WIN WITH EXCELLENT EMPLOYEE EXPERIENCES

I spoke with a friend last week who told me how happy he was that his company promoted him to manager of his department. I congratulated him and then I asked, “Why do you think they selected you?”

Without pausing, he became very animated and said, “I let HR and the other people working to fill this position know that I was interested; I have taken the managerial and leadership courses necessary to excel; I really care about the people and the work we do; and I promised them that if they promoted me, they would never regret their decision.”

I literally started applauding! He nailed the top questions that any decision maker would have.

And I knew immediately and without doubt that his company had developed a very positive employee experience. Otherwise, he would not have felt “safe” to speak in such an assertive way to the people in charge of filling the job.

In a less positive (let alone, toxic) work environment, people rarely advocate for themselves. They have learned that their opinions do not matter to the decision-makers, management style is more authoritative and less participatory, and there is a low level of trust in them as employees.

HOW DOES YOUR COMPANY STACK UP?

Would someone in your company be the strong advocate for themselves that my friend was? If so, your company most likely delivers a positive employee experience.

Here is why establishing this type of environment matters:

• Replacing an employee can cost 1.5 to 5 times the cost of the departing employee’s annual salary
• Nearly 80% of executives rate employee experience as an important or a very important priority
• Only 22% of executives indicate that their organization excels at employee experience
• Only 58% of employees feel valued by their current employer and are satisfied with their employer’s recognition practices
• Only 20% of employees report that they trust their organization

THE MARKET FOR TOP EMPLOYEES IS FIERCELY COMPETITIVE

The competition for top talent is already extremely challenging; it will only become more so over the coming months as companies improve their recruiting and retention skills. Companies that provide excellent employee experiences will be well positioned in this regard.

Over the past six months, I have analyzed the reasons why employees stay with their companies. There is some variety, or course, but when I dig beneath the responses, there are a few common qualities, with an excellent employee experience consistently at the top of the list.

More specifically, these employees are happy, engaged in their work, have the flexibility to create a good work/life balance, are trusted by management, and are part of a more participatory, rather than authoritative, management style.

LEADERS VS. LAGGARDS

So, what are some basic building blocks that create an excellent employee experience? Two, in particular, stand out.

1. COMMUNICATION.

The most important factor is excellent, consistent, and regular communication that flows both up and down the company. The best companies send weekly communications to all employees at the same time.

By communicating weekly, nobody has to wonder when they will next hear from management. Further, the frequency and broad sharing of information reduces the gossip and misinformation that can occur in an information vacuum.

2. DATA GATHERING.

The best companies want to know what their employees are experiencing. They regularly, consistently, and systematically gather employee data from a variety of different sources. Further, they don’t shy away from discussing difficult or sensitive topics and they incorporate the employee points of view into their overall strategy.

In striking contrast, the laggards gather employee experience data no more than once a year (if at all). This lack of interest speaks volumes about senior management and leadership. Here are the different frequencies of employee data-gathering:

Leaders

11.8% = Once a year or less

43.3% = Two to four times a year

26.8% = Monthly

18.1% = Weekly or more frequently

Laggards

54.1% = Once a year or less

36.5% = Two to four times a year

5.9% = Monthly

3.7% = Weekly or more frequently

Not surprisingly, data-gathering leaders perform better than laggards in terms of the financial outcomes they achieve within their organizations. Leaders are:

• Twelve times more likely to have revenue growth exceeding 20% over the previous year
• More likely to meet or exceed their own financial targets (self-ratings of 4.22 vs. 2.89 overall on a 5-point scale)
• More likely to achieve high levels of customer satisfaction and retention (self-ratings of 4.55 vs. 2.98 on a 5-point scale)

Overall, companies need to dig deep to understand their employees’ values, preferences, expertise, expectations, perceptions, sentiment, and attitudes. Traditional efficiency metrics alone are simply not enough.

SUMMARY

We are in a fierce and competitive war for top talent.

Happy and engaged employees — those who have the flexibility to create a good work/life balance, are trusted by management, and are part of a more participatory rather than authoritative management style — will bring you the high employee and customer retention you seek, not to mention greater profitability!

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A former tax attorney at Arthur Andersen, Lynn Thomas brings the same rigor to her work now as an employee and client retention consultant. With more than 30 years’ experience, she uncovers why clients/employees come, stay, leave, refer, and cross-buy. Her unique, fully customized approach includes measurable and actionable steps toward cultivating a powerful, profitable, and relationship-centric company. Learn more about Lynn and Thomas Consulting, here.