Why the Secret to Keeping Top Talent Is Digital

Discover how digital HR tools can transform employee retention and save your business money.

In today’s competitive job market, losing a valued employee can feel like the last thing you need. The cost, the disruption, the lost knowledge – it all adds up. And with employee expectations continually evolving, businesses are under pressure to create workplaces that inspire loyalty and engagement. So, how can you find techniques to reduce employee turnover and build a more loyal workforce?

A new report from BrightHR has highlighted the key trends shaping the future of HR for small and medium-sized businesses (SMEs) globally. One takeaway is clear: digital HR solutions are the cornerstone of employee retention. By leveraging technology to enhance the employee experience, streamline processes and increase engagement, businesses can not only retain their best talent but also cut hiring costs significantly.

The cost of staff turnover

Recruiting and onboarding new employees can be a huge drain on resources. Whilst there isn’t a definitive figure for the average cost of recruitment, typical UK estimates range from £3,000 to £12,000 per employee (and potentially even higher for senior roles), especially once you factor in onboarding and lost productivity. Staffing costs are already rising for UK employers facing increased National Insurance contributions in 2025, making it even more critical to avoid additional recruitment costs.

The BrightHR report shows that recruitment, employee retention and labour shortages rank among businesses’ top staffing concerns. The solution to all of these lies in employee experience (EX). Research from Deloitte reveals that companies which prioritise EX see a 25% improvement in retention rates. But to deliver a meaningful EX, businesses need more than good intentions – they need the right tools. Technology can play a pivotal role, offering scalable solutions that keep employees engaged, informed, and happy to stay.

How digital solutions can boost engagement and reduce turnover

Technology is revolutionising the workplace in ways that benefit both employees and employers. Here’s how digital tools can make a tangible difference to improving retention:

1. Supporting flexible working

The pandemic permanently reshaped work expectations, meaning flexibility is now a top priority for employees. A review from CIPD points out that flexible workers are more likely to be engaged, and have a higher level of job satisfaction, commitment, and are more likely to increase discretionary effort compared to those who do not work flexibly. Research by the British Chambers of Commerce found that only 27% of UK SMEs expect their workforce to be fully in-person over the next five years, meaning there’s an obvious benefit from technology that can support flexible arrangements.

BrightHR’s Blip app, which facilitates remote clock-ins, has seen over 3.4 million uses in the last year, a 41% year-on-year increase. Scheduling software also simplifies rota management, ensuring employees have visibility and predictability in their work-life balance, and helping businesses to accommodate and plan for different working patterns. With more than 169 million hours of work assigned via BrightHR’s rota software in the past year, the appetite for such tools is clear.

2. Employee recognition

Employees want to feel valued, and recognition is a key driver of engagement. According to Gallup polling, employees who don’t feel valued are twice as likely to say they’ll quit in the next year. Gallup has also found that employees are four times as likely to be engaged at work if they strongly agree that they get the right amount of recognition for the work that they do. There’s also evidence that younger employees in particular crave frequent recognition. And getting praise from co-workers can be just as important as getting praise from management.

Recognition software boosts morale and creates a positive workplace culture, both of which are essential for retention. Such tools create a strong emotional connection between employees and their organisations, reducing turnover. BrightHR’s Praise tool makes it easy for businesses to acknowledge achievements – evidenced by the fact that over 60,000 Praise points were shared in 2024.

3. Supporting learning and development

Providing opportunities for professional development demonstrates a commitment to employee growth, which is a key factor in attracting and retaining top talent. A study of HR professionals carried out by SurveyMonkey found that over half (55%) said training is the most crucial investment in employee experience. Experts from Harvard Business School and INSEAD business school have also highlighted employee development as a vital factor in improving engagement.

By providing employees with on-demand learning programmes that can be tailored to the individual, businesses not only enhance the skills of their workforce but also demonstrate commitment to their personal growth. Digital learning platforms are growing in popularity, with BrightHR’s Learning Management System seeing over 750,000 e-learning courses completed globally last year – an enormous 1,289% increase.

BrightHR: your partner in retention

In the race to retain top talent, digital solutions aren’t just helpful – they’re essential. By investing in the right tools, organisations can create a work environment that keeps employees engaged, motivated, and loyal.

With a comprehensive suite of digital HR solutions, BrightHR supports SMEs in creating workplaces where employees want to stay. From managing flexible work patterns to recognising employee achievements, BrightHR equips businesses with technology to help both them and their employees to thrive.

To learn more about the trends shaping the future of HR and how BrightHR can help your business, download and read the latest BrightHR Technology Index.