HR teams have transformed in the last four years, overcoming unprecedented compliance and retention challenges and earning themselves recognition as an essential piece of company-wide success. But are they poised to handle what’s coming next?
As hiring slows due to political and economic uncertainty, organizations are placing more emphasis on retaining their best talent. However, an understaffed or even overstaffed HR team could influence a company’s ability to do just that. Using its payroll data, ADP found a correlation between the number of HR staff and employee turnover. If an organization had between one and eight HR team members per 200 employees, the turnover rate fell by 1.3%. On the other hand, if an organization had more than nine HR staff members per 200 employees, the turnover rate started to increase by around 0.4%.
