IT firms are trying to avoid attrition by investing big in predictive algorithms

Off lately, top IT firms across the world, like IBM and Accenture, have been facing the problem of high employee turnover, which is a typical trend in the industry. However, looks like these firms have found a way to deal with the attrition rates in predictive algorithms and tools, which crunch crucial data in seconds, giving these company insights into employee behaviour.

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%).

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.

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