e b o o k

Delivering engagement through experiences

Why it’s time to change focus

Contents

Overview: Is your team too busy to get any work done? 1

The way we’re working isn’t working 2

Everyone’s talking about experiences – or so they think 3

The business case for experiences 6

Getting the experience right 8

Unlocking experiences through technology 14

Conclusion: Give your workforce the experiences they deserve 16

Uncover the six ways to build better experiences 17

Links to all sources 18

1Delivering engagement through experiences 1

Overview: Is your workforce too busy to get any work done? In today’s workplace, it’s harder than ever to be productive. In fact, over a third of employees admitted they’re productive for less than 30 hours1 a week in research we conducted with over 3,500 workers. That’s a whole day each week that they’re in work, but not working.

The answer, our research found, lies in workforce experiences. A positive work experience has a huge impact on productivity, according to 78 percent of respondents, and that jumps to 92 percent for the younger generations.1

Experiences, it seems, is the latest buzzword for HR and People teams. However, what does it really mean? How can organisations build experiences that matter, and truly get their people engaged and productive?

In these pages you’ll uncover everything HR and People leaders need to know. You’ll find out why everyone’s talking about experiences, what it means for HR teams today, and how to take your next steps towards creating a great experience for your people.

By the end of this eBook you’ll understand what this means for your organisation today, and how you can make an impact as a result.

92% 78% of respondents said yes

92% of younger generations said yes

Does a positive work experience impact productivity?

78%

2Delivering engagement through experiences

The way we’re working isn’t working

Everyone knows all too well the feeling of being so busy at work that its, ironically, hard to get any work done. It’s a familiar feeling to many employees in today’s always-on world of work.

Over the years, businesses have invested heavily in productivity tools in a bid to positively influence engagement and productivity, but despite this, levels of both have remained stubbornly low.

Staggeringly, just 16 percent of employees globally are fully engaged at work. That is, those who are involved in and enthusiastic about their work, versus 84 percent who are emotionally disconnected and who aren’t working to their full potential. That’s huge.2

Our own research also found that, on average, employees admitted to feeling productive for just 30 hours1 a week – that’s a whole day each week they’re in work, but not feeling like they’re getting any work done.

The impact on productivity as a whole here is huge. The table below shows the productivity decline in the past decade - with growth rates of output per hour halving from an average annual rate of 2.3 percent in the period 2000-2007 to 1.2 percent from 2010-2017 and down further to 0.8 percent in 20183.

Furthermore, a recent research report found3 that over 90 percent of respondents claim there is solid evidence linking engagement to performance and productivity. So the questions business leaders need to be asking here are: what are their engagement levels and how are they trending? What are they doing to improve engagement levels to drive performance?

It’s clear what most organisations are doing today isn’t working. Many businesses are failing to engage their workforce and are suffering the consequences.

0%

4%

2000-2007 2010-2017 2018

2.3%

1.2%0.8%

3Delivering engagement through experiences

To answer this problem, the concept of ‘experiences’ has emerged. Growing significantly in popularity over the last few years, the phrase ‘employee experience’ is now firmly in the HR spotlight, ranking as a top global human capital trend for 2019, according to Deloitte4.

With an increasing number of research reports, articles and even dedicated ‘employee experience’ roles emerging – its arguably the biggest buzzword since engagement. However, there seems to be some confusion over what it really means, and the relationship between experiences and engagement.

Engagement is the effectEngagement is a well-established concept that looks at the relationship between an organisation and its employees. Most tactics focus on measuring engagement scores gathered at a specific time, usually annually or quarterly.

However, this is a ‘lag measure’ – meaning it’s backwards looking. It’s point in time and so often provides little assistance in helping organisations understand the true motivations of its employees – which is needed to make long-term improvements to engagement, performance and productivity.

Everyone’s talking about experiences – or so they think

62% of organisations have not seen an improvement in engagement in the last two years5

62%

4Delivering engagement through experiences

Experience is the causeStrategies like customer journey mapping are pretty mainstream now and help brands understand how it ‘feels’ for a customer to interact with them at every touchpoint, enabling them to iterate and improve the overall experience.

Forward thinking companies who want to succeed and grow have realised that measuring engagement alone simply won’t cut it.

Rather, we must look deeper into what drives employee motivation and provide great workforce experiences that resonate if we are to positively influence engagement. Many organisations who are taking this seriously are looking to customer experience strategies as an answer.

