Digital transformation failure drives up attrition

Half of digital transformations fail to achieve their goals. You read that right.

This stat comes from new research by software development giant Endava and global market intelligence firm IDC; they surveyed 600 businesses across Europe, North America, Asia-Pacific and the Middle East.

Transformation struggles mean that investments are being wasted (59%) and this is impacting organizations’ financials.

However, digital transformation failures also impact business bottom lines in other ways – they destroy employee experience, leading to staff frustration (56%) and higher attrition rates (50%).

This impact on employees cannot and should not be underestimated.

Talking exclusively to UNLEASH, Endava’s EVP of Financial Services & Payments Scott Harkey shares just “how easy it is for organizations to get caught up in the technicalities of digital acceleration and miss what matters: the people who can benefit from technology and use it to deliver positive outcomes".

Endava and IDC’s report added: “A workforce frustrated with its daily activities will not be motivated to excel right at the time when it is so critical to do so, as the business transitions into the new digital business era.

If left unaddressed, the risk of losing experienced talent that possesses deep knowledge of the business and its customers can potentially leave significant gaps in the organization’s capabilities, which will be costly in both money and time to address.”If left unaddressed, the risk of losing experienced talent that possesses deep knowledge of the business and its customers can potentially leave significant gaps in the organization’s capabilities, which will be costly in both money and time to address.”

This is corroborated by a recent UNLEASH OpEd piece written by Cisco AppDynamics’ CTO Gregg Ostrowski. In the article, Ostrowski argued that bad tech and digital employee experience must not be overlooked if employers want to nip their talent shortages in the bud.

There is clearly a disconnect between technology as an idea, and the reality. Technology is only ever as useful as the value it adds to the real world,” adds Endava’s Scott Harkey.There is clearly a disconnect between technology as an idea, and the reality. Technology is only ever as useful as the value it adds to the real world,” adds Endava’s Scott Harkey.

People-centricity with tech and AI

But what’s the solution to get more employee buy-in for digital transformation projects (a major challenge according to 39% of respondents)?

A human-centric approach, where organizations really help employees see the value of the project and the technology – upskilling is also essential (53%), and there could be a need to hire more staff to drive success (25%).

Endava and IDC’s report also found that organizations need to appoint dedicated teams to manage the project – this is because a lack of internal collaboration (33%) was a major cause of digital transformation failure.

According to the report, being human-centric is also key when organizations are thinking about the topic of the moment: AI.

The good news is that organizations are ahead of the curve here – 49% are already implementing AI, or planning a proof of concept, and 51% said it was very or extremely important to focus on employee experience with AI.

58% of organizations are planning to use automation and AI to get rid of boring, mundane employee tasks, while 65% are prioritizing transparency around the workforce impact of automation and 54% are putting employee satisfaction top of their priority list when thinking about AI at work.

If employers can get their digital transformation and automation projects right, then they can genuinely drive great employee experiences and improve business bottom lines. Are you ready to change tact?