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Purpose

The purpose of this study is to examine the critical human resource (HR) challenges faced by social enterprises, including factors like leadership transitions, employee recruitment and retention, employee compensation and training and development.

Design/methodology/approach

The analytic hierarchy process, a multi-criteria decision-making tool, was used to prioritize the challenges. Data were collected from eight experts using a pairwise comparison matrix.

Findings

The findings emphasize the importance of effective leadership and employee engagement, with poor leadership transitions and challenges in the acquisition of skilled employees identified as significant risks. The study concludes by emphasizing the need to address the HR challenges through proper strategic planning and innovative solutions, which are crucial for the sustained growth and success of social enterprises.

Originality/value

The findings and recommendations of the study focus on enhancing leadership capabilities, improving recruitment strategies and introducing nonfinancial incentives to motivate and retain employees.

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