New Research Identifies Three Key Practices that Separate Employee Experience Leaders from Laggards

Employee experience leaders in a new survey from Medallia and The Josh Bersin Company were 12x more likely to indicate revenue growth of more than 20% over the last year.

Medallia, Inc., the global leader in customer and employee experience, and The Josh Bersin Company released new research today identifying three key practices that can help organizations deliver better employee experience. Medallia and Josh Bersin will discuss insights from the report in a free webinar.

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“They must then take proactive, meaningful action that is owned and supported by the entire organization. Those that do will recognize real benefits for their employees and their bottom line.”

“There has never been a more urgent need for companies to listen to and support their people. When managers understand and act on employee feedback, organizations continuously improve. When IT or HR operate in a vacuum to design solutions, the results often underperform,” said Josh Bersin, Global Industry Analyst. “We are excited to work with Medallia on this research, and we look forward to helping companies become what we call ‘Irresistible Organizations.’”

Between March and July 2021, the Medallia Institute, in partnership with industry thought leader Josh Bersin and the Josh Bersin Company, surveyed employee experience professionals across more than 600 organizations. The research was designed to help understand the link between strong employee experience practices and positive people outcomes, such as employee satisfaction and engagement, and business outcomes, like revenue impact.

The team analyzed the characteristics that distinguish top performers (“leaders”- those who scored in the top 10th percentile) from those at the bottom (“laggards” – those in the bottom 10th percentile), and explored how practices and outcomes differ between these two groups.

The study uncovered three key practices that distinguish and differentiate employee experience leaders:

1. Leaders capture timely data, using a diverse set of direct and indirect sources: More than half of laggards capture employee feedback only once a year or less. As a result, they risk basing decisions on outdated information and don’t give employees the opportunity to voice concerns throughout their regular flow of work.

  1. Text messaging – Leaders use a wide variety of channels to capture employee feedback. The difference between leaders and laggards is most pronounced in the use of text messaging. Nearly a quarter (24%) of leaders use text messaging as a feedback channel vs. 6% of laggards.
  2. Use of unstructured data to collect employee feedback – Leaders are twice as likely as laggards to use internal community or collaboration platforms (as well as support requests or tickets) as sources of unstructured data to get feedback from employees.

2. Leaders do not shy away from difficult topics: On a five-point scale, leaders scored a 4.37 when asked if they agreed that they provide an environment where employees feel secure enough to be truthful with the information they share about the company; Laggards neither agreed nor disagreed, reporting a 3.06 out of 5.

  1. Diversity and inclusion – More than half of leaders survey employees on diversity and inclusion vs. a third of laggards.

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3. Leaders make employee experience part of their organizational strategy: Ninety-three (93%) of leaders have a dedicated employee experience team, compared to 59% of laggards. These teams are highly collaborative as 72% of leaders report that direct team leaders and people managers are highly involved in enterprise-wide employee experience initiatives, while only 18% of laggards say the same.

  1. Timely, proactive and data-driven action – Seventy percent (70%) of leaders use employee experience data for priority setting on a quarterly or monthly basis, recognizing the need to continuously understand their workforce and take data-driven action in the moment.

“Employee experience excellence requires companies to obtain a real-time, truthful picture of their employees’ perceptions and the often sensitive topics that matter most to them,” said Medallia Solution Principal for Employee Experience Melissa Arronte. “They must then take proactive, meaningful action that is owned and supported by the entire organization. Those that do will recognize real benefits for their employees and their bottom line.”

Medallia and Josh Bersin will host a free webinar discussing the research findings and how organizations can:

  • Understand employee experiences early enough to course correct and help prevent negative outcomes
  • Organize to create ownership for employee experience actions outside of the HR silo
  • Address workplace “hot topics” head on, to build a culture of trust and transparency

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