Human Resources | HR SWOT Analysis – Why They Should Practice?

Human Resources SWOT

by Shamsul
Human Resources
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HR SWOT Analysis: Why They Should Practice This Study


There is no doubt about it that a football team can’t play the best game without a manager. Similarly, an organization can’t work better without human resources. We are conducting an HR SWOT analysis to fully understand its strengths, weaknesses, opportunities, and threats.

In football, a coach’s responsibility is to organize and recruit the best players in a squad to perform well. In any company or organization, the main job of HR is to recruit excellent employees and ensure that they perform well to achieve the goal.

They are responsible for workforce-related functions in a company. For example, if an organization does not have an adequate workforce, it is the responsibility of the HR department to recruit highly qualified employees by conducting interviews. The department is also responsible for designing suitable salary packages for them.

Moreover, they are also responsible for solving daily issues of the workers and establishing a work culture. SWOT stands for strengths, weaknesses, opportunities, and threats. This tool gives a complete overview of an organization by highlighting its external and internal factors. Strengths and weaknesses are internal factors whereas opportunities and threats are external factors.

Now, you have got the basic idea of the SWOT analysis. Let’s move to HR SWOT analysis without wasting further time,


Human Resources | HR SWOT Analysis

Strengths of HR:

Strengths are the factors that play a big role in the growth of any organization. As HR is directly connected with the workforce, so any decision, strategy, or policy can make the workforce even more productive and efficient.

1- Low Employee Turnover Rate:

Retaining employees for the maximum period in an organization represents the employee turnover rate. If it is high, then it means a company fails to retain its workers. The low employee turnover rate is a major strength of HR. It is very overwhelming to keep your employees satisfied. Factors such as poor management, poor communication, and low compensation are the main reasons for quitting jobs from employees. Professional HR gives value to each employee and works hard for the betterment of the employees. That’s why they succeed in retaining their employees.

2- Good Salary Package:

While getting a job, a worker’s main interest lies in the compensation package. After all, we all want to live the best life. It is the job of HR to giving a handsome salary package to its workers at the time of recruitment. This small factor will surely increase the productivity level and efficiency of the employees which results in the favor of the organization.

3- Supportive HR:

It is one of the biggest worries of any employee to have a non-cooperative HR. It is the duty to be in contact with its workforce and maintains a good relationship with them. A cooperative HR can make any employee happy and positive. It increases the organization’s image in the market.

4- Protection of Employee’s Rights:

Protecting the rights of employees is one of the biggest concerns. They face discrimination in several organizations just because of their religion, culture, gender, ethnicity, etc. It’s HR’s duty to protect their employees’ rights in working place. This will strengthen the relationship between HR and the employees. It is good for enhancing productivity and effectiveness within an organization.

5- Use of Technology in the Operations:

It is an era of technology and digital transformation. Tasks that were time-taking at a time can be completed in a fraction of seconds with new technologies. The department should exploit the latest technologies in their operations to increase efficiency. For example, they can use recruitment websites to find the best people for the company. On the other hand, Software can help them to manage day-to-day tasks easily. They can take the help of automation and enhance the company’s productivity.

Human Resources | HR SWOT Analysis

Weaknesses of HR:

It is an internal factor in the SWOT and highlights the negative points or weaknesses of the company. It is really difficult to find out weaknesses but after finding weaknesses, you can convert them into strengths.

1- Budget Restraints:

Allocating the main resources is the primary job of HR which is necessary to get amplified outcomes. In the situation of budget restraints, HR can’t be able to perform its actions rightly. Since it is directly involved in workforce-related functions, a lack of budget will lead limit its working capability. This will bring dissatisfaction and demotivation among other people which directly impact the performance of the organization in a negative way.

2- Dispirited Employees:

It is a will of every company that its employees should be highly skilled and motivated, but this is very rare. Demotivated or dispirited employees are one of the biggest challenges for HR. They are the major weakness of any organization and its overall working culture. They also spread demotivation.

3- Bad Image:

Having a poor or bad image can put an organization in trouble. Once its reputation is dented, it can’t come out of it. In this scenario, HR has to work immensely to bring some positive change. Like, you don’t want to be friend with a bad reputed person. That’s why the role of HR is really big in this situation and they have to utilize all their resources to show a good image of the organization. Every jobholder wants job security and the good reputation of the company provides such a guarantee. It is one of the most difficult things to hire a professional and competent workforce.

4- Additional Power can Backfire:

To save a company from bankruptcy or financial crisis, HR plays a huge role. As they manage one of the most important factors in the company such as labor and production, so they have to show responsibility. If they use their power for the wrong purpose, then it can also put the company in trouble too. So, HR should perform all the actions fairly in order to reduce the risk of any hassle.

Human Resources SWOT Analysis

Opportunities for HR:

  • Technological Improvement:

It is crucial for HR to utilize the latest technologies to improve its operations. AI (Artificial Intelligence) is really important in this regard as it can help HR to carry out operations productively and efficiently. They can utilize virtual reality for the betterment of employees in the form of training. They can teach workers virtual machines in order to reduce the risk. Using new technologies can give HR a competitive edge and organization too over its competitors.

  • Increase in the Budget:

There is no link between HR with generating revenue, it only distributes and manages the funds. So, a decrease in the HR budget can lead to several money-related problems. It is imperative to increase the HR budget so that they can perform their operations efficiently. It is also beneficial for the company as well. If they have enough budgets, then they can recruit and hire competent people. These workers can play their part in the success of the organization. Moreover, an increment in the funds will also help to increase the pay of employed people.

  • Increase in Professional Labor:

It is a fact that there is no shortage of skilled forces in the market due to the quality of education and reputed institutions. It is a big opportunity for HR to hire qualified employees for the organization, playing role in its success.

  • Developing HR Policies:

By adopting new HR policies and strategies, they can increase efficiency and effectiveness. They should find new and innovative ways to amplify workers’ satisfaction and productivity.


Human Resources | HR SWOT Analysis

Threats to HR:

  • Technology:

Technology can be constructive but unconstructive at the same time. It has its own pros and cons. We have mentioned above that HR should use new technologies to recruit workers but you can’t fully rely on the technology. The over-exposure of technology can limit the involvement of HR in several operations. So, it is one of the biggest threats in this perspective.

  • Increased Demand for Workers:

These days, skilled employees or workers are in demand. If other organizations start hiring employees for similar posts, then it can be considered a threat to HR. As a result, the competition will be increased and other companies will offer better compensation packages to hire skilled labor. This would also increase the employee turnover rate.

  • Data Privacy:

It is vital to protect the private data of employees. Although every organization has the right to record the data of their employees they can’t share it with someone else without any purpose. HR should protect the data of every employee otherwise the company and HR individuals can face lawsuits or legal actions. The company can also face heavy fines which destroy its overall reputation in the market. Recently, a company named Meta was fined up to 17 million euros due to a data breach.


Human Resources SWOT Analysis

To Conclude:

We started this article by telling the importance of HR in any company or organization. We also covered some major responsibilities of HR. It can use this SWOT analysis to convert its weaknesses into opportunities. After reading this, we are sure that you have fully understood the concept of HR in any organization and how they can improve their efficiency by working on strengths and opportunities.


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