FC0218 XHR 201912 Top HR Trends For 2020-1

Top HR Strategic Challenges for 2020
Top HR Strategic Challenges

for 2020
Top HR Strategic Challenges

for 2020
Introduction
Each year brings changes in the workplace, government, society, culture, science,
communications, technology and the legal and political landscape that translate
into challenges and obstacles for employers.
For the last 4 years, XpertHR has conducted an annual survey to solicit input and information from HR
professionals and employers on these challenges and pain points in the coming year. The results from this
survey allow XpertHR to analyze these challenges and provide strategies and guidance as to how employers
should handle them.
Historically HR’s function focused on compliance, paperwork, payroll, and the maintenance of employee
information and personnel files. However, in today’s workplace, HR’s role is much more strategic. HR
professionals need to understand the business strategy, goals and priorities and ensure that talent acquisition,
performance management, training, compensation, benefits, and safety and security align. Further, HR
professionals are expected to use technology and analytics to track progress in all aspects of the
employee lifecycle.
Part One of XpertHR’s 2020 Top HR Challenges report explores and analyzes the survey
results with respect to strategic challenges while Part Two will address compliance challenges.
www.xperthr.com Reed Business Information, Inc.

The following percentages denote the

number of participants that chose each
of the following areas as their top concern:
2.4% 2.6%
Employee Handbooks
Harassment
2 %
Immigration
3.2%
Health, Safety and Security
28.3%
Recruiting and Hiring 5.7%
Leaves of Absence
5.9%
Diversity and Inclusion
6.5%
Impact of Technology
16.2%
8.3%
Workforce Planning
10.1 %
Pay and Scheduling Issues
8.5%
Evolving Workforce

1 | Recruiting and Hiring

XpertHR’s survey results reveal that recruiting is a top
challenge for employers, with 28.4% of respondents
28.4 % ranking recruiting and hiring as their number

1 challenge. In fact, survey respondents voiced
increased challenges across all areas related to
recruiting and hiring. For the upcoming year:
50.9% are extremely challenged when 50.9%

28.8% 32.6%
it comes to finding high quality applicants, 22.7%
representing a substantial increase over the years.
2017 2018 2019 2020
20.6% are extremely challenged by 18.8% report they are extremely

eliminating unconscious bias during the recruitment challenged by aligning talent acquisition strategy
process, compare this with 11.6% in 2018 and with business objectives, as compared with
14.1% in 2019. 11.7% in 2017, 9.8% in 2018 and 8.1%
in 2019.
17.1% are extremely challenged by 14.4% are extremely challenged by

hiring a diverse workforce, as compared with using predictive analytics and artificial intelligence
4.9% in 2017, 7.4% in 2018 and 9.5% with respect to recruiting and hiring, compare this
in 2019. with 9.6% in 2017 and 9.9% in 2018.
Concerns regarding recruiting were backed up with anecdotal evidence in which respondents were
challenged by “finding a talented pool of candidates”, “effective interviewing and hiring”, “finding enough
good people”, “hiring quality applicants within pay bands”, “trying to find qualified skilled labor”, the “significant
lack of qualified employees in the legal field as both support staff and attorneys” and “finding qualified
applicants in our population.” One respondent stated that “recruiting is our biggest challenge in the face
of an evolving workforce.”

What an Employer Should Do
An employer should create a comprehensive recruiting strategy and determine:
• How and where it will recruit;

• The tools and methods it will be using;
• Who will lead recruiting efforts;
• Who will conduct the interviewing process;
• How recruiting strategies will differ for various positions within the organization;
• Which positions will require a background screening and how that will be handled; and
• How and where in the process it may use predictive analytics.
Individuals conducting recruiting and hiring must be aware of all relevant laws and applicable restrictions.
Employers should be sure to handle background checks, credit checks and drug testing carefully and ensure
their methods and measures are legally compliant.
Connecting Talent Acquisition to Business Objectives and Goals

