How AI-Powered HR Software Helped Build a Culture of Recognition and Reduce Turnover in a Large Service Organization

Moving Beyond Traditional HR Systems – Time for True Engagement

Just a few years ago, this globally recognized organization with over 12,000 employees treated HR systems primarily as operational tools: used for payroll, approvals, records, and administration.
There was no structured online employer branding program, and communication between HR departments and managers was sporadic at best.
Employee engagement? Feedback? Celebrating successes? They happened — but rarely, without structure, and usually only during annual reviews.

Facing a reality where several employees could leave monthly and recruitment times remained long despite an efficient ATS, the company realized it needed more than just payroll and administrative systems.
It needed a scalable, secure, and employee-accepted tool to build organizational culture.

HR Automation Alone Is Not Enough Without the Human Touch

The first step was replacing their outdated benefits platform, which no longer met employees' expectations.
The main driver? The need to create a space where managers could truly recognize their people — not just with bonuses, but through words, gestures, and feedback.
The solution needed to integrate seamlessly with the ATS system and align with strict security policies.

Nais was chosen — an HR software platform combining recognition, benefits management, and internal communication.
From the outset, it was clear this would be more than just a technical rollout. It was about shifting the approach: from operational HR to relational HR, with a strong focus on employee engagement and building a culture of recognition.

HR Tools Working Together: Kudos, Reports, Budgets, and Workshops

The implementation started with building solid foundations: a recognition system functioning both top-down (manager-to-employee) and peer-to-peer (employee-to-employee).
This was enabled by the kudos module — short, personalized messages with the option to immediately grant a small reward from the manager’s quarterly budget.
All fully integrated with employee login (SSO) and mobile-ready.

Simultaneously, over 800 leaders participated in workshops teaching them how to practically apply feedback and recognition in their daily work.
This was when HR and management dashboard features were first introduced, enabling real-time analysis of recognition activity — a key element of HR and people analytics.

AI in HR: When Data Drives Organizational Culture

Initially, the organization didn’t plan to deploy AI-driven solutions.
However, it soon became clear that AI in HR could help not only analyze data but also detect early warning signs of declining engagement.

The system tracked the frequency of recognition in teams, kudos activity, and managers’ involvement in the reward process.
Managers could monitor team dynamics and proactively address potential risks such as losing key talent or morale drops — using advanced employee engagement analytics tools.

This marked the first step towards implementing sentiment analysis mechanisms in HR systems.

Internal Employer Branding That Really Works

The results of the implementation went beyond budget transparency and easier administration.
A new value emerged — the visibility of engagement.
Employees could see who recognized whom and for what.
Company-wide engagement rankings were created, and managers began to informally compete for "the most engaged team."

Internal employer branding ceased being just an external narrative — it became a daily lived experience.

A Performance Appraisal System That Offers More Than Spreadsheets

Traditional employee review systems often end with reports and development conversations that rarely lead to tangible changes.
This organization introduced a continuous feedback model: evaluations no longer happened once a year.

An internal e-learning platform was implemented, helping employees and managers access knowledge about the new system and learn how to foster a culture of recognition.

Data Security and GDPR Compliance

Handling thousands of employee data points — from income details to benefits history and kudos interactions — demanded full compliance with legal regulations.

The Nais platform was designed from the ground up to meet GDPR, ISO 27001, and the client's internal security policies.
SSO authentication secured access, while user dashboards acted as compliant digital employee files.

The platform successfully passed security testing, proving its resistance to unauthorized access and cyberattacks — a key factor in obtaining compliance and IT security approval.

Automating Onboarding and e-Requests: A New Standard

After the success of the recognition and benefits system, the organization expanded the platform’s use.

Onboarding was fully automated — new hires received a task checklist, knowledge base access, and assigned "buddies" to support them from day one.

Additionally, the organization digitized formal processes like grant applications and full management of the social benefits fund (ZFŚS).
As a result, HR response times dropped by 80%, and employees rated the system as more transparent and user-friendly.

Impressive Results:

• +370% increase in kudos interactions within 3 months.
• 85% of managers regularly using quarterly reward budgets.
• 12% year-over-year decrease in team turnover.
• Over 35,000 electronic requests processed in the first year.
• 60% decrease in employee benefit-related HR inquiries.
• 27 p.p. increase in employee satisfaction with the recognition process.

These numbers prove that switching HR tools to an AI-supported, integrated platform can deliver real business value — in both people analytics and employer branding.

Summary: From HR Systems to Engagement Platforms

This case shows that modern HR systems can no longer be just data repositories or transaction processors.
They must support competency management, build organizational culture, enable online onboarding, automate routine tasks, and offer real-time insights into employee experience — driven by HR and people analytics.

This is exactly what the Nais platform delivers — an AI-powered solution that excels in complex, distributed, multilingual, and security-conscious environments.

For this organization, it wasn’t just a system change — it was a transformation in how they approached their people.
And it works.

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FAQ

What were the main challenges before the platform implementation?
Lack of a structured recognition program, weak communication between HR and managers, and high turnover rates.

Why was Nais chosen?
The company needed an integrated tool to build a culture of recognition and real engagement, fully compatible with the ATS system and internal security policies.

What role did AI play in this implementation?
AI analyzed recognition activity data, helping managers quickly identify early signs of declining engagement within their teams.

Which platform features were key?
Kudos module (peer-to-peer and top-down recognition), HR analytics dashboards, onboarding automation, and digital processing of ZFŚS (company social benefits fund) requests.

What results were achieved?
+370% increase in kudos interactions, 85% of managers actively using their reward budgets, 12% year-over-year decrease in turnover, and a 60% reduction in HR-related queries.

Was data security considered during the project?
Yes, Nais meets GDPR compliance, ISO 27001, and ISO 27018 standards, and employee access is secured via SSO authentication.

How did employer branding change?
Recognition became a visible, daily practice across the company, strengthening the internal employer brand and fostering real employee engagement.

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