5 ways technology increases employee retention

“Knowing how to attract up-and-coming workers is not only a competitive advantage, it’s essential,” says Leon van der Poel, Director, Client Delivery, BDC Advisory Services. “If you don’t invest in your people and your competitors do, they’ll be able to out-hire you and out-perform you.”

“We’re hearing more and more that technology is key,” says Tyler Lockyer, Director, Client Delivery, BDC Advisory Services. “There’s the expectation of a hybrid work environment where people can work remotely and bring their own devices. And a lot of high-end candidates will ask about the systems you use because those will have a direct impact on their work experience.”

Here’s where technology, and having a digital strategy, can make a measurable difference.

Five ways to win and retain workers using technology

Drawing on their time advising Canadian businesses on technology adoption, van der Poel and Lockyer note that technology can assist employers with HR by enabling them to:

1. Make work more flexible

The desire for “clock independence” is more acceptable than it was even just a few years ago, largely due to the impacts of the pandemic, which normalized the need for greater schedule flexibility. Flexible working hours also appeal across demographics.

“Technology that provides secure access to all of your resources and information will allow your company to work on whatever timetable suits the needs of the business and your employees,” says van der Poel. Investing in cloud computing can provide the basis for a virtual work environment, which can be enhanced with business apps such as mobile tools, unified communications, project management software or video conferencing technology to give remote employees the same access and connectivity in-house employees would enjoy.

2. Make geography less relevant

“There’s a desire to not be tied to a geographical location to be employed,” says van der Poel. “Reliable video and teleconferencing technologies, cloud applications and mobile tools can provide that geographical independence.”

Taking away those boundaries can benefit employers by opening them up to a much wider talent pool. For companies based in centres with high costs of living, that can mean labour cost savings, too. New hires may consider a lower salary if they can live in a more affordable community. And businesses that can reduce or eliminate their need for physical space save also on rent and utilities.

Van der Poel points out that technology applies well beyond office environments. “Land surveyors could use remote-piloted drones to map territory,” he suggests, “or you could have a Toronto plumbing company use mobile tech, GPS and networked apps to run a ‘franchise’ in Ottawa without having any physical facilities there, just people in vans.”.

3. Offer more autonomy through automating HR

Adopting people-management dashboards that allow workers to view and book their vacation days, check pay statements, peruse benefits, claim expenses, respond to their annual review and manage professional development options increases appeal, while freeing up your HR department.

AI‑powered HR tools can also streamline routine tasks like timesheets, expense submissions and onboarding checklists, giving employees faster answers and freeing your team to focus on more meaningful support.

4. Use technology to facilitate meaningful work

People today are less interested in jobs that involve repetitive, manual tasks, says van der Poel. That opens the door to another branch of workplace technology: robotics.

“Some people have worried about robots replacing humans for certain jobs,” he says. “Getting robots to do these repetitive tasks frees up human workers to do more interesting and innovative work that has more value for the business.”

Van der Poel adds that “cobots” (short for collaborative robots) can work alongside humans taking on production steps that are strenuous or even dangerous, increasing safety and productivity while contributing to greater job satisfaction and worker retention.

This isn’t out of range for even small businesses. Delivery robots, for example, can be leased cost-effectively and, in a restaurant, for example, can serve up to 400 customers per day.

5. Make your workplace more sustainable

Technology is playing an increasingly significant role in supporting environmental initiatives that matter to workers today. Technologies that aren’t related to productivity—such as smart heating, cooling and lighting systems that optimize and minimize energy use —can be attractive to sustainability-minded workers and make them feel like they’re employed by a company that’s aligned with their values.

How to include the employee experience in technology choices

For companies not sure how to improve their workplace, Lockyer says focusing on the employee journey is a good way to start.

“In most businesses, you’re going to have technologies that contribute to doing the work and technologies that contribute to the employee journey,” says Lockyer. “You should think about both in your digital strategy.”

“Doing the work” refers to technologies that range from computers and cloud applications to mobile devices, Internet of Things (IoT) sensor systems and more. They are classic productivity and collaboration tools that make work faster, easier or more efficient.

The “employee journey” refers to technologies that are directly involved in attracting, recruiting, onboarding, retaining, training, managing and even exiting staff. From the very first touchpoint to the very last, the technologies you choose send a message about your business environment and values.

Lockyer offers these three tips to include the employee’s experience in technology choices.

1. Map your employee journey

“Mapping the journey reveals opportunities for business process digitization,” says Lockyer. “We recommend creating a persona or profile of the kind of employee you want to have for a given job and thinking about those characteristics as they move through the journey. That will help you get even more specific about what they may want or need at any given point.”

To do that, break down the journey into its component phases or steps from the employee perspective. That includes job-seeking, applying, hiring, ongoing admin (pay, benefits, vacation), all the way to retirement.

For example, a salesperson will benefit from some kind of customer relationship management (CRM) solution that fits the way the business flows, while a delivery driver will need different tools, such as a mobile device with GPS maps and tracking.

2. Identify where technology can bring mutual benefits

With the journey mapped, consider where and how technology could enhance each step of the way.

What would make people happy while also benefitting the business?

The mutual aspect matters. A good employee experience is related to efficiency and profitability, says Lockyer. BDC’s own research has found, for example, that investing in automation both makes businesses more productive, as well as more attractive to new employees: 61% of entrepreneurs who had invested in automation said finding people to hire was easy or very easy.

That same research mentions that “technology and automation benefits employees by freeing them up for more interesting tasks. As output per hour worked increases, so does the business’s profits and its capacity to increase wages.”

3. Streamline, integrate and de-silo

In many workplaces, workers have to deal with incompatible interfaces, disconnected systems with multiple log-ins and passwords and data silos. Altogether, these inefficiencies make it hard for workers to access the information they need to fulfill responsibilities.

Ignoring employees’ technology frustration can cause errors, hamper productivity and cause stress and dissatisfaction — exactly the opposite of a great employee experience.

Businesses should try to ensure their digital technologies integrate well, streamline systems wherever they can, and break down data silos so the information employees need can be accessed easily in one place, say Desjardins and Lockyer.

“You want to enable people to work smarter, not harder,” says Lockyer.

Bring in an expert

Finally, van der Poel suggests consulting with an independent advisor who can give an objective opinion on where to invest first.

“A consultant who is truly objective, who isn’t tied in with any particular technology vendor, can help answer questions and provide invaluable advice about the tech that will serve your business best,” van der Poel says. That includes the business advisory team at BDC.

The good news is that many businesses may be farther along than they realize.

“You may have already invested in technologies that allow employees to work remotely and access company databases,” van der Poel notes. “Your work culture may have already adapted to people working outside the hours of nine to five. It’s just a matter of taking whatever step is next.”

With the right technological choices, entrepreneurs can build workplaces where people feel supported, connected and motivated to stay. Small steps taken today can create lasting benefits for both employees and the business.