An employer must plan its workforce so that it has the right people for the right jobs at the right cost. To
accomplish this, the organization should conduct a gap analysis comparing the current operational state with
anticipated future workforce needs. The organization should assess what roles are currently filled and what
needs to be filled based on business goals, and create an action plan, mapping how it will approach talent
acquisition to accomplish the organization’s business objectives.
Finding High Quality Applicants
As survey participants reported, finding high quality applicants is a struggle for many. To do this effectively, an
employer may want to consider:
•
Engaging in mobile recruiting which will expand recruiting efforts and make it easier to connect with candidates;
•
Streamlining the application process and actively communicating with potential candidates, making sure
to keep them in the loop during all phases of the recruiting process;
•
Building a successful employer brand and culture and a place where employees want to work;
• Demonstrating that diversity and inclusion are key values;
• Tapping into top talent and their networks for successful referrals;
•
Seeking out untapped and underutilized job markets such as older employees and retirees, veterans and
individuals who may have a criminal past as such individuals may be able to make important contributions
to the organization;
•
Taking advantage of non-traditional candidates such as gig workers, remote workers, part-time employees
and job shares; and
•
Improving total rewards packages and enhancing compensation, benefits packages, employee incentives
and professional development opportunities and making the workplace more attractive to potential
employees and competitive within the market.

Unconscious Bias
An employer should aim to recruit a diverse workforce, making sure that all job candidates are provided with
fair and equal consideration and evaluated on the same set of established criteria and their merits, skills and
qualifications. Job applications and advertisements should be carefully prepared and scrutinized to ensure that
they do not contain discriminatory language or seek to obtain information that is off limits concerning salary
history or criminal history.
In order to minimize the risk of unconscious bias, an employer may want to consider having candidates
interviewed by a diverse panel of interviewers, as well as consider blind recruiting or using software or
applications to remove personal identifiers.
Predictive Analytics
Through the use of predictive analytics, employers may review statistics and retention rates among top
performers and the ways they are successful and apply this data to hiring decisions. Analytics can help select
candidates likely to succeed and fit the company culture which will reduce the risk of new hires continuing
their job search shortly after starting employment. Predictive analytics can also help:
• Track the cost per hire and how much time and money an employer spends to recruit and hire candidates;
• Evaluate the time to fill vacant positions;
• Identify which hiring sources provide the greatest benefits for them; and
• Evaluate why employees leave the organization.
2020 Strategic Challenges Resources

Resources to support recruiting and hiring (may require registration):
How to Reduce Unconscious Bias in Recruiting and Hiring
Podcast: Making the Most of Mobile Recruiting
How to Use Analytics in Recruiting and Talent Management
Podcast: How Second Chance Hiring Can Uncover Untapped Talent
How to Hire the Best Candidate
How to Draft a Social Media Recruitment Policy

2 | Workforce Planning
8.3 % %
of respondents find workforce planning their biggest challenge.
34% find employee engagement, morale and 19.7%

34%
satisfaction to be extremely challenging. Notably, 18.5%

14.5%
this figure has increased almost every year.
2017 2018 2019 2020
31.2%
31.2% of survey participants report employee 16.4%

17.8%
20.3%
retention as extremely challenging.

2017 2018 2019 2020
30.4% are extremely challenged by 27% are extremely challenged by training

creating a succession plan, compared with and upskilling current employees, up significantly
16.5% in 2018 and 19.4% in 2019. from when 12.5% in 2018 and 15.5% in 2019
reported this as a top challenge.
25.5% are extremely challenged 16.9% are extremely challenged when

with managing performance and professional it comes to aligning compensation strategies with
development opportunities, as compared with business objectives, as compared with 8.2% in
11.6% in 2018 and 13.8% in 2019. 2019, 10.2% in 2018 and 11.3% in 2019.
Beyond this, respondents articulated specific concerns regarding:

• “Retirement of approximately 65% of current staff in the next 4-7 years”
• “Manager readiness training”
• “Creating a fair/inclusive and relevant performance management process”
• “Retention of highly skilled employees”
• “Managing a remote and/or telecommuting workforce”

