Staff Churn is Increasing Due to Digital Transformation; Here’s why!

Digital transformation has numerous advantages if it is implemented by the right people with success. You will see within a few months that the impacts it has are beginning to take hold. Retaining more and more customers, having more powerful sales teams with higher autonomy, more costs being shredded, better overall performance in every department.

These are only a few indicators of digital transformation. But the challenges that are already being faced by many companies all over the world have increased by one more – Staff churn. This is when more employees are leaving your organization than those who are joining.

Staff churn has two major types. Autonomous and Technology-Induced.

Autonomous Staff Churn:

A good example of this is India. Where 54% of people of the age group 20-24 have wanted to leave their job at some point.

Gen Z and millennials do not stay for years-upon-years in one company. They are more likely to keep moving and learn on newer jobs in order to expand their skill set. This is a major factor in staff churn as these people will decide within six months if they are staying at the current position or leaving.

These people constitute a huge chunk of the global population. As older generations like the boomers and Gen X get older, more and more gen z and millennials enter the industry with this mentality in their minds.

Technology-Induced Staff Churn:

With the spread of numerous new technologies like 5G, AI, blockchain and predictive modelling, 60-70% of the business gets automated with ease that gives long-term returns to companies and further increases staff churn.

Other than that, training your employees only a few times throughout their service at your company, using outdated legacy management systems, giving unnecessary training that has no relation with their JD (job description).

Less-Skillful Thrown Out in Favor of the Highly-Skilled:

This situation is a mix of the last two situations of staff churn. Here you will see people quitting jobs in places they’ve been in for decades because the work environment has changed.

Other situations of staff churn are like where people get frustrated because they were taught some new methods during training, but were forced to go back to older tactics as a consequence of bureaucracy and the red-tape.

Agile Corporate Culture is the Solution:

The solution to staff churn is to have a skilled workforce that has some degree of authority and flexibility. Employees that will be hired need to be of the best quality that is out there, which, yes will mean that you will have to pay the price.

This is because these guys will be getting offers that will be very market-competitive. So you’ll have to spend some of those retained earnings and give them incentives to keep their loyalty tied to your company and not face even more staff churn.

Also, the middle managers would have to be like how air cover is to infantry units during a war, where they will need air support to get some tough enemy resistance wiped out. Similarly, the middle managers will have to give their directions and assist the lower-level workforce when the situation warrants it.

To Sum Up Staff Churn:

This is only the tip of the iceberg and there is of course more to it than what we have described, but some of the main points are:

  • Training needs to be just-in-time.
  • Middle-level managers need to guide those under them.
  • You need to hire the best of the best to get the work done.
  • Incentives ought to be given.

Until next time.


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