How can the results be effectively reported back to the business, so that leaders are enabled to take action to improve the employee experience? And what value does this bring to an organisation?
These are just some of the questions that business and HR leaders are asking us as they continue to evolve the employee experience (EX).
Business leaders have long acknowledged the importance of employee sentiment and engagement, but the shift of employee experience from a ‘nice-to-have’ to a business-critical priority was accelerated by the Covid-19 pandemic.
Hybrid working, return-to-office mandates, productivity challenges, and workforce optimisation meant HR was thrown into the driving seat of the business’ workforce management. This is a trend that has continued over the last five years, with a positive EX now essential to driving sustainable growth and keeping organisations on the right path, especially during times of disruption and change.
Data matters… but what data?
Today’s competitive business landscape demands leaders have access to metrics that can demonstrate real business outcomes. For example, key indicators such as an employee's intent to stay, their discretionary effort – the voluntary energy they put into work beyond their core responsibilities – and their likelihood to recommend the company to others, all help capture the essence of engagement.
Measuring engagement remains important, but our research shows a concerning trend. While engagement levels are increasing, intent to stay is declining. Measuring engagement alone is clearly no longer enough – for example, an employee could be engaged while simultaneously being at risk of burnout. Companies must go further in supporting their people by actively listening to employees and understanding the underlying reasons behind how they feel.
Read more: Four ways to get people to care about HR data
When these qualitative measures are paired with operational metrics – hiring statistics like time to fill a position and offer acceptance rates, as well as speed to competency, productivity, and turnover rates – they provide a more complete and actionable picture of the employee experience. When executives see these employee-focused metrics tied to profitability and productivity, it is easier for HR to justify the need to spend time and resources, delivering an impactful EX programme.
Getting the most out of your people insights
The next step for HR leaders is to measure insights gathered from these metrics accurately and efficiently. Modern HR analytics tools use technologies such as machine learning, AI, and natural language processing to provide deep insights from employee data. Taking an integrated approach that combines internal HR data, such as employment records and training history, with external operational data creates a holistic view of the workforce’s experience.
This data must then be understood against the organisation’s overall business strategy – for example, do employees understand their role in helping the business achieve its objectives? Do they have the right training to support the company with its growth plans? And how motivated are they to deliver on their personal goals?
It’s important to avoid common pitfalls when gathering employee feedback. Gathering feedback at key moments in the employee lifecycle, such as returning from maternity or paternity leave, or stepping into a first-time management role, offers real-time insight during periods of high emotional impact. Reaching out to people at these meaningful points helps build lasting engagement and shows employees they are supported at some of the times when it matters most.
Read more: HR struggling to get grip on data amid workforce challenges
Relying on a single method of data collection is another limitation. Treating employees like one homogenous group is not conducive, and using a variety of feedback channels will generate richer insights. Most importantly, don’t wait until something goes wrong to check in with employees. Regular, proactive engagement helps build a culture of constant feedback, enabling real-time insights and decisions that support both the workforce and the business.
However, numbers alone do not tell the full story. It is the ability to translate complex data points into a clear narrative that resonates with senior leaders and makes the difference. By effectively communicating the ROI of HR initiatives – whether that is through reduced absenteeism, improved productivity, or enhanced customer satisfaction – HR can use this clear, actionable data as their ally, driving significant business transformation and cementing HR’s role at the executive table.
Simon Daly is employee experience strategy director for Qualtrics
