Human resource is by far the most important part of any business. Employees typically dictate how the business runs and the profit margins that the company can achieve. This fact makes it essential for any business to offer employees a stable working environment and enough incentives to keep them gratified. But who is responsible for employee retention?
Some organizations offer their employees enticing salaries, allowances, vacations and even a chance to improve their skills while working under them. However, one factor that can easily lead to business losses and even the downfall of the business is losing employees to the competition. Which begs the question, which among the two departments – human resource and talent acquisition – should be in charge of employee retention?
Here are some few details to help you work out this dilemma.
Why Does Employee Retention Matter?
After working for your organization for a certain period of time, employees will tend to pick up some of your secrets that make you outshine the competition. Unless your staff signs a non-compete agreement, losing them could mean an increase in the threat that is the competition, especially if they get employed by your competitors.
Alternatively, high employee turnover will mean recruiting and training a new workforce on tasks that the previous employees could have been the best in. This situation has the potential to lead to losses since the recruits might make costly mistakes as they adapt to the new job. As POE companies like Digital Exits note, it might take some time for the team chemistry among your reshuffled staff and new recruits to yield optimal results.
The Role Of The Talent Acquisition Department
The role of the talent acquisition department is to ensure that it recruits the best individuals to fill any open positions within the organization. They invest time and money into the recruitment process to choose the most worthy applicants. Most of the department’s resources will be spent on interviews, job advertisements and in making the final decision.
Once the company experiences an employee turnover, they have to go back to the drawing board to pick the perfect replacement. On average, it will take the department 42 days to get a replacement, according to the SHRM website. Since this can present unforeseen challenges for any business that needs positions to be quickly filled, it makes sense to be quite cautious during the recruitment process.
The Role Of The HR Department
The HR department plays a vital role in ensuring the work environment is inviting enough to retain the employees. Whether it’s with the help of third-party bodies who offer professional employer organization services or done in-house, the HR department caters for salary and remunerations, benefits such as insurance and even promoting employee autonomy.
Simply put, they set the mood within the job environment. When the department walks the extra mile to promote employee satisfaction, it can end up reducing employee turnover rates. However, in case an employee eventually leaves, they play the role of handling the paperwork of the loss and the potential replacement.
Both Departments Should Work Hand In Hand
While the talent acquisition department might recruit employees who are worthy of the open job position, an unsuitable job environment will eventually lead to high turnover rates. Similarly, a satisfactory job environment while recruiting employees with a high affinity for leaving will only lead to the need for filling an open position in the organization.
Strategies like ensuring a smooth recruitment process, effectively performing stay interviews and training employees will all have a part to play in promoting job satisfaction. The onus of employee retention lies upon both departments. If both do commit to their roles in synchrony, then the chances of losing employees will be significantly reduced.
Employee Retention – Conclusion
As a rule of thumb, retaining employees will always be cheaper than replacing them. The ability of any company to satisfy employee expectations lies in how well the HR and TA departments can work together. Consider reviewing your human resource handling strategies to enjoy reduced employee turnover rates.
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