HR Leaders: How Decisions Actually Affect Talent Retention in a Real Way
This DATIS blog article, “HR Leaders: How Decisions Actually Affect Talent Retention in a Real Way", was originally posted by Robert Cordray, Linked2Leadership, on March 9th, 2016 and was reposted with permission.
It isn’t uncommon for the human resources department to be viewed as one having little impact on a company’s profitability, finances, or sales. However, is this consensus a fair one?
After giving it some thought, which department in the business is responsible for the talent driving the finance and sales sectors?
Developing Your Business Infrastructure
Once all the layers of a business are peeled back, it is safe to say that it is truly only as first-rate as the talent working within each department. Without those individuals, the business wouldn’t exist, and the human resource department is responsible for each of these employees.
They not only attract them, but they also help develop them and organize them strategically throughout the company, so they perform at their best.
Giving further thought to this subject, it makes no sense not to give credence to the critical factor that HR plays in a company’s profitability and decision-making process. The real question is, though, how this department’s decisions impact the company’s bottom line, where their value lies, and how their decisions affect the retention of talent in a real way.
Decision-Making and Talent Management
The most obvious point of contention regarding HR is the decisions the make regarding talent management, and its impact on retention. The driving force behind every successful company is a solid talent. Therefore, it’s up to the HR department to have a thorough understanding of the business’s talent requirements, how to attract them, and the requirements necessary to develop that talent to enable them to assist the company strategically, so goals are met.
Because it’s so difficult for organizations to attract and retain experienced leaders currently, those holding these management leadership roles deserve separate mentioning.
A business is a “make or break” situation if strong leadership isn’t in place, especially when times are tough, or during periods of transition.
Attracting the Right People
The HR department can have a huge impact on an organization when they attract the right leadership and develop them effectively. They don’t just advertise for a particular leadership role and fill that slot.
Instead, they will assess the needs of that leadership position for a particular department, first attracting an individual fitting that specific need, and following through by developing their behaviors and skills based on particular requirements.
When each of these decisions is made, and all of these goals are accomplished by the HR department, how the company’s bottom line and the retention of talent are evident. Companies not only have the correct people serving in the right positions, but they are working at their highest level that, in turn, will inevitably have a positive effect on the company’s performance and profitability.
HR Strategy Alignment and Decision-Making
Every department in a business is an important one and, with every strategy and decision, there is no one-size-fits-all solution. Therefore, when it comes to HR activities, some of these decisions truly impact employee retention in a real way. Integrated HR software helps management hire and retain employees.
These organizational tools assist the HR department to organize hire dates, compile data, and track every employee’s career path. The importance of this data includes making a determination for future leadership roles, as well as identifying where employees can serve in various departments in the company.
When strategies are intrinsically linked to the goals of the business, as a whole, then there is greater success for talent retention. This is because when employees know that companies are willing to invest money into developing them and increasing their skills, then they’ll be more willing to stay with the company.