Employees of successful businesses likely to pay less attention to workplace: Infosys report
New Delhi:
At a time when layoffs by global tech firms are making headlines every other day, a new report suggests that retaining employees will help companies increase their revenue and profits.
Infosys Knowledge Institute report future of work, 2023 Companies that increased their (employee) retention over the past three years saw a 75 percent increase in revenue and 77 percent in profit, the companies say. This is at least 17-18 percentage points higher than those who reduced their employee retention.
“In the current market environment, growth is clearly linked to employee retention,” the report said.
The study states that the key factor helping to retain employees is the flexibility for employees to work remotely. At least 65 percent of senior executives say they are increasing remote working to attract or retain talent.
The report states that successful businesses of the future are likely to focus less on the work location of employees, focusing more on the diversity of the employee pool and how well they are supported.
In addition, wellness initiatives, home office stipends, and retraining programs are likely to improve employee retention.
Nearly 2,500 senior executives and managers working in companies with more than $1 billion in revenue in the US, UK, France, Germany, Australia and New Zealand were interviewed for the report.
Key to improving revenue, profit
The report also states that automation, diversity in the talent pool and reskilling can help large companies generate up to $1.4 trillion in revenue and $282 billion in profits. To put it another way: They can help add 7.7 percentage points to profit growth and 6.7 percentage points to revenue growth.
According to the report, full automation can help such companies generate incremental revenue of $808 billion and incremental pre-tax profit of $123 billion.
Hiring a diverse talent pool could help these companies improve their revenues by $503 billion and pre-tax profits by $145 billion.
“In the case of reskilling, the better you are at training, the better your growth. Focusing on hiring a broad range of skills, and using training effectively to give them the skills they need, is increasingly linked to growth and competitiveness,” says The Report.
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