Employee retention is a business indicator that measures the level of commitment among staff and the availability of human resources to face new challenges. In contrast, termination is a multifactorial event, making it essential for HR departments to know the protocols to follow. They should be aware of best practices to operate legally while always treating the departing employees with respect and, if possible, offering alternatives to keep valuable staff on the payroll.
Excessive employee turnover can have significant financial and operational costs for companies, leading to dysfunctions, communication deficits, a lack of trust among employees, minimal alignment with company values, decreased sense of responsibility, and a lack of commitment to ongoing projects. If employees feel temporary in their roles, their competitiveness and security may decline, significantly affecting productivity. In fact, low productivity can be an indicator that employees are on the verge of leaving the company, alongside factors such as apathy, poor collaboration, questioning corporate objectives, absenteeism, and a lack of long-term commitment.
Employee retention depends on the organization's capabilities. Numerous factors influence employees' desire to continue working in the same place, many of which are directly related to their personal experiences as employees. Many experts suggest that it’s better to foster employee loyalty rather than simply trying to retain them, ensuring that they want to stay without feeling forced. However, there must be a strategy behind each individual and general goal to guide the HR department in decision-making.
Often, problems with employees stem from an incorrect approach during the recruitment process. Therefore, job interviews and other candidate evaluation techniques must focus on finding professional profiles that fit the company's dynamics.
ncreasing and maintaining employee engagement with the project is crucial for sustaining performance. The company should provide firm yet compassionate leadership through the HR department by setting clear and realistic objectives and applying a fair compensation policy.
The lack of a clear and public compensation policy can lead to organizational, performance, and commitment issues due to perceptions of comparative grievances among employees. To prevent this, it’s essential to design a fair compensation policy that includes both fixed remuneration and potential variable pay and benefits at different job levels. This policy should be actively communicated so that all employees know what to expect based on their position, level of responsibility, tenure, etc.
In an increasingly competitive job market where talent retention is crucial, ignoring comparative grievances can have significant repercussions for a company’s ability to maintain and attract top professionals. When an employee perceives that they are being treated unequally or unfairly compared to colleagues in similar situations (in terms of salary, promotion opportunities, workload, working conditions, and professional recognition), they may become dissatisfied with their responsibilities, leading to higher turnover, decreased work quality, and, in some cases, internal conflicts that affect workplace culture and morale.
Additionally, few employees tolerate having their efforts go unnoticed. While they do not expect applause for every completed task, they appreciate recognition from the company for their work and merits. Employee incentive and recognition plans are necessary to reinforce commitment. These can be supported by performance evaluation software to measure employee impact, track performance, and ultimately recognize their efforts; there are many options available in the market for these purposes.
Prioritizing internal promotion is one of the best ways to attract and retain talent within the organization, as employees know they have opportunities for development without leaving the company. To achieve this, it is crucial to map talent, defining each employee's current position, skills, and potential. The talent management policy is closely related to training and development policies as well as compensation policies.
Having real options for internal promotion is a powerful incentive for employee retention. If employees feel that their effort and commitment could lead to professional growth within the company, they will be less inclined to seek better conditions elsewhere.
Fostering a positive work environment is also the responsibility of personnel management. In fact, a good workplace atmosphere directly impacts employee productivity and commitment to the organization. Many employees start to feel the urge to leave the company when their work environment is unpleasant or has significantly deteriorated. Anticipating this situation is essential to prevent workers from wanting to leave, which is why it is advisable to use tools such as employee surveys. This resource allows for understanding employee opinions, identifying areas for improvement, and acting quickly when problems that could worsen are observed, thus facilitating the retention of genuinely talented personnel. Regularly using surveys helps monitor the evolution of employee sentiment.
Monitoring compliance with occupational health and safety regulations and training employees in risk prevention is also the responsibility of the HR department.
Personnel management also involves administrative processes related to managing internal talent and attracting external talent.
Terminating someone’s employment must be justified and can arise from various reasons, including decreased performance or breach of contract, as well as company-related issues like a new business direction. However, there must always be a justification.
Along with the justification, there should be a termination process that needs to be planned and organized in conjunction with the HR department. Preparing the necessary documentation and notifying the employee is crucial. This last step should be conducted through a meeting with the employee and in writing.
It is essential to have a record of the notification, so it is advisable for two company members to be present at the meeting. Additionally, legal timelines must be adhered to, and the notification must include the reasons for termination and the legal grounds on which the company is proceeding with the dismissal.
It is very important to remember that, in addition to meeting the legal requirements for termination, it is necessary to be empathetic and treat the employee with professionalism and tact. Listening to them and trying to make the termination as manageable as possible is essential.
In Mexico, there are different types of termination, the main ones being:
Justified Termination
This occurs when there is a legal cause for the dismissal. The employee is entitled to compensation and seniority premium, but not to reinstatement.
Unjustified Termination
Unjustified termination occurs when there is no legal cause for the dismissal. The employee has the right to sue the employer and request reinstatement or a greater compensation.
Voluntary Termination
This occurs when the employee decides to resign from their job of their own accord. In this case, the employee is entitled to receive their salary up to the date of voluntary resignation, as well as proportional vacation pay and year-end bonuses.
The success of a termination in Mexico can be measured in various ways, depending on the company's objectives. Some of the most common measures of success are:
Minimizing the negative impact on the employee:
With the Legal and Accounting team at SARAM HR, you will have the best advisors at your disposal. Minimize the negative impact on the company by avoiding situations that could lead to lawsuits by following legal guidelines. This way, you can prevent your company's productivity and/or image from being affected and minimize the payment of compensation for unjustified terminations. With SARAM HR, you are sure to achieve your ideal objectives:
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