THE IMPACT OF HUMAN RESOURCE INFORMATION SYSTEMS ON EMPLOYEE RETENTION IN NORTH MACEDONIA

Abstract

In today's globalized society, organizations are faced with a serious challenge of constant changes and adaptation to new conditions imposed by strong competition created under the influence of globalization and intensive technological development. Often, efforts to introduce change fail as a result of employee resistance to these changes and which, if not properly managed, can lead to encouraging their turnover intention. Hence, human resource management must work more intensively on modernizing the change management process.
In that context, this paper analyzes the degree of application of the so-called predictive analytical techniques for human resources in the private sector in the Republic of North Macedonia, analyzing their experiences and attitudes regarding the effectiveness of using these techniques on improving planning processes, decision-making, and most importantly, creating talent retention strategies. Predictive analytics is recognized as a critical tool for gaining a competitive advantage, as it not only aids in mitigating risks related to turnover but also enhances the ability to proactively address potential organizational challenges before they escalate.
The analysis was made on the basis of interviews conducted between human resource managers in thirteen companies in the country. The findings of the analysis show that only four out of a total of thirteen organizations apply modern systems in the direction of implementing predictive analytics of human resources. HR managers in the country agree that the application of predictive analytics for HR helps in reducing employee turnover intention and believe that only by applying predictive metrics and tracking semi-annual and annual trends and causes of job dissatisfaction and turnover, the organization creates practices and plans for corrective actions that address issues of importance to employees. They also emphasize that organizations leveraging predictive analytics can identify patterns related to workplace engagement and tailor their strategies to meet evolving employee needs effectively.
Additionally, they believe that by analyzing the available databases for their employees, the risk of the best profiles leaving is successfully assessed. Hence, in order for organizations to make a realistic assessment and retain employees, it is imperative that they apply modern predictive analytics techniques by obtaining information and providing data that allows them to study changes in employee behavior and forecast the causes of such behavior in order to promptly take measures to encourage employee satisfaction and deter the intention to leave the company. Furthermore, predictive analytics enables organizations to align their talent management strategies with long-term business goals, ensuring that key positions are filled with employees who are both skilled and engaged.