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How can Resource Management software help to reduce employee turnover



Management Specialists

When employees leave a company, it severely impacts the productivity and efficiency of an organization. Thus, the management needs to undertake efforts to retain the talent pool and prevent the consequences of high employee turnover.

So, what is employee turnover?

It refers to the total number of employees who leave an organization, voluntarily or involuntarily, within a specific period. Multiple factors contribute to employee turnover, including  better compensation, benefits, or perks offered by other firms,  personal reasons like health issues, or relocation. Other reasons are lack of feedback and recognition, career growth, excessive work stress, disengagement, ineffective management, etc.

Regardless of the factors, turnover lowers organizational efficiency, declines brand reputation and client satisfaction, and even deteriorates performance. Thus, it’s imperative to reduce it by implementing robust strategies. This article highlights how resource management software can help you achieve the same.

But first, let us see how it impacts an organization.

How does high employee turnover impact an organization?

As mentioned earlier, high employee turnover directly impacts organizational productivity and profitability. In addition, it lowers workforce morale when they see their colleagues leaving. Besides, the existing employees are expected to share the work of the departed team members, which increases their workload leading to stress and burnout.

Excess employee turnover also impacts the bottom line as a lot of money is spent on training and onboarding new employees for the correct placement of the candidate. Moreover, the new employees need time to adapt to the work environment and become productive. In addition, when client-facing employees leave the company, it leads to dissatisfaction and decreased sales. Apart from these, high turnover rates lower a company’s reputation, and thus they fail to attract and hire top talent.

Therefore, it is necessary to implement the right tools and techniques to reduce turnover. A suitable resource management software helps to do the same.

Let’s see how

How can RM software help to reduce employee turnover?

As mentioned above, losing talent rapidly drastically affects the company’s functions. Implementing resource management software can resolve various issues and help you retain your valued talent.

Enlisted below are some ways:

  1. Allocate the right resource to the right job

When an employee’s skills do not align with the allocated task, they will be disengaged because they are not competent enough to execute it, adversely affecting the quality of work. Moreover, having an over-skilled resource for a non-critical position lowers morale, while assigning an under-skilled resource can cause delays and compromised quality. Therefore, competent allocation is necessary for maximizing productivity and enhancing employee engagement satisfaction.

A resource management solution offers 360-degree visibility using which managers can assess the skillsets, availability, capacity, and other attributes of resources on a unified platform. Then, they can perfectly match the resources with the right task. Thus, when your employees feel their competencies are deployed in the right place, they will feel motivated and continue with your organization.

  1. Prevent under /over utilization of resources

Over/underutilization of resources can result in decreased workforce productivity and performance. The underutilized employees exhibit disengagement as they are not tapped into their maximum potential. Similarly, when employees are overutilized, work and excessive stress cause burnout. These scenarios do not work in employees’ favor and, thus, will result in a turnover.

Therefore, it is necessary to ensure optimal utilization of the workforce. The resource management tool helps track the utilization levels of resources in real-time by providing a comprehensive color-coded heatmap. Managers can identify underutilized or overutilized resources and adjust their schedules based on this data. Additionally, they can mobilize them from non-billable to billable work, and enhance productivity, eventually elevating retention.

  1. Ensures effective bench management

Excessive bench size negatively affects the organization and the workforce. The benched resources are non-billable and do not bring any revenue to the organization. This deters their growth and lowers their morale. In addition, the lack of opportunities makes them seek better options outside the organization. Therefore, effective bench management is necessary to keep this repercussion in check.

The resource management software offers a people on the bench report that helps managers predict resources that will end up on the bench. Then, they can assign competent resources to billable or strategic work well before they hit the bench using the project vacancy reports. This ensures continuous productivity, which keeps employees engaged, leading to a long-lasting journey with the firm.

  1. Encourage resources to select their projects of interest

Often employees are given tasks that do not pique their interests. Thus, they will not show 100% commitment to the work, translating into a substandard result. Moreover, employees will be disengaged and start skipping workdays or seeking better appealing opportunities in worse cases. Thus, managers should course-correct and start considering their workforce’s input while allocating work.

Using the resource management tool, managers can publish open positions mentioning specific details such as skillset, qualifications, experience, cost, etc. These positions are notified to all relevant resources across the organization. The resource manager considers the interest and the skill sets of suitable candidates during allocation. Giving resources the work suiting their competency and interest enhances their morale and productivity.

  1. Promote employees to participate in cross-functional projects

Working on the same tasks and projects leads to boredom, disinterest, and disengagement. And as discussed earlier, disengagement is one of the primary reasons for employee attrition. Therefore, managers should provide employees with diverse opportunities to hone their skills and help them diversify their portfolios while keeping up the motivational levels.

The 360-degree visibility feature of a resource management solution helps managers deploy cross-departmental projects to employees within matrix boundaries. The centralized platform enables managers to pick the best resources regardless of their department and create a cross-functional team for a project . This collaboration helps employees to work on multifaceted projects and expand their horizons. Thus, when employees’ growth is taken care of, they are likely to stay with the firm for the long haul.

  1. Facilitates IDPs and upskilling programs

Professional development and growth are crucial factors that motivate employees to stay within an organization.  When these opportunities are not provided, it causes attrition. Therefore, managers must formulate Individual Development Plans (IDP) and upskilling programs to promote professional development.

Resource managers can access resource profiles and future project demands using resource management software. Thus, they will get a detailed account of demand and skills gaps. Managers can then formulate a customized development plan that aligns with the resources’ career goals and company objectives. In addition, they can provide formal training, shadowing, and on-the-job training opportunities to level up their expertise. Thus, they will gain more exposure and experience, ensuring successful retention.


An efficient and hardworking resource pool drives the success and profitability of an organization. Losing this specialized resource pool will lower organizational efficiency and reputation. Therefore, it is necessary to retain the workforce . The strategies mentioned above and a modern resource management tool can help you retain valued talent within the firm and ensure profitability and sustainability.

What strategies do you follow to reduce turnover?

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