Employee retention should be a top concern for your business. With “job-hopping” becoming increasingly common and one-third of new hires quitting after about six months, turnover is a serious issue. To increase employee retention, it’s critical to understand what role HR plays in it.
Recruiting and Interviewing
HR’s impact is obvious right from the get-go. After all, HR is responsible for determining which traits and attributes to look for in employees when recruiting. They must find candidates that mesh with their company’s unique culture and predict how effectively a candidate will be able to perform their duties. This inevitably influences the way they go about recruiting and what types of questions they ask during interviews.
Employee Training and Development
Training is huge. According to research from SHIFT eLearning, “7 out of 10 people say that training and development opportunities influence their decision to stay with a company.” It’s also important to note that ineffective training costs $13.5 million per year per 1,000 employees.
Providing adequate training ensures new hires have the tools and knowledge necessary to thrive in their positions, reduces unnecessary mistakes and shortens the learning curve. Placing an emphasis on employee development gives team members a reason to stay at their jobs for longer and optimizes their collective skill set.
How can you keep your employees happy and engaged?
This is a simple yet incredibly important question that your HR team should continually ask. It’s up to them to understand employee psychology and be proactive in keeping your staff motivated. For instance, they might experiment with goal setting, incentives, or rewards to keep employees more motivated as a whole.
Determining Why Employees Leave
A big part of increasing employee retention, in the long run, is understanding why employees quit. There’s always an underlying reason behind a person leaving, and it’s HR’s job to identify it. A common way that HR teams figure this out is through exit interviews where they inquire into the specifics of the employee’s decision.
Although it still stings to lose key talent, this can be highly advantageous in the long-term because it shows HR where they can improve so they can reduce the likelihood of the problem repeating. More importantly, it can prevent a mass exodus from occurring.
Improving Workplace Policies
The policies you implement directly contribute to your company’s framework and overall structure. It’s HR’s job to create rational, practical policies that put employees in the best position to thrive. At the same time, they must continually review policies and look for ways to improve upon them. Sometimes pivotal adjustments can be the difference between core employees sticking around for years or leaving for greener pastures.
HR wears many hats. One of their core functions is to stay on top of employee retention and do everything within their power to increase it. Placing your company’s attention on the essential areas mentioned above should have a positive impact on retention and prevent you from being crippled by excessive turnover.