According to the Business Roundtable, “investing in employees” was the second highest priority among 181 CEO’s of the world’s top organizations. “It’s the only way to be successful over the long term,” said Chase CEO and Business Roundtable Chairman Jamie Dimon.
This consensus among business leaders is further borne out by Working Well: Global Survey of Workforce Wellbeing Strategies conducted by Buck. Both highlight the importance of investing in programs, tools, and resources that enhance total employee wellbeing, improve personal development, and build a culture that attracts and retains top talent. In turn, these engaged workers produce better outcomes for their employers. We call this the new social contract, or two-way relationship, between employees and employers.
Why does that matter? When the social contract between companies and employees is uneven and dysfunctional we destroy value for everyone: The workforce is strained and stressed, trust is diminished, productivity is hit, and the company brand is damaged.
The basic tenets and value of the new social contract
It starts by understanding the real value of an engaged workforce. They’re the ones serving customers and earning revenue. They’re the ones who make products for, and provide services to, the marketplace. They can, if allowed and encouraged, bring new ideas, innovative solutions, more efficient processes, and better opportunities to the enterprise.
Employees who feel respected by their employers usually reciprocate that respect and feel more included – and are empowered to provide high-touch customer service. According to a recent study, engaged employees can average a 19.2% increase in profitability, while companies that experience high engagement have also seen 147 percent higher earnings per share.
How to make the new social contract come to life to enhance the Employee Experience (EX)
To understand how engaged and valued workers feel, you need to look at the facts on the ground as seen through workforce data. Companies can use technology to engage in more personalized, meaningful ways with their workforce to provide services and support in their jobs.
But centralizing, accessing, and analyzing that data to inform action is just the beginning. Digital innovations like total wellbeing hubs and AI-driven targeted messaging reinforce the social contract by repositioning employer programs from the perspective of the individual. Employees can personally map their career potential, their financial future and their health outcomes to better achieve their own life goals. This enabling technology inspires behaviors that benefit both the individual and the organization and assure control is in the hands of the user. Individuals now have the tools to be able to tailor their working experience and the rewards derived to reflect what they value, based on their own priorities.
How improved EX can lead to a better Customer Experience (CX)
By not having fully engaged employees, a company is simply walking away from significant profits. A Gallup report shows that 70% of engaged employees have a strong understanding of customer needs and 78% would recommend their company’s products. Engaged employees are more innovative, and innovation is the lifeblood of the customer experience.
In a sense, CX echoes the nature of the social contract in the workplace. Employees want systems, processes, rewards, technology, and equipment which work well; customers want products and services – and customer service itself – that satisfy their needs with minimum frustration. They both want a brand they are proud of.
Employees want to be treated with respect and feel part of the team, making their contribution to the shared vision, regardless of their role or seniority. In turn, they treat customers with the same respect, and often go out of their way to help. Both want to feel that their choice of your brand is valued.
Join us on Thursday, October 24, 2019 at 12:00 PM EDT as we team up with MaritzCX to present Proven Employee Engagement Strategies That Will Reinvigorate the Customer Experience webinar. Register for the webinar here.