Having a positive employee experience can make the difference between growing or declining revenues, said WTW recently.
According to the firm, two-thirds of companies (63%) could be at risk of losing business value, as global disruption impacts employee experience.
Factors including financial stress, ongoing fallout from the pandemic, political and economic tensions and the Great Resignation are causing global disruption, WTW pointed out when releasing results of its EX Value Driver research conducted in January 2023 with 4 million employees from 355 large and midsize private employers.
As such, only a third (37%) of companies globally are driving positive financial value to their business through their employee experience strategy, the firm noted.
While employee engagement levels remain unchanged across the globe in 2022, broader experience opinions on optimism, fair pay, career, and retaining talent have declined, which is impacting businesses, according to WTW.
Survey highlights
- Half of global employees (50%) say they are open to leaving their company.
- The research has uncovered four distinct segments which generate business value in different directions: value drive, value risk, value potential and value drag.
- Currently, only a third (37%) of businesses globally are in a value drive state, where employees are more engaged, more likely to believe their voice matters, feel capable to deliver their work and therefore are more likely to stay at with their current employer.
- Nearly one in five (18%) of businesses are experiencing a ‘value risk’ state. In these organisations, significant business value is at risk due to the number of high-performing employees thinking of leaving.
- Often these employees feel unheard, see less career advancement opportunities and believe their organisation is less likely to match rewards to performance.
- 15% of businesses are in a ‘value potential’ state. In these organisations employees are disengaged and contribute less value but don’t leave the company.
- Almost a third of companies (30%) are experiencing a ‘value drag’ state, where employees are largely disengaged and looking to leave, thus creating a drag on business value. Employees in these organisations believe there is less clarity over career paths and have lower confidence in pay for performance.
The experience of employees shapes business value and is a predictor of business performance, said Jill Havely, managing director, Employee Experience, WTW.
“Under the shadow of ongoing global disruption, thriving rather than merely surviving will require organisations to develop a more compelling and purposeful employee experience that reconnects, re-energises and retains employees while supporting their healthy productivity,” she noted.
