SUMMARY
Employees today look for greater engagement, flexibility, and overall, a better work culture alongside fair compensation
With businesses struggling to catch up with this new mindset, attrition rates continue to rise
With modern HR tech platforms, organisations can make data-driven decisions and tackle attrition more effectively
Over the past couple of years, the work environment has evolved. The pandemic pushed nearly the entire world’s workforce to a mass remote working experiment almost overnight. Since then, remote and hybrid working models have become the norm globally.
However, the crisis also shifted the perspective of several employees and phenomena like The Great Resignation, White Collar Lethargy and Quiet Quitting emerged. Today, individuals in organisations are looking for greater engagement, flexibility, and overall, a better work culture alongside fair compensation. With businesses struggling to catch up with this new mindset, attrition rates continue to rise.
In a September 2021 poll conducted by Gartner, 60% of executive leaders expressed concerns regarding employee turnover. A report by the firm also suggested that 52% of recent resignations could have been prevented. At such a juncture, innovative technology, which has solved several of humankind’s predicaments, is once again the answer. And it comes in the form of smart recruitment.
Understanding The Reasons Behind Attrition
“A problem defined is a problem half solved” – Albert Einstein.
The work environment and culture that today’s employees prefer and expect are significantly different compared to what employees wanted a decade ago. That said, some of the key reasons they tend to resign are lack of recognition and growth opportunities, burnout, the ethos mismatch, lack of flexibility, non-competitive pay, and new lifestyle aspirations.
Now, what role does technology play in such a scenario, and how can companies leverage it to reduce attrition rates?
Minimising Attrition Through HR Tech
Technology has improved every facet of a business, including human resources. For instance, by leveraging big data and continuous feedback loops, new-age HR technology delivers 65% better matching and 80% faster hiring, and up to 65% improvement in talent retention.
One of the most significant challenges during the Great Resignation was having several employees quit unexpectedly and simultaneously. But what if AI could predict which employee is likely to quit soon?
Fortunately, SaaS-based HR tech platforms have advanced unimaginably to the extent that AI-enabled programmes identify employees who are about to resign with great accuracy. Additionally, technology can also help gauge employee sentiment better to enhance engagement and experience in the long run thereby reducing attrition.
The Hiring Phase
HR tech platforms are able to source candidates from multiple job portals and social media platforms to ensure a high probability of finding the right talent. AI and ML-powered talent acquisition platforms increase the efficiency and accuracy of the process.
For a candidate, right from the screening, an HR tech-enabled hiring process gives a fair idea about the company, its practices, culture, environment, etc. A seamless, hassle-free hiring process elevates the probability of the candidate joining the company rather than turning down the offer.
Post-Hiring
From screening the resume to onboarding candidates and settling their compensation after they leave the company, the HR department’s job is a continuous process. HRtech platforms assist HR managers throughout the employee lifecycle with advanced SaaS platforms for payroll management, workforce administration, talent acquisition, benefits administration, and even integrated end-to-end compliance.
HR analytics has empowered HR managers to deliver value to businesses from human capital, enabling up to 75% better workforce planning, and making pay actions up to 30% more effective. With this, employee engagement also increases exponentially, alongside the retention rate, which potentially goes up to 87%.
Companies today are more focused on employee well-being and mental health. They are going the extra mile to ensure employee satisfaction, which is directly proportional to productivity. Besides, given that the preference for hybrid working surpasses the traditional on-site working setup, deploying HR tech to boost employee engagement, satisfaction, and productivity is a must.
In an age where every company is hunting for the crème-de-la-crème of talent, hiring and retaining are imperative to cost and resource efficiency in a company. With modern HR tech platforms, organisations can make data-driven decisions and tackle attrition more effectively.
Final Word
As employee expectations are changing, employers should also modify their approach towards attrition and retention. Policies welcoming empathy and the latest technology will enhance employee experience and allow HR leaders to strengthen their workforce and stay competitive.
