HR Executive magazine has completed their HR challenge survey for 2005. They received 224 respondents who described their main challenge in 2005.

The #1 challenge was Staffing or Recruitment with 27%, followed by Compensation or Benefits with 25%. These two challenges dominated half the field! The next greatest issue in third was mentioned by only 8%.

This shows an increased emphasis compared to last year, where the first two challenges were the same. But staffing was at 21% and compensation was #1 at 26%. That’s a change of more than 25% in a single year!

What is our long-term trend prediction? Staffing or Recruitment at 45%! As demographic pressures continue to drive the reality of talent shortages to the forefront, the challenges of staffing, recruiting, and workforce planning will take an even larger share from compensation, benefits, training, and other concerns.