Why Improving Employee Experience Can Lead to Better Business Outcomes

Today’s HR leaders face numerous challenges, from addressing IT and AI skills gaps to navigating hybrid work dynamics and tackling stagnating employee engagement. This is all occurring in a complex and uncertain labor market. For instance, the U.S. recently added 272,000 jobs in May 2024, exceeding forecasts, yet unemployment rose above 4%, indicating a cooling overall job growth despite initial gains.

With quit rates down and more employees staying in their current roles, it’s crucial for workplace leaders to invest in long-term employee experience (EX). A positive EX not only benefits workers but also translates to better customer experiences (CX) and, ultimately, improved business performance.

The Connection Between EX and CX

Research has consistently shown a strong link between EX and CX. Satisfied, motivated, and fulfilled employees are more likely to provide exceptional service to customers. However, achieving this requires a strategic approach from HR leaders, who must ensure their employees’ fundamental needs are met, such as competitive wages, career growth opportunities, work-life balance, and comprehensive benefits.

When employers align their priorities with those of their employees, companies experience reduced turnover, higher engagement, and increased productivity. This positive environment directly enhances customer interactions and business outcomes, making investments in EX not just beneficial but essential.

Understanding the Importance of EX

A recent study by isolved found that 90% of full-time employees in the U.S. believe their experience as employees directly impacts the customer experience they provide. Additionally, 91% of HR leaders acknowledge the importance of EX in driving business outcomes. As Celia Fleischaker, CMO at isolved, notes, achieving long-term success requires balancing business needs with those of employees, leveraging advanced human capital management (HCM) technology to enhance talent retention, inclusivity, productivity, and engagement.

Key Steps to Enhance Employee Experience

Provide Growth and Development Opportunities

• Continuous learning and development help employees grow professionally and bridge skills gaps. Training programs, workshops, and mentorship foster innovation and efficiency, contributing to long-term business success.

Enhance Communication and Transparency

Effective communication keeps employees informed about company goals and changes, fostering inclusion and alignment. Open dialogue builds trust and encourages the exchange of ideas, creating a dynamic and innovative work environment.

Recognize and Empower Employees

Regular recognition of achievements and involving employees in decision-making processes reinforces their value and encourages ownership, leading to greater dedication and better customer interactions.

Streamline HR Processes

Efficient HR processes reduce administrative burdens and frustrations. Comprehensive HR software for payroll and benefits administration saves time and reduces errors, allowing employees to focus on core responsibilities and customer interactions.

Support Employee Well-Being

Investing in employee well-being through wellness programs and mental health resources maintains motivation and productivity, translating to positive customer relationships.

Provide Competitive Compensation and Benefits

Fair and competitive wages and benefits enhance productivity, engagement, and retention. These factors attract top talent and foster loyalty, driving business growth and customer satisfaction.

Final Thoughts: Understanding Employee Needs

HR leaders must regularly assess employee experience through surveys and feedback mechanisms to ensure their workforce’s specific needs are met. By taking these steps, companies can build a strong employee experience, which translates to better customer experiences and improved business outcomes.

Want to strategize and implement a better Employee engagement strategy? Connect with me to find a solution! Book a FREE 15 minute call directly.

ANTHONY STABOURLOS

Managing Director & Marketing Strategist at GHAF Digital®