Top 5 Human Resources Challenges for Small Organizations in 2024

Top 5 Human Resources Challenges for Small Organizations in 2024

The HR landscape is evolving rapidly, and small organizations face unique challenges. From hybrid work models to new technologies, small organizations must adapt to these evolving trends to stay competitive. Navigating this landscape requires addressing challenges like remote workforce management, talent retention, and integrating AI into daily operations.

This article delves into the top 5 human resources challenges that small businesses face in 2024, offering insights and strategies to help them succeed in the rapidly transforming work environment.

Human Resources Challenges for SMBs in 2024

It's now crucial for employers to focus on the following five areas:

Improving Diversity, Equity, And Inclusion (DEI)

Diversity, equity, and inclusion have become a top HR concern in recent years as companies across virtually every industry strive to create more inclusive working spaces. In 2024 we are seeing this trend continuing with organizations prioritizing DEI issues like never before.

The need for diversity within our workforce has grown immensely over the past decade or so— and it's not just millennials who are driving change: according to Gartner Inc., 35% of surveyed human resources leaders put "diversity" at their priority in 2023; 54 percent identified themselves (or others) as belonging somewhere underrepresented by race/gender while 29%, did note if they didn't think their employer cared about this, then they would seek employment elsewhere.

Compliance with Evolving Employment Laws

Employment laws are continuously changing, making compliance an ongoing challenge, especially for small and mid-sized businesses that may not have a dedicated legal or HR team. In 2024, issues like wage transparency, diversity and inclusion policies, and remote work regulations will require companies to stay updated on legal requirements.

This challenge is amplified for small organizations that must also manage compliance with benefits programs, payroll management, taxes, employee compensation, paid leave policies, and employee safety regulations.

Creating Great Employee Experiences

Today's employees are looking for more than just a good salary. They want an environment that will make them feel healthy, energized, and productive at work every day. Leaders must find different ways to improve the workplace culture so employees can handle any disruption without becoming phased or stressed out.

Maintaining high levels of employee engagement and satisfaction can be difficult, especially with remote and hybrid work models becoming the norm. Disengaged employees may be less productive, more likely to leave, and contribute to a decline in company culture. For 2024, organizations must invest in employee engagement strategies such as feedback mechanisms, recognition programs, and fostering a culture of inclusion and belonging.

Remote Work Continues to Evolve

The rise of flexible work arrangements adds complexity to employee management. Ensuring productivity, maintaining team cohesion, and monitoring employee well-being are just some of the challenges faced by small organizations managing remote or hybrid teams. In 2024, companies need to invest in technology that facilitates collaboration, communication, and performance tracking for remote teams. They should also develop clear policies and guidelines for managing hybrid work to ensure fairness and consistency.

A survey by Buffer in 2023 shows that a staggering 98% of respondents in a survey would like to work remotely, at least some of the time, for the rest of their careers. HR leaders must therefore prepare for a future where employees are working remotely or in hybrid mode. The trend towards more flexible work patterns will force employers to change how they manage human capital to maintain productivity and optimal levels of interpersonal communication between co-workers.

Talent Acquisition and Retention Should Be A Priority

Attracting and retaining top talent continues to be a significant challenge for small businesses. With limited resources, they often compete against larger organizations with more lucrative benefits packages and salaries. Small businesses need to focus on offering a strong workplace culture, flexible work options, and professional development opportunities to entice and keep top talent. Implementing creative recruitment strategies, leveraging employer branding, and personalizing the candidate experience can be key differentiators.

Additionally, it's essential to create a healthy work environment for employees. That can be accomplished by following trusted protocols and standards for OSHA's ETS or even against COVID-19. For productivity, it helps if HR leaders address individual concerns on stress levels of their remote team members as well as burnout rates and workers' safety.

To remain competitive in the industry, small organizations must overcome these human resources challenges in 2024, ranging from attracting talent to staying compliant with changing regulations. By prioritizing employee engagement, work flexibility, inclusion, and professional development, they can effectively address these challenges while fostering a resilient and productive workforce.

How The Mission Can Help

The Mission is a leading partner in the PEO, HR, payroll, and benefits outsourcing marketplace. We provide a valuable service for small and medium-sized organizations and government contractors, serving as a trusted partner in integrated human resource (HR) compliance, risk management, employee benefits, employment practices liability insurance (EPLI), and payroll processing.

For more information on how we can help you stay competitive by providing top HR services in 2024, contact us today.