Employee engagement has a significant impact on a company’s performance. MIT research shows that companies with top-quartile employee experience achieve twice the innovation, double customer satisfaction ratings, and 25% higher profits than organizations with bottom-quartile employee experience.
As more and more companies recognize the value of digital capabilities for employees from hire to retire — such as business automation, mobile access to work, effective support 24/7, and the ability to search for and access people and knowledge anywhere in the organization — HR is undergoing its own transformation.
Top 3 HR goals to improve employees’ digital experience
When it comes to improving employee experience, HR organizations’ No. 1 goal is to enhance employees’ digital experience in three ways.
No. 1: Increase employee satisfaction
Make it easy for employees to access and manage personal information, finances, and benefits with apps like Workday HCM and Oracle PeopleSoft connected to ADP and other core systems to create a simpler, more seamless work experience.
No. 2: Boost employee productivity
Providing employees with connected HRM and performance management tools, where coworkers can give each other feedback, set goals, and create timelines. This also leads to positive business impacts by boosting productivity and collaboration, which results in increased innovation.
No. 3: Improve employee retention
Providing better employee onboarding and professional development. Improving employee retention is especially a key initiative, as top talent is leaving more frequently (According to a PwC study, only 18% of millennials plan on staying with current employer). Another study by SHRM Foundation found that employees who attended a structured onboarding program were 69% more likely to remain at the company for at least three years.
The key HR initiatives that increase efficiency
Overall business performance is heavily tied to HR efficiency and management capabilities. That’s why HR’s secondary goal in improving employee engagement is to increase the operational efficiency of workforce management. Research shows there are two key digital transformation initiatives make businesses stand out:
1. Automating HR processes to increase efficiency
Many companies are investing heavily in intelligent automation, which improves performance and optimizes human capital management by automating HR processes like hiring and payroll.
2. Leveraging people analytics to make better management decisions
Companies with mature HR analytics outperformed S&P by 30% from 2010 to 2013. In fact, 31% of companies plan on implementing new tech to support people analytics. This is a clear area for growth: 75% of HR functions believe people analytics are important, but only 8% believe they are strong in the area.
Connected HR systems create a better experience for employees
For the majority of businesses, improving the employee experience is a major opportunity — and area for growth. But the reality is the majority of HR professionals are too busy executing on their existing workload to spend time on new employee experience initiatives.
Human capital management, employee communications, recognition, applicant tracking, onboarding, and performance management require employees and HR managers to access multiple apps a day — HR managers spend 366.6 hours a year manually maintaining these systems. The overload of mundane administrative tasks for both employees and HR professionals is one of the top contributors to overall workplace disengagement and dissatisfaction.
But many leading companies have created top employee experiences by tapping into integration. Connecting HR systems and applications on a single platform allows HR to automate repetitive processes, optimize workforce planning and human capital management, and focus on initiatives that directly impact employee happiness.