Every year, a company experiences ~20% turnover in its workforce as a result of employees moving to a new organization or starting their venture.

The significance of this number becomes clear when considering the cost of replacing an employee, anywhere between 30–50% of their annual salary, rising to 150% for mid-level and 400% for high-level employees.

Employee turnover is a financial drain across all industries and has become increasingly frequent in recent times. Today, talent retention is a challenge, especially as companies manage diverse talent across cultures, educational backgrounds, and personalities.

A talent intelligence platform can help organizations understand retention risks and make data-driven decisions to address them proactively.

To address this problem, organizations are bringing in AI as a partner in the game. Tools like AI-powered talent intelligence platform can inform retention strategies and help employers predict who is most likely to leave, as well as what incentives might encourage them to stay.

Note that managing employee retention involves a series of strategic actions to keep employees motivated so they remain employed and stay productive for the organization’s benefit.

Let us look at how a talent intelligence platform powered by AI can help enterprises increase their talent retention rates:

Preventing Bad Hiring Decisions with a Talent Intelligence Platform

One key reason why a talent intelligence platform powered by AI is more effective than human decision-making in hiring is its ability to minimize bias. It objectively screens candidates and helps prevent bad hires by maintaining a consistent, data-driven approach.

It is important to note that close to Eighty percent of employee turnover is due to bad hiring decisions, and these decisions can cost over five times the annual salary of the bad hire.

When AI prevents a bad hire, it also reduces the risk of employee turnover, thereby increasing the retention of quality talent. Fortune 500 enterprises use talent intelligence platform like Draup to prevent poor hiring decisions by leveraging quality data to understand and solve talent challenges.

Delivering Opportunities for Growth

When employees realize they are far from reaching their goals, motivation drops, often leading to turnover. Purpose-driven companies with engaged employees report an attrition rate 49% lower than their peers.

Modern organizations are using a talent intelligence platform powered by AI to assess engagement and work performance, and to match employees with growth opportunities.

The talent intelligence platform help discover needed skillsets, inform promotions or raises, and map career trajectories. When employees sense growth, they stay, keeping retention rates strong.

Employee Experience Matters

Measuring employee engagement throughout the year and using the data to determine potential exits is a suitable way to minimize attrition. In companies with more than 40% turnover annually, those with higher engagement levels see 18% lower turnover.

By breaking down subtle cues and using a talent intelligence platform to identify behavioral changes in employees, managers can take smart actions and address concerns proactively. Today, more than 77% of companies are focused on employee experience as a way to increase retention.

AI-powered talent intelligence platform helps organizations map out precisely how an employee will experience work throughout their career journey, driving higher retention when done well.

Employee Listening

Traditional retention strategies that rely on employee performance reviews to measure engagement are losing relevance in the modern world. In a global survey of HR leaders, only two percent agree that their current method of performance management “delivers exceptional value.”

Instead of relying on a yearly review to communicate with employees and make predictions, managers are turning to AI-powered talent intelligence platforms that provide real-time feedback and insights. This helps managers stay close to the pulse of their teams and build meaningful connections.

Many companies now use the talent intelligence platform to understand employees’ skill sets, identify success drivers, and uncover what keeps them motivated and engaged, boosting retention and doubling productivity by aligning employees with roles they prefer.

Draup, an AI-based talent intelligence platform, analyses and evaluates organizational talent to deliver essential insights to HR executives to help make the best management decisions possible. It excels in employee screening, workforce planning, mapping career paths, and increasing employee engagement with the help of data collected from over 4,500+ Job roles spread across 33 industries and 30,000 skills.

Book a demo now!