The human resources department and its policies have the power to impact every single employee in a company. Turnover rates, if high, are a dire problem for any company. High turnover rates impact a business’ profitability and increase the cost of hiring. However, if the HR department of your company is efficient, such problems can be avoided. Employees often cite problems with their work-life balance, the manager, and the corporate culture as their reason to leave. The HR department should employ certain policies to prevent these employees from leaving.
Before we discuss the role of HR policies, one crucial thing to consider is the HR department itself. Companies should be vigilant while hiring their HR managers. Every company needs to assure that its HR managers are competent, qualified, and experienced. A benchmark should be set before recruiting the HR manager. Their competency should be tested through tests and interviews as part of the hiring process, with minimum qualification requirements set at the master’s level.
If you already have an HR department, encourage key members to pursue an online master’s in human resource management alongside their work to gain more expertise.
Now let’s look at some recommendations for policies that the HR department can employ to improve overall efficiency.
1. A Well-Planned Recruitment Process
Employees often find themselves confused when at work, not knowing how to deal with certain problems. This happens because people get hired for jobs that aren’t the right fit for them. As a solution, the HR department should focus substantially on the recruitment process. The process should be a combination of different types of assessments that help determine if the employee is the right fit for the job and vice versa.
If the recruitment is done correctly, the chances of an employee leaving the job that fits them right would be extremely slim. If the incorrect person is hired, it would eventually lead to voluntary or involuntary dismissal, affecting the turnover rate.
2. Training
The HR department is responsible for implementing and designing training-related policies that make the transition after onboarding seamless.
Different training sessions can help increase the skillset of employees, making them feel more competent and intuned with the role. Training also helps meet employees’ self-actualization needs. If the HR department successfully implements a culture of training employees, it would make them hopeful about their personal and professional growth. Thus, employing such training schemes will also help a company retain its employees.
3. Communication
A key aspect that negatively affects the turnover rates is ineffective communication.
The workforce should be kept in the loop about their performance. HR should review and monitor every employee’s work and effectively communicate their performance reviews to them. The workers who are unable to perform should be offered constructive criticism and training to help them improve. The employees who are performing well should be recognized and rewarded . If done correctly, effective communication goes a long way in improving a company’s turnover rates.
4. Work-Life Balance
Every worker strives to achieve a balance between their work life and their personal life. Oftentimes, people find themselves working long past the regular working hours and even on the weekends. Overload of work can demotivate employees and even lower the quality of their work.
It’s crucial for the HR department to ensure that the employees feel comfortable with their workload. Work-life balance should be prioritized and encouraged as it keeps people happy. If your employees are happy, it will benefit you in both the short and the long run.
5. Keep Track of Redundant Roles
If any person employed by the company is not adding value to the business, there should be an appropriate response. Employees that feel like their work does not add any value to the business are likely to feel demotivated. They will worry about their job security and feel undervalued.
The HR department should readily engage these employees in job rotation to help them find a role that is beneficial for them, and the business, simultaneously.
6. Pay-Scale
One of the most crucial aspects of employee satisfaction is money. It should always be kept in mind that the salary is usually the most important part of a worker’s decision to stay in or leave a company. The salary you offer should reflect a worker’s worth and should be up to the market standard.
The HR department should also ensure that appraisals are carried out regularly and pay scales updated per the ever-changing market dynamics.
7. Reexamining the Current Policy
Since the pandemic, the work-from-home culture has been prevalent in many corporations. The HR policies should be designed in a flexible way to accommodate this culture. The HR department should pay heed to the root causes – lack of fringe benefits and an insensitive approach towards hybrid work of a high turnover, among others – and identify them to adjust old and introduce new policies.
Considering these factors and devising appropriate solutions will fix turnover-related problems for the company. If a company fails to address the loopholes in its current adopted system, any new policy might still be useless.
The Bottom Line
A high turnover rate impacts the cost, time, productivity, and continuity of any business. Therefore, it is important for any entity to be able to cut down on the high turnover rates for smooth operations.
The approaches mentioned above can help you get started and allow the entire HR department to improve the satisfaction level of employees, while instilling organizational loyalty in them.
Also read: Why You Need a Hybrid Workplace Software
