A competitive company is one driven by high-performing and sustainable teams. While the importance of talent retention is undeniable, companies struggle to address it. Skills shortages, coveted talents, difficulty in attracting the best candidates, and retaining them long-term place turnover at the heart of all concerns.
More than just implementing simple actions, it’s about placing retention at the core of your HR strategy. The objective: anticipate the needs of your current and future employees to fulfill them before they consider leaving.
Fortunately, in 2024, digital tools abound to assist you in:
- Identifying and recruiting more reliable candidates,
- Anticipating departures and determining actions to avoid them,
- Creating and offering satisfying career advancements.
Today, the digital recruitment solution through recommendation, Basile by HelloWork, and TOP, the SaaS solution for managers and HR directors looking to stabilize their teams, combine their expertise to shed light on 3 complementary tools to integrate into your HR strategy for building loyal teams.
What challenges must be overcome to retain your employees in 2024?
In a context where companies compete to attract the best candidates, the difficulty in identifying and retaining talents suitable for their specific needs is a crucial issue. The 2023 Barometer on HR Function Transformation and Digitalization, conducted by Deloitte and Future of HR, reveals that nearly half of the companies have identified employee retention as a strategic priority. What challenges await them?
Increased competition to attract talent
With increased competition in the job market and growing demand for qualified talent, companies must innovate. According to the 2023 Talent Management Index published by Cornerstone, 57% of companies are grappling with skills shortages. This situation results in numerous vacancies and an increasing difficulty in filling key roles within organizations.
Evolution of employee expectations
Employee expectations are constantly evolving, especially regarding remote work, work-life balance, and professional fulfillment. Companies must be able to meet these expectations to retain their talents. Work-life balance has become a priority for employees. Companies must offer flexible policies and wellness programs to meet these needs and retain their talents.
Company culture, recognition, and work environment
A strong corporate culture and a positive work environment are essential for retaining talents. Employees need to feel valued, supported, and motivated in their work.
Skills development and advancement opportunities
Employees are looking for professional development opportunities and advancement within the company. Companies must invest in the skills development of their employees and offer them opportunities for growth to retain them.
What are the impacts of high turnover rates?
A high turnover rate can have significant financial repercussions for a company. Costs go beyond simply finding a replacement. Recruitment costs, loss of productivity, training for new staff, and even team morale deterioration accumulate rapidly with a high turnover rate and can have a significant impact on your business. In terms of employer branding, the repercussions can also be severe and damage the company’s long-term reputation, thereby compromising its ability to attract new talents in the future.
Organizationally, a high turnover rate leads to instability and lack of continuity, jeopardizing the company’s long-term strategic objectives.
Recommendation, Predictive AI, Internal Mobility: 3 Key Tools for Loyal Teams
To avoid being caught off guard by the increase in turnover, the retention strategy must be comprehensive, from the recruitment process of your candidates to the career management of your employees.
Recruiting Reliable Candidates through Recommendation
It is estimated that a failed recruitment – meaning an employee leaving the company within the first year – costs between €30,000 and €150,000, according to a study by ManPower, HR Voice, and Opensourcing. This estimate includes not only the direct costs related to recruitment and training of a replacement but also productivity losses during the transition period. Hence the importance of not neglecting the recruitment stage!
Before even thinking about retaining your employees, the first question to ask is: do my sourcing methods allow me to recruit reliable employees?
Recommendation or recruitment through recommendation is the most efficient sourcing method for attracting reliable and qualified candidates. The figures are revealing. Among our clients, 1 in 5 recommended candidates is hired on average, compared to 1 in 100 via job boards, and almost all of them successfully complete their probation period.
How does it work?
Recommendation creates a virtuous circle that significantly improves retention rates, contributes to the employer brand’s visibility, and enables substantial savings on recruitment. Employees recommend candidates they believe fit their company and its expectations. On their side, recommended candidates apply with an understanding of the company’s reality as described to them by their referrer. Moreover, onboarding is facilitated. Recommended candidates are integrated more quickly with the support of their referrer, which helps strengthen the new employee’s commitment.
This is a win-win-win sourcing method:
- Less risk for new recruits to be disappointed at the start of their job,
- Less risk for the recruiter to be mistaken about the candidate,
- And a triple benefit for the referring employee: a reward, the opportunity to help a friend, and the chance to work with someone they appreciate!
The results are impressive; according to a study conducted by Jobvite, more than 47% of referred employees stay in the company for more than 3 years!
However, setting up a referral campaign manually can be laborious and time-consuming, especially when recruitment volume is high. To simplify this process, consider adopting a digital referral recruitment solution such as Basile by HelloWork to relieve your HR teams and boost your referral program.
