AI has helped double the average employee tenure says inFeedo’s BFSI report

inFeedo revealed the findings of a report titled ‘The BFSI Engagement Index 2020’ which had more than 80,000 personnel from 18 banking majors participating nationwide, and brought out key insights on the experiences and sentiments of the employees working in these firms, as well as how HR practices could be improved upon across the banking, financial services and insurance (BFSI) sector.

Major findings noted in the report included the fact that with the introduction of AI in banks, the average tenure of the employee doubled from the industry average of 1.5 years to 3.02 years. Across organisations, it was also observed that the response rate had doubled from 33% through annual surveys to 60% when engaging with AI.

The response rate touched 85% for top performing HR teams in financial institutions while even the lowest performing HR teams experienced a response rate of 58% when AI came into the picture, in a traditionally technology-averse sector for the HR space. AI also improved the Human Resource Business Partner’s (HRBP) productivity by 40%. This included reduction in time spent on manually collecting, collating, and analysing employee feedback.

The report observed that with AI, HRBPs are able to predict, strategize, measure, and track initiatives around preventing possible attrition. This in turn has led to the HRBP:employee ratio to reduce from 1:336 to 1:30, helping HRBPs focus on employees with turnover intent.

With a lowered ratio and an average of 32 days taken to resolve employee turnover cases, these HR teams have been able to save 57% of employees with a possible turnover intent (average) across the BFSI sector. In terms of average employee experience, a majority of the respondents felt that their managers played a crucial and positive role in their experience and were least influenced by senior leadership.

Speaking of insights, Tanmaya Jain, Founder and Global CEO, inFeedo said, “Through this report, our aim is to highlight how the introduction of AI in HR, such as Amber, can bring about significant changes within the workforce and help provide insights on what’s working for different enterprises and employees. This report should showcase the significant difference an AI-enabled engagement tool can make over traditional employee engagement methodologies on the workforce.”

Further highlighting the report insights, Aditya Kohli, Chief HR Officer at Clix Capital said, “AI will have a significant transformational effect to HR, it will intimately personalize employee experience and rebuild the one-on-one people connect that has diminished over a period of time”

Rajeev Bharadway, Vice President - Human Resources, at Sun Life Financial, “We consciously brought in AI in HR to use technology in a meaningful way to interact with our employees. We now have conversations with employees that are ‘real-time’, personalized & based on employees’ time clock. This has helped us leverage the ‘Power of Many’ by maximizing the reach & frequency. HR Business partners now have better qualitative human interactions. We are able to elevate the employee experience and build deeper relations in the organization, where it was required the most. AI helps in a sharper focus on elements that require attention.”

Shruti Wali, Leader - Employee Engagement, IIFL added, “AI in HR has helped Talent Acquisition in selection of new hires with the right competency and capability. In the Engagement Space, it has helped Engagement Specialists to focus and invest in disengagement areas which is the crux of attrition and low productivity levels.”

The report was created based on findings from inFeedo’s AI-enabled engagement bot Amber which analysed more than 1,85,000 chats across 80,000+ employees.