To address workforce planning HR and employers must be proactive and address strategic business needs.
Training and Professional Development Opportunities

Employers should focus on providing employees with training, mentoring and professional development
opportunities. This will not only give employees support in their current roles, but also allow them to thrive
and advance into higher positions. Peak performers should be identified and provided with increased
opportunities, leadership roles and responsibilities so that an employer can recruit from the inside. Investing
in training and coaching of employees in all phases of their careers will likely increase retention and reduce
turnover, thereby reducing recruiting and hiring costs.
Engagement and Retention

Employers should focus on keeping employees engaged and connected to the mission and values
of the business with a motivating and stimulating work environment.
This includes:
•
Ensuring that employees understand what the organization’s vision is, what it is trying
to achieve and why and how they can contribute to its success;
•
Making sure employees feel valued and respected and recognized for their hard work and
contributions to the organization;
•
Involving employees in problem solving efforts and making improvements where needed;
•
Promoting transparency and a culture of trust within the organization and being receptive
to issues that may arise; and
• Monitoring workplace morale and addressing issues that may impact it.
It may be a good idea to solicit continuous feedback from employees through exit interviews, informal
meetings, employee opinion surveys, focus groups, hotlines and program evaluations, which will provide
insights as to what it working for employees and where the organization can do better. It is critical to evaluate
employee retention and engagement and identify which employees the employer may be at risk of losing and
measures that may help with retention (i.e., compensation, benefits, better work/life balance). Analytics may be
helpful in this respect. The departure of top performers and unwanted turnover is a major cost that can directly
harm the employer’s bottom line and an employer should be sure to take measures to counteract this.

Succession Planning
Continually successful organizations know that sustained success relies on having successors ready to step
in when key employees depart or transition into new positions. HR must ensure that top performers are
identified, motivated and receive proper training. Depending on the employer’s size, scope and goals for
succession planning, the following tools may be useful:
•
A review and assessment of the essential positions within the organization as well
as the senior leadership roles;
• Pinpointing the competencies and skills needed to perform these roles;
• Identifying current employees, if any, that could take on these roles;
•
Creating training and development programs and providing access to internal and external
classes, conferences and seminars, community involvement opportunities and mentoring
programs designed to support employees and prepare them for additional responsibilities; and
• A structured feedback process to individual succession candidates.

Resources to support workforce planning (may require registration):
How to Develop a Succession Plan
Webinar: How to Retain Your A-List Talent
Improve Employee Engagement Checklist
How to Reduce Turnover
Model Succession Plan Form
Succession Planning Checklist
How to Conduct a Training Needs Analysis

3 | Benefits and the Affordable Care Act
16.2 50
of respondents rank of respondents are
% benefits as their number
% extremely challenged by
one challenge. health care costs.
27.2% are extremely challenged when it

comes to preparing for the future of healthcare
27.2%
and ACA. In fact, when compared with prior years,
16.7% 19.7% 17.2%
concern over the future of healthcare and the
ACA has steadily increased. 2017 2018 2019 2020
16.1% are extremely challenged by 14.4% are extremely challenged when

it comes to determining which voluntary benefits
adjusting benefits for a generationally diverse
workforce or different groups of employees, as programs provide the best ROI, compared with
compared with 4.8% in 2017, 9.7% in 2018 and 3.6% in 2017, 6.3% in 2018 and 10% in 2019.
12% in 2019.
12.6% are extremely challenged 10.2% are extremely challenged by

by aligning benefit offerings with business communicating benefits to the workforce, as
objectives, compared with 6.6% in 2017, compared with 6.2% in 2017, 10.8% in 2018
8.8% in 2018 and 12.8% in 2019. and 15.3% in 2019.
When it comes to benefits, survey respondents disclosed that there were challenged by “the increasing
cost of health insurance benefits” and “health plan options, making compliance simplified”. Another
respondent stated that “we are a government organization who offers great benefits, but little flexibility.
Our organizational offerings are not attractive to the younger generation.” Another public employer revealed
that they were challenged by “how to compete with private companies in terms of salaries and benefits.”
Further, one respondent stated that a top concern was “upgrading our benefits to attract and retain
the very best employees”.

