The Importance of Staff Retention Risk Management

There is risk in any hiring decision.  The risk comes in the unknown, and even though an applicant has been properly vetted, there are still things such as how they fit into the company and with other employees that can’t be known until they actually are in place.  Once hired and acclimated, the goal of HR and management is staff retention risk management.

Risk management incorporates the identification and assessment of risks in the workplace.  Every business decision comes with risk.  When it comes to staff retention, it is important to have risk management strategies in place to ensure the negative effect of turnover is mitigated, and suitable employees are maintained to keep the business thriving and moving forward.

Staff turnover rates vary from industry to industry and from region to region.  In some industries, staff turnover can be as much as 30-50% every year.  Some of that turnover is due to things like retirement, unsuitability, changes in strategy, or maternity.  For key staff persons, such as those that maintain a vital presence within a company, the development of staff retention risk management strategies is needed for any human resource department and upper level management so that they can maintain a strong and loyal staff.  Developing risk management strategies for staff retention is the key to encouraging employees to stay in their present employment, realizing their skill set is something that is needed to help keep the company vision moving forward.

Staff retention risk management requires businesses to both think strategically about how they can improve their employee retention, and do the things necessary to ensure the right hire is made.  Things such as financial incentives, non-financial incentives, and researching why employees are leaving are examples of some strategic ideas designed to retain employees. 

Risk management also begins in the hiring process.  Many companies are finding it necessary to improve the effectiveness of their recruitment and selection process so that fewer unsuitable employees are recruited in the first place.  This happens through an extensive interview process but also through a properly conducted employment screening.  A background check that provides a look into things such as previous employment, verification of education, drug screening and criminal history, is an effective risk management tool that helps to remove the overall risk of a hiring decision by learning as much as possible about what an employee brings to a company.  

It’s important to know who you are hiring, and if staff retention is a goal of your company, then taking the important risk management steps can provide you with a solid employment team for years to come.