Hiring and retaining top talent is one of the biggest challenges facing HR leaders today, according to HR Executive Magazine’s annual “What’s Keeping HR Up at Night” survey.
This isn’t surprising when you consider more than 50 million Americans quit their jobs in the 2022 calendar year as part of the Great Resignation. This wave of job resignations sent the US Bureau of Labor Statistics ‘quit rate’ to an all-time high of 3.0% in November 2021 – and while it’s trended down since then, it remains elevated, as of October 2022, at 2.6%.
It goes without saying that employee attrition is bad for business, causing a loss of key skills and productivity. On top of that, replacing staff is expensive, with US businesses losing $1 trillion per year from employee turnover, according to Gallop. The same data shows that, for an individual organization, the average cost of replacing an employee ranges from one-half to two times the employee’s annual salary (depending on seniority).
To make matters worse, the loss of an employee can spark a ripple effect if it triggers a reduction in morale, which in turn can lead to lower productivity and more resignations.
Predicting attrition with machine learning people analytics
Now imagine there was a way to get ahead of employee attrition, so you could identify those most at risk and put in place interventions that could prevent them from leaving
Well, while many complex and interrelated factors can cause talent to leave unexpectedly, AI-enabled HR analytics solutions, like Agile HR Analytics, can be used to find patterns in your employee turnover and retention data (both current and historical) to forecast future trends.
That, in turn, can allow you to take preventive action.
Knowing the who, when and why with HR analytics
Like any other business problem, attrition can be fixed. But for that to happen, HR leaders should use smart people analytics solutions, like Agile HR Analytics, to answer the following three questions
- Who is leaving?
- When are they going?
- Why are they going?
For example, if most departures come from a particular department or within a specific timeframe, you can explore if the root cause might be:
- Problems with a particular manager’s style
- Lack of job satisfaction
- Lack of training and development opportunities
- Dissatisfaction with pay, benefits or work-life balance
Take control of employee attrition with AI-enabled HR analytics
Agile HR Analytics is designed to help HR departments improve in a range of areas – including predicting and addressing employee attrition.
Machine learning and data-driven analytics can help you identify the key causes of attrition for your organization. Armed with this information, you can then assess potential risks for departure and put in mitigation strategies to address problems before they emerge.
For example, if staff are quitting because they don’t believe they can progress, you can bolster learning and development efforts and promote professional growth.
Prevention is always better than cure. Agile HR Analytics can help your organization reduce employee attrition and improve performance with AI-enabled HR analytics. To find out more, email firstname.lastname@example.org or book a demo.