Two thirds of companies (63 percent) could be at risk of losing business value, as global disruption impacts the employee experience. That’s according to the latest research on drivers of value in employee experience, released by WTW. Factors including financial stress, ongoing fallout from the pandemic, political and economic tensions and the Great Resignation are causing global disruption. As such, only a third (37 percent) of companies globally are driving positive financial value to their business through their employee experience strategy.
While employee engagement levels remain unchanged across the globe in 2022, broader employee experience opinions on optimism, fair pay, career, and retaining talent have declined, which is impacting businesses. In fact, half of global employees (50 percent) say they are open to leaving their company.
Having a positive employee experience can also make the difference between growing or declining revenues. WTW’s research on the relationship between employee experience and business value 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 percent) 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 percent) of businesses are experiencing a ‘value risk’ state. In these organizations, 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 organization is less likely to match rewards to performance.
Fifteen percent of businesses are in a ‘value potential’ state. In these organizations employees are disengaged and contribute less value but don’t leave the company.
And almost a third of companies (30 percent) 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 organizations believe there is less clarity over career paths and have lower confidence in pay for performance.
“The implications of this research are profound. Employee experience shapes business value and is a predictor of business performance,” said Jill Havely, managing director, Employee Experience, WTW. “Only organizations in a value drive state will grow, while organizations in a value drag state will decline and deliver low to no returns. Under the shadow of ongoing global disruption, thriving rather than merely surviving will require organizations to develop a more compelling and purposeful employee experience that reconnects, re-energizes and retains employees while supporting their healthy productivity.”
About the survey. WTW’s EX Value Driver research was conducted in January 2023. Respondents include 4 million employees from 355 large and midsize private employers, representing a broad range of industries.
From WCI's HR Answers Now ©2023 CCH Incorporated and its affiliates. All rights reserved.
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