Does HR Tech Increase Retention & Engagement?

Published on 21 Apr 2023

employee engagement

According to a recent Gallup research, almost 85% of workers across all industries and countries are disengaged. There are various causes for fluctuating levels of employee engagement, but the unpleasant fact is that these numbers affect the bottom lines of many businesses. Studies have shown that disengaged workers hurt a company's bottom line. Many companies have identified boosting employee engagement as a key strategic objective for the future, pinning much hope on the possibility that HR technology solutions could help them achieve this.


The rapid development of technology over the last several years has facilitated the development of more effective business practices. Human resources (HR) innovations foster workplaces that benefit everyone, from upper management to entry-level staff. When companies know what to look for in a solution, introducing the proper HR technology can soothe the anxieties of inadequate staff engagement. Employee engagement at organizations of all sizes may benefit from the following features of modern HR software.

See also: The Role of Machine Learning in the Automotive Industry 


The onboarding process is only the beginning of the employee's journey with the company. Strong recruiting and onboarding efforts, made possible by a well-designed ATS (Applicant Tracking System), establish the groundwork for long-term employee loyalty and a sense of community. New hires may be quickly brought up to speed with electronic induction. High levels of engagement among new hires can do wonders for developing a great employer brand, which holds for both new and current workers.

Real-time Feedback and Acknowledgment

A lack of feedback and appreciation from management is a major contributor to a disengaged workforce. Workers are less likely to put forth effort over time if they are confident in the value of their job and the significance of their contributions. Interoperable platforms and programs in HR technology that enable real-time input from management hold promise for resolving this problem.

The simplest instruments provided by today's technological solutions enable mobile praise from busy bosses. Some also allow coworkers to acknowledge an employee's accomplishments publicly. These achievements may be saved in HR software and broadcast to the public as a form of immediate, obvious feedback and acknowledgment.

Productivity in the Workplace

Software may greatly improve employees' efficiency in managing their many tasks. Human resources must upgrade from antiquated procedures by developing powerful technology instruments to simplify people operations. ERP systems that are data and analytics-driven that enable managers and workers to plan and coordinate tasks, manage teams, and measure success are essential.

Professional and Individual Growth

Easy-to-use career and personal development tools are another examples of how HR technology paves the way for increased employee engagement. Insufficient employee motivation occurs when workers need to see the connection between their everyday activities and their advancement opportunities inside the company. This link may cause long-term disengagement and increased turnover if it still needs to be made.

HR technologies that aid in career planning provide a methodical framework for individuals to advance in their chosen fields. Employees are more likely to be invested in their work if they have a simple method to see potential career outcomes, learn about the skills they'll need to do their tasks and reflect on their professional growth to get there.

Total Rewards

Thanks to the diversity quotient, there is no universally applicable salary and rewards package. Because of the importance of employee input, reward systems should provide workers with a wide range of options from which to choose. For instance, it would be remarkable if a system provided workers with a menu of benefits from which they could choose those that best suit them regarding their age, profession, and personal preferences. This openness should also apply to awards. Companies increasingly use virtual recognition services allowing workers to acknowledge one another publicly.

Analyzing the Workforce

One of the greatest advantages of HR technology is data since modern platforms facilitate the gathering, mining, and predictive use of data from a wide variety of sources. Data analytics may be useful for gauging employee engagement by providing insights into areas such as team performance, individual growth, and skill gaps. Human resources technology that uses data from employee and management input may assist in developing a culture that better meets the needs of workers. In general, employee engagement improves when working conditions are more pleasant.

Health and Happiness

The epidemic raised awareness of the need for holistic employee well-being in all its forms, including mental, social, financial, and spiritual health. Human resources must understand that modern workers bring their whole selves to work and act accordingly to ensure their happiness. Several applications and technologies designed specifically for employees may foster this environment and give workers confidence that their employer values them.

Corporate and Personal Objectives

Lastly, HR technology solutions are the only ones capable of synchronizing organizational priorities with those of individual workers. Tools for managing employee performance allow businesses to articulate and disseminate their strategic plans to employees. Employees are more invested in their work when given opportunities to advance professionally and personally.

The goals of the development work both now and in the future. Engagement levels are higher when workers are confident in how their efforts affect the organization.

See also: Why is cyber security training for employees necessary?


Developing and deploying effective HR software is just the beginning. The true test will be in maintaining this transformation and reaping its economic benefits. This is why HR professionals must begin acquiring digital and tech skills by learning about technology's influence on the corporate world. To achieve the desired HR technology transformation via continual leadership buy-in, HR executives must upskill themselves on new-age technologies.

One way HR technology can increase employee retention is through predictive analytics. By analyzing employee behavior and performance data, HR professionals can identify potential turnover risks and take proactive measures to retain those employees.

Another way HR technology can increase employee engagement is through the use of mobile apps and other digital platforms. These tools can provide employees with access to training and development resources and opportunities for social recognition and feedback.

Overall, HR technology has the potential to revolutionize the way companies approach employee retention and engagement. By leveraging data and digital tools, HR professionals can create more effective strategies for fostering a positive workplace culture and retaining top talent.


Featured image: Image by storyset


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