Human Resource Challenges Essay

864 Words 4 Pages
The job of the human resource department in any organization is to conduct job analyses, plan job labor and recruit candidates, orientation and training of employees, performance appraisal, management of salaries and wages, providing incentive and benefits as well as communicating with management and employees (Dessler, 2011, p.2). Amid this myriad of responsibility they must still face exorbitant challenges that engulf them also. Two of the challenges that are facing many human resource departments across the country are the rising costs of health care as well as the strategic planning needed to manage a diminishing workforce in this recession. As health care costs continue to escalate, employers are offering financial incentives to …show more content…
The lower payroll deductions were attractive but higher deductibles were unimaginable. We took a 17% increase on our health care deductions in order to sustain the level of care we have become accustomed. However, there are many single parent and lower-income homes that are not afforded the luxury of choice. The human resource department has the task of securing a healthcare plan that will be affordable to the employees as well as the company. According to Paul Fronstin, head of health research at the Employee Benefit Research Institute, high-deductible plans are quickly catching on as 22 million people are now enrolled nationwide (EBRI, January). New legislation that extends healthcare to members of a family up until age 26 have also contributed to high healthcare costs. New findings by the Employee Benefit Research Institute (EBRI) show that both employers and workers say they are not very knowledgeable about health reform, but that employers say they are likely to pass along any health benefit cost increases to workers (EBRI, January). A majority of both employers and workers indicate they are not very knowledgeable about the new law. Most of them can only assume the reasons for the increase, but few investigate the new laws. If healthcare costs are not demanding enough, the human resource department must also strategically place employees in positions that will increase their