Walt Disney World offers an experience, as do Apple Stores, Cirque du Soleil, the Geek Squad, Dave and Buster’s, American Girl, and TED Conferences.
We recognize and cherish these as great consumer and entertainment experiences. Perhaps even more thrilling is the proof that experiences also positively contribute to high employee retention. In fact, companies investing in the employee experience realize higher productivity and profitability.
Previously, the employee experience wasn’t a consideration. Employers have always assumed that they can create a place where people need to work, and now they realize they must create a place where people want to work.
Why the shift? Because the power has now shifted into the hands of employees.
The war for talent has never been so fierce. Here and now, people have their choice of jobs and also have the option of turning to additional ways of earning a living such as creating products to sell on Etsy, renting out a home on Airbnb, or becoming a freelance contractor.
In this Talent Economy, what can organizations do to boost retention? Focus on the employee experience.
Jacob Morgan, the author of The Employee Experience Advantage, urges employers to consider their cultures, use of technology, and physical workspaces – all of which contribute to the employee experience.
- Culture is the feeling you get when you walk in the door. It’s the mood of the workplace, which is largely determined by the attitudes and behaviors of the team. It’s not written, and it’s not stated, yet it is one of the most important elements of creating and designing a great employee experience.
- Physical Space is what we can see, touch, taste, and smell. The most progressive companies have a space that reflects the organization’s culture, allows for mobility, and provides designated areas for focus, collaboration, learning, and socializing.
- Technology refers to the tools employees use to get their jobs done. This is an area that’s constantly updating and evolving. Big data, wearable devices, collaboration tools, robots, and automation are all developments organizations should seek to implement and understand.
Morgan analyzed 252 companies, hiring a team of researchers to rank the companies against several business metrics. The companies which ranked high in all three areas – culture, space, and technology – were receiving exceptional results, including:
- Higher average revenue per employee, profit per employee, and higher employee tenure; and
- Recognition and high ranking accomplishments in areas ranging from customer satisfaction to innovation, best places to work, and most diverse, greenest, and smartest companies.
In other words, an investment in employee experiences generates real returns for a company.
Unfortunately, despite having measurable data and beneficial outcomes, not enough companies are taking notice. Morgan’s research revealed that out of a sample size of 252 companies, just 15 companies were investing in and excelling at employee experience.
The lack of dedication to employee engagement has been painfully evident throughout the Great Resignation, as many companies have suffered devastating levels of employee turnover.
To turn the tide, employee experiences must be the priority. Great experiences lead to dedicated teams producing exceptional results.
Let’s connect and see how you can get talent to come knocking on your door.