Five reasons to invest in employee experience
In the current economic climate, factors like inflation, high energy costs and low consumer confidence are forcing many businesses to take tough decisions about how to cut costs. Leaders are juggling complex challenges, whether it’s managing cyber security risks, overseeing digital transformation projects or staying compliant with ever-changing regulations.
In this environment, you could almost understand how employee experience could slip down the priority list. But smart leaders know that keeping their focus firmly on their people always pays off – especially in a challenging market. Here are a few reasons why…
1. Engaged employees are more productive
Recent research from Gallup shows that employee engagement fell to 21% in 2024, costing the global economy a breath-taking $438 billion in lost productivity.
When budgets are tight, you need to get the best out of the people on your payroll. And that means creating a brilliant employee experience that makes your staff feel inspired, motivated and committed to your organisation’s goals. This isn’t easy, especially when employees are also personally affected by financial, social and geopolitical issues in the outside world. But, as so many organisations proved during the pandemic, it’s still possible to create an engaged, motivated and valued workforce, even in difficult times.
2. A positive work environment is crucial for innovation
In a fast-changing world, where customer and employee expectations are changing all the time, organisations need to be constantly innovating and adapting to survive. But innovation doesn’t happen when people are afraid, disengaged, or feel excluded from decision-making. If you want innovation, you need to build trust and psychological safety, and set up informal channels to connect leaders and employees. Get this right, and your whole workforce will help you solve the challenges facing your organisation, and grasp the opportunities that will get you ahead.
3. Low staff morale puts your change efforts at risk
Many organisations are investing heavily in change and transformation programmes to respond to external changes and stay ahead of the competition. A report from PwC in 2021 found that the average change budget in a financial services institution was 14% of annual operating costs, and while it will vary across sectors, most organisations are investing in some kind of change.
But successful change only happens when your people are able and willing to change. To bring your employees along with you, you need to create the kind of positive, supportive workplace where people feel comfortable with change. That requires an understanding of neuroscience (see this book, by Hilary Scarlett), and specialists who can help you design and build an employee experience that supports your change ambitions.
4. A happy, healthy workforce will save you money
Investing in employee experience may feel like a stretch when budgets are tight, but it could save you thousands over time. Research from Gallup shows that employee wellbeing is key to workplace productivity. Organisations with happy, healthy employees experience lower turnover and staff sickness and deliver higher performance. And what if your employees are disengaged? The hidden costs of people feeling unmotivated, under-valued and disconnected could be silently soaking up your profits.
5. Your employee experience affects your customer experience.
Studies from many different countries and sectors have shown how employee engagement supports the customer experience. Research in the NHS shows how a positive workplace culture supports patient outcomes, while a recent study in higher education showed how positive relationships built on trust, shared interests, and understanding supports collaboration and improves service quality. How your employees feel at works affects their interactions with customers every day, and these day-to-day experiences have a big impact on your brand equity and profits.
In challenging times, creating a positive, supportive working environment isn’t just the right thing to do — it’s essential for business success.
But a brilliant employee experience doesn’t just happen. It takes effort to create an employee experience strategy that aligns with your business priorities and coordinates effort across multiple teams.
But now’s the time to do it. If you put your people first, you’ll create a happy and high-performing team — and give your business the best chance of success, whatever lies ahead.
If you want to develop an employee engagement strategy that aligns with your organisation’s goals, I’d love to help. Book a free intro chat or explore how I can help organisations like yours.