Identify Main Challenges in Human Resource Departments and Suggest the Remedial Actions: Case Study

Abstract

HRM is a crucial field that manages the relationship between employers and employees, including hiring, training, and evaluating their work output. It faces numerous challenges, including employee engagement, leadership development, health, onboarding, new hiring training, HR effectiveness measurement, compensation, and benefits. Technology changes can also lead to financial losses. Retraining and upskilling unskilled employees is another issue. This paper aims to identify the biggest challenges in HRM and identify solutions to decline them. The methodology used is Google Forms to make questionnaires, collected data with 80 responses from employees in Pakistan and Italy. The study identifies several challenges, including change management, leadership development, HR effectiveness measurement, recruitment and selection, training, employee engagement, relationship building, and poor communication. The most significant challenges are change management, leadership development, and HR effectiveness. To address these, the study proposes remedial actions based on employee feedback, such as employee training, skill development, right recruitment and selection, team cooperation, and continuous monitoring. However, the study has limitations, such as the HR department being the main hiring department and the study being based on online questionnaires, if the data is taken physically from the companies, then there may be a few changes in results.