Is Now the Right Time to Invest in Digital Employee Experience?
Today's business landscape is roiling with changes and challenges that leave even the most seasoned leaders feeling uncertain.
In amongst the turmoil, there’s one question that stands out to me:
Is now the right time to invest in digital employee experience?
As the workplace continues to evolve, it's essential for leaders within any organization to ensure that their workforce remains productive and engaged. DEX is a relatively new practice, and most leaders don’t yet take the benefits of improved DEX as obvious. As a result and as many of us has seen, DEX is usually one of the first business investments on the chopping block during times of economic instability.
I think that’s a mistake.
Investing in DEX has a ton of benefits, such as:
Enabling employees to participate more meaningfully in the day-to-day operations of a business
Creating better feedback loops between team members
Supporting remote work environments with greater efficiency
Optimizing the experiences of both employers and employees alike
And it doesn’t end there. What’s more, I believe the benefits of investing in digital employee experience are evergreen— rewarding no matter what state the market is in.
In this blog post, I aim to show you why now is the time to invest in digital employee experience.
The State of Play
The first thing we need to understand is what ‘now’ looks like.
Heading into the second quarter of 2023, what set of circumstances are we facing?
We’re still in the wake of the great resignation
The Covid-19 pandemic forced a new standard for remote working
Increased odds of an economic downturn ahead of us, or at least uncertainty
These factors alone are enough to put the fear in some business leaders and force them on the defensive.
Yet instead they shy away from innovation and investment. They focus on cutting costs and streamlining operations. They batten down the hatches, preparing for rough seas. This creates a golden opportunity for you to leapfrog the competition and get ahead while addressing growing concerns at the same time.
Why Should You Invest in Digital Employee Experience?
For those bold enough to try something new, there’s much to be gained from investing in DEX today.
Turning DEX into Dollars
The bottom line in business is that it all comes down to dollars.
But just because DEX is a holistic measure doesn’t mean it won’t directly benefit your finances.
According to Harvard Business Review, a one-star improvement in Glassdoor employer ratings results in an increase of 7.8% to 18.9% in long-term market valuation.
Furthermore, A Forrester report found that “becoming an experience business” can deliver 1.4x revenue growth, 1.7x customer retention rates, and 1.6x customer lifetime value.
On top of all of that, business solutions that improve DEX can also:
Reduce the cost of increased attrition from employee onboarding
Lower recruitment costs all around
Decrease technology costs by combatting tech sprawl
It goes to show that as digital solutions grow more sophisticated, it’s getting easier to turn DEX into dollars.
It may seem counterintuitive to invest into headwinds, but investment in employee experience creates ROI whether business conditions are trending up or down.
In fact, investment in DEX is one of the critical paths toward realizing greater productivity, higher retention, and ultimately, greater profitability.
Happy Employees Mean Happy Customers…
… And unhappy employees mean happy competitors.
A 2021 study by Salesforce revealed that employees who are dissatisfied with their workplace tech were more than twice as likely to leave their job the following year. They were also less than half as likely to recommend their employer, and less likely to feel productive.
Those who choose to quit don’t just disappear into the aether— they find other businesses to lend their skills and knowledge. They choose businesses that provide a better employee experience.
There Will Always Be a Reason to Put it Off
The last few years have been hectic. CIOs, IT leaders, and the like were forced onto the back foot, having to react to changes in current affairs, market shifts, and competitive innovations.
But if you take a step back and look at where we are now, I think you’ll see what I see.
The pandemic was a catalyst that made caring about the digital employee experience trendy. But the problems that DEX solves existed long before Covid-19. The pandemic just forced the issue to the front of the queue.
Now, though, things have calmed down a little. The emergency is over, but business leaders are still finding reasons not to invest in DEX. Now is the time for CIOs and IT leaders to take a sweeping glance over their IT estates and think about smarter, more proactive changes.
When deciding whether you want to invest in DEX, you need to ask yourself which camp you want to be in:
Camp A, the businesses that are losing talented workers by the boatload.
Or Camp B…