Understanding the ROI of Great Employee Experience

 

More Customer Satisfaction: Customer experience has gotten a lot of attention from organizations where marketing departments are starting to understand how critical employee experience is to customer acquisition and retention. But what, you asked; does customer satisfaction have to do with employee experience? At my agency, we always say that what you get on the inside, you get on the outside. In other words, happy employees help create happy customers. You can see this in the example of Chick-fil-A, where an emphasis on employee experience has created a fast-food chain that earns nearly double the per-store sales of its
closest competitor, McDonald’s.

The Less Tangible Benefits of Great Employee Experience

The examples showcase several ways that an investment in employee experience can directly pay off. Now, let’s explore a few slightly less concrete benefits that while more difficult to measure, are still inextricably linked to a highly engaged workforce.

Greater Innovation: Previously, I mentioned increased productivity as an outcome of improved employee engagement. Another byproduct of engagement that stems from improved employee experience is the creation of better products and services, as well as better solutions to both internal and external challenges. More engaged employees can be much more empathetic toward co-workers and the customers they serve. This allows them to come up with more relevant — and often better — ideas that can help a company stay ahead of the competition.

Easier Recruiting: It is true that a talent branding initiative, internal or external, can often pique interest and capture the imaginations of prospective candidates or customers. However, as reviews on job sites like Glassdoor have proven, a great-sounding tagline for your talent brand can fall flat if the actual experience of your employees isn’t truly great. Rather, the winning combination is great employee experience with a talent brand to match. This provides a more seamless recruiting process and can expand your candidate pool to better candidates.

There are many ways that investments in improved employee experience can pay off. Whether they are more tangible, such as decreased turnover rates, or less directly measurable, such as an increase in innovation, focusing on improving EX is worth the effort.

Bottom Line: in a recent survey conducted by OfficeTeam (A Robert Half Company) and the International Association of Administrative Professional (IAAP), 70% of respondents said an organization’s recognition program would factor into their decision to accept employment with that firm. Administrative professionals were also asked in the survey, “How likely is it that you would leave your current position, if you did not feel appreciated by your manager?” Two-thirds of respondents said they would “likely” or be “somewhat likely” to leave their current position, if they did not feel appreciated by their manager.

So, it seems clear that employee recognition is an important factor for today’s professionals, but does recognition translate into any measurable effect in work performance? From the survey of over 549 administrative professionals, 67% of them reported that work performance improved or greatly improved due to the recognition programs their company had in place.

Employee engagement has big rewards for a company’s bottom line. Employees who feel connected with their company enjoy their work and enjoy being at the workplace. They are absent less often and are more likely to stay with the company for longer periods of time than employees who don’t feel engaged.

Engaged employees are the biggest promoters of your business. They are more likely to:
 

·      Stay with a company, reducing turnover

·      Perform well

·      Go above and beyond

·      Recruit new talent

·      Be as committed to company goals as their own professional goals 
       they view the two as intertwined

 

Employee engagement is also important for the future of your business, with respect to leadership succession. Some employees that aren’t recognized and rewarded just won’t stick around.

Measurables: The key to all recognition programs success is to monitor the activity and measuring the employee engagement. Your Elephant helps companies measure the success of employee recognition & engagement programs with analytical reporting.

We measure the impact of the employee recognition programs, providing insights to were and what success each program is having, and how it impacts on the bottom line. We look for correlations between recognition and company actions, so that you know how to adjust the course. For example:
 

·      How and how often are leaders positively recognizing employees?

·      Does leader recognition differ across divisions?

·      Is there a difference between employee performance and turnover in the different divisions?

·      How do performance/turnover differences relate to different leader-recognition styles?

When a company invests in recognition programs, the employee engagement activity goes up, which increases the employee motivation, which again impacts the bottom line. With Your Elephant reporting, we can show you how the investment is making tremendous dividends. Workforce analytics are critical for helping companies engage their workforce, provide oversight, and adapt quickly to new solutions when needed.

Your Elephant Measures What Inspires Your Employees

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