To effectively manage benefits and create a benefits strategy that will aid in employee retention and
engagement, an employer must review the current benefit offerings to ensure that its current benefit
offerings are up to par with others in the industry. Benefits should also match the organization’s evolving
needs and strategies. Employers should keep on top of the latest benefit trends and consider additional
benefits to further enhance its benefits package. Such benefits may include:
• Tuition reimbursement;
• College counseling;
• Flexible work schedules;
• Telecommuting;
• Job sharing;
• Transportation benefits;
• Identity theft protection benefits;
• Gym membership;
• Wellness programs;
• Employee assistance programs;
• Concierge services (pet care, child care, automobile services, dry cleaning);
• Student loan assistance; and
• Financial and retirement planning.
Preparing for the Future of Health Care

In today’s workplace a critical challenge for HR is preparing for the future of healthcare and its associated
costs as well as the Affordable Care Act (ACA). An employer needs to be able to provide benefits for an aging
workforce, but still keep costs low. An employer must strike a balance between keeping employees healthy
and happy, but also aiming to provide raises each year. To approach and manage rising healthcare costs, an
employer should:
•
Carefully review employee demographics, including age, gender, education level and job
type to determine which benefits are most valuable and attractive to the workforce;
•
Review benchmarking studies to ensure offerings are competitive;
•
Conduct a thorough vendor assessment to determine whether or not the benefit vendors
are meeting the employer’s needs in terms of price, quality, customer service and marketing
to employees;
•
Identify which benefits have the lowest employee participation rates and, if needed,
redesign or eliminate those benefits;
• Make sure that value is realized from all benefits;

•
Ensure that benefits are effectively communicated to the workforce and employees are
taking advantage of them;
•
Provide employees with the right tools to make informed benefit
and healthcare choices;
•
Embrace wellness programs which are aimed at the prevention of illness and disease
rather than treatment; and
•
Make sure that benefit plans reflect business strategy, company culture
and corporate values.
Benefits for Different Generations
With so multiple different generations in the workforce, employers must address the needs of each
generation by providing benefits that they find useful. For example, older workers may be more interested
in long term disability, with younger workers more interested in day care and gym memberships. Further,
employers should consider customization and personalization, providing freedom and choice with respect
to benefits offerings.
Technological Advancements
Also, with advances in science and technology, employers should consider things like telemedicine and mobile
applications that can make it easier for employees to access health care. Artificial intelligence and chatbots
may be able to answer simple benefit questions and make it easier for employees to obtain information on
benefit choices and improve decision-making during the open enrollment process. Artificial intelligence also
may assist employers in evaluating the needs of employees.

Resources to support the ACA and benefit issues (may require registration):
Reduce Benefit Plan Costs
Prepare for ACA Reporting Requirements
Determine If a Penalty Is Owed Under the Affordable Care Act
What Employers Should Know About the Affordable Care Act (ACA)
Determine Responsibility for Information Reporting Under the Affordable
Care Act (ACA)
Webinar: Best Practices for Handling Open Enrollment

4 | Diversity and Inclusion

Achieving workplace diversity and inclusion remains increasingly compelling and challenging in a
global world. Diversity today goes far beyond race, sex, ethnicity, age, national origin and religion and includes
differing work experiences, sexual orientation, educational status, marital status, socioeconomic status,
physical characteristics, life experiences, background and upbringing.
37.8% of respondents report managing diversity to be extremely challenging.
20.6% are extremely challenged by 17% are extremely challenged by

eliminating unconscious bias during the hiring a diverse workforce.
recruitment process.
20.6%
17%
14.1% 14.3%
11.6%
7.4%
4.9%
2018 2019 2020 2017 2018 2019 2020
13.1% are extremely challenged 12.4% are extremely challenged by

