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4 Common HR Challenges and How Technology Can Help


There are common HR challenges that can often be consistent across companies. We recently conducted a survey with 402 HR employees across the country, and explored the roles technology can play in addressing some of their major challenges. The majority of respondents have been in their position for about 4-5 years, and their titles span from HR coordinator to training specialist. Here is a closer look at some key areas that these HR professionals highlighted were challenges, the technology they're using to help with these issues, and what other HR practitioners can learn from their experiences.

Benefits: Managing Compliance and the Employee Experience

The core concern for most HR departments across all industries is maintaining employee benefits packages. Healthcare reform and the Affordable Care Act (ACA - often referred to as Obamacare) is largely named as the reason for employee benefits being such a challenging process. Roughly a third of survey respondents stated this was the regulatory issue they were most concerned about.

Roughly a third of survey respondents stated this was the regulatory issue they were most concerned about.

Technology is important when it comes to managing benefits. Fifty-two percent of respondents rely on technology and software solutions to administer benefit tasks. While many companies are scaling back on incentive packages, HR departments are looking to secondary benefits to attract new talent. Using technology to form a central hub of benefits information makes it much easier for people to take advantage of these perks, and can help attract top talent.

Key takeaway: Technology can help streamline your benefits administration, while also making it easier to showcase your most valuable benefits and perks to employees through a content "hub."

Attracting and Retaining Top Talent

Depending on the industry, attracting and retaining key talent can prove a formidable challenge for any recruiter in a modern digital landscape. Competition can be fierce, and 38% of survey respondents stated that difficulty attracting and retaining quality employees was making their role increasingly challenging. As HR moves away from the traditional methods of talent acquisition, it becomes more and more clear that a digital platform is essential to connecting with job candidates.

Real-time talent assessment requires the use of technology. Of those surveyed, 26% rely on technology for talent management, and 30% for workforce management in general. Technology is also being used for tracking applicants and collecting talent data to help build better hiring processes. Companies study this data to form a "whole-person" analysis of their candidates to determine the traits, experiences, and competencies that can help people succeed within their organizations.

Key takeaway: Use technology to help manage all aspects of your recruiting process, from identifying talent to creating a more efficient applicant experience.

Performance Management: Making the Most of Employee Productivity

Ensuring that employees are doing their job to the best of their abilities is another common challenge for HR departments. When surveyed, 27% of HR staff identified performance management as an issue they were most concerned about.

Technology is now an integral part of human capital management, and an effective business intelligence program can help gauge employee performance. The software platform should include a user-friendly dashboard that can report on a variety of data sets in real-time, so management can immediately address any issues. Technology can also help employers maintain other areas of performance. Fifty-seven percent of HR professionals surveyed stated they rely on software for time and attendance, and 38% use it for training.

Key takeaway: Incorporate technology to help you monitor employee effectiveness and track essential components such as time and attendance.

When surveyed, 27% of HR staff identified performance management as an issue they were most concerned about.

Use Technology to Meet Changing Regulatory Requirements

Of the total respondents, 21% found it increasingly difficult to keep up with changing regulations, and 14% were most concerned about regulatory compliance. Yet state, federal, and local regulatory requirements are on the rise. Changes in healthcare, tax codes, financial reporting, employment laws, and industry regulations have all led to HR looking for a technology solution.

Of the 402 HR professionals surveyed, 74% claimed their system was fully integrated, versus a stand-alone setup. This is promising news for HR because it shows that people understand the need for systems that work together for maximized efficiencies. The sooner an HR department fully integrates their processes into their technology solution to address HR challenges, the faster they can gain a competitive edge and satisfied workforce.


This website contains articles posted for informational and educational value. Paychex is not responsible for information contained within any of these materials. Any opinions expressed within materials are not necessarily the opinion of, or supported by, Paychex. The information in these materials should not be considered legal or accounting advice, and it should not substitute for legal, accounting, and other professional advice where the facts and circumstances warrant.