Employee experience (EX) is more than just an industry buzzword. Creating a workplace culture that promotes positive, engaging employee experiences has become a strategic imperative for insurers who wish to attract and retain knowledge workers and strengthen competitive advantage now and into the future.
In this feature, the first of True Spotlight on Employee Experience, we explore what EX is, how it drives positive outcomes across the operation, and what workers’ comp leaders can do to begin building better experiences.
Understanding Employee Experience
Employee experience is the sum of the perceptions, feelings, and interactions that employees have with their work environment, culture, and organization. It encompasses everything from the physical workspace, technology, benefits, learning opportunities, feedback, recognition, relationships, and the purpose of their work. While they’re both major hallmarks of an effective talent strategy, EX is not just about employee satisfaction and engagement, but rather how employees perceive their entire journey within a workplace.
This time it’s personal: Shaping the ‘new possible’ through employee experience
McKinsey & Company
The Impact of Experience
Building a workforce of happy, engaged employees can deliver extraordinary business outcomes that go well beyond improving retention and reducing turnover. In fact, implementing a successful EX strategy can have a significant positive impact on the entire organizational performance by boosting productivity, efficiency, customer satisfaction, profitability, and more.
Gartner
Attract & Retain Top Talent
Research from Gallup recently revealed that in 2022, 40% of candidates surveyed reported they left their last position due to issues with engagement and culture, by far the number one response. By improving EX, insurers can create a positive employer reputation, increase knowledge worker retention, and attract and develop new and emerging talent.
Improve Engagement & Loyalty
Engaged employees are those who are committed, enthusiastic, and passionate about their work. Loyal employees are those who are willing to stay with the organization long-term and will serve as your most valuable resource for building talent referral pipelines. Organizations with high EX have 28% higher employee engagement and 40% higher employee loyalty than those with low EX, according to a report published by Deloitte. Recent findings from Gallup also support the correlation between engagement and turnover. Per the report, low engagement teams typically endure turnover rates that are 18% to 43% higher than highly engaged teams.
Six Ways Leaders Can Boost Employee Engagement – And Why It’s Important
Forbes
Boost Customer Satisfaction & Loyalty
It’s no surprise that happy, satisfied employees are more likely to deliver high-quality service and develop positive, long-lasting relationships with your customers. A study by Gallup found that employers with highly engaged employees saw a 10% increase in customer satisfaction. Furthermore, research published by Forbes Insights in collaboration with Salesforce shows companies that prioritize EX to deliver a premium customer experience achieve 1.8 times faster revenue growth than those that don’t.
Increase Operational Efficiency & Profitability
Engaged and loyal employees are more productive, innovative, and collaborative. They are also less likely to be absent or make errors. McKinsey research supports that employees at leading EX companies are more inclined to surpass work expectations, while delivering a 40% higher level of discretionary effort.
Drive Innovation & Transformation
Empowered, connected employees are more likely to generate new ideas, experiment with new solutions, and adapt to changing situations. They are also more likely to embrace change and align with organizational goals. According to a report by Deloitte, organizations with high EX have 23% higher innovation and 19% higher transformation than those with low EX.
The Road[map] Ahead
The adoption of a strong EX strategy has the capacity to empower organizations to attract and retain high-caliber talent, enhance employee engagement and retention, boost customer satisfaction and loyalty, improve operational efficiency, increase profitability, and more. But insurance leaders must act now to remain competitive in the face of a rapidly growing disparity between talent supply and demand.
Deloitte
In the forthcoming installment of our True Spotlight on Employee Experience series, we’ll take a deep dive into the history of the insurance talent crisis and explore the demographic, cultural, and technological drivers have been disrupting the industry for over a decade.
Connect with True to learn how our unique combination of innovative technology and expert-guided people solutions can bolster your EX strategy and start building your blueprint for incredible employee experiences.
Additional Resources
How to build a continuous employee listening strategy, McKinsey & Company
With Challenge Comes Opportunity: How Networking, Apprenticeship & Mentoring Can Help with Today’s Talent Crunch, Insurance Journal
Insurance productivity 2030, McKinsey & Company
Top 10 digital strategies and technology trends for insurance executives, Microsoft
