The role of artificial intelligence in measuring employee performance and retention through employee engagement

In the era of digital transformation, organizations are increasingly leveraging Artificial Intelligence (AI) to enhance decision-making across functions, including Human Resource Management (HRM). This paper delves into the evolving role of AI in measuring employee performance and predicting retention, with a specific focus on how employee engagement acts as a critical link between the two. Traditionally, measuring performance and forecasting attrition were reactive processes based on lagging indicators and manual assessments. However, the integration of AI-powered tools has enabled a proactive and data-driven approach to workforce management ( Bersin 2023 ). However, the ethical and human aspects of AI in HR cannot be overlooked. Concerns regarding data privacy, algorithmic bias, and the reduction of human empathy in people processes are critically examined. The paper advocates for a hybrid model where AI supports—rather than replaces—human judgment, ensuring a transparent, inclusive, and trustworthy engagement ecosystem ( Gartner 2022 ).