Business Management -
Why Employee Experience Initiatives Fall Short - Sun and Planets Spirituality AYINRIN
Tim Bower
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After
a decade of growth and historically low unemployment, organizations now
find themselves in a much different world. But even as companies are
forced to shed jobs and dramatically tighten belts, smart managers must
keep their eyes on the horizon: Recessions eventually end, and when this
one does, companies in many industries will return to an atmosphere
where keeping talent happy is a priority.
That
can be a challenge. According to a global study by the research and
advisory firm Gartner, in 2019 companies spent an average of $2,420 per
person on efforts to enhance the employee experience. Such initiatives
typically include flexible work policies, workplace redesigns, and
learning and development opportunities, to cite just a few examples.
When organizations meet their workers’ experience expectations, the
researchers found, they see boosts in effort, productivity, and
retention. But the ROI from such initiatives is disappointing: Only 13%
of employees in the study reported being fully satisfied with their
experience. “Simply investing in these programs is not enough,” says
Caroline Walsh, a vice president in Gartner’s human resources practice.
“Companies taking that approach only drive up expectations,” creating a
vicious cycle in which employee desires and organizational spending fuel
each other.
The
study—a survey of nearly 150 HR executives and 3,000 employees
worldwide—reveals that for better returns, organizations need to
complement investments with measures to help shape people’s
understanding of their experience. That’s a three-part process.
Calibrating expectations.
Most companies ask employees what they want from their work
experience—but too often they stop there. “Expectations are relative,”
Walsh says, pointing out that they are influenced by prior jobs,
personal events, peers, and other factors. They may also be incomplete:
Research shows that only about a fifth of employees are candid about
their wishes. And those may be infeasible or impossible to implement.
So
an organization should be clear about what it can—and can’t—deliver
given the available resources and priorities, which will change as the
economy ebbs and flows. “There need to be some guardrails,” Walsh says.
“Is this idea relevant to the entire company? Is it tied to our business
goals and strategy?” Once those guardrails are in place, HR leaders
should involve employees in creating a companywide “experience
vision”—for instance, by surveying them about what changes they would
implement and what makes them excited to come to work.
Managers should take a long view, focusing on salient events, not smaller incidents.
Finally,
rather than issue top-down, blanket directives about what to expect,
managers should engage in one-on-one dialogues to align each employee’s
hoped-for experience with the organizational vision. At Silicon Valley
Bank, employees create “experience blueprints” in daylong workshops
designed to help them determine and document their priorities. These
become the basis for ongoing conversations with their managers (whom SVB
calls coaches) about what to anticipate and whether those priorities
are reflected in their realities over time.
Personalizing the day-to-day experience.
Most organizations recognize the pitfalls of a one-size-fits-all
approach, but customization usually falls to managers, who may have
limited bandwidth, may lack full visibility into what each employee
wants, and may not be completely trusted by direct reports. Firms get
better results when managers partner with employees to this end.
The
first step is sharing information so that workers can see places to
make improvements. “It’s hard to benchmark your experience if it’s a
sample of one,” says Leah Johnson, also a VP in Gartner’s HR practice.
One large software company created a dashboard on which it posts
biannual engagement survey results and personal descriptions of
experiences employees have had. Town hall meetings and webinars can
serve the same purpose. A team learning that members lack confidence in
their digital skills might request training, for example, while an
employee with young children might look for areas of the firm with the
work/life balance he’s seeking.
Tim Bower
Employees
might fear repercussions from voicing their requests, so leaders need
to create a psychologically safe environment for discussions. To keep
people from being overwhelmed by possibilities, managers can provide
each worker with a set of relevant choices—for instance, personalized
suggestions for training opportunities. They can create default options
to make it easier to act. And they can connect employees with others in
the organization who have insights to share.
Shaping memories—both good and bad.
Organizations
often focus on responding to negative experiences with all possible
speed—but that doesn’t always help, and it can mean engaging in issues
that don’t actually matter much to employees or the business. Managers
should borrow a leaf from the customer-experience book and take a long
view, concentrating on how employees will recall their experience over
time and focusing on salient events rather than on incidents, such as
technology glitches, that may feel urgent in the moment but quickly
fade. They can seek to reframe memories of negative experiences by
acknowledging that a problem occurred and emphasizing that because of
the employee’s feedback, things will go better in the future. As part of
Microsoft’s Acknowledge It email initiative, HR and business leaders
send personal messages to employees who had rocky moments in their
onboarding, thanking them for their feedback and underscoring how it
made a difference for others. They also send thank-you emails during the
offboarding process, acknowledging the contributions of departing
employees. Since rolling out the initiative two years ago, the company
has seen boosts in engagement, retention, and advocacy.
