Employee Satisfaction Matters: It Can Boost Profits by Up to 50%

You've likely heard the saying that a happy employee results in a content customer. Research supports this claim as well. In one study, contented employees were found to potentially boost a company's profits by as much as 50%. Another study revealed that improving what's known as the "employee experience" – an employee's overall experience within the organization – can yield a 40% increase in high performers. But how can you effectively improve the employee experience, and why is it no longer valid to assume that more benefits automatically translate to happier employees?

Employee experience (EX) includes every interaction an employee has within the organization – whether it's with colleagues, systems, tools, physical and virtual workspaces, or the various aspects of their daily tasks. This experience extends to significant corporate events and transformations as well. Each of these factors plays a role in shaping an employee's emotions, self-perception, abilities, and their sense of contribution to the organization. Ultimately, these elements influence their overall well-being. In essence, it covers everything an employee encounters and feels from the moment they join the organization until the time they depart.

Why Is Employee Experience So Crucial?

Many individuals can intuitively grasp that a positive employee experience leads to content employees, and content employees contribute to better results. However, some managers may view the attention given to this matter as excessive. They might think that an employee should naturally be satisfied simply because they have a job and receive regular pay. Yet, there is a wealth of concrete data that illustrates why employee experience is genuinely significant.

• Research conducted by Tiffani Bova and her colleagues highlights that improvement in employee experience have resulted in a remarkable increase in organizational profits, up to 50%.
• Satisfied employees are less absent from work and more productive. According to Gallup, when employees have a better experience at work, they are 41% less likely to miss work, and their productivity goes up by 17%.
• Additionally, this research shows that when employees are more satisfied at their job, it also contributes to the happiness of customers. Customer ratings went up by 10%, which led to a 20% increase in sales.

What to Consider and Why Benefits Aren't Enough

While we could continue citing impressive statistics, let's discuss practical steps for a company looking to improve its employee experience. A common response is to offer more benefits, such as fresh fruit, yoga classes, or even a PS4. However, recent insights suggest that a growing number of employees value their overall perception of the company more than these perks. They want to be regarded as individuals within the organization, rather than mere "human resources." This means addressing their financial, physical, and emotional needs while fostering a sense of pride in the company and a connection to its mission.

• Foster Connections: Try to establish a stronger connection with your employees outside of the workplace. For about 60% of them, it's important to feel that the company cares about their families and communities. While respecting employee privacy, organizing family-oriented events, for instance, can be a good first step to better understand your employees' personal lives.
• Encourage Autonomy: Grant employees more control over their work and schedules. Offering radical flexibility can boost employee performance by as much as 40%. And you can use affordable software to help, such as a modern attendance system which allows you to establish basic attendance rules and shift options, leaving the rest to employees themselves.
• Support Growth: Encourage employees to advance within the organization and acquire new skills. Don't restrict their learning to areas directly related to their job. Even courses unrelated to their current positions, like martial arts or bread baking classes, can provide valuable skills that enrich the company's workforce.

HR Tip

Consider providing your benefits through comprehensive programs. For instance, at Mashreq, employees evaluate their satisfaction across six distinct dimensions (financial, family, health, etc.). Using these assessments, each employee formulates a personalized plan to improve their satisfaction, selecting suitable benefits from the organization's available offerings.

Improving the employee experience significantly influences the overall performance and success of the business. When you invest time and effort in your employees and foster a corporate culture and structure that leaves them excited for Mondays, the results extend beyond increased employee loyalty, engagement, and productivity. This, in turn, contributes to higher customer satisfaction and greater profitability.

And if you want to find out how HR or the Giriton attendance system can benefit your company, please don't hesitate to reach out to us. You can contact us at +420 728 543 275 or via email at info@giriton.com.

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