The pandemic, economic uncertainty, and shifting work models have all contributed to a significant decline in employee happiness. Gallup data paints a grim picture, with employee dissatisfaction plummeting by almost a third, leading to predictions of a ‘Great Gloom’ with high turnover and disengaged workforces. Its 2023 State of the Global Workplace report highlights this further, showing a staggering 69% of employees are disengaged, which costs businesses significantly in lost productivity and profitability – estimated to be around £8.8 trillion globally. On top of this, a third of employees are actively seeking new jobs which is contributing to a talent retention crisis for business owners. These factors combine to form a perfect storm that threatens the future of many organisations.

Why modern employee experience matters

With this challenging backdrop, positive employee experience (EX) is essential. It's the key to building a healthy and engaging work environment. Traditional perks like pizza Fridays just don't cut it anymore. Modern EX strategies need to focus on what truly matters to employees throughout their entire employment journey to keep them engaged and thriving.

Building a future-proof talent pipeline with EX

A well-designed EX strategy can be your lifeline for several reasons:

1. Attract emerging talent – Millennials and Gen Z are soon to be the majority of the workforce, according to Forbes data, so organisations must adapt to their shifting priorities. They crave a workplace that reflects their values and fosters purpose, so traditional recruitment tactics won't resonate with them. EX strategies that prioritise diversity, inclusion, and social responsibility will be key to attracting top employees from these talent pools.
2. Sharpen your employer brand – A strong EX strategy goes beyond treating employees as a collective. It focuses on human connection by recognising each individual's value and potential. This fosters a sense of belonging which leads to a more positive employer brand. With only 45% of employees believing that their organisation views them as a person, a competitive EX strategy can help bridge this gap.
3. Prioritise employee wellbeing – Today’s employees demand comprehensive wellbeing support. Offering relevant programmes that address mental, physical, and financial wellbeing demonstrates your commitment to them as a person. This is a key factor, especially for younger generations. Whilst research shows that 42% of UK employees value benefits as the most important aspect of a job, this increases to over half (55%) amongst 18-34 year olds. Companies neglecting this fact risk expensive consequences, as disengaged employees are less productive and more likely to leave for an attractive wellbeing offer elsewhere.
4. Instil purpose – A strong workplace culture with a clear purpose attracts top talent, especially for Millennials who seek meaningful work. 2023 data shows that culture is a leading factor for 46% of job seekers, and the most crucial for Millennial talent. EX is central to creating a purpose-led, authentic workplace where employees feel connected to the company's mission and understand their power in contributing to its success. Plus, with the majority (86%) of candidates actively avoiding employers with poor cultural reputations, a strong EX strategy is key to counteracting a talent drain.
5. Restore connection – The rise of remote and hybrid work models requires new strategies to keep employees connected and engaged with their organisation’s mission. Currently, just 28% of employees feel connected to their company's purpose. This is a record low. EX strategies must address this by fostering a sense of community and belonging across all teams, regardless of their location or seniority. Utilising technology for effective communication and collaboration is key, alongside virtual team-building activities and opportunities for social interaction.

Final thoughts

By embracing modern EX strategies, business owners can navigate the retention storm to build a thriving workforce. It isn’t a case of just throwing money at ‘tick-box’ perks, organisations must invest in fostering human connection by prioritising tailored employee wellbeing programmes and cultivating a purpose-driven culture. This will not only attract and retain top talent but also empower them to contribute their best work to drive your business forward. Remember, a happy and engaged workforce is the foundation for long-term success in today's competitive business landscape.

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