Johannesburg, 10 May 2023
Retaining top talent has become a challenge for many organisations due to the rise of Everywhere Work, which has given employees more power in choosing where and how they work. According to a survey by the South African Chamber of Commerce and Industry, 62% of businesses in South Africa have implemented remote work policies due to the COVID-19 pandemic.
According to research, 31% of employees quit their job within the first six months. This "great resignation" has become a worldwide phenomenon. Retaining top talent is critical to the success of companies. Investing in a proper digital employee experience (DEX) process and tools can help organisations recruit and keep talent as it is found to improve employee satisfaction and increase productivity.
Digital technology has created an ‘always-on’ environment, causing a spike in digital burnout that contributes to mental health conditions like depression and anxiety. HR professionals estimate up to 50% of their annual turnover is caused by digital burnout and 20% of organisations predict a decrease in talent retention based on current trends. Workers who experience digital burnout become disengaged from the goals of their organisation, leading to lower productivity and engagement. Research shows that only 28% of employees feel connected to their company's mission. According to the 2021 Deloitte Global Human Capital Trends report, only 6% of South African organisations are "excellent" at creating a positive employee experience, while 54% are "adequate" and 40% are "weak". By investing in the right tools and processes, organisations can reduce work-related stress and digital burnout, leading to a more engaged and invigorated workforce. This will result in higher retention rates and improved financial performance.
The type and usability of the technology businesses offer to employees are chief factors for attracting and retaining a talented workforce. Research shows that 49% of employees are frustrated with their current tools, with 26% contemplating leaving their job partly because of this frustration. The average knowledge worker uses 2.6 devices to get their job done and experiences an average of 3.67 digital endpoint issues per day. Therefore, it's crucial to implement a user-centric approach to IT that enhances employee experiences to elevate both productivity and job satisfaction. By doing so, companies can deter digital burnout and improve their employees' engagement with the company's goals.
In addition, higher retention rates not only lead to a motivated and energised workforce but also bring more value to an organisation. Research shows that low retention rates will cost the US economy $430 billion in lost revenue by 2030, and replacing a trained employee can exceed their salary by up to 200%. In the UK, work-related stress is costing organisations over £5 billion annually. A 2021 study by the South African Depression and Anxiety Group found 72% of employees in South Africa reported feeling stressed or overwhelmed due to work-related issues.
Investing in DEX can maximise a company's profits up to four times by improving retention rates through the correct investment in DEX. In conclusion, investing in DEX is essential for organisations to remain competitive and retain top talent. DEX can help reduce the risks of work-related stress and digital burnout and increase talent engagement and productivity, leading to higher retention rates and improved financial performance. The overwhelming majority of HR experts consider improving retention rates to be among their highest priorities in the next five years. Therefore, companies must adopt a user-centric approach to IT and invest in the right tools and processes to enhance employee experiences and promote a more engaged and invigorated workforce.
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