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In todayâs tough world and tight job market, coordinating a multicultural or diverse workforce is a real challenge for HR department. Human resource managers are on their toes to strike a balance between employer and employees keeping in mind the recent trends in the market. They may find themselves in dire consequences if they are not able to handle the human resource challenges efficiently.
Challenges that arise in the construction of compensation plans may affect the internal consistency of the organization as well as the market competitiveness of the compensation plan. A HRMâs key challenge is maintenance of equity as regards internal, external equity and individual equity.he reward, salary increment, should be equal irrespective of the pay quartile in which the two employees fall. This would serve to ensure that the organization uphold the standards of equity and fairness in its compensation structure. It would be unfair for an employee to receive more pay for the same kind of work.