Employee turnover is a major issue for many agencies and replacing an employee can be a time consuming and expensive process. Most organizations recognize the importance of talent retention, but the traditional exit interview gives very little useful information and legacy HR systems can make it difficult to see how to reduce the employee turnover rate.
Employing the right digital tools to improve the employee experience can help your staff to feel more content in their role, increasing staff retention rates and helping to reduce the cost of employee turnover.
In this blog post, we’ll look at how Human Capital Management (HCM) is a key part of improving staff retention rates, and how a robust HCM strategy can help to reduce staff turnover.
Why is Employee Retention important?
Replacing a staff member can take several weeks and cost thousands of dollars, but the problems don’t end when you shake hands on a job offer.
Once you’ve recruited your new employee, training could cost up to 20% of their salary and it could take as long as 24 months for them to reach the same productivity as the person they replaced. Reducing staff turnover can therefore represent a major cost saving opportunity for many agencies.
The main drivers of employee retention include aspects such as a flexible workplace, opportunities for career development, a positive employee experience and a good relationship with management. And while it’s impossible to completely avoid staff turnover, employing a Human Capital Management system can help an agency to put in place successful employee retention strategies.
How does HCM Software support employee retention?
HCM (Human Capital Management) seeks to enable an agency to recruit the best talent and provide employees with an experience which optimizes their performance. This will then lead to greater success for the agency.
HCM software is a digital tool which eliminates the time-consuming manual aspects of Human Capital Management and streamlines HR processes. This enables you to maximize the performance and value offered by your employees while also providing them with a better experience which helps to improve staff retention rates.
Here are some of the main ways that HCM systems support talent retention:
Create a better employee experience
HCM software can help to improve talent retention by improving the interactions between management and employees. The digital platform delivers personalized information from onboarding onwards and makes it easy for employees to submit or receive feedback and track their professional development. The cloud-based portal can also help remote workers to feel more connected to the office and colleagues.
Simplify core HR operations
HCM solutions can automate many HR tasks such as attendance, remuneration and time off which in turn makes them easier to manage. This has the direct effect of reducing the number of mundane manual tasks that HR must complete and further improves the experience for the rest of your employees.
Your HR business processes are unique to your organization’s needs. Having the ability to extend capabilities is critical to add functionality without customization and means your organization can move to the cloud with ease, confident that your unique requirements will be met.
Support professional development
A good Human Capital Management strategy recognizes the value that employees place on professional development and Human Capital Management software can support professional development by making it easier for employees to access training opportunities.
Allowing employees to self-select the training modules they wish to complete empowers them to take control of their career advancement. It also allows HR to keep track of their progress, which assists with performance reviews and allows management to see where skill gaps need to be filled.
Improve employee analytics
HCM solutions can provide valuable insights into employees’ performance, allowing management to identify any persistent issues and make data-based informed decisions. Analyzing the data provided by HCM technology can make it possible to assess current Human Capital Management strategies and put changes into place where necessary.
Because HR data is both critical and highly sensitive, a robust HCM system ensures that your employees’ valuable data is stored in a secure and organized way. And the HCM software can be integrated with other enterprise software such as sales and finance systems, while mobile-responsive cloud-based technologies make it possible for the data to be accessed by multiple people in different locations.
So, Human Capital Management software can help HR functions to run more efficiently while also creating a better employee experience. The improved management/employee interaction delivered by a successful HCM strategy is key to improving your employee retention rate, helping you to make better HR decisions and reducing talent acquisition costs.
Tamara Greenspan is the Group Vice President and General Manager for Public Sector Applications. She is responsible for Oracle’s Enterprise Cloud Applications business, supporting the U.S. Federal Government and Canadian Public Sector. Her focus is on building and maintaining customer relationships and delivering superior solutions to meet the mission of her customer base.
Ms. Greenspan has over 30 years of experience in this market. She joined Oracle in 1989 and has held various sales and management positions within the Public Sector business unit. She has received numerous performance awards for achievement, including GovExec’s Fed100 in 2023, AFFIRM Executive Leadership Award in 2022, IES Women in Sales Leadership Award in 2020, General James M. Rockwell AFCEAN of the Year in 2020 and Oracle’s prestigious Leadership 2000 award chosen by her peers for sustained superior management and leadership success.
She currently serves as the Vice Chair of AFCEA International Board of Directors, AFCEA NOVA Board of Directors, Homeland Security Defense Business Council Board of Directors, ASMC Corporate Advisory Board and is a Board Member of the Institute for Excellence in Sales (IES) Women in Sales Advisory Board.
Ms. Greenspan received her Bachelor of Science degree in Business Administration from Bucknell University. She resides with her husband and their three children in Maryland. Tamara enjoys her book club, spending free time with her family at the beach, and helping those in need. Tamara and her husband started a charity in 2000, KINDH (Kids In Need During Holidays – 5013c), which helps low income families by providing them gifts and food at the holidays.