A recent report by Deloitte about global human capital trends reveals that 80 percent of executives acknowledge employee experience is important but only 22 percent think their companies are excellent at building a differentiated employee experience. Through meaningful work, recognition programs and organizational support, companies can boost their employee experience. But why should you?
To understand why employee experience matters, now and in the future of work, keep reading.
Talent Shortage
Companies are realizing that employees really are their best asset – and they’re only as good as the talent they can retain. A positive employee experience makes it easier for companies to attract top talent in a competitive market place. Beyond employer branding and recruitment marketing, employee experience gives candidates a more comprehensive – and authentic – snapshot of what it’s like to work for the company. The catch is you must provide a genuinely positive employee experience. Candidates know how to get the truth, so you must be sincere.
Access to Information
Candidates are serious about researching new opportunities and the time they spend doing it is proof: The 2016 Talent Board North American Candidate Experience Research Report shows 38 percent of candidates research a job for one to two hours, 18 percent for two to four hours and 16 percent for more than five hours. And their research goes beyond the company website. Candidates know they can get a more accurate read from looking at social media posts, following hashtags, reading review sites and tracking employee job progression. Employee experience is essential to candidates making an employment decision and, now, any information they’re looking for is at their fingertips. Focusing on improving your employee experience will benefit your recruitment efforts – both passive and active.
Millennials
Several studies have shown that millennials are more interested in experiences than “stuff.” It is no different when it comes to work. LinkedIn’s Workplace Culture report showed that 86 percent of millennials would consider a pay cut to work for a company whose mission and values aligned with their own. As the future of work moves move toward a work-life blend than a work-life balance, employees want their career to be a part of their holistic self – and they’ll be more loyal to you for it. With this generation being the largest part of the workforce (accounting for 35 percent), it’s imperative you appeal to millennials. An experiential workplace will help you attract and engage them.
Financial Rewards
The Globoforce WorkHuman Analytics and Research Institute and IBM Smarter Workforce Institute conducted a study that found companies with a positive employee experience were reaping major financial rewards. It reported organizations that score in the top 25 percent for employee experience to have nearly three times the return on assets and more than double the return on sales compared to companies in the bottom quartile. Additionally, a small increase in a firm’s employee experience score has a much larger impact on operating income. If nothing else will convince you, potential financial gains should have you paying attention to your employee experience.
