IT firms are trying to avoid attrition by investing big in predictive algorithms
Advertisement
Advertisement
Off lately, top These giants are putting in big money on such predictive analytical tools, which would eventually save them hundreds of millions of dollars annually, which could have been spent on hiring new talents and training them.
"You can do an analysis and you can look at whether the benefits in your compensation program is really targeted at the people who are the most productive and the most likely to stay because you can spend a lot of money on people who have a low probability of staying with you," Kevin Cavanaugh, VP for Smarter Workforce Engineering at IBM, told ET.
"So you're largely going to be wasting that compensation. And we've done some work in IBM where we found that we could save millions of dollars by targeting our benefits and compensation for the people who are most productive and most likely to stay with us," Cavanaugh added.
According to a study by Deloitte, last fiscal, the IT services sector saw the highest voluntary attrition across (21.9%).
Advertisement
This has forced these companies to find solutions for employee retention, results of which has also started to show.
"We've saved millions and millions of dollars as a result of (these tools) and we've had a stable workforce. We're pretty sure that we can replicate those capabilities - a lot of this work has been done on a case-by-case, company-by-company basis. And one of our challenges at this point is to try to find some general models that will bring down the cost of doing this work, so that we can apply it in a less bespoke manner, in a more general manner to help people," said Cavanaugh.
Image source
Advertisement
- I got a $40K raise using this 30-second strategy. It made me realize loud work, not hard work, always wins.
- Qatar Airways' new CEO explains why it's sticking with the Airbus A380 as other airlines retire the costly superjumbo
- Prince Harry and Meghan found out about Kate Middleton's cancer diagnosis on TV like everyone else, report says
- Fresh photographs of Milky Way’s black hole Sgr A* reveal strong, twisted magnetic field similar to M87*
- 8 Lesser-known places to explore in Himachal Pradesh
- Markets end FY24 on buoyant note amid positive global cues
- SRM Contractors IPO allotment – How to check allotment, GMP, listing date and more
- Rupee falls 6 paise to settle at 83.39 against US dollar