7 Most Common HR Issues & Their Solutions - Arcoro

An organization’s HR department faces multiple HR tasks daily, like recruiting new employees, retaining and engaging existing ones, and providing up-to-date training and benefits—all while maintaining compliance. All this is easier said than done and HR problems commonly arise. Luckily, HR professionals have access to tools and techniques that can help solve a variety of human resources issues.

Compliance: Navigate Laws and Regulations

The Issue: The list of compliance laws and regulations is extensive. The U.S. Department of Labor (DOL) sets standards for worker treatment under the Fair Labor Standards Act (FLSA). Employers must pay workers at least the minimum wage for all hours worked, as well as time and a half for overtime, while keeping detailed records. Government contractors must also comply with standards set by the Office of Federal Contract Compliance Programs (OFCCP), including developing an Affirmative Action Plan (AAP) and keeping detailed records for all applicants and hires. The challenge lies in ensuring HR teams follow the rules, track updates, and include required wording in job postings. Manual compliance can be time-consuming and prone to costly errors.

The Solution: The right applicant tracking software (ATS) will automate many hiring compliance procedures. It should include voluntary self-identification questionnaires for AAP reporting, track recruiting efforts, store candidate information, and update required forms. HR software should also automatically include EEO taglines in job postings. Once hired, a time tracking solution ensures employees are paid accurately, including overtime.

Recruiting the Best Talent

The Issue: Recruiting candidates involves evaluating necessary skills, developing job descriptions, advertising to the right candidates, and sorting through resumes—all before interviews begin. If the applicant pool is not qualified, the process must start over.

The Solution: An ATS helps organize recruiting tactics across multiple channels, reduces risks, and maintains compliance. Automating manual processes allows more time with top candidates and less with paperwork. An ATS that tracks and groups applicants by skills and qualifications streamlines hiring. Adding interview questions that assess core competencies further improves candidate selection.

Employee Retention

The Issue: Losing an employee can cost about $4,000 to hire a replacement, including recruiting, hiring, training, and overtime for coverage. Turnover also affects team morale and company culture, potentially leading to further disengagement and resignations.

The Solution: Start with a strong onboarding process. Only 12% of employees strongly agree their organization does a good job of onboarding. Effective onboarding gets employees up to speed quickly and encourages engagement. It should outline job requirements, goals, and company policies. Additional tactics include:

• ​Offering competitive pay: Research market rates and use compensation management software to automate raises and bonuses.
• ​Scheduling social time: Encourage camaraderie and loyalty through fun activities, even virtually.
• ​Allowing volunteer time: Employees value employers who give back; offering volunteer time increases engagement.
• ​Holding regular performance reviews: Frequent reviews help employees set goals and understand expectations. Performance management systems simplify evaluations and goal tracking.

Workplace Diversity

The Issue: A lack of diversity can be illegal and stifle creativity and innovation. Unintentional biases may persist, and failing to hire diverse candidates can have legal and cultural consequences.

The Solution: Expand recruiting efforts to diverse job boards, seek referrals from minority employees, and highlight inclusion in job postings. An ATS can broaden the search. A well-communicated employee referral program encourages diverse referrals. Building an inclusive culture requires:

• ​Training on diversity and inclusivity: Create ongoing diversity groups and train staff to identify and address inappropriate behavior.
• ​Including inclusion in company initiatives: Leadership should promote inclusiveness and equality, set a zero-tolerance policy for harassment, and foster a safe, respectful environment.

Overcoming Software Issues

The Issue: Outdated or cumbersome HR software slows processes and may lack mobile capabilities, causing candidate drop-off and employee frustration. Manual, paper-based processes are slow and pose security and compliance risks.

The Solution: Modern applicant tracking systems automate recruitment, freeing HR to focus on strategic initiatives. Modular HR solutions for onboarding, performance, and compensation management improve employee experience and data accuracy. Upgrading to digital systems enhances security and compliance, and scalable solutions grow with the company.

Training & Compliance

The Issue: Mandatory training sessions are often unengaging, leading to low participation and difficulty tracking completion.

The Solution: A learning management system (LMS) allows employees to complete training at their convenience, including on mobile devices. Custom content and compliance tracking ensure participation and certification. Maintaining OSHA compliance is easier with approved courses and automatic updates.

Compensation & Benefits

The Issue: High employee turnover may result from inadequate compensation and benefits management. Manual processes can lead to errors, missed milestones, and compliance risks.

The Solution: Automate compensation and benefits management with modular solutions. Compensation management modules automate merit increases and bonuses, integrating with performance management and payroll systems. Benefits management modules give employees access to their information and documents, streamline open enrollment, and ensure compliance with rules-based eligibility.

Human resource management is a tough job. HR solutions can make it easier.