shrm employee experience 15 june 03

6/3/2015

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Property of Answers – Proprietary & Confidential

Improving the Employee ExperienceUnderstanding the Relationship Between Employee Satisfaction, Engagement and Future Behaviors

Property of Answers – Proprietary & Confidential 2

Employee Replacement Is Expensive

“… it costs businesses about one‐fifth of a worker’s salary to replace that worker.”

~20%

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THE EMPLOYEE EXPERIENCEIS MORE IMPORTANT TODAY

THAN EVER BEFORE.


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Science to Leverage Varying Employee Attitudes

Source: The AnswersTM American Employee Study: A New Perspective on Employee Attitudes and Behaviors, November 2014

ENGAGEMENT:Degree to whichemployees feel

emotionally connectedto their company

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Employee Experience Drivers

Workload

Coworkers

Advancement

Leadership

Supervisor

Compensation

Job

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„“The American employee deeply craves company

leadership that supports long‐term growth over short‐terms gains and that can provide a clear vision of the company’s direction.

The complexities of the modern economy … all contribute to many companies taking the easier path of simply not sharing information. This will prove to be a long‐term error, as it will lead to lower employee retention.

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Results by Industry

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Results by Age and Gender

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Results by Sector

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Being able to fully understand what drives employees to “give their all” is a challenge!

Competing Priorities Are a Reality

*Source: HR Daily Advisor, 2013 HR dept. survey among 1,839 organizations (Aug. 2013). http://hrdailyadvisor.blr.com/2013/09/06/hr‐department‐survey‐results‐are‐in‐how‐do‐you‐compare/

What HR Oversees*(% reporting responsibility for …)

What HR Oversees*(% reporting responsibility for …)

93.4%EMPLOYEE BENEFITS

93.4%EMPLOYEE BENEFITS

91%EMPLOYMENT LAW COMPLIANCE

91%EMPLOYMENT LAW COMPLIANCE

90.6%RECRUITING AND STAFFING

90.6%RECRUITING AND STAFFING

85.8%COMPENSATION

85.8%COMPENSATION

75.5%RETIREMENT PLANS

75.5%RETIREMENT PLANS

74.9%TRAINING AND DEVELOPMENT

74.9%TRAINING AND DEVELOPMENT

72.1%RECOGNITION/INCENTIVES

72.1%RECOGNITION/INCENTIVES

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Timing and Cadence

PULSEANNUAL

By Tenure

By Group

Random

Benefits

Onboarding

Exit

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MEASURING THE EMPLOYEE EXPERIENCE


• Experience and expectations define satisfaction.

• Satisfaction and intent to stay drive engagement.

• Engagement drives financial success.

The Model for Employee Satisfaction and Engagement

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71

79

72

77

4.6

3.7 RECOMMEND BRAND.4

1.9

2.5

2.2

3.4

.9

1.8

83

75

79

76

69

82

73

Answer the Big 3 Employee Experience Questions

EMPLOYEE SATISFACTION

IMPACT

EXPERIENCE ELEMENTSDrivers of Engagement & Satisfaction

ENVIRONMENT

JOB

MANAGER

TEAMWORK

ADVANCEMENT

EMPOWERMENT

COMPENSATION

SCORE

ENGAGEMENT

2.1

1.2 INTENT TO STAY

RECOMMEND EMPLOYER

IMPACT SCORE

FUTURE ENGAGEMENTOutcomes of the Employee Experience

How are we doing?1 What should we do?2 Why should we do it?3

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1. Intent to stay—the desire to maintain membership in the organization

2. Advocacy—the belief in and acceptance of the organization’s goals and values

3. Initiative—the willingness to exert considerable effort on behalf of the organization

4. Recommend brand—the willingness to recommend the company’s brand

5. Recommend employer to job seekers—the willingness to recommend the organization to job seekers

6. Customer orientation—the commitment to customer service

What Do You Want Them to Do?

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Answer the Big 3 Employee Experience Questions

.4

1.9

2.5

2.2

3.4

.9

1.8

83

75

79

76

69

82

73

IMPACT

EXPERIENCE ELEMENTSDrivers of Engagement & Satisfaction

ENVIRONMENT

JOB

MANAGER

TEAMWORK

ADVANCEMENT

EMPOWERMENT

COMPENSATION

SCORE

How are we doing?1 What should we do?2 Why should we do it?3

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Priority Maps Reveal Initiatives for the Highest Value

EMPLOYEEGROUP B

EMPLOYEEGROUP A

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Employees Are the Critical Link


PREDICTIVEANALYTICSPREDICTIVEANALYTICS

QUANTIFIABLELINK

QUANTIFIABLELINK

EXCEEDCUSTOMER

EXPECTATIONS

EXCEEDCUSTOMER

EXPECTATIONS

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7878

5858


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SUPERVISOR

COMPENSATION

LEADERSHIP

ADVANCEMENT

COWORKERS

WORKLOAD

JOB

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1.1

0.7

0.7

0.3

0.4

0.7

0.8

1.1

0.7

0.7

0.3

0.4

0.7

0.8

4.9

4.5

4.9

4.5

MERCHANDISE

SERVICE

STORE ENVIRONMENT

PRICE

1.7

0.8

1.0

1.1

1.7

0.8

1.0

1.1

5.0

4.2

5.0

4.2


EMPLOYEE EXPER I ENCE CUSTOMER EXPER I ENCE

SUPERVISOR

LEADERSHIP

MERCHANDISE

SERVICE

STORE ENVIRONMENT

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300‐STORE RETAIL CHAIN

$30 Average Order Value1M Transactions Per Month

3%INCREASE

PURCHASE NEXT TIME

$10,800,000ANNUAL REVENUE INCREASE

3%INCREASE

=

EMPLOYEEENGAGEMENT

CUSTOMERSATISFACTION

IMPROVEMEASURE ROI

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The Truth About Millennials

SATISFACTION

74 7518‐24 55+

RECOMMEND

73 7518‐24 55+

RETURN

78 7618‐24 55+

Source: Q1 2015 ForeSee client data

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The Truth About Millennials in the Workplace

SATISFACTION

66 6518‐24 55+

ENGAGEMENT

62 5718‐24 55+

Source: 2014 Answers American Employee Study


WHAT’S NEXT?

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Optimizing Voice of Employee Efforts

What employee initiatives should we plan for next year?

What experiences matter?

What does our workforce value?

What proof points exist for our case?

Is our current thinking on improving employee engagement on track?

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Eric FeinbergSenior Director of Product [email protected]

Questions?


shrm employee experience 15 june 03

Documents

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