Emerging Human Resource Challenges in Meeting the Diverse Contemporary WorkforceAuthorAuthor AffiliationIntroductionHuman resource is one of the fields that are very dynamic. The work of human resource managers includes planning, directing, organizing, controlling, development, compensation, recruitment and management of talent among others at the organizational level. The concept of war of talent first coined in 1998 by McKinsey and company stipulates that there is competition between most of the organizations if not all to capture skilled employees amidst the short supply that is available in the market (Srivastava & Agarwal, 2012). Most organizations are striving to be employee of choice in order to win the war of talent over their competitors (Srivastava & Agarwal, 2012).
There are emerging challenges that affect the human resource practitioners especially in meeting the diversified need of the contemporary work force (Bratton & Gold, 2012). Some of the challenges include work force diversity, parental leave, outsourcing, aging workforce, talent management, and technological challenges (Srivastava & Agarwal, 2012). This paper looks into the challenges that are faced by human resource managers when handling contemporary workforce that is also dynamic in terms of their needs.
The scope of this paper however will be outsourcing, workforce diversity and globalization. OutsourcingThe concept of outsourcing is not a new one in the field of HRM, it refers to the process where a firm gets external service provider to take accountability over all the HR functions on its behalf (Smith, 2006). Most organizations have turned to outsourcing as the only way to deal with the employee requirement capacities in the highly globalized business world (Srivastava & Agarwal, 2012). The process itself confers some advantage over the business or organization.
This include saving on costs, time and resources that otherwise would have been used in recruitment while at the same time fulfilling the long-term goals of the growing businesses (Saxena & Bharadwaj, 2009). In spite of the mentioned benefits, there are also associated challenges that come along with the process itself (Srivastava & Agarwal, 2012). At its worst, if not well dealt with the yet to be mentioned challenges may negatively impact the business leading to its poor image and negative publicity other than being the employee of choice amongst its peers.
First off, there is the challenge of defining the scope of services offered. The HR department must ensure that there is a comprehensive map of the internal processes that would be transferred (Saxena & Bharadwaj, 2009). This could include the payroll and special payments, pension administration, benefits, performance evaluation, transfers and relocations among others (Smith, 2006). Defining the few aforementioned and other processes might be very difficult to agree on between the outsourcing company and the service provider (Smith, 2006). There is also the challenge of service pricing.
The HR has to agree on the best pricing model to institute, construct a benchmarking process as well as identifying the baseline cost of the processes to be transferred. Outsourcing may lead to poor performance; to evade this HR department has to identify the logistics so as to capture business drivers at a saved cost (Srivastava & Agarwal, 2012). The Hr managers are faced with the challenge of facilitating transition of the workers. The outsourced workers that are onsite in the outsourcing firm’s facilities may effectively perform.
However, the socialization process may be very hard for such employees due to different cultures. The Hr department must ensure that there is parallel, sequential or phased transition for the outsourced employee so that they are in the end integrated into the organization (Saxena & Bharadwaj, 2009). The other HR function which can be viewed as a challenge is the management of change that is aimed at helping the organization to adjust to outsourcing. The core employees in the client organization may not act well in the presence of the outsourced workforce.
The management must evaluate the risks and mitigate them effectively for amicable coexistence between the core employees and their outsourced counterparts (Smith, 2006). The other challenge is governance (Saxena & Bharadwaj, 2009: Smith, 2006). The management has to come up with a clear strategy on how to manage the performance of both the core and outsourced employees (Saxena & Bharadwaj, 2009). This should include the process of overseeing the turnover reduction of the outsourced workforce (Saxena & Bharadwaj, 2009).