Can AI Boost Your Employee Retention Rates?
Ensuring employee satisfaction and retention is crucial for the success of any business. Retaining valuable talent can be challenging, but leveraging technology, particularly artificial intelligence (AI), offers opportunities to maintain high levels of engagement and commitment within your team. In this article, we'll delve into AI-driven strategies designed to enhance employee interest and dedication, ultimately fostering a more positive and productive workplace environment.
Why Retaining Talent Matters
Employee retention is a big deal for your business. Research from BC Jobs shows that replacing an employee can cost a lot - between 30% to 400% of their salary. And, high turnover rates don't just hit your wallet. They also can throw off the rhythm of the workplace, creating skill gaps, and often leading to a decline in productivity. Frequent turnover can also decrease morale, leaving remaining staff feeling discouraged and uncertain about their future with the company. These factors contribute to an overall atmosphere of dissatisfaction, making it difficult to cultivate a positive workplace environment.
Spotting Employees Disengagement
Employee disengagement is a big reason why people leave jobs. According to Gallup's State of the Global Workplace, only 23% of employees worldwide feel genuinely engaged in their work. Disengaged employees are more likely to start looking for other jobs, leading to higher turnover and less work getting done. Additionally, the report notes that six out of ten employees fall into the ‘quiet quitting’ category, where they are physically present but mentally disengaged from their roles.
Recognizing the signs of disengagement is key to preventing employee departures. Keep an eye out for subtle indicators like less work getting done, more sick days, and less enthusiasm for the job. By catching these signs early, you can be proactive to get people back on track and create a more satisfying work environment.
4 Ways to Leverage AI in Employee Engagement
Streamline Onboarding
Gain Performance Insights
Use Virtual Assistants for Support
Understand Employee Feedback
Keeping your team engaged is key to their happiness and productivity. While traditional methods like team outings and recognition programs work well, there are exciting ways AI can take your efforts further. John Stroud, an expert in Artificial Intelligence from AI Guides joined us in Episode 19 of our Mindful Monday’s to provide further insight into how AI is transforming HR practices and supporting employee retention.
John describes AI as a technology that “makes computers smarter”, enabling them to perform tasks like reading, automating processes, and making predictions based on data analysis. John highlighted ChatGPT as a prime example of AI application in HR that can assist with various HR tasks. John explains: “You can think of it as a junior employee of yours that you can ask questions to, but that junior has read about every conceivable topic in the world. So whatever question you have, ChatGPT is almost certain to have a response to it. And not only can you ask it questions, you can give it tasks to do. So if you're a small business person, and you are doing an interview, and you want some sample interview questions, just say ChatGPT, please prepare me 10 questions for this upcoming interview. And it will do it for you instantly.”
From generating interview questions to summarizing resumes. Its capabilities streamline HR operations, saving time and effort. Here are five more ways AI can help keep your best employees engaged.
1. Streamline onboarding
AI can streamline the onboarding process by providing personalized guidance and support to new hires. By analyzing their preferences, skillsets, and learning styles, AI can recommend relevant resources and mentorship opportunities, ensuring a smooth transition into the company culture. This tailored approach sets the foundation for long-term engagement and success from day one.
John notes: “Organizations have a lot of repetitive tasks. If it's in HR, it might be processing something related to payroll, invoices, or around the on-boarding process. If you've got a very defined workflow and you follow the same steps each time, it takes up a lot of time. You could train an AI bot to do that for you. And so save a minute, save five minutes, over and over and over again.”
2. Gain performance insights
AI analytics can predict trends in employee performance by analyzing data like productivity and feedback. This helps leaders spot areas for improvement and offer timely support. This proactive approach creates a culture of growth and recognition, keeping employees motivated and engaged.
John explains: “When we as people look at data, we can make connections, but AI is really good at connecting things that we never would think of. It can try millions or billions of things to see how they relate and find interesting conclusions. It's something that humans can never do, but a machine is perfectly suited for.”
3. Use virtual assistants for support
AI-powered virtual assistants can simplify HR tasks, allowing HR professionals to focus on more strategic initiatives. This means faster responses to employees' needs, boosting satisfaction and engagement.
Addressing concerns about job security, John highlighted the concept of augmented intelligence, where AI supports human abilities instead of replacing them. He noted that some companies see employees as expenses to cut by automating tasks, causing understandable concern among workers. He suggested a different approach:
“If you go to your employees, and ask them, ‘What’s the hardest part of your job? Are there tasks that you are not getting to? Are there things that are chewing up your day that you wish you weren't doing, especially manual, repetitive tasks that you don't like?’ You get the employees to suggest the problems that they are dealing with, then show up with an AI solution that says, ‘What if we can automate some of those tasks for you, and it would free you up?’ I think you get a much different response from the employee. It's not a threat, it's a solution to a problem that the employees themselves have identified.”
Identifying areas where AI can add value, such as automating repetitive tasks or improving customer service, enables organizations to leverage its benefits while minimizing potential risks.
4. Understand employee feedback
AI tools can analyze employee feedback from surveys and reviews to gauge overall morale. By identifying underlying issues, organizations can take steps to address concerns and improve communication. This shows employees that their voices are heard, building trust and engagement.
John offers his insight: “If there are routine questions that keep coming up that take up a lot of time of your HR team, you can create smart chat bots that will answer those recurring questions. And then to make sure your employees are engaged, there are substitutes for the traditional employee survey. You can measure the engagement of your employees and do it in real time - you don't have to wait for that end of year snapshot. You can hear from them regularly. It's everything from finding the employees to making sure that they don't leave.”
Incorporating AI into your engagement strategies can revolutionize how you support your team. By embracing these innovative approaches, you'll create a workplace where employees feel valued, motivated, and connected, driving success for your organization in today's ever-changing world.
Summary
Keeping good employees is hard, but it's worth it. By understanding why it's important, spotting when people might leave, recognizing your employees' hard work, and using AI to help, you can keep your best people around and make your business better.
John Stroud is the founder of AI Guides and a certified OpenExO consultant in exponential technologies. Prior to launching AI Guides, John served as Vice President, Strategy at a federal crown corporation ($600M budget and 8000+ workforce) with responsibilities for Governance, Human Resources, Communications, Legal, Performance Measurement and Risk.
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