5 Ways HRMS Can Increase Employee Retention
A high turn-over rate is not only a waste of time, but also carries exorbitant financial costs. According to the Society of Human Resource Management, the quitting of an employee and the hiring of a new one can cost from 90 to 200% of the employee’s annual income. According to another estimate, it can cost from 30 to 400% of the leaving employee’s annual income, depending on whether the employee was a beginner or an experienced professional.
The need to increase employee retention is clear. Human resource management systems can help improve retention rates in several ways:
1. They track employee performance, and enable rewards and recognition
Many HRMS systems contain a performance appraisal or evaluation module. With a standardized method to evaluate employee performance, management can keep track of employee performance. Thus, underperforming employees can be enrolled in training programs or coached further, and employees who are exceeding expectations can be given raises and promotions. Being recognized for their work and effort will increase their dedication and loyalty to the company, making them more likely to continue working there for a longer time.
2. They convey objectives and goals to employees
Having a clear idea of what one needs to do in a certain position is vital in improving performance. HR systems usually qualify the objectives and Key Performance Indicators for specific roles. Keeping in view these goals and KPIs, employees will be better aware of what is expected of them. They may even be able to track completed and pending goals. With clearly-defined objectives, employees will be able to stay focused and will be less likely to quit from the frustration of not being conscious of their responsibilities.
3. They facilitate professional growth
One of the most common reasons why employees leave a company is not having enough development opportunities. However, HRMS systems help the management see the skills and shortcomings of employees, enabling the identification of training needs. Better training and development will open up more opportunities to move up the professional ladder, reducing the chances of employee disaffection, and increasing the chances of retention.
4. They allow employees to communicate with the management
HR systems allow employees to communicate with the Human Resources department and management with ease. Employees may be reluctant to communicate in person and may be more comfortable submitting complaints in writing. HRMS enables employees to air their grievances, make suggestions, and provide feedback, making them feel heard and enhancing their employee experience. Having a better experience in the company will make it more likely for them to remain.
5. They help companies understand why employees quit
Many companies conduct exit interviews when employees leave. HR systems can optimize this process through electronic exit forms. Leaving employees may be reluctant in giving honest opinions in a face-to-face interview and may be more comfortable and honest when providing feedback through online forms. Accurate feedback is important because it can help companies work on any recurring issues that lead to resignation of employees, thus increasing their retention in the long term.
In conclusion, with a suitable HRMS solution, companies can encourage employee engagement and satisfaction, and increase their retention. Employees being arguably the most important assets of a business, their satisfaction and lower turnover rates will predictably fare well for the business.
Content Marketing: Online Marketing that Doesn’t Try to Sell
The title of this article may be a bit confusing given that marketing is, by definition, the act of promoting your business and trying to sell your products and services. Online Marketing, then, is marketing that takes place over the internet and constitutes strategies such as social media marketing, search engine optimization, influencer marketing, and paid advertising.
However, there is one kind of internet marketing, i.e. content marketing, that does not directly attempt to sell you things. The term ‘content marketing’ was formulated by the Content Marketing Institute, and is defined as “creating and distributing valuable, relevant, and consistent content to attract and retain a clearly defined audience — and, ultimately, to drive profitable customer action.” Essentially, content marketing, unlike other forms of marketing, focuses on generating content that is useful and interesting to your niche so that you can build a solid customer base, and eventually, increase revenues.
Content marketing does not overtly advertise your products or services, but seeks to build loyal, long-term costumers. To achieve success at content marketing and acquire and retain an audience, the content you create must not just be interesting, but also unique. If you’re simply rehashing what ten other companies have done, it’s a good idea to sit down and think about why anyone would choose to consume your content over theirs. How is your content better than and different from that created by all the other ten companies?
Furthermore, content marketing can be done in several different ways, with varying levels of effectiveness. Following are some of the ways in which you can create and distribute stimulating content:
• Blog posts
With multiple types of content you can produce, you have the creative space to generate original, innovative, enjoyable content. And here’s why you should take advantage of that space:
• Content marketing costs 62% less than traditional marketing, but generates three times the leads.
• If you’re a small business and have a blog, you’ll witness 126% more lead growth than similar companies without a blog.
• According to Social Media Today, by 2021, 82% of all internet traffic will be generated by videos. Therefore, creating video content can assist your company considerably in attracting more clients
Thus, content marketing not only saves you money on marketing, it also leads to more loyal customers and increases your sales. In the age of the Internet, Online Marketing is an indispensable tool for companies that are looking to grow. It is harder today than ever to attract people’s attention; creating unique, innovative content free of blatant advertising will help your business do just that.
How the CRM customer complaint module can save your business
People love to complain. That’s just how humans are. Around 4 out of 10 people will advise others not to do business with a company with which they have had a bad experience. In fact, 13% of customers who have had an unpleasant experience with a business will tell over 15 people about it! That’s quite a lot of negative exposure.
