Employee retention is critical to a thriving business, but the current labor market is a tough one for employers. What’s the best way to hold onto your key employees?
Follow the data.
Data brings clarity to the underlying causes of attrition for a more precise retention strategy.
Although employers commonly default to compensation as the primary cause of attrition, people analytics uses your organization’s data to uncover the true drivers behind employee decisions to stay or leave.
By integrating your organization’s payroll, HR, and financial data with labor market intelligence, people analytics can deliver quantifiable and actionable insights to drive better decision-making and improve employee retention.
Use people analytics at your organization to:
Recognize and predict attrition risk. Discover insights about which employees are leaving and what they have in common — including current pay vs. market average, performance, engagement, managers, training, hiring source, education, tenure, race, and even gender — to predict which remaining employees are most at risk and take the opportunity to intervene before they reach the tipping point.
Discover why people stay. Analyze the common attributes of loyal employees with a retention analysis using the same KPIs, including current pay vs. market average, performance, managers, training, hiring source, tenure, race, and gender.
Assess the business impact. Identify the impact of attrition in high-value, customer-facing, and revenue-producing positions on short-term business performance. Measure the cost of turnover in higher replacement wages, lost productivity, hiring and training costs, and excess overtime.
Create a custom retention strategy. Data takes the guesswork out of retention. Apply the data-driven insights of people analytics to pinpoint areas for strategic and operational improvement, determine concrete steps for keeping your best employees, and develop attrition metrics and KPIs to inform talent decisions.
Data drives positive and precise retention strategies to keep your employees on the job and your business thriving.
Visit thinksight.io for more on using people analytics to drive effective retention strategies and improve your bottom line.