Common Challenges HRMS in Pakistan by Small and Medium Enterprises

December 6, 2021

PeopleQlik #1 HRMS in Pakistan recent trends show that human resource management (HRM) functions, procedures, and practices are increasingly important, considering the impact of the knowledge-based economy. Whether it is a small or medium enterprise, human resource constitutes an important area of study.

PeopleQlik #1 HRMS in Pakistan

HRMS in Pakistan

The production process of goods and services is guaranteed by efficient and careful human resource management. It creates a satisfactory level of living in society. Human Resources can play an important role in realizing the objectives of the enterprise as an integral source. Effective and efficient HRMS in Pakistan is the key to a successful organization.

The Purpose of HR Management

Strategic planning activities

Recruiting employees

Tracking and Managing human resource trends

Coaching and counseling employees

Connecting employees with the organization

Conflict management and resolution of employees

Performance evaluation of employees

Acting as a mentor for the employees

Strategic initiatives that can boost employee retention

Retention of Employees is a critical issue for companies to compete for talent in a tight economy. According to the Society for HRMS in Pakistan, the payoff organizations that focus on employee retention are well worth the time and investment.

Here are some strategies of increasing retention rates the organization should start, at the very beginning of the recruitment process:

Recognizing retention starts with recruitment

On-boarding and orientation

Mentorship programs

Employee Compensation

Perks and Benefits to employees

Communication ease

Continuous feedback on performances

Training and development

Recognition and reward systems

Work-life balance

Effective change management

An emphasis on teamwork

Flexible work arrangements

Acknowledgment of milestones, big and small

HR and SMEs

The Small-Medium Enterprise (SME) sector plays a significant role in strengthening the country’s economic progress and international standing. Millions of jobs, promotion of industrial development in rural areas, production of a diverse variety of products with limited capital investments, are regulated and instrumented through the working of this sector.

The Ministry of SMEs estimated that 40% of manufacturing output, over 8% of the national GDP, and much more job opportunities both in rural and urban parts of the country are contributed by SMEs. The survey conducted by the Confederation of Indian Industries states that 20% of medium and 80% of small-sized businesses have no HR department. It is shocking as, without a proper HR functioning department, implementation of various people-related policies and the process is difficult.

HRMS in Pakistan is a key to digitize an organization through various procedural means. Organizations should develop a visionary mindset so that the importance of strategy and the process of managing human capital can be realized.

Tackling Common HR Problems Faced in SMEs

Here are some ways of tackling the most common HR Problems in SMEs:

Implementation of leadership development programs

Regular staff meeting and communication

Workforce training and development

Adapting to innovation

System of checks and reward

Understanding benefits

Recruiting talented employees

Retaining talented employees

Workplace diversity

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HR Management challenges for SMEs

Along with cash flow, generating new business, and marketing, there is a raft of challenges an HR can face in a small and medium enterprise (SME). These are some customary HR challenges that a small and medium business owner faces:

Management of Employee Performance and Development

Line Managers assuming the role of the HR with limited HR knowledge and training

Lack of resources and time to deal with any real staff issues to put effective policies in place

Retention and Training

Owners not acknowledging the need for HR

Long term sickness

Meeting employment law regulations with handbooks, contracts, policies, and procedures
Aligning Values

Despite the difficulties and problems faced by modern HR, small employers have options to overcome them. Outsourcing all or some HR problems is a quick and popular solution for business leaders wanting to focus on business growth. The important role of HR managers in SMEs can never be denied. As SMEs continue to grow, the need to recognize and address the challenges so that both SMEs and HR can work together to implement various desirable changes in the HRMS in Pakistan.