The experience economy is not a trend limited to the land of the consumer. The way employees experience a brand – or life at work – has a direct link to commercial outcomes inside a business: Be that reduced turnover, increased employee engagement, client acquisition and retention plus an enhanced customer experience.
Company culture has a direct link to the customer experience.
‘Employee experience’ is a term bandied around frequently. It is the product of the culture, the technology and resources, remuneration, colleagues and the whole environment an employee is exposed to while at work, and it’s powerful.
According to Accenture, employers who invest in a great employee experience outperform others by 122% on key success metrics. And it flows to customers, with a great employee experience credited with directly impacting the bottom line. In fact one study from IBM showed that companies ranked in the top 25 percent on employee engagement reported nearly three times the return on assets and double the return on sales compared to organisations in the bottom quartile.
This creates a real competitive advantage for those businesses investing in employee engagement as they not only save on recruitment costs by retaining their top performers, but the flow-on effect to delivering a great customer experience amplifies this advantage.
“Decades of economic evolution are leading us to realize[sic] that experiences that are personal and memorable can help us acquire and retain clients and customers as well as recruit and retain top talent.”Colleen Reilly
As today’s largest generation in the workforce, Millennials are dictating what makes a successful employee experience. After all, they’re the ones filling the lion’s share of the jobs. And according to Forbes, “Millennials want experiences. They see opportunities everywhere and they want optionality—the ability to move in a variety of directions and pursue different learning opportunities.” And findings from Fidelity reaffirm this, finding that Millennials are willing to prioritise a better experience at work over a higher salary bracket. They will, as a whole, prioritise a meaningful career over greater financial security.
Additionally, according to Ashley Goldsmith, Chief People Officer at Workday, “It’s not only Millennials who want optionality. We’re seeing this across all generations of employees. People are happier and more productive, regardless of age, when they are provided with more engaging work experiences”.
This is a trend those businesses wishing to be commercially-savvy, people-centric and customer-first, can no longer afford to ignore.