Fully integrated into your ATS without the need to handle third-party software, Basile automates your program from A to Z: from data collection to candidate classification, through challenge organization, reporting, communication, campaign animation, and GDPR compliance management. Delegating these tasks to an expert guarantees the success of your referral program and allows your Talent Acquisition teams to focus on more strategic activities.
💡 Did you know?
On average, when clients already have a referral program, Basile allows them to triple the number of referrals received in the first year.
Through referrals, companies can recruit faster, cheaper, and more reliably. That’s why every healthy company should aim for a minimum of 20% referral recruitment rate.
For more information, download our Referral Guide.
Anticipate Departure Causes and Stabilize Your Teams through Predictive AI
In 2023, the main reasons why employees leave their companies are estimated to be:
- Lack of career advancement opportunities within the company
- Remuneration
- Poor work-life balance
- Limited flexibility and telecommuting
But what are the reasons that drive YOUR employees to leave you?
This is where predictive AI comes into play! Throughout your employee’s lifecycle in the company, this tool allows your HR teams to anticipate potential departures and offer adequate solutions to retain them.
The ability to predict and anticipate turnover has become essential for companies seeking to maintain their competitive advantage. Prediction based on artificial intelligence from TOP thus emerges as an innovative SaaS solution to anticipate and reduce turnover. With its AI-based predictive models, TOP can identify key factors contributing to employee departures and provide personalized corrective actions to retain them. This proactive approach allows companies to analyze their employees’ data in-depth and identify early signs of departure, enabling them to act quickly and effectively to prevent turnover and maintain a stable and engaged workforce. This results not only in cost savings associated with turnover but also in strengthening the company culture and reputation as an employer of choice.
How does it work?
TOP operates with a sophisticated algorithm designed to interpret HR data and predict team stability. Using machine learning techniques, its technology adapts to various professional contexts. Data is categorized and sorted, then the intelligent solution comes into action to provide accurate predictions. This predictive AI-based solution focuses on data based on predefined selection criteria, identifying specific mobility risk factors for each sector and context. Before its deployment, the weight of each factor in turnover is analyzed to create an adapted and performing predictive model.
Is this technology secure?
Of course! TOP ensures data security by using robust protection and privacy protocols. All HR data is processed securely, with encryption and protection measures for sensitive information. Additionally, access to data is strictly controlled and authorized only for authorized users. The highest security standards are applied throughout the process, from data collection and storage to analysis and use for predictions. By implementing these advanced security measures, TOP ensures the confidentiality and integrity of its users’ data. This SaaS solution is also fully compliant with data protection regulations, including the GDPR (General Data Protection Regulation), and integrates the principles of the AI Act to ensure ethical and responsible use of AI. Furthermore, predictive models are subject to constant ethical supervision to ensure transparency, fairness, and reliability in all analyses and recommendations.
💡 Additional Information:
Thanks to the implementation of the TOP solution, Aymax Consulting was able to reduce its turnover rate by 9% in just one year.
TOP’s predictive models can accurately predict up to 87% of resigning employees.
Offer Career Advancement Opportunities: Strengthen Internal Mobility
Consistently promoting internal mobility is essential to offer growth prospects to your employees.
Ensuring the professional fulfillment of your employees is essential. Internal mobility is an effective way to retain talents by offering them tangible growth and professional development prospects within the organization.
These opportunities can take various forms, such as tailor-made training programs, internal promotions, or job rotations, allowing employees to explore new areas of interest and acquire new skills. By investing in the professional development of their employees, companies demonstrate their commitment to their growth and long-term success, thereby strengthening employees’ loyalty and engagement with the organization.
According to Apec, the implementation of internal mobility increases employee loyalty by 59.3%. This statistic highlights the significant impact of internal mobility on maintaining talents within the company, thus offering an effective solution to counter turnover and promote employee retention. Moreover, internal mobility proves to be an effective tool for reducing turnover. According to the same source, it can reduce personnel turnover by 22%.
💡 Additional Tip:
Use a digital solution such as Basile by HelloWork to promote internal mobility. With its multichannel communication device and intelligent matching algorithm, your employees will be regularly informed of opportunities tailored to their aspirations and will be able to apply for them in one click from an intuitive web or mobile portal.
Download our Internal Mobility Guide for more information.
Talent retention conditions the success of your company in the market. More than just saving on recruitment and training costs, it is a strategic lever for companies, strengthening their competitiveness in the market. By preserving a pool of experienced and skilled employees, organizations ensure optimal productivity and service quality. Moreover, this retention creates an environment conducive to trust and stability, establishing a corporate culture where commitment and cohesion are fundamental values.
Improving your turnover rate starts from creating a job offer, continues during the recruitment and integration process of the candidate into the company, and extends throughout the professional lifecycle. In this perspective, recommendation, predictive AI, and internal mobility, coupled with digital, are indispensable complementary tools to strengthen your talent retention strategy.
