The ROI of Employee Experience: It’s Everybody’s Job

Employee experience is not HR’s job.

Let’s rephrase that. It's not just the job of a fantastic HR team. It’s everyone’s! Investing in EX is an initiative for every level of your organization, from executives to the front lines. And when you do it right, you’ll see massive dividends. Follow along as we reveal the secret sauce of boosting your organization's ROI.

What is Employee Experience Anyway?

Imagine your organization as an amusement park and your employees are your visitors. Employee experience encompasses every touchpoint, emotion, and interaction an employee encounters during their journey within your company. From the moment they step into the park until the fireworks and grand finale, it's all about creating a memorable experience that brings out the best in your workforce.

Why Employee Experience Matters for the Bottom Line

Now, you might be thinking, "Sure, a happy employee is great, but how does it impact our bottom line?" Well, here’s some data to convince you. According to a Gallup study, companies with high employee engagement outperform their peers by a whopping 147% in earnings per share and have 21% higher profitability! And that's just the tip of the iceberg.

1. Enhanced Productivity and Performance

Employees who feel valued, empowered, and supported become productivity powerhouses. Research by the University of Warwick shows that happy employees are 12% more productive than their bummed-out counterparts. By investing in the experience of your team members, you create an environment where productivity thrives and you’ll start to see your organization soar to new heights.

2. Reduced Turnover and Attraction of Top Talent

The cost of employee turnover can be astronomical, but it doesn’t have to happen! Deloitte found that organizations with a strong employee experience strategy have 40% lower turnover rates. By prioritizing your organization’s employee experience, you not only retain star players but also attract top talent looking for an organization that genuinely cares about its people.

3. Increased Customer Satisfaction and Loyalty

The magic of a positive employee experience doesn't stop at your workforce; it spills over to your customers too! Research conducted by Temkin Group found that companies with engaged employees outperform their competitors by 20% regarding customer satisfaction. Happy employees radiate positive energy, and customers can't help but notice, leading to increased loyalty and growth.

4. Innovation and Creativity Take Center Stage

Innovation is the key to staying ahead in today's rapidly evolving business landscape. The EX factor plays a pivotal role here as well. A report by Harvard Business Review revealed that companies with a strong employee experience foster a culture of innovation, with employees being three times more likely to contribute their creative ideas. This drives organizational agility and ensures you're always one step ahead of the game.

Why Employee Experience is Everybody's Business

Employee experience is not (and shouldn’t be) the sole responsibility of the HR team. While they play a vital role in designing and implementing EX initiatives, it takes a village to create an exceptional employee experience. Here's why it's everyone's business:

1. Leadership Sets the Tone

As executives and C-suite leaders, you have the power to set the stage for a remarkable employee experience. Interestingly enough, nearly 80% of executives say employee experience strategies were important, but only 22% think their company is really good at it. That needs to change.

Your leadership style, communication, and vision directly impact the engagement and satisfaction levels of your employees. By championing EX and leading by example, you inspire others to follow suit and create a positive domino effect throughout the organization.

2. Managers Are the Experience Architects

Managers are undercover superheroes with listening ears on the front lines. They hold the keys to transforming a humdrum employee experience into an exhilarating one. Empower your managers with the tools, resources, and training to create a nurturing and supportive environment for their teams. By prioritizing EX, they become the chief architects of a workplace culture that thrives on engagement and innovation.

3. Cross-Functional Collaboration Boosts EX

Collaboration isn't just about cross-departmental projects; it's about creating an ecosystem where different teams come together to enhance the employee experience. When departments like IT, facilities, and finance collaborate with HR, they unlock opportunities to improve the physical workspace, streamline processes, and offer seamless employee support. Plus, you might even meet some new friends in the process. It's a win-win for everyone!

4. The Power of Peer-to-Peer Appreciation

Let's not forget the power of peer-to-peer appreciation in shaping the employee experience. Encourage a culture of recognition, appreciation, and celebration among your workforce. When coworkers support and uplift each other, it creates a positive work environment where everyone feels valued and motivated. And when you give every employee responsibility to create the kind of culture they want, you’re more likely to see company-wide initiative buy-in.

Remember, employee experience is not just a buzzword—it's a transformative approach that can hugely impact your organization's ROI. By investing in EX, you unlock the full potential of your employees, boost productivity, reduce turnover, improve customer relationships, and foster a culture of innovation.

So, let's join hands, embrace the EX journey, and create a workplace where the words “happy” and “employees” go hand-in-hand!

Sources:

• https://www.gallup.com/workplace/236927/employee-engagement-drives-growth.aspx
• https://warwick.ac.uk/newsandevents/pressreleases/new_study_shows/
• https://www.qualtrics.com/experience-management/employee/employee-engagement/customer-loyalty/
• https://hbr.org/2017/10/the-relationship-between-engagement-and-innovation
• https://www.deloitte.com/global/en/our-thinking/insights/topics/talent/human-capital-trends/improving-the-employee-experience-culture-engagement.html
• https://chronus.com/humanizing-the-employee-experience#:~:text=Companies%20with%20strong%20employee%20engagement,21%25%20percent%20higher%20profitability7.