According to Forbes, 2018 is the year of the “employee experience.” Since there has been such a focus on employee engagement, employee loyalty and employee retention over the last few years, adding another term into the employee/employer relationship cycle can be confusing.
Employee experience isn’t just another buzzword—it can directly affect your bottom line. So we explored a little about what it is and what it could mean for your business.
Employee Experience Defined
At its core, employee experience is every interaction your company has with an employee from their first phone interview until they turn their computer in on their last day. It is not a specific event or initiative, it is the total employee/employer interaction and relationship.
Company culture and “feel good” initiatives, as well as tangible employee incentives and rewards are components of the employee experience, but they aren’t the whole thing. Every meeting, every assignment, every performance review, are also part of employee experience.
Why Employee Experience Matters
So why care? Why not just go on the way you always have, making the most of company culture and hoping for the best?
The reality is that is hot industries like Tech and Retail have a shortage of talent, in specialized fields like Commercial Piloting and Nursing, the work/compensation ratio is off, both factors cause an environment where employees have the advantage and ability to job-hop almost at will. If they find something better, it costs your company money for replacement and onboarding costs, and it erodes your company culture (high turnover isn’t attractive to candidates).
In the current environment where sites like GlassDoor and LinkedIn provide candidates with more information about potential employers than ever before and employees the opportunity to be anonymously transparent, image is everything. A good employee experience, including career-pathing, great manager support, and a positive atmosphere supports the unwritten contract, that Deloitte mentions in its recent report, between employee and employer that leads to longevity and loyalty from both sides.
What It Means to Your Bottom Line
Employee experience doesn’t just have feel good qualities, it can have real effects on your business’ success. According to research from Jacob Morgan, companies with positive employee experiences had an average of four times more profit and twice the average revenue, with 25 percent less employees. This means a better bottom line for everyone.
Employee experience is here to stay and it not only matters for your company’s popularity and reputation, it can actually have a material effect on your company’s financial health.
What will you do in 2018 to improve your employee experience? Leave us a note in the comments below.