Why does this matter?
Because employee experience is good for your business and its bottom line. Did you know it takes at least a week longer to recruit someone than it did 12 months ago? Additionally, the average cost of recruiting one new employee has climbed from $10,500 per candidate last year to $23,860 in 2022. Now imagine that a new employee turns around and quits less than a year later.
Recent research shows a massive 95% of HR professionals realise an employee who feels connected and therefore engaged is vital to employee retention. With studies like these replacing old customer-centric business models, employers are starting to pay real attention to the employee experience.
What is employee experience?
The employee experience is every interaction an employee has had with your business. As noted above, it begins with the first contact, ends on the last day, and is impacted by everything that happens in between. From the onboarding process, those first few critical weeks in their new job, and their ongoing payroll experience, to how leave requests are managed, performance reviews and compliance. They all help to create the employee experience, no matter where they are in their employee lifecycle.
Today’s employees expect more from their job than just turning up each day and getting paid. Money isn’t the main reason people stay at their jobs meaning businesses are having to look at other ways to keep an employee happy and productive and not take all their skills that maybe you paid for by training them to a competitor. An improved employee experience might just be the best way to retain talent and boost engagement which increases productivity and the overall well-being of your employees.
Why employee experience matters
Employee experience matters because it impacts every part of your business.
Engaged, satisfied employees are more than likely to be engaged and helpful in the workplace, impacting everyone around them. And we all know the old adage about one bad apple spoiling the whole bunch, right? Also, people who are happy in their jobs will speak well about the business outside of work. This may bolster the reputation of your company which may attract the kind of talent you want working for you. Spend all the money you want on advertising campaigns, but nothing beats word of mouth. Companies like Glassdoor have built a successful businesses around employee reviews of their current or ex-employer.
If happy, engaged employees aren’t quite selling it for you, what is the impact on your business's bottom line? Cold, hard cash.
Some studies have found that a highly engaged workforce can increase profitability by as much as 21%. By contrast, you may be shocked to learn the financial impact of disengaged employees is felt at a global level. In fact, the 2022 Gallup State of the Global Workplace 2022 report estimated low engagement bleeds the global economy of US$7.8 trillion (AUD$11.2 trillion) every year.
The benefits of a good employee experience
The Harvard Business Review (HBR) recently conducted research to show just how much the employee experience impacts your bottom line. They went to great lengths to get data specifically linking employees and revenue. And in their own words, the impact was substantial.
Using customer-facing employees, they found if the employer could move from the bottom quarter to the top quarter in each of the employee experience metrics studied, the business would increase revenue by more than 50%. And profits by nearly as much.
The HBR results were clear – employee experience drives revenue. But what about the other benefits of a positive employee experience?
Other than feeling engaged at work, people also want to feel there’s a purpose to what they’re doing. As many as 77% of employees want to work for a business where they feel connected to the purpose and the people. People want to know how they fit into the grand scheme of things. How does the work they do impact the business?
After the pandemic, people are also looking for the flexibility to work from home or in a hybrid arrangement. Money is no longer the main motivating factor with a healthy work/life balance important to your employees.
How technology can help - Workforce Management technology
We live in a world where hybrid, remote and flexible workforces are standard with more businesses looking for flexible, cloud-based Workforce Management (WFM) software for their business. How can WFM tech improve employee experience and how can HR professionals use it?
Whether a user is in the office, working remotely or even overseas, accessing WFM software is easy because it’s in the palm of their hand.
Here are a few ways your people can use WFM software, such as our platform Access Definitiv, to enhance their employee experience:
Feel connected
Employees can access all their information from anywhere there’s an internet connection on the device of their choice.
Safety
The Personal TimeClock means users can clock on and off, change duties and take breaks on their own app. It also registers the location providing an extra layer of security for employees out in the field or off-site.
Set reminder notifications
If an employee forgets to clock on, they’ll get a handy reminder. If it happens often, managers can set an automatic reminder. No more scrambling to update timesheets for payroll because an employee forgot to clock on last Wednesday.
Making it easy
Check compliance and licensing requirements. Change rosters or availability. Request leave. Update personal information. All from an app on your employee’s phone. No waiting until office hours to get things done.
Clarity
During the onboarding process or if changing roles, people need clarity. Compliance, expectations, and availability are now at the fingertips of every employee.
Payroll
People hate when their pay is incorrect. Definitiv offers a total payroll solution on one platform. No more pay mistakes because the timesheet software doesn’t talk to the roster software, and HR didn’t get the email requesting annual leave.
Autonomy
Self-service tools will empower your people by giving them control of their working lives.
If you’re ready to improve employee experience, enhance engagement and empower people by giving them the autonomy to control more aspects of their working life, we’re ready to help.
Book an Access Definitiv demo, or download our eBook, The ultimate guide to employee experience (EX) to learn just how easy it can be to improve employee experience – and your bottom line.