Much like customer experience (but unlike engagement), the employee experience considers all of the touchpoint’s individual employees have with their organisation over the entire employment lifecycle; from the point they first consider applying for a job, all the way through to offboarding.

We’re all familiar with both good and bad customer experiences, and the impact it has on our perception of a company. That’s why businesses have worked hard over the years to get the customer experience right, so they can positively influence loyalty.

Put simply, the employee experience is the perception employees have about their experiences at work, in response to their interactions with the organisation.

5Delivering engagement through experiences

The evolving nature of the workforce means that companies are no longer employing people solely based on permanent employment contracts. The workforce is increasingly made up of many different types of worker, all of whom have more choice and expectations about how, when and where they work.

Company-employed workers might be working on any type of contract— full-time, part-time, temporary, at-will, leased or even job sharing with other workers. Then there is the contingent workforce who are paid for their time, and gig workers who are paid by task, project or job.

Failing to get experiences right for these types of workers can have serious consequences – if they’re hired to work on a specific task but are lacking in motivation and purpose, this could let the whole project down. Integrating them into a company quickly and effectively, and making them feel part of a team and a purpose, is an imperative. The same can also be said for those outside of the organisation who collaborate on projects, such as partners, vendors and agencies - their personal experience with a brand can determine whether or not they choose to work with them again in the future.

With the increasing presence of the contingent worker, how effective will your programme be if you only focus on engagement for your employees? The term ‘workforce experience’ is therefore much more suitable than the ‘employee experience’.

Experiences for your whole workforce – not just employees

61% of executive decision makers expect the use of contract labour to grow over the next five years6

61%

6Delivering engagement through experiences

Although still relatively new, there’s already strong evidence to suggest that workforce experience strategies have an impact not only on the workforce, but on financial performance too.

Productivity growth is failing to improve despite significant investment in tools that are supposed to make us more productive – but when looking at organisations who have embraced a workforce experience strategy, it’s a different story.

Furthermore, a recent report found direct correlations with positive experiences and the bottom line. Organisations scoring in the top quartile for experiences report nearly three times the return on assets and double the return on sales, compared to those in the bottom quartile7.

In fact, 78 percent of respondents we polled revealed great workforce experiences impact their productivity, something that jumps to 92 percent for the younger generations, a demographic that will make up 50 percent of the workforce by 20201.

The economic factor

The business case for experiences

92%

78% revealed great workforce experiences impact their productivity

That jumps to 92% of respondents polled for younger generations

78%

7Delivering engagement through experiences

Workforce experiences can positively impact overall health and wellness too, by helping employees better manage their work-life balance and reduce work related stress and burnout.

Healthier employees take fewer sick days, are more productive when they’re in work, and are much more willing and able to go the extra mile. By offering things like holistic wellness programmes and flexible working conditions, leaders can support the physical and mental health of their workforce, as well as reduce absenteeism and improve productivity and retention. So, this isn’t just a wellbeing argument, it’s an economic one too.

The wellbeing factor Organisations offering flexible and remote working conditions

Organisations offering wellness programmes such as health and financial wellbeing

Adopted now

Adopted now

Adopting in 1 year

Adopting in 1 year

38%

37%

49%

47%

Source: The changing face of HR, Sage8

8Delivering engagement through experiences

The workforce is increasingly complex. It’s multi-generational, multi-cultural, and everyone has different preferences and perceptions about what makes a great place to work. Leaders therefore need to think carefully when designing great experiences – what constitutes a good experience for one, doesn’t necessarily apply to another.

Understanding what does – and doesn’t – impact experiences is a good place to start.

Getting the experience right

53% 40% 66%

40% of business owners believe games in the office

and fringe benefits are important to employees

53% of employees feel they’re more of a

distraction in the workplace

66% of employees feel that recognition and being

valued is an important aspect of their day-to-day

employment

It’s not just about perksQuite often the first port of call is to try and make employees happy through perks. However, perks alone do not create great workforce experiences. While ping pong tables, casual Fridays and free soda machines can be nice to have, they soon become the norm, lose their appeal and simply don’t create a better experience in the long run. It’s important to remember that a happy workforce doesn’t necessarily create a productive one – some people may be perfectly happy doing very little if they can.

In fact, 40 percent of business owners believe games in the office and fringe benefits are important to employees, but 53 percent of employees feel they’re more of a distraction in the workplace1.

