Industries are being disrupted and talents are becoming more mobile. They are expecting better experience and personalised recommendations to improve their journey with the company. 45% of employees reported that they would be likely or very likely to look for another job outside their current organisation within the next year (SHRM).
Early warning system for talent attrition
Replacing an existing employee with a new one tends to cost about three times the salary of the employee. This includes managing recruitment procedure, severance, lost opportunities, lost productivity, etc...
As the workforce become more demanding, HR need to act before it’s too late. Waiting for the end of the year is way too late to reverse critical employee attrition.
People are companies’ most expensive asset. Keep a pulse on employees’ sentiments continuously helps leaders, HR and managers identify hotspots of talent flight-risk and build an early warning system to predict turnover. A study we have conducted this year showed that employees who don’t participate in such engagement surveys are 2.7 times more likely to exit in the next six months.
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Highlighting potential areas of disengagement early can significantly reduce the attrition cost.
The need for HR to contribute to business value
In recent year, there is definitely a push towards elevating the HR function to be more strategic. Leaders of companies are expecting HR to lead cultural change, organisational transformation and other key events. While there is an increase in HR’s responsibilities, it often doesn’t come with an increase in time or other resources.
To remain efficient and contribute to business value HR will need to deliver effective and quantitive results. HR will need to adopt technological solutions to help automate administrative processes and to provide relevant data to make informed decision that will lead to the best business outcomes. 89 % of large company executives either already are using big data to make decisions or planned to start doing so in the news 3 years.*
Other functions like marketing or sales in companies have long been providing evidence-based information for business decisions. What we are increasingly seeing is that leaders of companies are asking HR to do the same thing. More data exist about people than ever before and CEO are no longer asking HR “what do you feel” but instead, “what do you know”.
A competitive advantage to improve performance
People analytics empower organisations to collect and analyse relevant data to get actionable recommendations. By continuously collecting employees feedback at every stage of their journey with the company, organisations can monitor their engagement level and empower leaders to effectively respond to concern, and skills gaps.
Tracking disengagement in real-time allows HR de-escalate a crisis by quickly making informed decisions about people with immediate positive impact on workforce.
Real time data represents a real competitive advantage to improve performance without additional resources.
*PWC report, Economist Intelligence Unit, 2019