Employee turnover is a major concern for every organization. Unfortunately, many organizations lack the information and resources to proactively address these issues. Simply knowing which positions, particularly those of a high profile, are most likely to result in turnover allows an organization to put succession plans in place. By proactively addressing issues, organizations are able to keep productivity at constant levels and protect the bottom line. In order to identify the positions that are most likely to result in turnover, organizations should consider using a comprehensive Succession Planning system.
Predictive Retention Modeling
Traditionally, much of the information available to Human Resources for reporting was reactionary. For example, HR could provide information on attendance, but not tie it back to the company’s objectives or indicate how attendance trends could impact future performance. Cloud based HRIS systems with comprehensive analytic tools do just that and more. By analyzing the past, the HRIS system is able to identify trends and indicate instances where turnover is likely to occur. Additionally, these tools allow an HR department to see how those at risk roles are distributed across the organization. Having this information can allow a company to proactively search for new candidates or to build comprehensive succession plans. Additionally, if at-risk positions are restricted to certain departments, predictive retention modeling provides information that can be used to train, develop and manage management.
Benefits of Retention Modeling
There are several benefits to using a predictive retention modeling system, including:
- The ability to recognize the strengths and weaknesses of the workforce, and to then use these strengths and weaknesses to create succession plans that address the future needs of the business.
- The ability to determine what skill sets will be lost in the event of turnover of key positions, and then to determine what will be necessary to fill those losses.
- To measure turnover, understand the root cause of turnover, and to put plans in place that will address turnover. Further, to see how the turnover ultimately impacts the organization’s skill set, productivity level, bottom line and strategic focus.
- The ability to tie the company’s strategic vision to employee performance and to see how employee issues could impact that vision.
- Analytic tools that allow the organization to determine how attendance issues and performance issues result in the need for contingency planning.
The ability to predict what positions are most at risk for turnover and to proactively address those risks is one of the best ways to improve a company’s focus and productivity. Comprehensive, cloud based HRIS systems such as SAP SuccessFactors provide this capability and much more such as Succession Planning to reduce the risk of key personnel leaving your organization.
