In 2020, companies had to let go of a significant number of staff because of the COVID-19 pandemic. In contrast, 2021 and 2022 saw employers facing employee retention and turnover issues amid the ‘Great Resignation’.
As a result, employers must combat these turnover rates by implementing new technologies and strategies during hiring and promotions processes.
In 2021, 15% of employers filled positions in 1-2 weeks, in 2022 half as many respondents are filling positions in this time, according to a study by HireVue of 1,657 hiring leaders across the globe.
55% of respondents reported higher turnover in 2022, and one in four companies experienced turnover of at least 13% of their employees.
US companies are facing much higher turnover rates than Australian companies. Australian employers reported prioritizing internal promotions and talent intelligence marketplace, proving to have better success rates in employee retention than job-matching technologies US companies are utilizing.
UK companies are facing “about the same” level of turnover as before the pandemic and have no expectations to implement new talent mobility solutions.
Employee retention schemes should start before a new hire begins
Considering HireVue’s findings, companies must prioritize internal promotions, utilize hiring technologies that ensure good job fit, and move towards systemic approaches to find a larger selection of qualified candidates. Good employee experience and engagement are the most important factors for both candidates and employers.
33% of respondents told HireVue they replaced resumes with skill-based assessments for new hires, and 45% adopted a skills-first approach. Respondents found these methods to reduce bias, and, with a larger candidate pool, helped them meet their diversity, equity, and inclusion (D,E&I) goals. Companies that dedicated D,E&I goals reported lower employee turnover rates.
Companies are also prioritizing sourcing from previously overlooked workers to solve their retention dilemma. 47% of respondents increased their candidate searches towards mature workers, while 44% looked at undergrad workers, and 38% junior workers.
Conversational AI-powered recruiting assistants have proven to be far more effective in finding qualified candidates and shortened the time-to-hire period.
Of HireVue’s respondents, 65% have introduced technologies such as AI and chatbots, 63% implemented assessment tools, and 55% moved to a combination of in-person and virtual interviews.
According to Darren Jaffery, general manager of EMEA & APAC at HireVue, “The ‘Great Resignation’ kickstarted the need for not only better-hiring processes, but also workplace cultures that advocate employee happiness.
“But HR leaders cannot successfully do this alone. By making use of technology – like video interviews, AI and assessments, businesses can augment their hiring process and secure the best talent.”
Today’s workforce is more likely to leave their positions to find the right fit than older generations.
As an employer, it is important to implement tools during the hiring process and internally that meet the expectations of your workforce, or you will lose your employees.
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