“Everyone Goes at Their Own Speed”
Stanley Chow
Peter Vultaggio
is the global head of talent development and change management at
Silicon Valley Bank. He recently spoke with HBR about the organization’s
“experience blueprints”—an ongoing initiative to help employees
identify the values, interests, strengths, and goals that are most
important to them. Edited excerpts follow.
How did you begin? The
first task was to encourage more-expansive thinking among employees. We
ran workshops on the neuroscience of change, on mindset, on
mindfulness, to start cracking open our ways of seeing ourselves and
what we’re capable of. Only after that did we move to the blueprint
workshops.
Describe how those work. These
are full-day immersive sessions that help employees learn about
themselves and discover what they value most. In one exercise, for
example, participants think about people they look up to, and we help
them break down the specific behaviors they admire and want to emulate.
By talking about the results in one-on-ones and in groups, people form a
story about themselves that they can share with their teammates and
coaches and with the larger firm.
What happens then? The
real power comes after the workshops, as employees have ongoing
conversations with their coaches. Once they’ve identified their key
values and areas of interest, there’s the question: What’s keeping you
from them? In some cases, people decide they’re in the wrong role and
move to a different position or department. Other times, they realize
that pursuing a particular interest doesn’t align with certain
priorities they’ve just identified—family or community work, say—and
they internally recalibrate, reducing a source of stress and angst. Some
people find that our firm actually isn’t a good fit, and they leave
with our blessing.
How do you create a psychologically safe space for this work? Coaches
go through the workshops in small groups alongside their teams, so they
are learning about themselves and their people at the same time, which
helps everyone feel more secure. And there aren’t any mandates: Everyone
goes at their own speed. Coaches are trained to ask open-ended
questions that let people share as they see fit.
What challenges did you face? At
first, our leadership was concerned that people might not be realistic
about what we could accommodate, though we actually found the opposite.
In addition, some people initially said, “I’m not sure I’m comfortable
with this—it sounds like therapy.” We had to overcome that. Finally,
time and cost were an issue. We operate a lot of call centers and had to
be creative about how we rotated people in and out to attend the
workshops. But the firm quickly saw that this more than pays for itself
by what we get back and how great the employees come to feel about
themselves and SVB.
What gains have you realized? More
people are taking advantage of development opportunities as they become
more confident about what to seek out. Business units that have gone
through the workshop are also seeing improvements in engagement. And we
can run change management a lot more smoothly now. When people are
working on things they value and feel good about their contributions,
it’s a little easier to turn the ship.
Read more
It’s
equally important to reinforce positive experiences—an insight that was
one of the researchers’ biggest “aha” moments, Johnson says. Too many
firms treat employee experience initiatives like a marketing campaign,
issuing formal statements when they are introduced—an approach that can
feel inauthentic and irrelevant. One large government agency has taken a
different tack. It created a road map depicting all its employee
experience improvements, from new phone systems to a mental health
resources program. HR leaders ask employees to reflect on how the
programs have improved their work lives and encourage them to post their
stories on the road map and share them in team meetings, off-sites,
internal newsletters, and other forums. As companies emerge from the
current crisis, leaders might seek ways to highlight examples of how
they supported their employees, such as by continuing to pay sidelined
workers or providing extended sick leave.
All
these activities should supplement, not replace, an organization’s
fundamental investments in experience, the researchers emphasize.
“Companies have to be shaping the experience of something,”
Walsh says. They constitute a significant opportunity for employees and
employers alike. Each year, Gartner finds, organizations that take a
shaping approach will have largely satisfied 32% more employees than
their counterparts have, at a 32% lower cost. Those employees will be
less likely than others to jump ship, and they’ll put in more
discretionary effort and perform at higher levels—raising their
companies’ chances of meeting their customer satisfaction, innovation,
and reputational goals.
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