In any organisation, no matter the industry, employee turnover is a costly problem and is becoming more frequent. It poses an adverse impact on the workplace productivity, culture, revenue, training programs and long term growth.
The average employee churn rate in the public transport sector in Australia is approximately 5-8% per year. Some of our clients are seeing their employee churn ratio hit the 30% mark, which translates to almost one in three employees leaving the company within the first year.
Reported by SHRM, employee turnover has cost Australian businesses $3.8 billion over 12 months. When it comes to recruiting, the cost of losing an employee is an expensive and time consuming process, and the higher up the hierarchy the more difficult and inflated it becomes.
What is not considered when replacing an employee is it takes roughly 6-9months to be in a business before this person starts to challenge decisions being made with the same level of authority as the outgoing person did. Within this time period the employee gains knowledge of systems, an understanding of the business, builds confidence, and develops relationships.
Machine Learning uses predictive analysis to minimise employee turnover
Through the use of Artificial Intelligence (AI), this technology analyses historical data to understand patterns, whether this is job satisfaction, absenteeism or behavioral intention, to predict future movement(s).
This solution is effective because it’s not a static process. It is continually learning. The more data aggregated, the more accurate and the more capabilities unlocked.
By implementing an AI model for this purpose, it enhances the employee experience, empowers human resources with insightful information and the business is able to get maximum return on their investment. It detects which employees within an organisation are most likely to leave and recommend potential resolutions.
The recommendation engine integrated with the AI system, is able to asses why the person is a flight risk based on collated data and can suggest how human resources or direct managers can best engage or incentivise the individual. Different people have different levers and the model is able to evaluate individual situations to provide personalised solutions – these could be a pay increase, flexible working hours, working from home, a new challenge or a different focus.
The evolution of talent management
AI-enabled capabilities removes the need for human-managed assessments which can be littered with error, assumptions and bias, and allows human resources to focus on its people.
Instead of looking at thousands of employees, this technology can scan an entire organisation and shortlist a handful of employees with a potential to leave, enabling human resources to hone in on shortlisted staff members.
The information data possesses is invaluable. The wider the connectivity, the more companies and the more candidate profiles using this type of AI, will allow us to track entire careers, bring the right candidates into organisations in the first instance, and nurture their employee experience.
Changing the landscape of employee experience
Imagine having a mind reader promoting your longevity where you work? AI optimises your journey within an organisation to ensure you are engaged and performing in an environment or arena you enjoy. It can identify certain skills or interests and align these to opportunities that arise in other departments that may not have been previously explored or known.
At some point, an employee will leave a company unless a good career path can be established, and this aspect should be integrated into organisational business plans. By implementing AI technology into your business it opens another dimension of employee insight, increases employee tenure and significantly improves revenue.
GHD Digital have developed and trialed a solution that can be tailored to business’ employee needs and is evolving with each iteration. This solution is now at the stage where it is in the process of being operationalised into a client’s business to assist them in elevating employee experience and turnover rates.
About the Author
Meet Manoj
Manoj is an experienced Data Science and Advanced Analytics Leader with a demonstrated history of working in transport, water and civil engineering industries. He has extensive experience in developing Data & Analytics strategies, Advanced Analytics execution and developing Artificial Intelligence Solutions to address clients' most complex problems.
For more information please visit www.ghd.com/digital or contact Manoj at Manoj.Shivanna@ghd.com