Organizations need to redefine the employee experience to retain talent and improve satisfaction at work
New report assessing employee experience among companies globally found that: • Leaders are overly optimistic about their employees’ happiness at work, highlighting a perception gap between employees and their leaders • 97% of employees who have positive experiences at work intend to stay • Data and technology can play a key role in empowering employees and enabling a work-life balance
Paris, October 4, 2022 – Only 28% of non-supervisory employees say that they are satisfied at work, compared with 80% of leaders who believe that their employees are satisfied, finds Capgemini Research Institute’s latest report, “People Experience Advantage: How companies can make life better for their most important assets”. According to the study, the key barriers to employee satisfaction include challenges around career progression and skill development, manager behaviors and relationships, compensation and recognition, and data and technology. The report, which surveyed 2,250 employees from 750 organizations, also highlights 10 key actions that organizations and their leadership need to take to bridge this gap between employee satisfaction and leader perception in order to remain competitive and retain talent.
Today’s competitive labor market, combined with economic and financial pressures, is driving many employees to reevaluate their working lives. The report finds that 34% of all employees are planning to leave their current company within a year. Of this group of employees which intends to leave, two in three (66%) plan to do so in the next three to nine months. Even though adequate and appropriate pay is a key driver of employee satisfaction, more than half of all employees (52%) surveyed said that are still likely to leave even if they are offered the same job at a different company with the same compensation, highlighting the need for organizations to act quickly to increase retention of their key talents.
In contrast, of those employees who have a positive experience at work, 97% intend to stay at their current company for the next year, and 96% of them feel engaged and motivated. The report finds that positive experiences are integral to a company’s health and can drive positive business outcomes. In fact, approximately half (48%) of leaders from organizations where managers report positive experiences say they have seen increased customer satisfaction as an indirect result of an improved experience.
Employees need clarity of purpose and a manageable work-life balance
While 92% of leaders believe the employees they manage are happy at work, the report finds that only 30% of employees feel the same way. Establishing a work-life balance remains a critical concern for all, with 65% of employees and 61% of managers citing it as the most important aspect of their work experience. The need to carve out a manageable balance is still top of mind for employees with only 29% feeling that they are able to take time away from work, and only 28% saying that their work schedule is flexible enough to balance family and personal life.
Nearly three quarters of employees say clarity of work purpose (i.e., knowing why you are doing what you are doing) is the aspect of work most important to them. Ensuring that employees have a thorough understanding of the parameters of their work as well as a view of career progression and growth potential will be critical factors in improving employee experience and retention.
Organizations tread a fine line with remote working
As organizations balance remote and in-person working models, greater attention needs to be placed on flexible working, cites the report. Nearly half (48%) of individual contributors and 87% of managers who are satisfied with remote-working opportunities are happy at work. This reflects previous research which found that 66% of employees who feel they are being micromanaged also claim to feel burned out in a remote set-up. This highlights that instilling a sense of autonomy and trust amongst employees is critical for the success of remote working.
Upskilling opportunities matter
Learning and skill development also ranks highly in employees’ minds with 65% stating that it is the most important aspect of their work. Yet, only 28% said that their job enables them to learn and develop new skills, thereby highlighting a clear opportunity for organizations to close this gap.
Re-defining the people strategy
The report recommends that organizations must develop an enterprise-wide people strategy that offers an inclusive experience to all employees regardless of demographics, roles, and permanency. Doing so can help consolidate disparate experiences and create a cohesive, consistent corporate culture.
Claudia Crummenerl, Head of Workforce and Organization, Enterprise Transformation at Capgemini Invent says, “Organizations must not only rethink their traditional talent lifecycle and re-position their employees as ‘consumers of services’, but also look at the whole experience including moments of daily work. Those moments, such as trust to work and deliver tasks remotely, are more important for the perception of a positive experience than touchpoints in the talent lifecycle. Truly, listening to talent is crucial. Nurturing a culture of employee well-being and encouraging continuous learning are imperative to bridge the perception gap between employees and their leaders. Technology has a key role in establishing a collaborative work culture and empowering employees with the right tools to do their work effectively.”
As part of an organization’s people strategy, The report recommends developing an employer promise, wherein organizations can consider offering new learning opportunities that also increase employees’ value to the company and link job roles to outcomes, articulating career-growth potential. To achieve this, organizations need to coach leaders to be genuinely empathetic and to listen to employees and empower their people through a culture of continuous learning.
The study surveyed large organizations across 10 countries in key industries such as consumer products and retail, automotive, manufacturing, energy and utilities, financial services, healthcare and life sciences, and the public sector. As part of the research, 2,250 respondents were surveyed, including 750 leaders and 1,500 employees (comprising 511 managers and 989 individual contributors) at 750 organizations with greater than $1 billion in annual revenue. For every two employees at a specific company, the study surveyed one leader from the same company; 22 in-depth interviews were also conducted with industry executives from various organizations. Interviewees comprised human resources executives working across HR management, talent, employee engagement, and the digital workplace.
Capgemini is a global leader in partnering with companies to transform and manage their business by harnessing the power of technology. The Group is guided everyday by its purpose of unleashing human energy through technology for an inclusive and sustainable future. It is a responsible and diverse organisation of over 350,000 team members in more than 50 countries. With its strong 55 year heritage and deep industry expertise, Capgemini is trusted by its clients to address the entire breadth of their business needs, from strategy and design to operations, fueled by the fast evolving and innovative world of cloud, data, AI, connectivity, software, digital engineering and platforms. The Group reported in 2021 global revenues of €18 billion.
Get the Future You Want I www.capgemini.com
About Capgemini Research Institute
The Capgemini Research Institute is Capgemini’s in-house think-tank on all things digital. The Institute publishes research on the impact of digital technologies on large traditional businesses. The team draws on the worldwide network of Capgemini experts and works closely with academic and technology partners. The Institute has dedicated research centers in India, Singapore, the United Kingdom, and the United States. It was recently ranked #1 in the world for the quality of its research by independent analysts.
Visit us at https://www.capgemini.com/researchinstitute/
+91 967 451 5119
+91 967 451 5119