Research: Positive workplace experience creates a competitive edge
Many organisations are failing to live up to their people-first promise, and as a result they risk millions in lost revenue, according to new research by Avanade among 200 business leaders in Australia.
A recent report by the National Skills Commission reflects that nearly a third of all Australian sectors are facing a talent shortage and the number of occupations struggling to fill positions has almost doubled. The race to attract and retain talent has never been more acute in the country.
While multiple factors impact the ability to attract and retain talent, a positive workplace experience is according to the report by Avanade one of the factors likely to have the greatest impact on an organisation’s ability to attract and retain talent.
The researchers found that 99% of organisations who build a positive workplace experience see an increase in performance across at least one of the following key business metrics: productivity, employee retention, revenue growth, market share capitalisation, customer satisfaction scores and cost reduction.
Turning strategy into action however is notorious for its pitfalls. Even though majority of the companies (98%) said that they are taking steps to improve their employees’ workplace experience – in reality, employees are being let down by a lack of technology, security, and flexibility:
- 55% have not provided their employees with a genuine choice on when or where they work
- 65% have not enabled easier access to tools and applications to work from anywhere
- 61% have not adopted cloud-based platforms for knowledge sharing
- 60% do not have a security model that enables all employees to work securely wherever they are
“When it comes to workplace experience, there’s a stark difference between expectation and reality,” said Stef Shoffren from Avanade. “As Australia brings a renewed focus to skills required to grow the economy, a positive employee experience – one that enables wellbeing, continuous learning, collaboration, communication, and flexible working - is crucial for businesses to nurture and grow their people.”
Failing to meet workplace expectations comes with a hefty price tag. Avanade’s survey respondents estimated nearly 7% average growth from successfully implemented workplace experience programs over the last year. “That revenue growth equates to an average increase of US$700 million. Laggards are missing out on this massive growth opportunity,” said Shoffren.
In addition to the financial rewards, the research also showed that organisations stand to reap other significant benefits when they embrace more progressive workplace experience strategies, including increase in employee satisfaction and enhanced customer service.
The employee experience
Creating and sustaining a workplace experience that all employees can benefit from and enjoy is no mean feat. Getting people strategy and employee experience right are indispensable however; 65% of the leaders surveyed indicated that these two factors drive the workplace experience.
This includes ensuring that organisations excel in learning & development, hybrid working, and apply data science to continuously monitor and improve the employee experience.
Shoffren: “Organisations with a people-first and data-driven approach to shape their workplace experience will have a competitive advantage. As employee expectations and the modern workplace environment continue to evolve, businesses need to elevate the way they work, inject the right tools and technology, and ensure this is all done with their people in mind.”
