Dynamics 365 Human Resources – employee retention

People are critical to an organisation’s success and investing in the right technology to manage and support them is vital. Nowadays, HR departments face several challenges and need to deliver to a multi-generational workforce that demands more flexible work options. This means businesses need to be agile in adapting human resource practices to meet the needs of the organisation and the workforce. Practically speaking, HR’s role is expanding beyond its traditional focus on talent management, process, and transactions.

Some of the challenges facing HR departments today include skills shortages, employee experience, personalised service to improve diversity and inclusion, and a multigeneration workforce. The way we work, and the workplace has fundamentally changed, and yet, for many organisations, HR processes have not. Below are four challenges facing organisations that impact on employee retention:

Skills shortages

Businesses of all sizes are facing recruitment difficulties with perceived skills shortages being one of the challenges. It’s a global issue and, if not addressed, skills shortages will hamper the long-term performance of organisations and economies alike.

A recent survey by Capita Resourcing cited that about half of UK organisations rely on instinct and gut feel when it comes to assessing skills, and 50% of HR leaders believe that at least half of all skills gaps within their organisation could be addressed by better use of data.

Employee experience

How an organisation handles each milestone on its employees’ journeys is indicative of the organisation’s culture and can impact employees’ performance and engagement. By getting to know how employees experience these career milestones at their organisations, leaders and managers can better understand how they’re supporting their staff and how they can help improve the employee experience.

Personalisation – diversity and inclusion

The growing importance placed on employee diversity and inclusion is also due to its increasingly well-documented relationship to business outcomes.
Research shows the significance of employee diversity and inclusion for organisational effectiveness and has consistently demonstrated that increased diversity and inclusion in the workplace leads to vastly improved overall performance, compared to companies with less diverse workforces.

Multi-generational workforce

Organisations need to adopt a flexible strategy that enables them to manage very distinct generational groups. Developing a capable and engaged workforce is a cornerstone of organisational effectiveness.

In addition to increasing employee engagement and retention, development efforts help ensure you have top performers at all levels of your organisation as well as the bench strength and flexibility to adapt as your business changes and skills gaps become more acute.

HR is a fast-changing field, and it’s never been more vital to the development of organisations worldwide. Using new data and technologies, HR has the power to revolutionise work and retain the best employees.

Read our new product guide on Dynamics 365 Human Resources to discover how Dynamics 365 Human Resources supports you from hiring and onboarding through the entire employee lifecycle.