Today’s Most Critical Human Capital Challenges

Today’s top human capital challenges: retaining talent, engaging employees, providing competitive compensation and benefits

Today’s most critical human capital challenges? They are employee engagement, developing the next generation of leaders and competitive compensation, as well as retention, HR professionals told the Society for Human Resource Management (SHRM) in a survey released December 9. HR’s assessment was reinforced by C-suite executives in other disciplines who said in an accompanying survey that retaining their highest performing employees, maintaining competitive benefits and retaining employees overall were their greatest challenges, underscoring the importance of HR’s role in maintaining competitiveness in today’s business environment. HR professionals appear to view many of these issues as more pressing than do non-HR C-suite executives, the surveys showed.

“Yet there is optimism that at least some of the key human capital challenges will be more manageable in the future,” said Jen Schramm, SHRM-SCP, SHRM’s manager of workforce trends. “At most organizations, both HR and non-HR C-suite executives view HR as having a strategic role and are currently planning to make changes to their HR function to make it even more strategic and measurement-driven in the years to come.”

Among the surveys’ other findings:

• Thirty-eight percent of HR respondents said the top current challenge is “maintaining high levels of employee engagement.” It was followed by “developing the next generation of organizational leaders” (31 percent), “maintaining competitive compensation offerings” (29 percent), and “retaining our highest performing employees” (26 percent).
• When respondents were asked about challenges for the next 10 years, results reflected the impact of an aging workforce. The top response by HR professionals was “developing the next generation of organizational leaders” (39 percent), followed closely by “managing the loss of key workers and their skill sets due to retirement” (35 percent).

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