Why employee experience matters

In recent years, organisations have focused on EX to reap benefits around recruitment and retention. Now there is increasing evidence of the impact of a positive employee experience on productivity, customer experience and innovation. Plus, looking after the employee experience will be vital as employees struggle to meet the demands of life and work as we recover from the pandemic.  

We believe the case for focusing on employee experience is strong and will continue to be so. Gartner HR’s  latest research  into 2021 priorities supports this, putting EX as a top five priority. So what has been the case to date, and how has that shifted in the light of COVID-19?  

Attracting great people 

Of the organisations we have supported over the last few years, attraction and/or retention usually rate as the leading reasons for focusing on EX. Unsurprising given that just last year (according to Mercer’s Global Talent Trends  Study) more than half of recruiters expressed concern about the time it would take to fill positions due to increased competition. With this in mind, it’s no surprise employers have been taking time to first understand what a good experience looks like for their people and potential recruits, and then taking steps to deliver on it. 

Retaining great people 

Evidence also points to the fact that focusing on EX helps keep people with you longer. Future of work strategist Jacob Morgan suggests that the companies which invest most heavily in EX, feature 11 times more often in Glassdoor’s Best Places to Work. Similarly,  IBM research  suggests that employees with more positive experiences at work are 52% less likely to intend to leave. And  Gartner research  from 2019 suggests that employees who are satisfied with their experience are 60% more likely to say they want to stay. 

Financial performance 

A growing body of evidence emphasises the connection between the experience employers give their people and organisational success. Among the most recent is Willis Towers Watson’s 2019 research, claiming a predictive link between employee experience and financial performance. Their findings position EX as pivotal when it comes to creating exceptional customer experience and superior financial performance.  

Innovation 

Evidence also points to how a good EX enables greater innovation – Gartner’s 2019  research  found that employees who are satisfied with their experience are 89% more likely to meet organisational innovation goals. EX as an enabler of innovation will become increasingly important in the coming months and years as organisations are forced to constantly transform. 

Well-being 

As organisations navigate the fallout of the pandemic, employees are being asked to work in new environments, think in new ways, and act differently. Already warn out by the rate of change in recent months, the learning curve employees are having to climb is a significant challenge for employees, managers and leaders. The sort of learning and adjustment being asked of people will require even more of a focus on human needs and expectations.