Employee Experience: New Way to Win the War for Talent
Leading HR executives globally are embracing advanced digital platforms to create employee experiences designed to attract and retain top talent and drive business results, ServiceNow® research shows
Digital experiences outside of work have made life simpler, easier and more convenient. Today’s top talent is demanding the same at work, and global research of 500 human resources executives across 20 industries reveals that providing excellent employee experiences, enabled by technology, are becoming the new way to win the never-ending war for talent.
“The best talent today expects great digital experiences at work,” said Pat Wadors, Chief Talent Officer, ServiceNow. “Top talent can work anywhere, and they are choosing companies that embrace advanced technology to make work simpler, faster, better. A fundamental shift is under way, and top human resources leaders are creating a new employee experience, realizing that great benefits and cool office perks are no longer enough. Employees want great digital experiences that make work, work better for them.”
Insights into this digital transformation of the employee experience were released by ServiceNow in “The New CHRO Agenda: Employee Experience Drives Business Value.” “The New CHRO Agenda” report details the Chief Human Resource Officer (CHRO’s) journey to greater impact; how the employee experience is evolving to impact business results and the impact of an HR function’s capabilities on retaining and attracting the best talent.
From Tactical Manager to Strategic Leader
Over the last three years, CHROs have seen their responsibilities move beyond the core responsibilities of delivering HR services, record keeping and attracting top talent, to a broader role in leading key strategy discussions around advancing corporate goals, driving digital initiatives, and contributing to business performance.
- Nearly two-thirds (64%) of CHROs say it’s their responsibility to drive corporate performance.
- CHROs expect their success to be defined by the consumer-like employee experience. In fact, more than half of CHROs (56%) say the ability to create a digital, consumerized employee experience will define their roles in three years, compared with just 6% who say traditional HR will define their role.
- 66% of CHROs say the employee experience will drive quantifiable productivity gains across the business.
- 44% of CHROs expect to be judged on their digitization success achieved not alone but by partnering with other C-level executives to set and manage strategy.
Digital Transformation of the Employee Experience
From how employees access services and information to how global teams collaborate, business as usual is being redefined for the digital era by a new breed of CHRO.
- Three out of five CHROs say HR is now a driver of digital transformation, a top strategic priority for most enterprises.
- 77%, or more than three in in four, of CHROs say they expect to see improved employee experiences from digital transformation in the next three years.
- 83% of CHROs say the employee experience is important to the organization’s success.
- 68% of CHROs say that their HR technology allows them to improve employee experience.
Investing in the Modern Employee Experience
For employees, the workplace will become more personalized, predictive, and seamless. Their needs will be met through consumer-like digital interactions, such as push notifications for administrative work updates, recommendations for services based on recent actions, and instant answers to questions through chatbots that receive data from multiple departments.
- 70% say the use of technology to foster a sense of community and healthy corporate culture is a goal.
- In the next three years, almost half (48%) of CHROs will use an HR platform – not applications – that systematizes automation of HR process and collaboration, up from just 14% today.
- A significant percentage of CHROs are budgeting for technologies (82% on cloud, 69% on social/collaboration, 65% on mobile, and 47% on function-specific applications) that will help them deliver superior experiences.
CHRO Leaders Show the Way
CHROs who are using technology to improve employee experience are winning the war for talent. The survey divides CHROs into a three-tiered model mapping CHRO-led digital transformation of HR functions, and the business overall. HR leaders taking advantage of more strategic investments fall into the top tier, Level 3.
- 97% of Level 3s are much more successful in recruiting talent, vs. 80% of Level 2s and 53% of Level 1s.
- 79% of Level 3s are much more successful at retaining talent, vs. 63% of Level 2s and 14% of Level 1s.
- 84% of Level 3s report lower turnover than their peers, vs. 77% of Level 2s and 52% of Level 1s.
- 63% of Level 3s successfully reskill their existing employees, vs. 58% of Level 2s and 41% of Level 1s.
Healthcare Leads, Financial Services Lags
Healthcare CHROs trend ahead of the pack in prioritizing superb HR experiences and building positive relationships.
- 68% of healthcare CHROs say they are successful or highly successful in using technology to make it easier for employees to do their jobs, vs. 55% for non-healthcare industries.
- Nearly three-fourths (72%) of healthcare CHROs said they are more likely to be successful at delivering HR experiences that match the technology that employees use in their personal lives, vs. 58% in other industries.
Financial services CHROs are more focused on creating an experience that meets individual needs rather than a sense of community and collaboration – and they’re lagging their industry peers in building a workforce that meets business objectives.
- 54% of financial services CHROs say the use of technology to foster a sense of community and corporate culture is a core goal, vs. 72% in other industries.
- 52% of financial services CHROs are less likely to agree that a platform that streamlines cross-functional collaboration would drive productivity and improve the employee experience, vs. 70% in other industries.
- Only 28% of financial services CHROs say they have built a workforce to meet future business objectives, compared with 42% in other industries.