Employee experience as a driver of financial performance
HR leaders know that improving the employee experience is good for both employees and the business. But where to start? How can organisations prioritise their investments to getbetter—and more predictable—results? To learn more, a research team from PwC Netherlands looked at 11 drivers of employee experience, everything from compensation and well-being to the office environment and working-hours flexibility. The team then drew on a range of academic studies around the world to determine the relationships between the drivers and three beneficial corporate outcomes: reduced absenteeism, reduced employee turnover and increased productivity. The upshot: making investments in all areas can yield savings equivalent to 12.6% of revenues.
But getting there isn’t as simple as placing an across-the-board bet. For one thing, as the chart above shows, improving different aspects of the employee experience yields different results. Across the organisations included in the study, investing in employees’ mental and physical well-being delivered the highest returns, with training and career-development running a close second and third, respectively. What’s more, every company is different: one might have a robust wellness program while lagging badly on diversity; another might offer highly competitive compensation packages while lacking a flexible-hours policy. This means that, before pouring resources into the employee experience, CFOs need to work closely with HR leaders to examine their organisation’s strengths and weaknesses, eliciting honest and robust feedback from employees in order to make informed decisions on where to invest.
Take a closer look at PwC’s research to maximise the ROI on your employee-experience strategy.
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