Research shows the relationship between employee experience (EX) and customer experience (CX) and its impact on accelerating growth. But can we quantify the direct impact of increased focus on employee experience on growth? To answer this question, Salesforce surveyed more than 4,100 executives and C-level employees in 12 markets to identify the key elements of EX that drive customer experience and increase revenue.
The advantage of experience
The advantage of experience is the summary report of the survey results.
Here are the key takeaways from the Experience Advantage:
- Companies leave money on the table. Breaking down the silos between employee experience and customer experience can create a huge opportunity for revenue growth of up to 50% or more.
- Companies think they have to choose between prioritizing employee or customer experiences. And the customer experience is winning. About nine in 10 C-suite members (88%) say employees are encouraged to focus on customer needs first, even though C-suite knows that a powerful customer experience starts with a people-first approach. employee.
- Five Key Elements of Employee Experience Impact Customer Experience and Growth: Trust, C-Suit Accountability, Alignment, Recognition and Transparent Technology.
- There is a disconnect between the perception of the C suite and the employee experience.
• 71% of C-suite leaders say their employees are engaged in their work when in fact, only 51% of employees say they are.
• 70% of managers say their employees are satisfied, while only 44% of employees say they are.
- Disconnect undermines EX, CX, and ultimately growth. The report found that 74% of senior executives say no one in their company really has the employee experience. • Only one in three companies excel at creating a seamless EX-CX experience.
- Outdated technology and siled data strategies compound the misalignment between employees and the C suite.
• 52% of C-suite members believe their business technology is working effectively, compared to only 32% of employees.
• The majority of C-suite leaders (73%) say they don’t know how to use their company’s employee data to drive change.
- Employee-leader disconnect leads to employee exodus and reduces profitability. Amidst the “Great Quit,” talent retention in the United States is at an all-time low.2 Employee retention and a lack of career development opportunities are the biggest barriers to revenue growth.
Also: 70% of customer interactions are now digital and most businesses aren’t ready
Employee experience and the impact of revenue growth
Perhaps the most surprising and impactful finding for me was the survey results on the impact on revenue growth related to employee experience. The report says companies are leaving an opportunity for revenue growth of up to 50% on the table. The EX-CX business case focused on a retail environment to study customer-facing employees.
The retail case study identified the employee experience as a combination of four elements:
- Employee longevity
- Full-time/part-time status
- Anterior internal rotations
- Proxy for skill level.
The study then connected employee data and financial data to establish a clear link between EXs and earnings. The results show a real and measurable link between EX, CX and growth. The research also shows how these findings can also apply to B2B and B2C businesses.
The five key elements of the employee experience
Engaged and empowered employees drive customer experience and growth by a pretty big factor. Employees who feel empowered are 1.5 times more likely to say they are the best supporters of customer experience at a company.
Five elements have a measurable impact on CX. The five key elements are:
- Trust: The company culture is inclusive, promotes diversity and provides a space where employees feel heard and empowered to be themselves.
- Responsibility for the C-suite: HR has a seat at the table in overall business vision discussions, and the C-suite acts on employee feedback, helping to ensure that EX is prioritized at the highest levels of the business.
- Alignment: Employee values and company vision are aligned.
- Acknowledgement: Internal resources are allocated to develop and foster employee growth. Employees feel valued and are an integral part of the company’s success.
- Transparent technology: Ensure company-provided technology (hardware and software) works together seamlessly, increasing productivity and reducing the effort required to complete basic tasks.
According to the report, employees of companies that provide great technology are 5.6 times more likely to say their company has experienced extreme revenue growth over the past 12 months.
Also: New levers for business growth: Employee experience, ecosystems, education and data
The disconnect from experience and the risk to profitability
The report indicates that there is a disconnect between senior management and their employees. While half of the C suite believe they excel in the key elements that create a seamless EX-CX experience, only a third of employees agree. And the disconnect is deepest in technology. 52% of C-suite members think the technology their company provides to employees works effectively, compared to only 32% of employees. In fact, less than two in 10 (17%) customer-facing employees strongly agree that their company provides seamless technology. The report defines “seamless technology” as: the company automates and reduces basic tasks to increase productivity, which gives employees more time to focus on real work and helps employees collaborate more easily.
The disconnects noted above impact employee happiness and engagement. Nearly one employee in five (17%) already sees themselves leaving their current company in the coming year. The financial consequences of the loss of talent and staff turnover are significant. Studies have shown that replacing an employee can cost up to 200% of their salary.
According to the Edelman Trust Barometer 2021 report, over the past year, employees have overtaken customers as the priority stakeholder for businesses to ensure their long-term success. The research report concludes by noting that the future of work begins with the evolution of the core of your business. “EX-CX alignment is as much a mindset shift as it is a digital transformation. When EX-CX alignment isn’t seen as a strategic priority, management often doesn’t have the right information to accurately assess and understand key challenges and pitfalls. The path forward includes business evolution, where companies are rethinking how they serve employees and customers. Business leaders must prioritize and celebrate approaches that value at both customers and employees,” Salesforce Experience Advantage report.
To learn more about the Experience Advantage report, you can visit here.