With the introduction of artificial intelligence in banks, the average tenure of the employee has doubled from the industry average of 1.5 years to 3.02 years, says a survey.
According to a survey by HR-tech startup, inFeedo, that studied more than 80,000 personnel from banking majors, artificial intelligence (AI) has helped double the average employee tenure.
The report titled ‘The BFSI Engagement Index 2020' noted that, across organisations, the human resource (HR) team's query response rate had doubled from 33 per cent through annual surveys to 60 per cent when engaging with AI.
The response rate touched 85 per cent for top-performing HR teams in financial institutions, while even the lowest-performing HR teams experienced a response rate of 58 per cent when AI came into the picture, it said.
AI also improved the human resource business partners' productivity by 40 per cent. This included a reduction in time spent on manually collecting, collating, and analysing employee feedback.
The report further noted that with AI, HR business partners are able to predict, strategise, measure, and track initiatives around preventing possible attrition.
This, in turn, has led to the HR business partners and employee ratio to reduce from 1:336 to 1:30, helping HR business partners focus on employees with turnover intent.
The report further noted that 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 per cent of employees with a possible turnover intent (average) across the BFSI sector.
"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," said Tanmaya Jain, Founder and Global CEO, inFeedo.
The report was created based on findings from inFeedo's AI-enabled engagement bot Amber which analysed more than 1,85,000 chats across more than 80,000 employees.