The traditional idea of Human Resources is being transitioned out. The 4th industrial revolution is here, and organisations can no longer afford to manage their people using ineffective and inefficient methods.
Research suggests that entry-level employee turnover can cost the company up to 50% of that employee’s annual salary just in re-recruiting and lost productivity. That cost skyrockets as the employee skill level rises, with mid-level employees costing up to 150%, and high-level employees costing up to 400% of their annual salary to replace.
What this demonstrates is that although employee turnover at every level is costly to companies, it is management, executives, and highly skilled workers that both cost the most to replace, and have the greatest effect on employee experience. This means that hiring and cultivating talented leaders who can get the most out of their teams is one of the most valuable resources to a company in the pursuit of enhancing the employee experience.
What is Employee Experience?
Employee Experience is a new way of thinking where employees come first, ahead of profits, and ahead of customers. It is staggering that this way of thinking is only just taking off, as a considerable amount of research indicates that employees drive the most important business outcomes. They are the players that decide the longevity of the company, and the focus has never really before been on them.
This new way of thinking is more strategic, for years Human Resource leaders have been fighting to get a seat at the table, and as other important components of a business have done in recent times, Human Resources must adapt to the changing economy, which is a necessity for survival. The Idea of employee experience is to go above and beyond what an employee expects from an organisation, and cultivate an integrated function that:
- Attracts the best talent
- Focuses on engaging employees for greater productivity
- Supports an employee to do their job
- Drives the desired culture
- Develops and trains employees
- On-boards an employee to give them the best possible chance of success
- Effective succession planning approaches
- Information and support at their fingertips
How can you do it?
It’s not about shutting down the traditional Human Resources department, but evolving the way Human Resources operate to best suit every individual organisation. Companies around the world have already begun implementing similar programs whilst grandfathering out the old way; consider Airbnb, Uber, and Google. There is no concrete way of creating Employee Experience for each business, which is what makes Employee Experience so effective, as each experience should be managed to tailor to the company’s needs and goals.
To make these ideas a reality, modern companies need to start collecting as much information as possible about their employees, their development plan and career aspirations, the marketplace, and current trends to enhance the overall experience that you give your employees. From the orientation and induction, then carrying on throughout their employment, leaders should not miss an opportunity to capture something that will keep your employees engaged, happy and fulfilled to drive the desired business outcomes.
Questions you need to be asking:
- What drives your employees?
- Is your culture sabotaging your business strategies?
- Are highly skilled employees leaving your company because you are not meeting their needs?
- Is a leader not operating to their full potential?
- What competencies do your people possess?
- Are your recruitment and selection activities identifying the right applicant for the job?
- Are your performance conversations using the right information to guide an informed review?
Research shows us that employees who are continually developed and led by effective managers are twice as likely to want to spend the rest of their career at the same company. It was also indicated that effective talent managers drive earnings up by nearly 147% and double the number of engaged employees.
All this simply equates to – the better the Employee Experience, the better the performance.
How we can help you
At Chandler Macleod People Insights, our new Employee Experience Platform, powered by Gateway, can help companies’ transition into the 4th industrial revolution and embrace Employee Experience.
We have been delivering Employee Experience assessments for decades, as one of the oldest psychological assessment company in Australia. We have a nation-wide team of psychologists and business consultants who use best practice approaches to help and assist your company and people be the best they can be.
With over 150 world-leading assessments and surveys at your fingertips, Gateway provides you with the ability to select the best tool to fully understand your organisation’s current culture, employee challenges, frustrations, and their understanding of the purpose of your business. It also hosts user-friendly surveys that are based upon core leadership and culture principles, along with scientifically proven people surveys that allow you to delve into what makes your workforce tick.
Entering the 4th industrial revolution, it is important that businesses are innovative and flexible in their approach to development on all fronts. It is vital to measure what matters, modern research and data link employees to increased revenue and productivity, to achieve this, we need to ensure that we are focusing on the people.
Today the most successful companies in the world are leading from the front and embracing Employee Experience as a more efficient and effective function that allows them to attract the best talent, increase employee retention, and develop a meaningful and sustainable culture.
It now seems the question that management should be asking is not why should they do it, but why they aren’t already?
Part of RGF Staffing APEJ, Chandler Macleod, we get people.
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