Contribution of HR department to employee retention in the organization



Figure 1: Employee Retention


Any organization's HR function is incredibly important for employee retention. Workplace policy and procedure improvements, internal advancement chances, employee training, and incentive payments are a few examples of strategies for retaining employees. Employee retention tactics during restructuring are the responsibility of the HR department, which must also recommend and put them into action. 


Reorganizations brought on by declining earnings may not result in salary increases, but they may offer their staff members other incentives or benefits, such as more time off work, more flexibility with their schedules, or on-site employment prospects. Since high turnover can result in higher expenses, lower productivity, and a negative influence on business culture, employee retention is crucial for maintaining a stable and effective team (Alajlani, 2022).



The following are a few ways that HR helps to keep employees on staff:


Recruitment and Onboarding:


HR is responsible for the recruitment process, ensuring that qualified candidates are selected who fit both the job requirements and the company culture. A well-planned onboarding process led by HR helps new employees feel welcome, informed, and engaged from the start, reducing the likelihood of early turnover.

According to research by the Brandon Hall Group, companies with effective onboarding procedures increase productivity and new recruit retention by a combined 82%. The top issues firms will face in 2022 are a lack of talent and excessive employee turnover, so it is critical to engage and keep staff on board from Day 1. This is made possible by a solid employee onboarding procedure, which also aids in bringing new workers up to speed so they can start contributing right away (Kallidus, 2022).

Employee Engagement:


HR plays a key role in fostering a positive work environment and promoting employee engagement. This involves conducting surveys, collecting feedback, and organizing activities that boost employee morale and motivation. Engaged employees are more likely to feel committed to the organization and less inclined to leave.

Employers frequently strive to affect employee engagement and retention rates as two important business considerations. In order to maintain employee engagement and expand their firm, owners , and managers must maintain strong retention rates. Long-term project success will never be easy for the company if personnel cannot stay on for a long time. Retention and employee engagement are connected and can impact an organization's performance (Southern, 2023).

Training and Development:


HR is involved in creating and implementing training programs to enhance employees' skills and knowledge. Offering opportunities for professional growth and development can make employees feel valued and invested in their future within the organization.

Employees may use the abilities they learn in training to comprehend new ideas, pick up necessary talents, and do their everyday tasks. By enabling employees to gain new skills without leaving their current position, this learning culture promotes employee retention (Simpson, 2022).


Performance Management:


HR ensures that the performance management system is fair, transparent, and tied to employee development. Providing constructive feedback and recognizing employee achievements can improve job satisfaction and reduce the likelihood of talented employees seeking opportunities elsewhere.

An important strategy for keeping workers is performance management. It enables monitoring the development and performance of employees, spotting issues before they become serious, and give comments, and implementing the required changes (Karan, 2023).


Compensation & Benefits:    


HR is responsible for designing competitive compensation and benefits packages. A fair and attractive package can help retain employees by making them feel that their contributions are valued and adequately rewarded.

For employers to recruit and keep employees, compensation and benefits are crucial. Compensation and benefits are frequently among the most crucial aspects taken into account when job hopefuls are reviewing employment offers. Competitive pay and complete benefits packages can increase a company's appeal to prospective employees and aid in luring top talent. Additionally, by providing financial stability and incentives, enhancing job satisfaction, and encouraging a sense of loyalty to the organization, a competitive pay and benefits package can aid in keeping current employees (Volper, 2012).

Figure 2: Benefits of employee retention



In summary, the HR department's contributions to employee retention involve creating a positive and supportive work environment, providing opportunities for growth and development, ensuring fair compensation, and addressing employee concerns. By focusing on these aspects, HR can significantly impact the organization's ability to retain talented and motivated employees.



References

  • Alajlani, S., 2022. The impact of human resource practices on employee retention. SA Journal of Human Resource Management, 1(1), p. 20.

  • Karan, 2023. How Effective is Performance Management in Retaining Employees?. Employee Engagement, 1(1), p. 5.

  • Simpson, . O., 2022. EMPLOYEE RETENTION, TRAINING AND DEVELOPMENT: HOW IT’S ALL CONNECTED, s.l.: Ascento.

  • Southern, M., 2023. The Impact of Employee Engagement on Retention. Employee Engagement, 1(1), p. 10.

  • Volper, R., 2012. 7 Compensation Tactics To Help Retain Employees, s.l.: CNBC.

Comments

  1. Nimantha WickremasingheAugust 2, 2023 at 8:31 AM

    While I agree that HR departments can help reducing attrition to a certain degree by using the strategies you mentioned, those will not be very effective sometimes as the primary reason that employees leave organisations is due to poor management. This is also highlighted by the popular adage, “People don’t leave organizations, they leave managers”. (Allen, 2019)

    If HR departments consider the direct influence of management in employee attrition to include that in their organisation-wide talent retention strategies, I think that would make a huge impact.

    References

    Allen, M., 2019. The Real Costs of Bad Management-And What You Can Do About It. [Online]
    Available at: https://gbr.pepperdine.edu/2019/03/the-real-costs-of-bad-management-and-what-you-can-do-about-it/
    [Accessed 2 August 2023].

    ReplyDelete
  2. Lakshani N UlladupitiyeAugust 13, 2023 at 12:14 AM

    employee involvement in the work environment and turnover are helpful for productivity.

    ReplyDelete
  3. E211227_MohamedAugust 13, 2023 at 11:05 PM

    Yes, when a business cares for its employees, it creates a healthy work environment and grows.

    ReplyDelete
  4. Madara Gamage ( MBA-2023)August 14, 2023 at 8:35 AM

    While HR departments cannot entirely control the actions of individual managers, they can play a pivotal role in influencing and improving management practices through training, support, and feedback mechanisms. By addressing poor management, HR can contribute to creating a more positive work environment that promotes employee retention and organizational success.

    ReplyDelete
  5. I U K YaddehigeAugust 15, 2023 at 8:38 AM

    Employee training and development are crucial to employee retention. If employees aren't adequately trained for their jobs, they may feel underprepared for their work or as if they aren't performing well.

    ReplyDelete
  6. Dinesh Chamira WijesinghaAugust 15, 2023 at 2:46 PM

    Countless factors contribute to how employees perceive their employer, but the key influences are the physical, digital, and cultural conditions the organization offers. HR must help leaders take a good look at the state of these three aspects from the employee perspective and find ways to make improvements.

    ReplyDelete

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