Risk mitigation in HR aims to solve which primary issue related to employee compensation?

Risk mitigation in HR focuses on addressing employee turnover, primarily through the development of strategies that enhance retention and engagement. High employee turnover can lead to significant costs for an organization, including the expenses related to recruiting, onboarding, and training new employees, as well as potential losses in productivity and knowledge.

Effective risk mitigation strategies may include implementing competitive compensation packages, offering benefits that address employees' needs, and creating a positive company culture. By proactively addressing the factors that contribute to turnover—such as dissatisfaction with compensation or lack of growth opportunities—HR can reduce the likelihood of employees leaving the organization voluntarily.

While performance evaluations, job satisfaction, and work-life balance can influence turnover, they may not be the direct focus of risk mitigation efforts in the context of compensation. Instead, risk mitigation directly targets the financial and operational impacts that result from high turnover rates, thereby making it a critical issue for HR professionals to address.