Top 5 HR Risks And How To Handle Them

The role of human resources departments is evolving along with the business environment. However, HR leaders are in constant challenge to show their department’s value to their businesses. With a function as critical as HR, it’s only normal to be facing risks. The most important is to take the right steps to tackle them.

1.Risks of a failed Succession Planning

Succession planning generally fails when there is an important lack of support from the Executive Level. Regardless of HR’s well thought-of anticipation, the executive level needs to support the vision – otherwise, the succession planning will fail completely. Another usual mistake is to make assumptions. For instance, it isn’t because an employee is excellent at his or her job that they will necessarily become a leader.

What will make the difference?
Identify your talent pipeline: look at more junior employees who have the potential to reach the top. Focus on offering development opportunities; battle for your top talent.

2.Risks of building a negative Corporate Culture

A Negative Corporate Culture can occur for a broad range of reasons. Warning signs include: poor internal communication, a lack of good team spirit, low employee engagement, lack of empathy, and more. A poor corporate culture can be a disaster for your business. Not to mention an important increase in employee turnover or generally decreased motivation…Put simply, make sure you do what it takes.

What will make the difference?
Remind yourself that office engagement is an emotion; in other words, engaging your employees means acknowledging all of their happiness dynamics.  A poor corporate culture caused by negative employee engagement is the first reason an employee chooses to move on.

3.Turning a blind eye to Diversity and Inclusion

In this day and age, it is more important than ever to be open for diversity and inclusion. Be it cultural, gender-based, social or generational diversity, it is an absolute necessity for every business. Reasons why they might fail include not being “Culturally Sensitive”, or simply because of a major lack of open-mindedness.

What will make the difference?
Firstly, no change will occur if the leader isn’t involved. “It comes from the top”, as our guest Katie Holmes expressed in our latest podcast episode.
Secondly, here’s one statistic you should bear in mind. If you do succeed at diversity and inclusion: employees work 12% harder and are 19% more likely to stick around longer.


4.N
ot addressing Pay Equity

The gender pay gap has been an issue for long. Regardless of today’s diversity in the workplace, progress toward equal pay is unfortunately inexistent. Speaking of, here’s another statistic worth remembering: “There is a 16% drop in intent to stay when employees perceive a pay gap in their organization”

Additionally, one quote describes it well “Employers have real incentive to get pay equity right. The right compensation attracts the best talent.”

What will make the difference?
Perhaps, consider implementing “Pay Transparency” – letting everyone know what their colleagues are earning, making women aware if they are earning less than their counterparts.

5.Risks of offering poor employee training and development

Retaining your top talent requires offering opportunities for them to grow. Another main reason why the best employees will leave is that they don’t see any potential for growth in the organization. Poor training and development highly increase employee turnover.

What will make the difference?
Implement efficient training and skills development programs. Look for learning opportunities on a day-to-day basis.

To conclude, HR may face a couple of risks – but there are several solutions to each one of them. If every HR department starts implementing step-by-step changes, slowly but surely, we will be moving towards a worry-free department which will, in turn, let HR professionals prove their value better.

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