 Is Technology the Key to Reducing Turnover and Boosting Morale?

Discover how insights from Paylocity and Forrester Consulting reveal the power of modern HR technology to tackle employee experience challenges and reduce turnover.

News

June 25, 2025

Despite leaders unanimously agreeing that employees are their organization’s most valuable asset, a recent study by Paylocity and Forrester Consulting reveals a significant gap between prioritizing employees and actually investing in their experience. This disconnect can have far-reaching consequences on employee retention, engagement, and ultimately, business success.

The study, “Enhance Employee Engagement and Business Success with Experience-Driven HR Technology,” highlights the need for modern HR solutions that go beyond outdated, administrative-focused tools. With insights from 522 senior leaders across functions such as HR, finance, IT, operations, and employee experience, the findings paint a clear picture of what’s holding organizations back and where opportunities for growth lie.

Employees Are Valued but Underserved

A striking 99% of surveyed leaders agree that employees are their most critical asset. However, 40% admit that their executive teams don’t fully recognize the business value of investing in employee experience (EX). This lack of prioritization leads to tangible challenges:

Time Wasted on Low-Value Tasks: 73% of leaders say employees are bogged down by repetitive, unproductive tasks.
Outdated Technology Hurts Productivity: 68% report using clunky or outdated systems that frustrate employees.
Real Consequences: These factors feed into lower morale (46%), declining customer satisfaction (45%), and increased turnover (44%).

The Barriers to Better Employee Experience

The study also points to key hurdles that HR leaders face in making progress.

Executive Buy-In: 40% of leaders cite a lack of executive recognition for the importance of EX.
Budget Restrictions: 34% name budget constraints as significant blockers to adopting modern HR technologies.
Superficial Solutions: Many organizations rely on surface-level perks, which fail to address deeper, more impactful changes like manager development and streamlined tools for daily operations.

The Solution? Experience-Driven HR Technology

The path forward is clear. Organizations that adopt modern, experience-driven HR technology are better equipped to tackle these challenges. Tools equipped with AI-powered insights, employee listening tools, and seamless integration are no longer optional but essential for the future of work.

Organizations must go beyond seeing HR solutions solely as administrative tools. Here’s what the study recommends for meaningful improvements to employee experience:

1. Adopt Comprehensive HR Technology

Shift focus to Human Capital Management (HCM) 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.

2. 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.

3. 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.

4. Why Now is the Time to Act

The research shows an overwhelming majority (73%) of leaders agree that building a strong business case for HR technology is essential to improving the employee experience. It’s no longer enough to rely on superficial perks or outdated systems. Companies that prioritize equipping employees with the right tools and support see improved retention, enhanced customer satisfaction, and stronger business performance.

5. Take Action Today

If you’re ready to transform your employee experience, modern HR solutions like those offered by Paylocity can help you elevate engagement, retention, and productivity across your organization.

Download the full Forrester Consulting study commissioned by Paylocity, and discover actionable insights to improve your employee experience.

Encourage Peer to Peer Praise

Give your employees the power to recognize, connect with, and celebrate each other anytime, from anywhere with Recognition and Rewards. When employees give and receive the acknowledge they deserve, positivity becomes infectious. And when that happens, you improve collaboration and engagement and help reduce turnover.

Explore Recognitions & Rewards