High attrition can increase employee-related costs, apart from a decline in productivity and loss of valuable proprietary information. Usually, when organizations realize that an employee is leaving, it’s too late to reverse their decision. AI technology can inform employee retention strategies and help companies predict which employees are most likely to leave and what incentives might encourage them to stay.
What Can Companies do to Improve Employee Retention?
In a competitive environment, high attrition can hurt organizations, especially in the case of their top talent. Top performers are usually hard to replace, and productivity is disrupted when organizations lose team members with the essential product or process knowledge. Developing a retention strategy that leverages emerging technologies like AI can help you identify flight-risk employees and take measures to address the issue.
How AI Can Help You Identify Flight-Risk Employees
HR leaders are responsible for identifying disengaged employees and assessing flight risk. However, it can be difficult to spot warning signs and formulate a retention strategy on time in large organizations with a diverse workforce. This is where AI can help.
AI is useful for identifying flight-risk employees and has applications in several other aspects of workforce management. Here are a few use cases for AI implementation that can improve employee retention:
Career progression and new opportunities for advancement are some of the top reasons employees choose to stay at a company. AI can play a key role in career progression planning by monitoring employee performance to identify stagnation. This can help managers plan the introduction of new learning and development (L&D) programs and identify new growth opportunities.
Better Work-Life Balance
A poor work-life balance and an inflexible work schedule are commonly cited reasons for employee attrition. AI-based work scheduling can help align work with individual employee preferences without affecting productivity. AI-based solutions can automatically screen and approve attendance, leave requests, and work-from-home requests, giving employees greater flexibility to manage their time.
Ensure the Right Culture-Fit
Often, an employee’s professional attributes are not aligned with the company’s culture or the role’s demands. AI-based talent management solutions can assess culture fit as part of the recruitment journey, ensuring that only candidates with a good chance of staying with the company are recruited in the long run.
Achieve Equitable Compensation
As there is a greater focus on equal pay for equal work, AI-powered solutions can assess market conditions, employee performance, and business outcomes to optimize compensation and rewards. Companies can also set more well-defined targets, track employee progress, and recommend new tactics to deliver better results.
Act on Employee Feedback
Employee surveys provide critical insights into which aspects of the organization’s culture are working and which ones need improvement. AI-based solutions can analyze chat history and survey data to gauge employee sentiment and focus on what matters. For example, during the pandemic, many organizations focused on employee concerns regarding health and safety and managing uncertainty.