Other parts of this series:
In my previous post in this series, I argued that FS firms must reinvent their employee experience if they are to fight back in the war for talent. Today, FS organizations are collectively losing billions of dollars a year as a result of low productivity, poor employee engagement and sub-optimal recruitment practices.
Organizations with low employee engagement experience 18 percent lower productivity, 16 percent lower profitability, 37 percent lower job growth, and 65 percent lower share price over time, according to the Harvard Business Review. Poor hiring decisions or poor retention of employees can take a heavy toll on the business. Every time a business replaces a salaried employee, it costs six to nine months’ salary on average.
Changing this situation is made possible by the growing power and accessibility of today’s cloud, big data, artificial intelligence (AI) and advanced analytics technology. HR can leverage these tools to shift from mass management of HR to personalized employee experiences and to enable their transition to the workforce of the future.
Equipped with the right technology, FS companies can listen to each employee’s story, understand their goals and deliver a workplace experience that meets the liquid expectations of today’s top performers. HR analytics can give them the visibility into the workforce that they need to drive an agile, high-performance culture while ensuring that employee behavior remains aligned with regulation and corporate policies.
With enhanced insight into the workforce, banks and insurers are better equipped to help talent achieve more in a sector where headcount is shrinking. They can create attractive career options in an industry where the workforce is highly specialized and tightly managed, and career paths are narrow. This is important for attracting Millennials, who more than previous generations, seek more personalized career paths and workplace experiences.
And they have the insights they need to tailor HR management and the workforce experience across an organization that spans multiple borders, cultures and regulatory jurisdictions. HR analytics also prepares companies to optimize and manage a future workforce where employees will shift between project teams and job roles more frequently than they do today, and where the workforce will comprise a dynamic blend of employees, contractors, suppliers, and robots and AI.
In my next post, I’ll look at how FS companies can transform their workforces using personalization techniques and predictive analytics.
For more on this topic, download Cracking the Genome Workforce with HR Analytics here.