4 Financial Challenges Facing HR In 2020

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For the last few weeks on the WorkBright blog, we’ve talked about all things finances. We shared advice on saving money in your 2020 budget, advocating for your HR budget, and personal finance lessons you can apply to your HR budget. We wanted to end the month by discussing a few unique financial challenges facing HR in 2020. Are you ready to learn about these challenges?

Keeping Up With The Joneses

You’ve probably heard of the statement Keeping Up With The Joneses as it relates to personal finance, but this can be even more apparent in HR. You see that other companies may be offering a ton of benefits to their employees, so you try to keep up thinking that will be what sets you apart. It won’t.

Employees don’t care about beer fridges. Your employees want tuition reimbursement, healthcare, and other financial incentives that will help them make the most of their income. Are you giving your employees what they need?

In 2014, SHRM published an article about the financial challenges employees face. Structuring your benefits program around this will prove to be beneficial for your workplace and your employees. You don’t need ping pong tables to get the best employees. Instead, focus that money on benefits that will serve your team financially and help them refocus their attention on the work you do every day.

When we talked about saving money on your HR budget earlier this month, revisiting benefits was one of our suggestions. Revisit which benefits work, which ones your employees don’t use, and which ones your employers would like to see in the future.

Generational Differences

We are in a unique time right now as more generations converge in the same work environment. From Baby Boomers to Gen Z, your office is getting pretty full.

Why is this a financial challenge? Different generations may want different perks and a personalized experience that makes them feel like a valued employee of the company.

Having different generations in the workplace at once isn’t necessarily a bad thing. It may be beneficial for your company because you get to utilize the exciting insight that you can only get from different generations. Each generation brings something unique to the table.

As an HR professional, you need to be aware of the differences and similarities of each generation. Focus on how you can effectively help the generations coexist without creating different experiences for each generation.

The Skills Gap

Unfortunately, there seems to be a gap between how ready new employees feel they are and what hiring managers think. Many hiring managers believe there is a skill gap, and this can be costly for HR.

As an HR professional, you either have to spend more money to find qualified employees or invest heavily in professional development for your employees.

The best part about making these investments in your workforce is that they benefit from them and work harder because of them. When you invest in your people, they feel like they are a part of the team. Investment leads to your employees feeling proud of the work they do every day.

Making New Hiring Tactics Financially Feasible

If you are in HR right now, you know that you have to stay ahead of the curve. You may be creating new recruiting partnerships, revising your recruiting goals, and targeting new potential employees.

While this keeps you ahead of the competition, it can also be costly if you do it wrong. Make sure you track your spending and the effectiveness of new hiring tactics. By monitoring what works and what doesn’t, you can create a financially feasible future while exploring new recruiting techniques.

Conclusion

By understanding these financial challenges facing HR, you can make necessary changes in your business without the stress. We hope that this article sheds some light on topics you should be discussing with your team. What will you be doing in 2020 to set your HR department up for success in the new decade?

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