isolved CONNECT — Businesses should prepare for another challenging year of retaining top talent according to isolved’s survey of 1,100-plus full-time employees (FTEs) in the U.S. The third-annual research study reveals 58% of employees intend to explore their options this year – an 11% year-over-year increase after a 2023 plagued with turnover and talent woes. There are actions that employers can take now to reduce turnover as they work to improve employee experience (EX) which 90% of respondents said directly impact the customer experience (CX) they provide.
Approximately two-thirds of respondents indicated that salary was the primary factor that motivated them to accept a new offer. An increased emphasis on compensation is not surprising given inflation has impacted many financially with 55% of FTEs admitting that they live paycheck-to-paycheck and 85% revealing inflation has impacted their spending habits like saving less (54%), dipping into their savings (45%) and dipping into retirement (41%). For these reasons and others, half of FTEs surveyed would like their employers to offer on-demand pay to give them access to wages as they earn them.
While the “2023-2024 Voice of the Workforce: Keys to Better Employee Experience” paints a challenging picture for companies when it comes to retaining talent, it also presents an opportunity. There are actions businesses can take to drive a better EX.
- Create Better HR Experiences with Better Technology: Respondents indicated challenges that would prompt them to look for a new job including payroll mistakes (55%) and a poor benefits enrollment experience (45%), which can be solved with the right human capital management (HCM) solution. In fact, 71% of employees also indicated a desire for self-service capabilities for HR tasks including learning about benefits (54%) and getting PTO information (53%).
- Retain Talent with a Focus on Inclusive Culture: As businesses evaluate how to improve EX, it’s imperative to keep diversity, equity, inclusion and belonging (DEI&B) in mind. The good news is that 89% of respondents believe their employer is inclusive. When a company is not seen as inclusive, it can have a negative impact on retention. Nearly 15% of respondents said they would leave a job for another company that better aligns with their core values and 20% said they would not even apply to a company that isn’t perceived to be inclusive.
- Improve Productivity and Engagement by Providing Flexibility: Business leaders concerned with flexible work’s impact on workforce readiness should rest assured that it seemingly only improves it. According to the survey, 70% of FTEs believe remote employees are as productive if not more productive when working out of the office while 65% believe that same group is as engaged if not more engaged when given the choice for a flexible working environment. To keep employees engaged, companies need to invest in development and personalized recommendations on which courses to take. When asked what keeps them engaged at work, learning opportunities topped the list.
“If business leaders are looking for yet another reason to invest in employee experience, this is it – your company and customers will suffer if employees aren’t properly looked after,” said Lina Tonk, Chief Experience Officer of isolved. “With the percentage of employees planning to explore their options continuing to increase, businesses need to invest in better HCM technology, continue to build inclusive environments, and provide career development and guidance. The need to invest in employee experience and, in turn, deliver a differentiated customer experience has never been greater or more rewarding.”
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