by achieving diversity and inclusion goals, aligning diversity and inclusion with business
compared with 6.8% in 2018 and 8.4% in 2019. strategy, compared with 5.6% in 2017, 4.5%
in 2018 and 8% in 2019.
Respondent comments backed up these concerns: “bullying in the office”, “bringing real equality in the workforce
where promotions upward based on merit not race”, and “multi-state employment as it relates to equal treatment”
were submitted. One respondent noted that “ageism exists and is skirted but the forced retirement of older
individuals is leaving the workforce with less historical knowledge which will eventually hurt our productivity.”
It is incumbent upon HR to lead the way and incorporate diversity into the organization with the goal of creating
an inclusive and tolerant workplace. Diversity efforts start at the top with the buy-in of key stakeholders and upper
management who must see the value diversity can bring. Diversity must be tied to business goals and aligned with
corporate strategies.

Very often, diversity starts with casting the widest net possible when recruiting and hiring, focusing on
an individual’s skills and qualifications and how they can enhance the organization.
An employer should incorporate diversity into its mission statement and make it a goal. Policies and practices
should encourage diversity and tolerance and equal access to opportunities. An employer should implement:
• Discrimination policies;
• Harassment policies;
• Anti-bullying and abusive conduct policies;
• Policies regarding leave and time off; and
• Reasonable accommodation policies.
Further, an employer should provide comprehensive training on discrimination, harassment, sensitivity

and diversity as well as bullying and abusive conduct. Training should encourage civility and respect and
work to overcome stereotypes and prejudices. There should be a multichannel complaint procedure allowing
employees to bring complaints to various members of management and the employer should take all
complaints seriously and follow up with an investigation and remedial, interim or disciplinary measures.
Additional ways to enhance inclusion and combat unconscious bias include:
•
Avoid making snap judgments and stereotyping individuals based on their background;
•
Avoid steering individuals of certain backgrounds into certain positions within the organization;
•
Train supervisors and employees on recognizing their unconscious biases and provide them with the proper
tools to better manage interpersonal interactions;
•
Provide employees of different backgrounds with opportunities to work together toward
a common goal and overcome preconceived notions; and
• Establish mentoring programs for underrepresented groups (i.e., women and minorities).

Resources to support addressing the diversity and inclusion issues include
(may require registration):
How to Create a Diverse Workforce
Create a Diverse Workplace
Diversity and Inclusion - Supervisor Briefing
Webinar: Building a Global Diversity and Inclusion Strategy
Global Diversity and Inclusion Mission Statement
Podcast: Why Diversity and Inclusion Matters More Than Ever

5 | Mental Health and Well-Being

Concerns regarding mental health and well-being were reflected in this year’s survey.
14.9%
21.6%
18.8%
20%
2018 2019 2020
18.8% find mental health and well-being 20% of respondents find it extremely
extremely challenging. challenging to manage work/life balance.
Additionally, one survey respondent found it challenging to determine “if disabilities (seen or not) are
covered under the ADA and what constitutes a reasonable accommodation… it’s challenging to draw the
line between reasonable and unreasonable”. Another respondent stated that “the impact of technology on
work-life balance continues to be a big challenge.”
Employee mental health and well-being impacts on workplace satisfaction, morale and productivity. To
address mental health issues, employers must be mindful of various applicable laws such as the Family and
Medical Leave Act (FMLA), the Americans with Disabilities Act (ADA) and similar laws on the state and local
level and be sure to steer clear of discrimination, harassment and retaliation against employees with mental
health issues.
Employers should understand how to respond to accommodation requests and engage in the interactive
process, providing an accommodation if one can be so provided without undue hardship. Additionally,
sensitivity training should be provided to employees and supervisors on dealing with employees with mental
health issues.

