Is technology the key to reducing turnover and boosting morale?
When operations stall, morale dips, and turnover climbs, it’s not just a people problem, it’s a business problem.
According to a new study from HR and payroll software provider Paylocity and Forrester Consulting, organizations that fail to invest in the employee experience (EX) risk falling behind.
While 99% of business leaders say employees are their most valuable asset, 40% admit their executive teams don’t fully recognize the real business impact of a poor experience.
Outdated tools are costing time and people
The report reveals that 73% of execs say their teams are stuck doing repetitive tasks that could be automated. Another 68% are dealing with clunky, outdated systems that slow them down and frustrate employees.
This inefficiency has real consequences: a 44% increase in turnover.
So why aren’t more leaders investing in EX tech?
Two big reasons: budget constraints and lack of executive buy-in.
In fact, 40% say their C-suite doesn’t fully grasp the importance of improving employee experience, and 34% point to financial barriers as blockers to upgrading their technology.
This disconnect is costing companies more than they may realize. Poor experiences don’t just hurt engagement. They impact productivity, retention, and even customer satisfaction.
Technology can turn the tide
Digital employee experience tools are designed to reduce friction and unlock potential. From AI that automates repetitive work to platforms that enhance communication and recognition, modern HCM tech can lighten the load on teams while increasing morale and operational efficiency.
Organizations must go beyond seeing HR technology solely as administrative tools. Here’s what the study recommends for meaningful improvements to the employee experience:
Adopt Comprehensive Tech
Shift focus to solutions that support employees not just as workers, but as people. The right tools can gauge employee sentiment, enhance engagement, and empower managers to better connect with their teams.
Implement Scalable Listening Strategies
Use advanced methods like AI-enhanced surveys and sentiment analysis to identify and act on areas for improvement. Listening to employees and understanding their needs is critical to fostering a positive work culture.
Empower Employees and Managers
Equip managers with the tools and training they need to create an inspiring, supportive work environment. This not only enhances performance but also builds a culture of trust that reduces turnover.
The report puts it simply: “Improved integration and adoption of automation and AI features built with experience in mind present the opportunity to streamline and reduce operational costs, while boosting employee morale and productivity.”
It’s not just about creating a better work environment. It’s about achieving real business results.
Making the case for investment
Organization leaders trying to get buy-in should start with the numbers.
Use metrics like turnover rates, time spent on manual tasks, and employee survey data to connect EX directly to business performance. Benchmark against competitors. Highlight the cost of inaction, and the potential gains from investment.
This isn’t just a conversation about culture. It’s a strategic decision about the future of business.
And the real question isn’t whether organizations can invest in employee experience. It’s whether they can afford not to.
This story was produced by Paylocity and reviewed and distributed by Stacker.