On the flip side, however, people also like to talk about their positive experiences. According to Esteban Kolsky, 72% of people will tell 6 or more people if they have had a good experience with a company. Therefore, as a business owner or leader, your focus should be on maximizing customer satisfaction and minimizing dissatisfaction. The complaints module of CRM software can do just that.
Customer relationship management systems typically have modules of two categories: marketing and support/complaint management. As the main purpose of CRM is to help businesses foster beneficial relationships with consumers, both marketing and complaint management modules are centered on interactions with and feedback from clients. The complaint management module(s) can help save your business in the following ways:
1. Figure out problems preventing the business from growing to its full potential
The complaints module of CRM software tracks all complaints submitted by costumers, and the actions taken to address them. Because the complaints are all logged into one database, you can analyze the nature of the complaints to determine the most pressing issues in the business, whether they be problems with the products, employees, or services. Knowing what is holding your company back from progressing optimally will empower you to resolve the issues, and thus, facilitate the growth of the business.
2. Reduce the costs associated with poor customer service
Poor customer service may be harming your business more than you think. Consider, for example, that 1 in 3 Americans say that they would consider switching companies after just a single instance of poor service. According to another study, 51% of customers will never do business with a company with which they have had a negative customer service experience. In addition, American companies lose over $62 billion every year due to poor customer service. The complaints module of CRM software creates a database of complaints, and facilitates their resolution in a timely, efficient manner. In this way, it prevents your business from accruing exorbitant costs associated with poor customer service.
3. Gain loyal customers and increase revenues
The complaint management module exists to ensure that complaints are resolved quickly, improving customer service. Good customer service can pay great dividends. Let’s take a look at some good, ol’ stats. According to a 2017 survey by American Express, 7 out of 10 consumers claim that they have spent more money to do business with a company with good customer service. Several studies have also indicated that having a positive customer experience can make customers loyal to the company. In addition, a moderate increase in customer experience increases the revenue by approximately $823 million for a company with $1 billion in annual revenues. Using CRM to resolve complaints and improve service can thus not only help make loyal customers, but also simultaneously increase revenues.
4. Prevent bad publicity
When people are unhappy with their consumer experience, they tend to tell others about it. According to American Express, people who have had a bad customer experience tell an average of 15 people about it. Therefore, if your costumers’ complaints are not being resolved in an organized, systematic way, it is likely that they will drive potential consumers away from your business as well. With CRM complaint modules, you can receive, sort through, and plan actions to address complaints swiftly and effectively, ensuring that your business does not gain negative publicity.
5. Spread the word about your business
People don’t just talk about their negative experiences – they talk about their positive experiences as well. For example, an American Express survey reports that people who have a pleasant costumer service experience are likely to tell approximately 11 people about it. Therefore, speedily resolving consumer’s complaints can act as indirect advertisement for your business.
In essence, the complaint feature of CRM system can save your business by helping you determine the recurrent problems facing consumers, reduce costs, and increase profits. Hence, investing in a customer relationship management system may have greater benefit than cost for your company.
Factors to Consider When Choosing ERP Software
If you have decided to adopt or upgrade ERP software for your business, make sure you choose one that suits your specific needs. To help you make the right investment, we’ve compiled a list of key factors that you should consider when opting for an ERP system.
1. Customizability and adaptability
Every business has different needs, and an ERP system must be able to meet them. While most ERP software comprises similar modules, there may be significant variation among the features and intricacies of each module. Make sure to pick a software company that offers to customize your ERP according to the needs of your business, preferably a company that has created software for businesses in your industry.
2. Ease of use
Your ERP will probably be used by employees of different ages and levels of technical skill. Therefore, your ERP software must be user-friendly so that everyone can make use of it, and it does not end up decreasing productivity instead of boosting it.
If you want your business to grow, choose ERP software that is compatible to growth. Your ERP system should be scalable according to the size and scope of your business, or else it will become necessary to change your ERP every few years or use additional resources to meet your business needs.
With many ERP companies offering mobile and laptop compatibility, you have a wide range of options to choose from. Many workers access the system with their mobile devices, so having a mobile responsive system is essential. In addition, mobile devices enable you to access the software anytime and anywhere, increasing convenience and efficiency.
5. Support services
Technology is not infallible. It can and does malfunction. To avoid the hassle of finding a third-party service provider after something has gone wrong, make sure to pick an ERP company that offers round-the-clock support services.
6. Open to new technology
With the advent of technology such as artificial intelligence (AI), internet-of-things (IoT), and business intelligence (BI), you must be ready to move ahead with the times. When choosing ERP software, find a company that has worked with cutting-edge technology, so that your software can be upgraded when the need arises.