WTW, a leading global advisory, broking, and solutions company, finds a positive link between employee experience and superior financial returns in its latest High Performance Employee Experience survey. Across three years, these high performing organizations achieved 11 times the increase in profit margins, nearly three times the increase in revenue growth, and two times return on equity, compared with global averages.
High-performance companies are distinguished by their ability to inspire employees around their purpose, build high levels of trust in their leadership, drive a competitive position in the market, and recognize employees through transparent and equitable pay and benefits.
Yet, against the current backdrop of economic, technical, and social distractions, as well as work transformation and labor market shifts, employers are challenged to deliver high financial performance and superior employee experience.
“The human impact of recent years has underscored the significance of the employee experience as a determiner of organizational success,” says Jill Havely, managing director of employee experience at WTW. “Well-being has become a must-have rather than a nice-to-have, so that employees are able to thrive both in and out of work, for collective benefit.”
Havely adds: “Equally, employees need purposeful career growth, with clarity on pathways to progression, the right support, and recognition. When it comes to growth, the gap between high-performance organizations and the global average continues to widen with an eight-point differential. Employers should be looking at growth in terms of their future needs, through reskilling, upskilling, and clearly articulating performance criteria to fight against attraction and retention issues.”
“Today, with new legislation on pay equity and transparency, uncertain economic environments and further ongoing global disruption, employees value pay and benefits offerings as never before. Modernizing programs to focus on fair pay and recognition practices and flexible and inclusive health and benefits programs that are affordable and accessible are key to retaining valued employees and progressing the business forward,” says Havely.
In the face of these challenges, there has been a fundamental shift in the total rewards value proposition. Organizations that drive higher performance and engagement focus on the wellbeing, growth and recognition of their people.
Of the global high-performing companies, 86% of employees believe their performance goals are clearly defined. Approximately 80% of organizations are more likely to be focused on enhancing retirement and financial well-being programs. More than three-quarters (78%) of employees feel leadership decisions align with their own values, while 77% of employees believe that their company benefit programs fit their needs.
Approximately 76% of business leaders agree their total rewards strategy is influenced by the competition for talent. Employees are also twice as likely to remain with their employer and be fully engaged.
