There is ample evidence that improving employee experience leads to better business results. Briefly, firms that improve employee experience find that they get better work performance and more discretionary effort from employees. Discretionary effort makes companies more effective and efficient, according to this study published in Harvard Business Review.
Better employee experience also leads to lower employee turnover and reduced recruitment costs. Starbucks has less than half the turnover rates of the retail industry’s and estimates that it saves USD 1.7 million for each 1 percent reduction in turnover. That means its annual savings from lower employee turnover are in the tens of millions of dollars.
And that’s not all. Better EX leads to better CX. For example, a 2016 Yale study with a large rental car company showed that employee engagement had a positive and statistically significant effect on Net Promoter Score.
Firms Fail To Improve EX Because They Take The Wrong Approach
The problem is that most companies take the wrong approach to improving EX. They focus on outcomes — like employee engagement — rather than root-cause factors that lead to good or bad employee experiences, such as meeting overload or lack of employee empowerment. That level of insight only comes from examining employee work-life in fine detail, but most companies don’t map employee journeys.
Companies also neglect employee feedback. In a Medallia Institute survey of 1,000 frontline employees, 78 percent reported that their leaders claim customer experience is a top priority, but nearly 60 percent feel that their ideas for CX improvement go unheard.[v] And fewer than half believe they can count on leadership to remove obstacles to delighting customers.
Five Hallmarks Of A Good Employee Experience
The good news is that there is a better way. We know what makes a good employee experience. Employees care about:
To prioritize EX improvement, firms must focus on these hallmarks of great EX and examine their existing employee experiences in fine-grained detail.
Samuel Stern, principal analyst, Forrester authored this article, which can also be found here.
The views and opinions expressed in this article are those of the author and do not necessarily reflect those of CDOTrends nor HR&DigitalTrends.