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Today HR leaders face a myriad of unprecedented challenges when it comes to their workforce. Between widening IT and AI skills gaps, the ups and downs of hybrid work, and stagnating employee engagement — to name just a few issues — today’s workplace leaders are juggling a lot to keep their employees satisfied and thriving.

This is all happening against the backdrop of a complicated and uncertain labor market. A recent U.S. jobs report showed that 272,000 jobs were added in May, significantly more than the 190,000 that economists forecast. However, we also saw unemployment tick above 4% —the highest it’s been in over two years — signaling that while job growth was strong, it’s cooling overall.

With quit rates down and more workers staying put in their current roles, workplace leaders must consider how they’re investing in employee experience over the long term. A positive employee experience is not only good for workers, it’s good for customers — and, in turn, for a company’s bottom line.

Happy employees do lead to happy customers

Research has shown a clear link between employee experience (EX) and customer experience (CX), confirming that happy workers lead to happy customers. This link may be obvious — satisfied, motivated, and fulfilled employees are more likely to show up for their company’s customers and clients. However, the path there is not always straightforward, and HR leaders often bear the burden of ensuring good CX by cultivating good EX.

And so what makes a good EX? It tends to be rooted in fulfilling employees’ most foundational, basic, and personal needs — paying them a living wage, investing in their career growth, and ensuring work-life balance, strong benefits, and overall well-being. When employers’ priorities align with those of their employees, companies see reduced turnover, higher employee engagement, and increased productivity.

This leads to better experiences for customers and is something that can directly translate to better business outcomes. Research demonstrates a direct relationship between employee engagement and business performance. In other words, investments in employees are not only a “nice-to-have” but a “need-to-have.”

Businesses need to balance their needs with those of their workforce

A new study from isolved shows that employees and employers alike are well aware of this link. Fully 90% of full-time employees in the U.S. say that the experience they have as employees directly impacts the experience they provide to customers. HR leaders also see the importance of EX in driving overall business outcomes, with 91% saying it is a priority for their company.

“Achieving long-term success hinges on balancing your business needs with those of your employees,” says Celia Fleischaker, CMO at isolved. “Enhancing employee experiences begins with investing in advanced HCM (human capital management) technology, which aids in talent retention, inclusivity promotion, and productivity and engagement improvement. With the right foundation, you can prioritize creating exceptional employee experiences that translate into outstanding customer experiences.”

In its report, isolved notes that many of the steps employers can take to foster engagement — like providing competitive wages, eliminating payroll errors, and providing frictionless benefits — are essential for both recruitment and retention. And with employees staying longer at their companies, these investments are crucial to ensuring that employees don’t just stay, but stay engaged.

Take these six steps to create a superior employee experience

Here are six key investments HR leaders can make to build a better employee experience that supports their company’s bottom line:

Provide growth and development opportunities. Offering continuous learning and development opportunities helps employees grow professionally, feel confident in their abilities, and bridge key skills gaps. Through training programs, workshops, and mentorship, employees can acquire new skills that drive innovation and efficiency at work. Supporting career development not only grows employees’ individual capabilities but also contributes to long-term business success.
Enhance communication and transparency. Effective communication is the backbone of an engaged workforce. Keeping employees informed about company goals, changes, and performance through regular updates fosters a sense of inclusion and alignment and can support employees in their communications with customers and clients. Encouraging open dialogue between employees and management helps build trust and allows for the exchange of ideas, which can lead to a more dynamic and innovative work environment.
Recognize and empower employees. For many workers, engagement lags when they are not adequately recognized or empowered at work. By regularly acknowledging and celebrating employees’ achievements, companies can reinforce their value and encourage continued effort and dedication. Additionally, when employees are granted autonomy and involved in decision-making processes, they feel more empowered and take greater ownership of the business, including customer interactions.
Streamline HR processes. Efficient HR processes contribute to a smoother employee experience by reducing administrative burdens and frustrations. Implementing comprehensive HR software for tasks like payroll and benefits administration can save time and reduce errors, allowing employees to focus on their core responsibilities, including interactions with customers and clients. Streamlined HR processes lead to a more efficient and satisfied workforce, which is crucial for achieving business goals.
Support employee well-being. By investing in the well-being of their employees, workplace leaders help maintain a motivated and productive workforce. Offering wellness programs that support physical and mental health shows that the company cares about its employees’ overall well-being, something that can translate to good customer and client relationships. Providing access to mental health resources can also help employees manage stress and stay engaged in their work.
Provide competitive compensation and benefits. Perhaps most important to cultivating good employee experience is paying workers a fair and competitive wage and offering good benefits. These factors can enhance productivity, engagement, and retention, reduce turnover costs, and attract top talent. They can also lead to better customer service and satisfaction, driving loyalty from both workers and customers and fostering broader business growth.

Final thoughts: Start by finding out what your employees need

In addition to the steps above, HR leaders must turn to their employees directly to ask what they need. Regularly assess employee experience through surveys and other feedback mechanisms to ensure that the workforce’s specific needs are taken into account.

Taken together, the above steps — along with surveys and analyses that seek to understand the specific needs of a company’s workforce — can help build stronger employee experience at any company and, in turn, stronger customer experience and better business outcomes.

This post was originally published in the Workplace Intelligence Newsletter.

Dan Schawbel is a New York Times best-selling author and managing partner of Workplace Intelligence. Dan has spent his career researching and advising on workplace and career success. He’s the author of three career books: Back to Human, Promote Yourself, and Me 2.0. Dan has conducted dozens of research studies and worked with major brands including Oracle, WeWork, American Express, Amazon, Facebook, and Coca-Cola. In addition, Dan has written for publications such as TIME, Forbes, the Harvard Business Review, The Economist, and the World Economic Forum. He currently publishes the LinkedIn Workplace Intelligence Newsletter and hosts the 5 Questions podcast with guests that have included Richard Branson, Natalie Portman, Stacey Abrams, and Marcus Lemonis.

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