Human Resource Management Challenges: Retention
Recent research conducted by the Society for Human Resource Management (SHRM) reveals some intriguing findings in the HR field. SHRM asked a sample of human resource professionals what they believe to be the three biggest human resource management challenges facing them over the next 10 years. Over 50 percent of human resource executives polled stated that retaining and awarding employees, along with developing future leaders, present the two biggest challenges facing their HR departments. Other concerns include creating attractive corporate cultures to recruit employees, hiring employees who possess highly specialized job skills, and competing for talent in the labor market.
It should come as no surprise that employee retention tops the list of the biggest challenges facing human resource managers. High employee turnover negatively affects the bottom line, as organizations must invest in the recruitment and development of new team members. Recruitment costs include running online and print advertisements, conducting interviews, and materials used to measure job candidate competencies. Development costs also play a large role in organizational budgets, as human resource departments must spend money on training pay, trainer pay, training materials, and developing lower productivity employees.
High turnover can irrevocably damage employee morale, which represents the primary driver of worker productivity. Employees enjoy their jobs for a number of reasons, but forging bonds with other workers sits near the top of the list. Retaining employees also provides operational continuity on projects and customer service initiatives. The best employees often mentor other employees in roles that are vital to the long-term success of private and public enterprises. Moreover, diverting resources and attention away from a business’ primary goals makes it difficult to find employees to lead growth-oriented strategies.
High employee turnover rates prevent organizations from developing high achievers to assume mentoring roles. When the best employees leave organizations, they not only take their professional acumen with them, but they also take their mentoring skills. The leadership vacuum makes it virtually impossible for companies and government agencies to produce future leaders who enhance organization growth and financial efficiency. Mentoring provides human resource executives with an informal way to train future leaders. Instead of rigid on-the-job training, mentoring changes the employee training dynamic to one of a much more personable nature. Mentored employees who want to become future organization leaders gain valuable on-the-job training, as well as learning the personality traits of strong leaders.
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