Rather than perks (or distractions), employees were far more positively impacted by recognition and being valued, with 66 percent feeling that was the most important aspect of their day-to-day employment.

9Delivering engagement through experiences

40% of business owners believe games in the office and fringe benefits are important to employees, but 53% of employees feel they’re more of a distraction in the workplace.1

10Delivering engagement through experiences

Creating great workforce experiences starts with insight – that is, truly understanding the end-to-end employment journey and how it feels for an employee at each stage.

Candidates make assessments and develop memories about an organisation from the moment they first interact with them, right the way through to when they leave, and every step in between. Understanding which moments have the most impact is vital.

More than ever, the experience inside your organisation is visible to those outside your organisation. Sites such as Glassdoor, LinkedIn and other social media or alumni networks give your people the freedom, power and medium to share their views and experiences. Get it wrong, and you’ll struggle to compete for quality talent, but get it right, and your employees will do your employer marketing for you.

Journey mapping can be a great way to really understand what the employment journey feels like – from discovering process breaks to determining the moments that really matter – and finding out how each stage impacts the overall workforce experience.

It’s the moments that matter “Candidates assess future employers from the very start of the talent acquisition experience and make quick judgments about what life will be like for them in the organisation, based on how they interact with the enterprise during the recruiting cycle.” – Josh Bersin

11Delivering engagement through experiences

Understanding the employment journey

11

To get a true understanding of the workforce experience, organisations must make gathering and interpreting insight a priority. They need to regularly capture feedback through surveys and conversations, and use analytics to validate information, then work with people to design better solutions.

Even then it’s not once and done – it’s a continuous cycle of asking, listening, re-designing, testing, learning and iterating. For HR and People teams, this means equipping them with the skills and know-how to effectively facilitate this. Just as we’re seeing new skillsets such as analytics, communication and being tech savvy play an increasingly prevalent role in the HR function, the ability to think creatively, be curious, and design new ways of working are fast coming into the fold too.

In fact, to deal with future skillset requirements and HR priorities, over one third (34 percent) of organisations said they intend to hire in non-traditional HR profiles to plug their current skills gap, while 40 percent intend to build cross functional project-based teams8.

34% of organisations said they intend to hire in non-traditional HR profiles to plug their current skills gap

40% of organisations intend to build cross functional project-based teams

34%

40%

12Delivering engagement through experiences 12

The end-to-end employment journey

CandidateExperience

Improv

e

Feedback

Review

Iterate

LeaversExperience

Improv

e

Feedback

Review

Iterate

Technology & digital tools

Learning & development

Conversations & Reviews

Reward & recognition

Meetings & teamwork

Contribute & perform

EmployeeExperience

Improv

e

Feedback

Review

Iterate

Agencies / Partners

FreelancersContractors

Company-employed

workers

Gig workersContingent

workers

Job vacancy

START

Screening

Interview Selection

Onboarding

Re-enter talent pool

Exitinterview

Off-boarding

Decisionto leave

Alumni /Community

END

13Delivering engagement through experiences

70% 70% of businesses believe top leadership are responsible for engagement

To build great workforce experiences effectively, HR and People teams can’t do this alone. They need complete buy-in from the management team.

While HR can set the framework for great workforce experiences, they can’t control the day to day in every team and so manager commitment and influence is vital.

Do 40 different managers mean there are as many different experiences across the organisation? After all, as the saying goes, people don’t quit companies, they quit managers. However, whilst each line manager has their individual style of managing which will inevitably result in different employee experiences, a good HR function will train, coach, guide and consult with line managers to make sure that they are operating within an agreed framework which encapsulates the company’s values, and offers the best possible experience for employees.

HR can’t do this alone

Source: The state of employee engagement, 2019 HR.com research institute5

82% 82% of businesses believe immediate supervisors are responsible for engagement

14Delivering engagement through experiences

Unlocking experiences through technology

Useful technology, or clean bathrooms – what’s more important to your people? Interestingly, employees rated tech tools as more important than clean bathrooms in a recent study9 – a clear indication that technology plays a vital role when it comes to experience, and one which organisation’s must have at the top of their HR agenda.

Technology to get the job doneWhilst culture, the physical environment, leadership, managers, and connection to company purpose, all play a crucial role in shaping the perceptions of workforce experiences, the influence of technology is becoming increasingly important and cannot be ignored.

