then you can move forward with other compensation based issues. Many employees demand pay transparency where they want to know how their salaries are computed. In the competitive market, offering competitive pay is also important therefore HR has to align their resources with the market to offer accurate salaries so that they can gain top talent. HR may also face issues where there is unequal compensation. For example raising one employees pay and not others, without proper review which can create inequality, including a decrease in employee satisfaction. 

Solution: Performance-Based Compensation & Additional Packages

There are many ways you can improve this issue. In order to remain competitive in terms of pay as a recruiter, HR should do thorough research on what competitors are doing. This will help them create a proper compensation analysis using industry benchmarks, so that they could set accurate pay for their employees. It’s also understandable that not all companies will be able to increase their salaries according to the market, therefore the solution is to include different packages that have several benefits. For example, offer better health care, constant appraisal, social activities perks, paid time off, parental leave, improved flexibility and enhanced mental health benefits which is crucial for employee performance. Additionally to solve inequality in pay amongst employees there are a few things that can be done. Have clear compensation reviews in place and don’t make changes to pay without proper considerations. Award raises by looking at their performance that is measured by metrics for each individual role. This will ensure fair pay increases. 

HR Software Issues

Slow HR softwares will create issues for the HR department and slow down efficiency. HR softwares are involved in talent management, workforce management, success planning, performance management, payroll, and much more. If your software is slow, there are several people that will be affected whether it’s someone trying to apply to jobs at your company or your own employees who are trying to use it. Outdated softwares also have trouble with storing large amounts of data, which makes it hard for your company to analyze important data thats needed for decision making. 

Solution: Upgrading HR Systems and Software

Upgrading your HR platform and software can greatly improve your HR department’s efficiency. Many HR platforms, such as the one from PeopleSphere’s combines many features that gives companies the chance to manage data effectively, flexibility and ability to swap different management systems. Having an updated platform will give your HR department ease of access, ability to manage data efficiently, smoother workforce management, on time payroll schedules and much more. 

Low Productivity Rates

Amongst the many HR issues that the HR department face, low productivity is one that comes up from time to time. To achieve your company goals, making sure that your employees are happy and productive in their work is crucial. To understand why low productivity rates can occur, we will cover a few reasons. Low productivity rates can occur if employees are unsure about their tasks and attempt to do too many things at once. Additionally, poor management can also lead to low productivity. Poor management can include not training employees effectively, not helping them build skills, disregarding proper task timelines to motivate them, and much more. If employees feel lost due to poor management then they won’t be motivated to complete their tasks, or they simply won’t know how to due to poor training. 

Solution: Implementing Task Tracking Systems and Social Time

To solve issues with poor management and make your objectives clear to all employees, consider improving your HR tools and HR dashboard. A dashboard that combines all your data in one place can tell you many things including the reason behind low productivity rates. Upgraded tools as such can help you dig deeper into finding out why productivity rates are low in the first place. For example, such dashboards can enable HR professionals to select the indicators they want to focus on and choose those to monitor. This could include tracking employee tasks, assessing training programs, and much more. Further, to improve employee productivity, consider including social time within the work culture. This could involve employee lunches, outings, time-to-time activities and etc. Implementing such time improves loyalty and makes the employees feel more comfortable at the company. 

Recruitment Issues

The HR department is involved in finding employees through job postings, attending career fairs, sending out promotional emails, and many other strategies. Effective recruitment of a new employee is very important because the employees in an organization play a key role in achieving company objectives, so they have to be the right fit. With constant changes in the world and economy, many employees are changing jobs and employers find it harder to attract top talent. Retention has also become a bigger issue because tougher economic times increase demands for higher compensation and packages. Therefore, organizations have to look into strategies to decrease the turnover rate and the recruiting phase is the first thing to look at in the employers’ journey. 

Solution: Reinforced Recruitment Strategies

In order to attract new talent, the HR department must look towards new strategies that are emerging. Social media is a great tool that can be leveraged to find new employees. This is a good strategy because many job seekers use social media to search for jobs. Professional networking sites such as LinkedIn also make it efficient to get a background on potential candidates through their profiles that show their experiences and education. Social media is also a tool that costs less than traditional recruitment strategies involving ads and job boards. However, there should be a good plan set that has defined strategies as to how HR will use social media. This could be narrowing down appropriate platforms to use, outlining the message you want to deliver in your job description, having good communication guidelines and etc. 

Law & Compliance Issues

One of the HR responsibilities include compliance issues. HR compliance includes making sure that you are following all labor and employment laws within your workforce planning of labor-relations. If your organization operated in different countries then you should make sure you comply with legal staffing requirement according to the different locations of your work environment. An HR professional needs to know and comply with labor laws, pay equity, health and safety and health laws, privacy laws, and etc. One of the compliance issues that occur are job listings with discriminatory language. This could involve any language that HR mistakenly has used that could offend anyone. Additionally, improper training and onboarding is an HR compliance issue that many organizations may face. This could mean that your training programs doesn’t fully help employees feel comfortable at the workplace or ready. Further, inaccurate payroll and tax payments is another issue that should be avoided. Paying employees on time and correctly is important and is a practice that has to be done fairly and in compliance with the law. 

Solution: Communication and Documentation

In order to maintain being high-performing updated regulatory laws, HR should be involved in reading press releases and stay on top of updates from the government agencies. Auditing your own compliance with regulations and having someone in charge to do this will help you recognize any roadblocks that you may be missing. Additionally, keep a practice of documenting company policies. This can cover pay schedules, sick leaves, vacations, health and safety guidelines and much more. They can be updated as new laws are put into place and it also makes management of workforce more efficient. Lastly, keep constant communication with your employees. Communicate how ethical behavior at the organization looks like, and encourage them that they have the right to speak up if they notice anything going on. Communication is a way to motivate employees and make them feel comfortable at their workplace. 


While the HR department faces many issues, there are always ways to solve them and be on the lookout for any roadblocks! Some things to look into HR planning is how HR technology is a factor in your strategies. Top human resources issues consist of: 

1. Compensation Management
2. Issues Concerning HR software
3. Low Productivity Rates
4. Recruitment Issues
5. Law and Compliance issues

The new strategy in HR planning that has all the qualifications to help simplify these issues, is by integrating an HR software that integrates all your platforms into one place for all your human resource activities.  

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