What is it? Why does it matter to customer...
Transcript of What is it? Why does it matter to customer...
Employee Experience: What is it? Why does it matter
to customer experience?Stacia Sherman Garr, Co-founder & Principal Analyst RedThread Research
www.redthreadresearch.com@StaciaGarr, @RedThreadRe
Copyright RedThread Research, 2019. All rights reserved.
Employee Experience: What is it? Why does it matter to customer experience?Stacia Sherman Garr, Co-founder & Principal AnalystRedThread Research www.redthreadresearch.com @StaciaGarr, @RedThreadRe
Copyright RedThread Research, 2019. All rights reserved.
Agenda
• The state of work today
• Why employee experience matters
• Maximizing the impact of employee experience
• Steps your organization can take today
• Wrap-upCopyright RedThread Research, 2018. All rights reserved.
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The State of Work TodayAnd why it makes employee experience more important than ever
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Companies are growing
Photo by Kent Pilcher on Unsplash
Source: Standard & Poor’sCopyright RedThread Research, 2018. All rights reserved.
Sales growth rate, Year-on-Year, 2001- March 2018 (Inflation adjusted)
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6.47%
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The market’s climb is breathtakingDow Jones Industrial Average, 2009-2019
Source: DJIA, Macrotrends.netPhoto by Samuel Zeller on Unsplash
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But all is not as it appearsPhoto by Zaji Kanamajina on Unsplash
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Copyright RedThread Research, 2019. All rights reserved.Source: “Dying for a Paycheck,” Pfeffer, 2018; “Work and the Loneliness Epidemic,” Murthy, HBR, 2017.
Many workers are not well61% of US employees have said their workplace has made them sickJob-related stress causes 120,000 excess deaths per year in the US and nearly a million in ChinaMortality rate of loneliness is greater than smoking 15 cigarettes per day
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Copyright RedThread Research, 2019. All rights reserved. Source: Gallup, 2018.
Many are not enthusiastic about their jobs
• Half of employees are looking for new jobs• 87% of employees are not engaged
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Copyright RedThread Research, 2019. All rights reserved.Source: “Exponential Organizations,” Ismail, Malone, and Van Geest, 2014.
Companies are dying fasterAverage lifecycle of a company down to ~15 years from 67 years in 1920s40% of today’s S&P 500 companies will be replaced by 2028On average, a company is disrupted every 3.1 years
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Why?
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Over the last 100 years, we focused on:
Efficiency at the expense of adaptability
Hierarchical control over decentralized enablement
Separated education over embedded continuous learning
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We have to think about the next 100 years differently from the last 100 years
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By focusing on what makes us humans, not machines
But how?
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Enter Employee ExperienceWhat it is and why it matters
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All humans have needs
Autonomy: “I have a choice”
Competence: “I am effective”
Relatedness: “I feel connected”
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Employee Experience (EX)
Employees’ collective perceptions of their ongoing
interactions with the organization
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Perceptionswhat employees
encounter, observe, hear
Interactionshow employees and
organizations interact via organizational practices,
work environment, culture
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Employee Engagement
A measure of energy, involvement, and
concentration that is exhibited in work attitudes and
behaviors
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Employee experience and employee engagement are not the same thing
Cause
Bottom-up
Broad scope
What organizations do, say, give
Effect
Top-down
Narrow scope
What employees see, hear, feel
Employee Experience
Employee Engagement
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A dynamic employee experience framework
Organizational Practices
Employee Perceptions
Employee Engagement
What organization does
What employee perceives
How employee feels and behaves
Extent to which core needs of autonomy, competence, relatedness are satisfied
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The value of employee experienceCompanies that invest in employee experience outperform others
4.2x4.0x
2.8x2.1x
1.5x
Average profitProfit per employee
Revenue per employeeAverage revenue
Employee growth (%)Source: The Employee Experience Advantage, J. Morgan, 2017
122% in S&P 500
Source: Glassdoor study, 2015
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The link between employee experience and customer experience (CX)
75% of employees are
highly or moderately engaged in companies that lead in customer experience
Organizational Practices
Employee Perceptions
Employee Engagement
Source: Temkin Employee Engagement Index, 2016
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Maximizing the Impact of Employee ExperienceWhile also driving customer experience
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The CARE framework: Maximizing the impact of EX on CX
Connect employees to customers
Ask and listen
Reflect the company’s brand
Enable employees Copyright RedThread Research, 2019. All rights reserved.
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• Bring the customer promise to life for employees
• Give employees a voice to find and share solutions
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Connect employees to customers
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For example: Airbnb
• Created “Belong Anywhere,” an integrated CX-EX brand• Infused mission and values
into the brand • Connected customer and
employee promise
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Ask and listen
• Ask meaningful questions to employees
• Listen to stories, pay attention to emotions
• Take swift action
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For example: General Electric
• Collected employees’ ideas to improve processes
• Created “PD@GE” to facilitate feedback, track priorities and insights
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• Align external and internal brands
• Evaluate and leverage existing tools
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Reflect the company’s brand
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For example: Mastercard
• Brought well-known external brand “Priceless” in-house
• Created an internal story for employees, and scaled it globally
Photo by Mastercard Europe
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• Offer tools that enable employees to effectively serve customers
• Prioritize tools that foster objective decision-making and choice
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Enable employees
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For example: Humana• Provided tool to give
employees real-time feedback to adjust their approach during customer calls• Improved customer
satisfaction (28%) and employee engagement (63%)
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Action Steps for Your CompanyThree ideas you can get started on immediately
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Action #1 Build Transparency
Connect customer feedback to employee feedback to uncover opportunities for improvement
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Action #2Examine
WorkflowsHow work gets done to identify and address process bottlenecks
and communication silosPhoto by Ryan Plomp on UnsplashCopyright RedThread Research, 2019. All rights reserved.
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Action #3Embrace Agility
Focus on people and interactions, supportive practices, adaptability
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Wrap-upAnd how to stay in touch
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1. Exceling in the Future: We need to focus on what makes us human
2. Human Focus: Three innate and universal needs
3. Employee Experience, Employee Engagement: Related, but not the same
4. Value: Companies with a positive employee experience outperform
5. Maximize Impact: C.A.R.E.
6. Action Items: Build transparency, examine workflows, embrace agility
Final thoughts
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Join us!
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Stacia Sherman GarrCo-founder & Principal AnalystRedThread [email protected]://www.linkedin.com/in/staciashermangarr/
@StaciaGarr
@RedThreadRe
Copyright RedThread Research, 2019.
Copyright RedThread Research, 2019. All rights reserved.