Whether it’s enabling people to work more flexibly and remotely, connecting colleagues across the globe, or supporting learning and development with accessible, integrated systems, many employees today are simply unable to get their job done effectively without technology. Take onboarding for example – this key part of the employee journey requires a range of systems including HR, payroll, benefits, IT, security and finance to be integrated to support a seamless experience and to get new employees ramped as quickly as possible.

Furthermore, as our digital experiences in the consumer world continue to evolve at quite a pace, we expect similar capabilities at work. Employees are so used to being able to order a cab, or takeaway, at the touch of a button that they rightly expect a similar level of immediacy and effectiveness of digital tools in the workplace.

The influence of technology is vitally important and cannot be ignored.The problem many organisations have is that their HR systems weren’t designed with experiences in mind, rather, they were simply designed to automate HR processes, many of which are now outdated. Organisations now need to think differently and consider how technology can deliver better experiences, not just create efficiencies, if they are to succeed.

15Delivering engagement through experiences

When considering their tech stack, business and HR leaders must tread with caution and be mindful of the challenges – and responsibility – that comes with technology in the workplace.

Overwhelming employees with too much tech is a real risk, and in fact research from Sierra Cedar found that the average number of HR systems has increased from eight to eleven10 – creating a more complex environment for employees to navigate and likely being counter-productive in the long run. Furthermore, it creates challenges for HR in terms of having one source of truth and with new regulations and legislation like the GDPR and CCPA.

There’s also the impact on work-life balance. Technology can make it difficult for people to switch off which can lead to stress and burnout.

Technology should be a focal part of any effective workforce experience strategy, especially as the workforce becomes increasingly global, expectant and competitive, but striking a balance and not overwhelming people is essential.

The work-tech balance

Technology can make it difficult for people to switch off which can lead to stress and burnout.

16Delivering engagement through experiences

Building great workforce experiences today Organisations who put their people at the centre of what they do will find their workforce becomes their biggest asset for growth. That’s because building amazing workforce experiences that really matter will enable people to thrive, which in turn will motivate your people to do the best they can and your organisation will benefit in return.

However, building these experiences across your workforce requires a concerted effort. The right technology, buy-in across the organisation, support for managers and actionable insights are just some of the things that HR and People teams need, just as a basis.

The six steps to building great workforce experiences For HR and People teams looking to implement great workforce experiences, the good news is that there are several areas they can look at across the employee journey to create those all-important moments that matter. From memorable and clear onboarding updates, to tailored

Conclusion: Give your workforce the experiences they deserve

and automated communications, our six steps to creating great workforce experiences sets out tangible ways HR and People teams can build better experiences for their people in organisations today.

Get your people productive to perform at your best We all know the impact of experiences which surprise and delight. Imagine the power of your workforce experiencing those moments that matter every day, and the impact on their wellbeing, and your organisations as a result.

This matters because, ultimately, if more companies engage their people better by creating great employee experiences, more people will love going to work, and will be more effective and productive when they’re there.

Not only does this mean a happier workforce, but it makes good business sense too. It boosts a company’s engagement and, in turn, adds to workplace productivity. So, get the experience right, and the rest will follow.

Delivering engagement through experiences

Uncover the six ways to build better experiences Your next steps

Download the eBook Six ways to create amazing workforce experiences to uncover how HR and People teams can take their next steps in transforming the employee experience in their organisation.

Or, if you’re ready to, explore Sage People in your own time with our Interactive product tour that puts you in control.

About Sage People

Sage People enables mid-size, multinational companies to manage their workforce through a global, cloud HR and People system, transforming how organisations acquire, engage, manage, develop and retain their employees. Implemented quickly and simple to use, the award-winning system increases workforce visibility, HR productivity and provides better experiences across the entire workforce.

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18Delivering engagement through experiences

Why your workforce isn’t working 2017, Sage People The Global Study of Engagement Technical Report 2019, ADP Research Institute The Conference Board Productivity Brief 2019, The Conference Board Global Human Capital Trends 2019 2019, Deloitte The State of Employee Engagement in 2019 2019, HR.com

1 6

2 7

38

4

5

9

10

Links to all sources

Sourcing and managing talent in a gig economy 2019, The Economist Intelligence Unit The Financial Impact of a Positive Employee Experience 2018, IBM and Globoforce The changing face of HR 2019, Sage People. Employee Engagement Playbook 2019 2019, Randstad The Employee Experience Platform Has Arrived 2019, Josh Bersin

www.sagepeople.com

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