Companies large and small are always interested in attracting and retaining top talent. At the same time, your workforce is always interested in other companies and positions that provide opportunities for growth and advancement. Studies show that replacing your company's talent could cost anywhere from half of the employee's annual salary to two times the salary. Depending on the employee's duties, you could also lose valuable client relationships and considerable functional company knowledge as well as decrease the morale of your remaining employees. It gets even worse when you consider the cost of a bad hire.
As such crucial pieces to the puzzle, it's necessary to do everything you can to keep your employees happy and loyal to your company. Fortunately, as technology continues to improve the modern workplace, companies now have more opportunities to retain top talent through HR IT advancements and using good, "small data" for recruiting.
Reduce Expenses with Modern HR Technology
Workforce turnover, commonly called "employee churn," is not a new phenomenon. Some of the churn is due to retirement or unavoidable circumstances. However, voluntary employee churn, when an employee leaves your company for a better offer, is an unnecessary company expense, especially for those companies that still use manual processes to fill those positions.
Think of the countless hours your HR department spends on attrition. They are responsible for completing the departure paperwork for the exiting employee, including any unused leave, transferring retirement, and conducting exit interviews as a part of the 10 step offboarding process.
Once all of the former employee's loose ends are tied up, HR then needs to write an appropriate job description, advertise the position and spend countless more hours reviewing paper resumes selecting the handful of candidates who actually qualify for the job.
As such, a main driver of HR IT is finding, attracting, and retaining quality employees. Programs such as our cloud-based HR solution software employ AI to help your HR personnel save time and glean knowledge from former employees to prevent further avoidable departures.
Improve Retention with Modern HR Technology
One of the most compelling reasons for voluntary employee churn is that, once employees were hired, no one in the company seemed interested in them. If your company can't show that your employees and their opinions are important to you, why would your employees want to stay with your company?
HR IT provides you with countless ways to engage your workforce. For example, you can enlist the same chatbot technology you use for customer service to measure employee satisfaction. A chatbot can ask a few pertinent questions about the employee's experience using various types of software, such as "Was it easier to file expenses online rather than manually?" and "How could the process be improved?"
Not only will your HR personnel receive a tremendous amount of information using this technique, but it is also immediately actionable information. Not every employee complaint carries the same weight, but AI can aggregate responses so that you know what pain points your employees' experience and can keep them apprised of your search for a solution.
Mitigate Risk with Modern HR Technology
HR manages mountains of sensitive paperwork, from timekeeping to employee benefits and required certifications. Timekeeping alone can consume days depending on the size of your company, whether or not many of your employees earn overtime and how many employees use each type of leave you offer. Even simple timekeeping and benefits mistakes can be costly in terms of fines and penalties.
The same concept applies to certifications, whether educational or work visas. Certification errors can lead to misclassified employees and lawsuits, and work visa violations carry stiff penalties.
A robust HR IT platform can unchain your HR personnel from memorizing, ever-changing regulations so that they can focus on more meaningful work. The proper technology can put the "human" back in human resources and eliminate much of the paperwork.