Employers' HR departments have identified their two top challenges in 2019: recruiting quality employees and keeping up with technology.

That's according to the 2019 Paychex Pulse of HR Survey, which reports that finding top employees with the right skills and abilities, as well as improving employees' efficiency and experiences, are presenting HR staff with ever-more-demanding responsibilities—as is the growing incorporation of technology into operations.

The tight labor market can be seen in the changing results of the survey, which for the first time in its three-year history finds that HR's top concern is not regulatory compliance but instead attracting talent. More than two thirds said it's tough to find and hire candidates with the right stuff—last year 59 percent said so.

In addition, 49 percent said that among the hiring challenges they faced was finding qualified candidates; 49 percent cited retention of their best employees; and 42 percent, finding candidates who fit with the company's culture.

As a result of some of these challenges, 85 percent say they're willing to train candidates who lack some of the skills required by the job, while 78 percent say their organizations are already reaping the benefits of doing so.

Eighty-seven percent say that technology has been a boon to their contribution to corporate success, and that's up from 85 percent in 2018. In addition, 100 percent said that they rely on HR analytics in some way; 90 percent say it helps them make more informed decisions, 89 percent say it helps them to defend their decisions to corporate employees and 89 percent say it helps them to understand how to communicate with employees.

And 81 percent say that technology gives them an edge in hiring as well as improving employee productivity.

Part of HR departments' strategy in attracting and retaining employees entails offering nontraditional benefits and perks, with nearly 40 percent providing flexible scheduling in response to demand. Career development programs are also big, with 25 percent of firms offer them as well as offering at least some reimbursement for continuing education costs—the second most frequently offered perk this year.

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Instant Insights /

Talent, technology present biggest challenges to HR this year

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