Moving forward in 2024, leaders must understand the shifting landscape in the HR world. While HR professionals are well-acquainted with the traditional roles of compliance, recruitment, and other administrative duties, recent years have led to a modern evolution within the HR sector that comes with new responsibilities. Post-Great Resignation, which saw over 70 million workers leave their jobs, employee retention is a stronger priority than ever. However, the process requires a well-developed strategy, so HR leaders must prepare for these responsibilities that are becoming the new norm.
A key factor in employee retention relies on the professional development programs that HR leaders can implement for managers. Research shows that retention is 34% higher among employees with access to professional development, and 86% of employees would switch to a new job if it offered more growth opportunities. Employees want to grow in their careers, so it should be no surprise that 94% of employees would remain at a company longer if that company invested in their growth. Even so, what would motivate employees to be loyal to a company is not widespread. While 83% of companies can agree that it’s important to help develop future leaders, only 5% have those programs available. HR leaders who encourage professional development among company managers will have a competitive edge to retain their top talent over the many companies that don’t offer the opportunity.
With development programs in place, management isn’t the only area where HR will see higher retention, but it will be present among the rest of the employees as well. Management has a crucial effect on company culture and can help make or break employee experience in the workplace. A study from Gallup with over 7000 respondents revealed that one in two employees previously left their position to get away from a manager and improve their lives. Managers who (whether unconsciously or not) tend to create negativity in the workplace or even be toxic are costly to the business in the long run. With programs in place to help these managers create a helpful and positive work environment, the company will likely see a rise in retention rates.
It can be overwhelming to manage employee retention when there may be hundreds or even thousands of workers to monitor. With such a large workforce, HR professionals have more reason to utilize AI programs. When using the right platform, AI can analyze large quantities of performance metrics to determine which employees are ready for further career development or are at risk of burnout and leaving the company. HR professionals will have a much more streamlined experience monitoring employees with AI’s assistance in keeping track of performance and sharing insights on employee behavior.
Regardless, HR professionals must remember to keep in mind that AI is not perfect. Because AI platforms learn from the data that it is given, they can unintentionally act on harmful biases that are present in the provided data. One example is when Amazon used a machine learning model to vet applicants. Because the tech industry is dominated by men, the model began identifying the most ideal candidates as men. Without awareness of this bias, the model developed a preference against women who applied to tech positions within Amazon. HR professionals can avoid these mistakes, but they must ensure that their AI programs are trained properly.
As HR professionals take a closer look at employee needs, it will become clear that promoting a work-life balance is essential to improving retention. A 2023 survey revealed that 45% of American employees are facing burnout at work, and 42% of these employees cited work-life balance as the reason. On the other hand, companies that advocate for a healthy work-life balance see 25% less turnover. Every employee is different, and each may require something unique to ensure a proper balance, so HR professionals must allow the space for them to take care of their needs. Strategies to enhance work-life balance can include implementing flexible/remote work policies, having managers place a focus on productivity levels rather than the amount of time worked, and encouraging leadership to hold check-ins with employees to ensure their workload is sustainable.
The HR sector is no longer meant to solely focus on administrative duties, compliance, and recruitment. To ensure the workforce doesn’t have to endure another Great Resignation, HR professionals must now put employee retention plans at the forefront. While the task may be overwhelming at first glance, especially for larger companies, an organized strategy will make the goal much more achievable. By providing professional development opportunities, encouraging a healthy work-life balance, and determining employee needs with AI programs, HR professionals will have a strategic grasp on retention and all the new responsibilities that come with it.
