Over thirty-five years ago, a former CEO of Scandinavia Airlines, Jan Carlzon, put in place a systematic approach to building customer loyalty known as “Moments of Truth.” Like most management trends, it became popular for a while then seemed to disappear....but not for long!
The basic concept is back with a vengeance in what is now known as CX or “customer experience.” In simplest terms, CX is a process by which an organization identifies and maximizes every touch point a customer has with an organization. Like a chain, one broken link can negatively impact consumer perceptions and, ultimately, buying behavior.
In recent years, a sister process has emerged called EX or "employee experience." Like CX, EX is the sum of every interaction an employee (or job seeker) has with their employer, from recruitment to the end of a career.
Some thought leaders have taken the concept a step further, moving from the concept of employee experience to that of human experience, or HX1. It is a fresh approach that holds the potential to transform HR by looking at employees both as members of a given organization and as individuals with unique needs. Here we touch on various research findings relevant to HX from an array of our research reports.
The HX experience will be partially shaped by the HR systems we have put in place in our organizations. Be it succession management or L&D, the perceived quality of these systems will directly impact the HX. However, via a variety of research studies, we have found that large proportions of HR respondents are not enthusiastic about the HR-related practices their organizations have in place.
Taken as a whole, is it any wonder that many companies struggle to attract, engage and retain top-notch talent?
1 Volini, E., Roy, I, Schwartz, J., Hauptmann, M., Van Durme, Y, Denny, B, Bersin, J. (2019, April 11). From employee experience to human experience: Putting meaning b ack into work. Deloitte Insights. Accessed from https://www2.deloitte.com/insights/us/en/focus/human-capital-trends/2019/workforceengagement- employee-experience.html
While employee engagement overlaps with HX, they are not one and the same. Some of the practices that impact engagement are, however, also likely to impact HX. In many ways, engagement is an outcome indicator of positive employee experiences. Our data in DNA Trait 8, show us we still have a long way to go. A mere 9% of HR professionals strongly agree their employees are committed to their organization and willing to give their best at their jobs, hardly indicative of strong workforce experiences.
Compensation, rewards, benefits and recognition (aka, total rewards) have a tremendous impact on HX. But that impact can easily become a negative one if an employee views those rewards as unfair compared to those received by peers. This isn't just about salaries and bonuses. A lack of frequent and immediate praise for a job well done can quickly fester into a sore! In fact, only about a third of HR professionals believe that their rewards and recognition programs have a significant positive impact on employee engagement, showing how difficult it is to run these programs well.
Corporate culture can have a huge impact on HX. Culture is really the personality of the company, and it includes mission, values, expectations and goals. There is not one right culture. Cultures vary considerably from company to company. If an employee finds that there's a poor fit between their own values and their company culture, there is likely to be a serious HX problem.
Managing culture is hard work. Eighty-percent of HR professionals consider culture to be very important, yet only a third feel it is well managed in their organizations. Companies that manage cultures well tend to have a clear definition of their culture, hold everyone accountable for managing their culture, and place a higher value on diversity of thought.
Employees want to work in companies that treat them like whole people rather than as human widgets that fit into a specific job. They are looking for companies that invest in their future, helping them be better tomorrow than they are today.
There is good news here. Fifty-nine percent of HR respondents agree they are helping employees reach their full potential. And, over 70% of employees feel the same way, according to HR.com's report Taking Care: How to Develop and Support Today's Employees.
There are four key factors we identified that foster realization of potential, and in turn, HX.
The following are suggested practices for organizations that wish to improve in this area. Of course, every organization is different, so only adopt or adapt the ideas best suited to your circumstances.
HX starts by mapping out the key touch points between employee and organization throughout a typical employee life cycle. Determine which are most critical and then begin redesigning those touch points with the biggest gaps. Your customers throughout this process are your employees, and they should play a major role in providing feedback and even help with experience redesign. A lot can be learned by studying the huge body of research on customer experiences.
Different employee populations will likely require somewhat different HX maps. For example, some employees may attach greater value to extensive travel while others may be more interested in work-life balance. Just as marketing professionals use the concept of "personas" when considering different groups of customers, HR professionals can think in terms of different employee groups with different sets of needs and desires.
Determine how you will measure the impact of your efforts, again through the eyes of your employees. Engagement metrics should continue to be part of the mix. However, each touch point will need its own metrics. For example, L&D might measure things like time to performance, changes in key skills and behaviors and learner reactions to the value of training opportunities provided.
No single person is likely to have a larger impact on shaping HX than an employee's immediate supervisor. In Trait 2 of this report, we present findings that show a considerable deficit in leadership skills, from providing clear direction to coaching. We must up the quality of leadership in our organizations and help leaders realize the moment-by-moment impact they will have on human experiences.
While new titles may not be required, HR will need to play a lead role in designing, implementing and measuring the impact of HX. Many organizations have created a new role called Customer Experience Manager with the accountability and authority to cross silos to optimize their customer's experiences. A similar shift makes perfect sense for HR but will require new sets of skills and new ways of thinking about employees.
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