The changing context of work, workforce demographics, changing employee expectations and the growing focus on delivering engaging employee experiences are making people programmes focused on attracting, engaging, developing and retaining talent critical to organisational sustainability.
The design, attractiveness and effectiveness of these people programmes, such as Learning & Development, Wellbeing, Rewards & Compensation, are critical in light of the ability of the workforce to shop around for the programmes and “experiences” that best match their expectations and preferences: where they want to work, how they want to be managed, their working patterns, how they are able to engage with colleagues, etc.
We’re seeing the workforce starting to behave like consumers with their ability to post information regarding their employer, working environment and benefits via social media to a wide audience and equally to access information on other employers’ programmes. In the same way that technology has driven price transparency to consumers it is now delivering employer transparency to the workforce allowing them to “shop around” between employers.
To a large extent employer branding is no longer in the hands of the employer. The employer rolls out a range of people programmes to attract, develop, and engage talent and the external brand is created by workers publishing their views and experiences online to a wide audience via social media and tools such as Glassdoor, Jobeehive, TheJobCrowd and others. Employee experiences are driving employer branding.
Bank of America Merrill Lynch Global Research (February 2019) demonstrated one impact of this through studying the stocks of firms rated on Glassdoor. Those with the highest ratings outperformed those with the lowest by nearly 5 percentage points per year between 2013 and 2019. This is powerful stuff!
This research is a great illustration, but it’s also quite a high-level measure. Employers can measure and understand their employees’ experiences with key “moments that matter” (hiring, onboarding, performance meetings, learning, etc.) with a high degree of granularity with Experience Management platforms such as Qualtrics. Whereas HR solutions provide Operational (O) data (turnover, offer acceptance rate, first year attrition, revenue per employee, etc.) telling us “What” is happening, a solution such as Qualtrics provides Experience (X) data (engagement, trust, values, sentiments, preferences, etc) telling us “Why” these things are happening. Combined the X and O data provide a complete view of the “What” and the “Why” enabling true Human Experience Management (HXM) – we can see in real-time the impact our people programmes are having and adjust them accordingly.
HR when done well is not about performance management, recruiting or compensation. It is about creating a culture that attracts, retains and maximises high performing people. Organisations that do this well through the people programmes they put in place and how they measure and act on employee experiences will benefit accordingly and see their employer brand reflected positively in the market.
Register for the HXM Digital Summit
Join us on April 21 at 2:00pm BST for a virtual debate how the experience economy is changing the way HR and business leaders engage with their employees. Featuring Josh Bersin, author and industry thought leader in HR, technology and employee experience.