When a global leadership trend receives a trendy, catchy label such as the “Great Employee Experience awakening,” we felt it was high time to deep dive into what that entails.
The term was coined by Willis Towers Watson, a global insurance and advisory company that performed extensive research into Employee Experience (EX) in 2021. They concluded that 92% of organizations will prioritize EX in the next three years. In comparison, only 52% of companies thought this was of importance in 2019.
Employee experience (EX) in essence is the sum of all the interactions between employee and employer from candidacy to exit interview. The experience organizations shape has direct implications to business performance.
Why has new dawn broken on EX now? And why are organizations seeing the light, maybe for the first time? The pandemic and businesses’ actions to mitigate the risks have played a significant role. Restructuring, cutting pay and benefits, and adopting flexible working models by companies not yet equipped to do so, led employees down a lonesome and troublesome path. With impact on both people and organizations worldwide, we saw declines in productivity, engagement, and wellbeing.
The road ahead is bumpy and treacherous; while most organizations have not yet ended all of their temporary pandemic policies, new challenges have come on the horizon in geopolitical instability and inflation, to name just a few.
At Management 3.0, we have been proclaiming the importance of putting people first from the beginning, it is baked into our ethos. We have actionable advice and practical tools to equip leaders to set up the route and guide their people to an Employee Experience nirvana. Because the Rubicon can be crossed faster and more effectively when you have the backing and full participation of your people.
Why is EX critical?
While walking a slippery slope during the pandemic, organizations and their executives eventually reached the understanding that Employee Experience is essential. Over two-fourths say that EX drives engagement (81%) and employee wellbeing (80%), creating value for employees. But equally on the employer side, we see a shift in their perceptions, with productivity (79%) and overall business performance (78%) strongly driven by employee experience.
According to Wilis Towers Watson, only 9% of businesses currently have a Transformative EX approach, which means a strategy that is integrated with their business goals and makes use of technology to fundamentally transform EX.
Yet, compared with organizations without a defined EX strategy. Transformative EX organizations are more likely to experience a net positive impact:
- +40% employee experience
- +44% organizational culture
- +35% employee engagement
- +28% employee wellbeing
- 2.7x significantly higher productivity than their industry peers
- 90% more likely to report lower annual turnover than their industry peers
What’s the way forward?
So while it seems irrefutable that putting employees and their experiences first has positive effects on business outcomes, how to become a transformative EX organization isn’t as clear-cut.
During the summit, we’ll explore some imperatives in your EX tool kits and give you an understanding of how to build an integrated EX strategy, reconnect with your employees and rebalance the EX offerings.
We will give you an insight into the competencies needed to become the leader of the future and drive these changes effectively. As 92% of organizations prioritize EX, it’s time to get ahead of the curve!