How AI Can Impact Employee Retention 

light blue background. image of man holding holographic circle. How AI Can Impact Employee Retention 

Are you looking for a new approach to retain your workforce? Retaining great employees and reducing turnover are just as essential as hiring and recruiting efforts. With artificial intelligence (AI) transforming the job market, its impact will also likely extend beyond just automation, influencing how organizations retain their talent, as well. 

Reducing employee turnover can save money, increase productivity and efficiency, and helps businesses generate more revenue. It could even affect customer loyalty, as engaged, productive employees are likely to provide exceptional levels of customer service. Let’s look at a few specific ways in which AI could impact employee retention

AI’s Impact on Employee Retention

AI can be a highly valuable tool that helps employees do their jobs thoroughly and, most importantly, more efficiently. With the goal of building a stronger employee retention strategy, here are four areas hiring managers could lean in and leverage AI tools: 

Manual Tasks 

The adoption of automation tools can lead to significant cost savings for organizations. Embracing automation in the workplace, specifically, can free employees from manual tasks— allowing them to focus on other priority responsibilities. For instance, marketing teams can swiftly generate multiple social media posts in one setting and accountants can automate expense categorization with ease and efficiency.

Employee Engagement 

Employees who are engaged are more likely to stay in their current role and less likely to look elsewhere for a job. Other benefits of high employee engagement can include: 

  • Reduced turnover 
  • Lower employee stress 
  • Higher productivity 
  • Increased loyalty 

AI tools could potentially boost employee engagement through platforms that help gauge employee satisfaction. Collecting feedback and making changes accordingly (where possible) is a great start to retaining your people.   

For example, AI employee engagement tools could analyze feedback around return-to-office policies or hybrid models and help management build out systems and protocols that work for everyone. This ensures employees feel heard and that leadership prioritizes their well-being and development. When workers feel valued and engaged, retention improves and attrition rates drop

Related: Retaining a Multigenerational Workforce (From Baby Boomers to Gen Z)

Personalized Learning and Development 

74% of workers would consider taking a accepting a new role if development opportunities were included in the offer. Career growth and development are essential for employees and should be prioritized. Businesses can use AI-based learning and development platforms to:

  • Upskill or generate skill growth
  • Offer certifications and personalized training
  • Enhance overall job satisfaction

The programs within these platforms can offer recommendations for continued training and certifications based on their results, goals, and ideal career path. 

Workforce Planning with Predictive Analytics 

Workforce planning is the strategic process of analyzing, forecasting, and planning workforce supply and demand. This type of approach can help to prevent labor shortages– which can increase the workload and burden on existing employees, reduces morale, and increase stress.  

AI tools intended to assist users with workforce planning can use predictive analytics to determine skill gaps or if even you have the right roles in place. This type of planning supports employee retention efforts as it can allow leadership to adequately plan for busy and slow seasons. 

Related: 3 Tips to Build an Inclusive Culture and Boost Employee Retention

With a talent shortage in a competitive labor market, it’s essential for organizations to focus on retaining employees. The average business spends thousands to hire a new employee with several weeks of training to follow. Are you solely relying on just hiring the right candidate? If so, considering AI to help build a robust employee retention strategy may be worth a trial run!

At Insight Global, we use our AI platforms to help you find and hire qualified candidates. Connect with us today to see where we can help you build or retain your staff.