Let Technology Elevate Employment Today: Improving Transparency and Trust
I am a recent MBA graduate and Management Consultant at Simon-Kucher & Partners based in Houston, TX. Growing up in Bangladesh, I have always been passionate about bridging the unemployment gap with modern resources and am excited to be publishing some of my perspectives on Kormo’s blog.
According to a 2018 study by Mercer, one-third of all employees plan on quitting their job in a year. This trend is even more apparent in the informal economy in Bangladesh. This growing amount of turnover is getting more and more expensive for companies and disrupting regular business.
So, what’s happening? To find answers, we a team of MBA students from Simon Business School analyzed the marketplace in Bangladesh to understand the existing problems and solutions Kormo is providing. Furthermore, we wanted to identify how can Komro further elevate the relationship between employers and employees. After examining different verticals, we pinpointed three key problems and one exactly matched the Mercer study — Risk of Unreliable Employees. This meant in Bangladesh employers operating within the informal economy faced higher risk of employees unexpectedly leaving their positions before completing the agreed-upon employment duration.
Now to tackle this problem we needed to understand why employees are leaving these jobs early. Our research indicates the following as underlying reasons:
Lack of Transparency in Working Relationships
- No accountability for both employees and employers regarding their actions
- Limited capability to objectively assess reliability prior to hiring
Inaccurate Job Descriptions
- Employers misrepresent role responsibilities to encourage applicants
- Misalignment between employees’ interests/skills and daily activities
Inconvenience Outweigh Benefits
- Pay rate does not compensate costs of continuing work resulting in burn out (e.g. commute through dense and unending traffic)
- More less-skilled employment opportunities with emerging Gig Economy
Now the question became what does case studies and statistics indicate? And what can Kormo do to help employers reduce employee turnover?
Improve Employer and Employee Transparency
In a survey of 2,000 employees, almost half (43%) said they are looking for a new job, and work culture was the main reason. The role Kormo can play here is huge:
- Create an internal rating system for employees and employers which is accessible by all
- Track employment history of applicants (frequency of job changes before end date)
Employ Resume Analysis Feature
Employees who feel they get to use the best strengths and abilities and work are 15% less likely to quit their job. Kormo has immense potential to serve both parties using technology:
- Use algorithm to filter out the best applicants for the job based on strength and aspirations
Utilize Commuting Information
20–50% of the reason people quit is burnout, according to almost half of all HR professionals surveyed. Komro can predict burnout resulting from different factors such as commuting and provide remedies:
- Enable candidates to filter job postings by distance
- Notify prospective employers of expected commute before employment
If you’re reading this article, and you’re an employer facing these problems, now you know the role Kormo will play in the coming days. We all want to change things for the better but sometimes don’t have the right tools. But today we do! We believe integrating these solutions will put Kormo one step closer to building a better working Bangladesh.
