In 2023, retention will become a bigger priority than recruitment. How can HR technology help?
Human resources’ rapid adoption of technology has led to new ways of streamlining human capital management. Based on the IEE Global Study, these technologies changed how HR handled recruitment and retention in 2022. This includes tech like
- artificial intelligence and machine learning (21%)
- cloud computing (20%)
- 5G (17%)
Moving into 2023, however, HR technology needs to focus on ways to create better connections between workers and employers.
Why retention should be prioritized in 2023
Before we explain why employee retention should be the focus, let’s read the room. Since the skilled candidate’s post-Covid exodus, AKA The Great Resignation, the job market is still in favor of job seekers. Some had no choice but to leave their jobs due to economic instability in various industries. Others voluntarily decided to make a change to a new job or company that could provide a better work-life balance, health benefits, and other all-around perks – like working from home.
Individuals are more prone to seek other opportunities even if they are currently working. The 2022 Human Workplace Index Survey of U.S. employees by Workhuman revealed
Think about the costs!
Maintaining a thriving business depends on employing good people who have the right skills and are willing to stick around. Human Resource employees often find themselves caught in a never-ending cycle of hiring, onboarding, training, and resignations that cost a great deal of time and money – as much as $1,500 per hourly worker, according to the Society of Human Resources Management. These costs don’t just include advertisements and screening. As new employees are hired, so much effort goes into onboarding and training new employees. If the new hire leaves, the company will be hit with separation costs and administrative tasks that take HR away from other necessary workforce duties.
While it is costly and time-consuming to process an employee’s exit, it is far less expensive to prevent employee losses. The biggest pitfall (though not always controllable) for HR is getting caught in the reactive cycle of hiring and finding available workers when the priority should lie in being proactive and keeping good talent.
Engaging with employees at every stage can reduce turnover and result in greater productivity. Highly engaged employees improve the profitability of their employers by as much as 23%. Statistics on employee retention from Oak also indicate that actively engaging employees support an 18% decrease in employee turnover. That adds up over time. Given these numbers, it makes sense that HR can put more effort into retaining employees than constantly searching for the next warm body.
How HR technology can help
Now that technology has become more accessible to organizations of all sizes, Human Resources can put better systems in place to increase employee retention. Streamlining and maintaining a connection with new hires and all current employees goes a long way toward retaining them. Making this connection personalized with employee names and other information helps employees to feel valued.
Learning technology is a critical aspect of retaining employees. According to Lorman Education Services, “Retention rates rise 30-50% for companies with strong learning cultures”. All employees need to be given access to a centralized learning center for learning new concepts, processes, and procedures. This learning should take all employees from basic onboarding topics to advancing levels of learning new skills.
Engagement solutions that measure the actual results of company efforts to increase employee engagement are vital as well. This can be integrated with other self-serve HR technology like payroll and time tracking software. Mobile apps are readily available to allow employees to check in with employers on how they feel about their work experience.
Lastly, when communication channels are maintained using HR technology, employees have a safe way to express concerns and share ideas. An AIHR report advises developing two-way communications and enabling continuous management communication with employees. Having a centralized communication platform like Slack or Microsoft Teams, for example, gives HR the chance to stay in touch with employees. This is especially important for those who work remotely as they may have little to no interaction each day. Set up a secure communication solution that works for your organization and encourage management to use this rather than email all the time.
In 2023, there will likely be a whole new generation of HR technology that includes more tools and resources to support both recruitment and retention efforts. Once you’ve posted your ads and found new talent, keeping a focus on the retention of talent will provide bigger dividends.
How can HR retain employees you ask! I don’t think there is an easy way to answer that question.
I think HR Directors and Companies in their entirety have to look at their own demeanor toward HUMAN BEINGS looking to work for them or are already working for them.
People are NOT a Resource, no matter what People / Companies may think! Their are Human beings with feeling, emotions and fears. All this has been ignored over the past, but especially in the past 20/30 years.
By calling their Employment Department HUMAN RESOURCES Department, companies are insulting every employee and potential employee walking through their door.
We are no machines, were are human and want to be treated as such, and not as a mass produced commodity that can be used up and then thrown away. People are sick and tired of being treated as such!
I recommend that Companies around the globe start looking at that and correct their SLAVER mentality toward their employees.