Digitally Engineered Retention: The Role of AI in Structuring Tenure?Based Incentive Systems

Purpose-Rapid digitalization is reshaping how organizations manage and motivate their workforce.China's private healthcare sector faces severe retention challenges; at Jiahui Healthcare, the workforce declined from 408 in 2021 to 330 in 2023, with retention falling from 80% to 64%.This study examines how artificial intelligence (AI) and digital analytics can inform tenure-based incentive systems that strengthen employee retention.Methodology-A participatory action-research project was conducted at Jiahui Healthcare involving two sequential interventions: an Enhanced Talent Management Program (ETMP) and a digitally engineered Retention-Linked Incentive Program (RLIP).The RLIP employed a human resource information system (HRIS) to track tenure milestones and automate rewards, while exploring the role of AI-driven analytics and predictive algorithms in tailoring incentives and identifying attrition risks.Findings-The interventions achieved a 22% reduction in turnover intention and improved perceptions of digital equity.Results indicate that integrating developmental initiatives with transparent, digitally enabled incentive systems provides a more effective response to retention pressures than either approach alone.Value-The study contributes to the growing field of digital human resource management by demonstrating how participatory action research and AI-enabled incentive design can deliver practical solutions to workforce retention.It highlights the potential of combining developmental programs with predictive, technology-driven tools to sustain engagement in high-pressure service environments.