March 26, 2022 Last updated March 26th, 2022 4,224 Reads share

Why is the HR Department Important for Employee Retention?

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What if the CEO, managing director, and all the other board of directors quit your company on the same day? It would be a nightmare as they are the pillars of your organization. You need loyal and dedicated employees in your company to make your business thrive. Loyal employees are familiar with the rules, regulations, and policies of your company and would be able to adjust better than new employees. 


When it comes to retaining such dedicated and hardworking employees, HR services play a crucial role. Here’s how they can retain important employees:

The HR team usually intervenes and talks to the employee that wants to resign. The HR head would want to know the reasons why the employee wants to leave the job. There would be some reason or the other for the employee to resign, and it’s the responsibility of the HR team to probe and know that reason. Some of the most common reasons why employees leave are negative working environments, conflict with superiors, lack of growth, and lesser salary.

Instead of letting the employee go, the HR should discuss the problems of the employee. She should figure out what the employee wants in order to stay in the company. It’s important to listen to the employee’s side of the story so that the HR can negotiate a deal to retain the employee and keep everyone happy.

Honestly, it takes a lot of time to find a hardworking, dedicated, and loyal employee. Letting go isn’t an option sometimes. Imagine the HR recruiting another employee and that employee going through months of training to gain some experience about your company. If you are in the HR department, you should retain the employees that are indispensable for the organization. It may be disastrous if the employee joins your company’s competitor. That’s why you should find out the reason why the employee wants to quit. For example, if he is not happy with the team manager, you may look to put him in a new team. If he is not satisfied with the salary, you would look to negotiate a better salary structure that ensures that he doesn’t leave the company anytime soon.

It is essential to make sure that the HR team hires someone that fits into the job role perfectly. A person will find the job interesting if it fits his qualifications and interests. Suppose you ask an editor to compose music. It would not work. The person must be interested in music to take up that job role. It is also important for the HR department to provide a justified salary according to the job role in the company. Compelling someone to join your company at a lesser salary isn’t a good idea. Such employees would look for opportunities to resign and find a job that pays more. Moreover, if an employee wants a salary hike, you should check the market trends before considering the deal. 

Keeping employees motivated also helps to retain them. They should always look forward to something new in the organization. It’s the duty of the HR department to conduct motivational activities and training sessions where the employees can learn something outside of their job role. Conducting extra-curricular activities also increases bonding among employees. The HR team should also encourage employees to talk to each other and be comfortable so that everyone can work smoothly in the company. This can make a notable difference to employee morale and in doing so can really make a difference to employee retention, which helps the bottom line of the business in question.

Bonuses and incentive schemes also keep employees on the lookout to earn something extra, in addition to their salaries. These schemes would keep them motivated to perform better. They create a competitive environment where employees give their best to earn recognition. Make sure that there are lucrative prizes that keep the employees on the hunt to perform exceptionally well and earn a chance to win those prizes. If they can’t make it on the first attempt, they would be tempted to win on the second try. Those who have already won would want to keep the momentum going and win multiple times. A competitive and friendly working environment will make the employees feel safe in the organization and it’s the responsibility of the HR team to create that environment, allowing both the employees and the employer to benefit.

The HR department should also review the performance of employees. If you give them a hike without them asking, they may not want to leave your company after all. Reviewing the performance is the best way to determine whether anyone deserves a raise or not. Job rotation is another strategy that the HR team can try to retain employees.

Anil Baswal

Anil Baswal

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