Employee Experience and the Impact on Profit
For many years, the “employee experience” was simply a way to translate job satisfaction ratings into retention analytics. Since it is no secret that there is a correlation between higher satisfaction ratings with reduced turnover and improved performance, why do organizations still struggle with retention?
In part, the answer rests with balancing corporate goals with employee morale. With the demands of owners and shareholders to achieve metrics that enhance competing in today’s marketplace, many employees find themselves continually challenged by ever increasing goals with reduced resources. So how can hiring managers creatively optimize the ROI of employee staffing and enhance the employee experience?
Creating Mutual Goals
To begin, leadership teams must understand their current workforce. Managers must know where their individual team members are in terms of their career cycle and determine which resources can be provided in order to meet those needs. While most HR departments may offer resources for career development, it is important to continually re-examine the relevancy from an employee’s perspective.
Initial start-ups and small organizations often have the advantage of knowing and sharing their employees’ ambitions and objectives. With smaller teams and often fewer years separating senior management from the newest employee, company goals and personal priorities may often be one in the same. Such companies built upon personal sacrifice and shared equity, create an experience of success for all engaged.
However, for mid-sized and larger organizations that have continued to grow through multiple decades, both the challenges and opportunities increase. In order to engage individual employees, HR must build a strategic network of communication to ask key questions and translate responses into opportunities. Consider the example outlined in a recent Forbes Article by Jeanne Meister, dated May 13, 2016 titled: Workplace as an Experience; Three New HR Roles Emerge.
Each year, IBM examines risk factors like location, compensation, employee engagement sentiment, and even manager engagement at the aggregate level for both a country and job role. Then it’s the job of Anshul Sheopuri, People Analytics Director, and his team to use machine learning to calculate the relative importance of these and other factors, all while maintaining employee privacy. The end result is the identification of employee groups in key job roles at risk of finding opportunities outside of IBM and a program of thoughtful manager intervention to prevent departures. This initiative has been reported to save IBM about $130 million dollars, as measured by the avoiding the inevitable costs of hiring and training replacements.
The article goes on to cite how another organization has expanded their HR scope to include a broader sense of employee engagement.
At Forrester, this new role is focused on creating an awesome employee experience, so new hires stay and are engaged during their first few years. Often research shows new employees with tenure of less than two years leave because of frustration with unproductive, poorly optimized work processes.
… Symons works on a range of projects from examining how to use Glassdoor and other employer rating sites to strengthen the brand to creating awesome employee experiences across the employee life cycle, from new hires to long tenured employees, and even exploring how Forrester alumni can advocate for the company’s employer brand.
Producing a positive employee experience is about creating the existence of mutuality in goals between employee and employer. By focusing on real objectives to improve employee engagement, organizations can create an environment where profit and positive experience go hand in hand.
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