Tag Archives: employee turnover

HRs Role in Employee Retention

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.

 

Employee Motivation

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.

 

 

Improve Your Bottom Line By Minimizing Employee Turnover

A good employee is neither easy nor inexpensive to replace. However, some employee turnover is good and is an essential part of any business. Those that do well are promoted, those that under-perform are let go.

This type of employee movement is good for an organization, it puts the talent in the right spots and makes room for new growth. But what happens when you start to see too much employee turnover? While not uncommon in the hospitality and entertainment industries, when you lose employees at a high rate, it can start to cost you.

Retaining an employee is much cheaper than hiring a new one, not only because of lost time and the cost of the hiring process but also because new employees are inexperienced and must be trained before they can be fully productive. With inexperience also comes an increased potential for injury, which can raise the number of workers’ compensation claims filed by your employees. This can result in hefty insurance rate increases.

 

The Cost of Turnover

Hiring processes have become increasingly more complex over the years. There is a substantial amount invested in even considering an applicant for a certain position. Besides the time put in by those doing the hiring, things like drug screens and background checks add to the cost of bringing on new employees.

However, even though these processes slow down the progression, it is important that you hire employees who will not become liabilities for your company in the future. The background checks, in-depth interviews and other safeguards increase your chances of getting a valuable employee are essential.

On the other hand, the search for suitable employees can leave positions vacant for a significant amount of time, causing a loss in productivity along with other general interruptions to your operations; it is important to weigh the risks of hiring a potential liability against the risks of employee shortage.

Even after a new employee is hired, replacement costs may still continue. Regardless of their experience in the field, new employees must be trained in the specific requirements of the position. During this time, they will not be as productive as other employees. Since they are working in an unfamiliar environment, new employees are also at an increased risk for getting hurt at work.

Jobs may present unique hazards that are unknown to the new hire, increasing the chance for an injury that will result in a workers’ compensation claim. A high number of workers’ compensation claims mean an increased cost to your insurer. Insurance providers take this into account when deciding coverage cots for companies with high employee turnover, which can mean higher premiums for you.

 

Preventing Turnover

If you have productive employees who do quality work, the financial benefit of keeping them around is obvious. The key to reducing costs and keeping premiums low is hiring the right people from the start, investing money in effective training and emphasizing the importance of safety on the job. Job satisfaction also plays a key role, so keeping employees happy will also play an integral part in ¬†protecting your company’s bottom line.

Retaining a productive and experienced staff can go a long way in your cost-saving efforts. Not only do you avoid hiring costs, but experienced employees allow your company to operate at a much safer level. A safer workplace means fewer injuries resulting in workers’ compensation costs, saving you money in the long run.