Certified Human Resource Professional (CHRP) Practice Exam

Which strategy is most effective for reducing employee turnover?

1. Offering higher salaries

2. Improving work-life balance

3. Providing frequent promotions

4. Implementing strict policies

The correct answer is: Improving work-life balance

Improving work-life balance is considered one of the most effective strategies for reducing employee turnover because it directly addresses the needs and well-being of employees. When employees feel that they are able to balance their professional and personal lives, they are more likely to feel satisfied and engaged in their work. This satisfaction can lead to higher levels of commitment to the organization, reducing the likelihood of them seeking opportunities elsewhere. Organizations that promote work-life balance may implement flexible work arrangements, provide support for family responsibilities, or encourage employees to take time off when needed. When employees believe that their employer values their personal time and well-being, it fosters a positive workplace culture that can significantly improve retention rates. While higher salaries and frequent promotions can attract and motivate employees, they do not fully address the underlying issues that may lead to turnover. In some cases, even employees with attractive compensation packages may leave if they feel overwhelmed or unable to manage their work-life responsibilities. Implementing strict policies may create a more controlled environment, but it can lead to resentment and a lack of trust among employees, which can ultimately result in higher turnover. Thus, focusing on enhancing work-life balance is a holistic approach that aligns with employee needs and contributes to long-term retention.