For several years ‘customer experience’ has been the driving force behind many business strategies that bring about product development, marketing, and all-around business culture. However, recently, there has been a shift in focus to what many are calling ‘the age of employee experience’.
Here’s what you’ll find out in this article:
- What is Employee Experience
- The importance of Employee Experience
- Why there has been a shift from culture to experience
What is Employee Experience
The rise of what we’ve come to know as ‘employee experience’ has set new demands for most businesses. An easy way to understand this fairly new concept is by saying, if customer experience relates to how we measure all communication a company has with its customers, then employee experience relates to everything the workers of a company experience – every interaction from the very first interview up until the moment they leave the company.
Employee experience goes beyond providing a great place to work. It forces companies to offer their employees a new level of support in their career and personal wellbeing, flexibility, and a plethora of opportunities.
Some key features of a good employee experience include, but are definitely not limited to;
- Protecting and encouraging a healthy work-life balance
- Encouraging a collaborative work environment
- Using technical advances to minimize ‘meaningless’ tasks
- Offering flexibility and support for individual schedules
- A designed professional development plan to suit each employee’s growth
- Encouraging employee autonomy and self-direction
- Promoting an environment of purpose and meaning beyond making money
Related: What is a business credit facility?
The importance of Employee Experience
So the question on everyone’s mind is, why is it so important? According to a Forbes article, in 2019, employee experience became a ‘preeminent corporate priority’. The reason for this is partly due to the evolution of the employee-employer relationship, as well as the fact that job-hopping is more frequent than ever. All in all, there is an imminent need for companies to raise the bar when it comes to retaining employees and providing a thriving work environment for their people.
Why there has been a shift from culture to experience
There’s no doubt that the rising importance of “customer experience”, with its focus on empowering individuality, influenced it. Where most companies previously focused on employee engagement and company culture, recently it’s more about overall employee experience.
While company culture is still important, it’s significance is limited. Your office can be as trendy as ever, filled with table tennis areas, Friday drinks, and casually dressed staff working flexible hours – but that will only get so far. These types of perks are fast becoming the norm and probably do promote collaboration and a shared vision, but if employees are not motivated and engaged with their work, these perks are futile. Employee experience relates to the daily norms of the workplace, the bonds between team members and managers, the sense of support between everyone in the company. These are the things of real value.
So why should SMEs care about investing in their company’s employee experience?
Those who make a sustained investment into employees are able to retain top talent within their industries, dominate the competition, and in turn, promote higher turnover because people are motivated to do their best at every turn. According to HBR, on average, companies that invested in the experience of their employees returned over four times the average profit – despite being around 25% smaller, implying greater levels of both efficiency and creativity.
The statistics certainly back up the hype: having a positive experience is not only crucial to attracting and keeping the best workforce, but staying relevant as a business, too.