Introduction
In this blog, we will focus on three of the most pressing HRM challenges in the Sri Lankan context:
1. Employee dissatisfaction: When employees’ expectations are not met, organisational performance declines.
2. Difficulty in attracting and retaining talent—Struggles in hiring the right candidates and high employee turnover hinder growth.
3. Poor training and development opportunities: Lack of training programs reduces employee efficiency and career growth.
By analysing these issues using HRM theories and exploring practical solutions, organisations can build a productive and motivated workforce.
Challenge 1: Employee Dissatisfaction
Employee dissatisfaction is a widespread issue that stems from low salaries, lack of career advancement, poor work-life balance, and inadequate recognition. A disengaged employee can negatively impact workplace culture, reduce productivity, and increase turnover rates. Addressing this issue is essential for improving organisational success.
Analysis Using HRM Theory
Herzberg’s two-factor theory is useful in understanding job dissatisfaction. It divides workplace factors into:
· Hygiene factors—salary, job security, and work conditions—prevent dissatisfaction but do not necessarily increase satisfaction.
· Motivators: Recognition, career growth, and meaningful work enhance job satisfaction.
Organisations need to focus on both hygiene factors and motivators to improve employee engagement.
Proposed HRM Strategies to Address the Challenge
· Competitive Compensation and Benefits: Regular salary reviews and personalised benefit packages.
· Career Growth Programmes: Clear career development paths, mentorship, and continuous training.
· Employee Recognition and Involvement: Encouraging feedback, celebrating achievements, and involving employees in decision-making.
· Work-Life Balance Initiatives: Remote work options, wellness programs, and mental health support.
Outcome of These Strategies
Implementing these strategies can increase job satisfaction, reduce turnover, and boost overall productivity. A people-centric approach not only improves employee well-being but also strengthens the organisation
’s culture and long-term sustainability.
Challenge 2: Attracting and Retaining Talent
Description of the Challenge
Finding and keeping talented employees is one of the biggest concerns for HR managers. Rapid technological advancements, shifting workforce expectations, and globalisation have made talent retention more difficult. Today’s employees prioritise career growth, workplace culture, and work-life balance over monetary incentives alone. If organisations fail to meet these expectations, they face high recruitment costs and reduced productivity.
Analysis Using HRM Theory
· Resource-Based View (RBV): Highlights human capital as a key resource for achieving competitive advantage. Companies that attract and retain top talent gain a strategic edge.
· Maslow's Hierarchy of Needs suggests that meeting employees’ psychological and self-actualisation needs (growth, achievement, and recognition) improves job satisfaction.
· Herzberg’s Two-Factor Theory reinforces the importance of career growth and recognition in retaining employees.
Proposed HRM Strategies to Address the Challenge
1. Strong Employee Value Proposition (EVP) and Employer Branding: Build a reputation as an employer that offers career growth, diversity, and work-life balance.
2. Engaging Onboarding Process: Introduce new hires to the company culture early for better retention.
3. Mentorship and Career Path Development: Provide continuous training, mentorship programs, and growth opportunities.
4. Flexible Work Arrangements: Offer hybrid work options and flexible working hours to attract a diverse workforce.
5. Employee Recognition and Well-Being Programmes: Implement reward systems and health benefits to increase job satisfaction.
Outcome of These Strategies
By prioritising employee engagement and well-being, organisations can reduce turnover, improve productivity, and build a loyal workforce. A positive work environment fosters innovation and long-term business success.
Challenge 3: Poor Training and Development Opportunities
Description of the Challenge
A lack of proper training and career development opportunities leads to skill gaps, reduced efficiency, and decreased motivation among employees. Many Sri Lankan companies fail to invest in employee development, resulting in low performance and limited career growth.
Analysis Using HRM Theory
· Human Capital Theory suggests that investing in employee education and training enhances productivity and organisational success.
Kohl’s Learning Cycle emphasises experiential learning, where employees develop skills through practical training.