However, the safety of the workplace is paramount and an employer must intervene and protect itself,
co-workers and third parties if an employee poses a direct threat to himself or herself or others. Employers
should carefully screen individuals who may be performing in dangerous or safety sensitive positions for
mental health issues in compliance with applicable federal, state and local laws with respect to privacy
and discrimination.
Mental health and well-being benefits should be part of the employer’s overall benefit package including:
• Substance abuse disorder services;

• Behavioral health treatments;
• Employee assistance programs;
•
Access to counselors with expertise in alcohol and drug abuse, stress, depression and other
mental health issues;
• Paid time off vacation days or personal days;
• Access to gyms; and
• Flexible working arrangements.
Employers should promote wellness programs and monitor workplace well-being through the use of
employee surveys, absence data, etc. Encourage a healthy workplace culture of open communication
and inclusion, ensure employees are required to handle workplace changes and foster a healthy
work-life balance.
Supervisors should be specifically trained to identify mental health issues and red flags for depression
and suicide such as tardiness, decreased performance, increased errors and sloppy work, mood swings,
decreased energy and report this to HR or the employer before issues occur.

Resources to support addressing mental health and well-being include
(may require registration):
How to Handle Mental Health Concerns
How to Manage an Employee With Mental Disabilities Under the ADA
Manage an Employee With Mental Health Problems
Signs of Employee Depression - Checklist
How to Implement and Manage an Employee Wellness Program

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Top HR Strategic Challenges for 2020

Top HR Strategic Challenges

Top HR Strategic Challenges

www.xperthr.com Reed Business Information, Inc.

The following percentages denote the

www.xperthr.com Reed Business Information, Inc.

1 | Recruiting and Hiring

28.4 % ranking recruiting and hiring as their number

50.9% are extremely challenged when 50.9%

20.6% are extremely challenged by 18.8% report they are extremely

17.1% are extremely challenged by 14.4% are extremely challenged by

www.xperthr.com Reed Business Information, Inc.

What an Employer Should Do

An employer should create a comprehensive recruiting strategy and determine:

• How and where it will recruit;

Connecting Talent Acquisition to Business Objectives and Goals

Finding High Quality Applicants

www.xperthr.com Reed Business Information, Inc.

2020 Strategic Challenges Resources

www.xperthr.com Reed Business Information, Inc.

34% find employee engagement, morale and 19.7%

satisfaction to be extremely challenging. Notably, 18.5%

31.2% of survey participants report employee 16.4%

retention as extremely challenging.

30.4% are extremely challenged by 27% are extremely challenged by training

25.5% are extremely challenged 16.9% are extremely challenged when

Beyond this, respondents articulated specific concerns regarding:

www.xperthr.com Reed Business Information, Inc.

What an Employer Should Do

Training and Professional Development Opportunities

Engagement and Retention

www.xperthr.com Reed Business Information, Inc.

2020 Strategic Challenges Resources

www.xperthr.com Reed Business Information, Inc.

3 | Benefits and the Affordable Care Act

27.2% are extremely challenged when it

16.1% are extremely challenged by 14.4% are extremely challenged when

12.6% are extremely challenged 10.2% are extremely challenged by

www.xperthr.com Reed Business Information, Inc.

What an Employer Should Do

Preparing for the Future of Health Care

www.xperthr.com Reed Business Information, Inc.

Benefits for Different Generations

2020 Strategic Challenges Resources

www.xperthr.com Reed Business Information, Inc.

4 | Diversity and Inclusion

37.8% of respondents report managing diversity to be extremely challenging.

20.6% are extremely challenged by 17% are extremely challenged by

13.1% are extremely challenged 12.4% are extremely challenged by

What an Employer Should Do

www.xperthr.com Reed Business Information, Inc.

Further, an employer should provide comprehensive training on discrimination, harassment, sensitivity

Additional ways to enhance inclusion and combat unconscious bias include:

2020 Strategic Challenges Resources

www.xperthr.com Reed Business Information, Inc.

5 | Mental Health and Well-Being

What an Employer Should Do

www.xperthr.com Reed Business Information, Inc.

• Substance abuse disorder services;

2020 Strategic Challenges Resources

www.xperthr.com Reed Business Information, Inc.

Take XpertHR for a test drive today