Try These Fintech Solutions to Reduce Employee Turnover

Fintech solutions can help your company reduce employee turnover to a great extent

The 'Great Resignation' is well and truly underway. While the mass dropouts from the labor force that were initially predicted a year ago did not materialize, it's clear that all industries have been impacted.

In the US, for example, there are 1 million more job vacancies than there are people who are out of work, a near-record high that will likely never be filled. Similar trends can be seen across Europe and beyond.

In such a tight labor market, employers across all industries need to work harder to retain their talent and prevent them from jumping ship. Here are some of the top fintech solutions that could help you reduce employee turnover.

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HR Analytics

When you have the right data at your disposal, no problem is too big to solve. That's why some tech innovators are stepping up to address employee retention issues with cutting-edge HR analytics to help employers understand who is leaving, why they are leaving, and what they can do to make them stay.

Major fintech companies such as Sage and Visier are providing exactly these services to employers across a wide swathe of industries.

Their HR analytics can provide deep insights into employee turnover, such as those most likely to quit, the most common reasons cited for quitting, and the most successful incentives for keeping people on board. When you are armed with this data, you can take a proactive approach to employee retention.

Improving Payroll

Payroll problems are frequently cited as reasons for quitting, especially in industries that employ high numbers of contract workers or project-based partners. When payment is late, insufficient, or rife with errors, your team will notice and they will not take kindly to it.

That's why some of the most successful fintech providers of the past decade have made a name for themselves by making payroll processes better. The likes of Stripe, FlexWage, and DailyPay have all emerged as major players in this space, offering instant and accurate payroll services to large employers.

What's more, these same fintech companies have partnered with gig employers such as Uber and Lyft to streamline payroll and allow workers to receive their compensation at a time of their choosing. This kind of payroll flexibility can work wonders for your retention goals.

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Granting Options

You might have already considered granting stock options to your employees. Options are an excellent way to help your employees feel invested in the future success of your company since this success is directly tied to the employee's future wealth that they might accrue from the options.

This expert guide to options vs shares from SeedLegals, a law tech company that helps employers easily create and manage their options schemes, explains how this is an enticing solution for rewarding employees well enough so that they stick around for the long haul.

Stock options specifically give your employees the chance to attain equity in your company at an affordable price, provided that they stick around for long enough. With solutions like this, you can provide employee option schemes quickly and in a legally compliant manner.

Employee retention is shaping up to be the defining challenge of the contemporary labor market. If you adopt the right solutions to address it, you can stay one step ahead now and in the future.