Human resources is an important part of running any business. This department is important for your company.
Why? Because they’re responsible for making hiring decisions, enforcing regulations, building and maintaining company culture, and much more.
If you haven’t put much thought into how you run your HR department, it’s time to rethink. The following five statistics demonstrate how important human resources is and how you can leverage it in your benefit:
1) Employee Retention Turnover & Retention
According to a survey from SHRM/Globoforce, 47% of human resources leaders cite employee retention and turnover as primary management challenges. Of course, employee retention begins with creating solid job descriptions and hiring the right candidate.
Before you start looking for places to post jobs for free, take the time to create a description that attracts ideal talent and clearly outlines what you’re looking for.
Offering competitive salaries is also another great way to reduce turnover. If you’re concerned about tight budgets, consider how much it costs to replace them.
Many organizations don’t realize there is a hefty financial cost associated with replacing an employee. You can save that money by giving a 10% boost to salary. Other ways to reduce turnover is to offer competitive benefits, attractive employee perks, and flexible work hours.
2) Transparency is Critical
According to Glassdoor, 90% of job seekers believe it’s important to work for a company that values transparency. When employees believe in the ethical standards set forth by the company they work for, it builds trust and creates stronger company culture.
And yet, the American Psychological Association Survey found that a quarter of employees do not trust their employer. Trust creates strong foundations and solid internal relationships.
One way to do this is to be transparent about wins and losses. If you gained a high-value client (or lost one), but open with your team. Upper management secrets can easily create distrust and uneasiness. Maintain an open door policy and communicate what’s going on behind closed doors.
3) Onboarding = Employee Engagement
SilkRoad found that 53% of human resources teams state that when onboarding is improved, employee engagement is increased. Onboarding refers to the organizational and social process of integrating a new employee into the company.
An effective onboarding process creates a great first impression and ensures everything goes smoothly. If an employee starts off confused or unwelcome, it can easily result in employee turnover.
Do your best to ease first-day anxiety, create feelings of welcomeness, and communicate how they can get started with their tasks in the most efficient ways. Effective training is make-or-break during the onboarding process, and you should prepare as thoroughly as possible long before they start.
4) Health & Wellness Means More
A study from MetLife on employee benefits trends found that 51% of employers believe health and wellness will help retain talent and improve loyalty over the next three to five years.
What this means is that workplace wellness should be a priority for your company. Consider the modern work environment; employees are often staring at their computer screen for long periods on end, quickly eating meals in between meetings, and sitting for lengthy amounts of time.
For these reasons, it’s important to think about how you’ll create wellness opportunities in your business.
According to a study conducted by Health Affairs, for every $1 invested in wellness programs, a company saves $3 in healthcare costs. It also boosts morale and engagement.
There are many different ways to improve wellness across several key areas. This includes investing in standing desks, offering flexible and remote work opportunities, launching yoga or mindfulness sessions, and offering access to fitness centers.
5) Employee Burnout is Serious
A Kronos study found that 46% of human resources leaders say that employee burnout is responsible for nearly half of their annual workforce turnover.
It’s not uncommon for companies to put a strong emphasis on productivity, and to even prioritize this over employee health and happiness.
Employee burnout refers to the physical and emotional exhaustion that employees suffer from when they are overworked or pushed to their productivity max.
When this happens, it can create a negative workplace culture, result in frequent absences, and lead to disengagement. Furthermore, stress can manifest itself in the body, making individuals physically sick and resulting in more callouts.