Proposed HRM Strategies to Address the Challenge
1. Skills Development Programmes: Provide on-the-job training, workshops, and e-learning opportunities.
2. Customised Career Growth Plans: Offer personalised learning paths to align with employees’ career goals.
3. Government and Industry Collaboration: Partner with educational institutions and industry experts to provide relevant training.
4. Performance-Based Training: Identify skill gaps and implement targeted training programs.
Outcome of These Strategies
Investing in training enhances employee confidence, improves job performance, and ensures long-term organisational success. Companies that foster continuous learning gain a competitive advantage in the market.
Conclusion
The major HRM challenges discussed—employee dissatisfaction, difficulty in attracting and retaining talent, and poor training opportunities—can significantly impact an organisation’s success. Addressing these challenges requires strategic HRM approaches.
· Improving job satisfaction through competitive salaries, career growth, and recognition (Herzberg’s Two-Factor Theory).
· Enhancing talent retention by building a strong employer brand and offering work-life balance (Maslow’s Hierarchy of Needs, RBV).
· Bridging the skill gap by investing in continuous learning and training (Human Capital Theory, Kolb’s Learning Cycle).
A people-centred HRM strategy that prioritises employee well-being, development, and engagement can transform workplace culture. Companies that invest in human capital will not only enhance employee happiness but also drive long-term business success.
By adapting to the evolving workforce expectations and leveraging digital transformation, Sri Lankan organisations can overcome these HRM challenges and create a sustainable, high-performing work environment.
r prformance-Based Training: Identify skill gaps and implement targeted training programs.
Outcome of These Strategies
Investing in training enhances employee confidence, improves job performance, and ensures long-term organisational success. Companies that foster continuous learning gain a competitive advantage in the market.
Reflection of people-centric challenges in HRM
Whether it is employee engagement, employee work-life balance, employee engagement, or even leadership, there are numerous issues that stem from within an organisation that HRM must deal with. Gaining an employee's motivation differs from person to person, and flexibility is needed in policies in mental health to ensure wellbeing. Efforts made in diversity and inclusion have to be sincere, as they cannot be mere checkbox items. Strong retention of resources relies on good opportunities for career growth, a feeling of purpose, and strong leadership within the organisation that maintains a positive atmosphere. Equally, transparency and ethics can be achieved with the utmost concern, and change needs strong communication regarding the employee and what is to be changed. The most critical aspect of HRM is putting people first and building an inclusive and trust-based culture within the workplace.
References
·
Amstrong, M. (2014). Armstrong’s handbook of human resource management practice (13th ed.). Kogan Page Publishers.
· Asian Development Bank (ADB) (2019): Technical and Vocational Education and Training (TVET) Reform in Sri Lanka
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· Chartered Institute of Personnel Management Sri Lanka (CIPM) (2021): HR's Role in Bridging the Skills Gap
· Department of Census and Statistics Sri Lanka (2021)—Labour Force Survey
· Dessler, G. (2020). Human resource management (16th ed.). Pearson.
· Herzberg, F. (1959). The motivation to work. John Wiley & Sons.
· Herzberg, F. (1959). The motivation to work. Wiley.
· International Labor Organization (ILO) (2020): Bridging the Skills Gap: Strategies for Workforce Development in South Asia
· Locke, E. A. (1976). The nature and causes of job satisfaction. In M. D. Dunnette (Ed.), Handbook of Industrial and Organisational Psychology (pp. 129-169). Rand McNally.
· National Education Commission Sri Lanka (2020): Higher Education and Skill Development Policy Framework
· Pinder, C. C. (2014). Work motivation in organisational behaviour. Pearson Higher Ed.
· Sri Lanka Institute of Development Administration (SLIDA) (2021): Workforce Competencies and Public Sector Training Needs
· Sri Lanka Labor Market Trends Report (2022) – Ministry of Labor and Foreign Employment, Sri Lanka
· Tertiary and Vocational Education Commission (TVEC) Sri Lanka (2022): Skill Development Strategies for Economic Growth
· World Bank (2021): The Skills Development Landscape in Sri Lanka: Trends and Challenges
· World Economic Forum (2020) – Future of Jobs Report: Global Skills Gap and Workforce Readiness
