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The Experience of Work The experience of work The role of technology in Sponsored by productivity and engagement The experience of work 1 The role of technology in productivity and engagement Contents 2 About the report 3 Executive summary 5 1. Understanding the employee experience 10 2. The digital dimension 15 3. A cross-function endeavour 18 Conclusion © The Economist Intelligence Unit Limited 2019 The experience of work 2 The role of technology in productivity and engagement About the report The experience of work: the role of technology in productivity and engagement is an Economist Intelligence Unit report, sponsored by Citrix, that explores how companies are managing the employee experience, and the role of technology in shaping it. The analysis in the report is based on a survey of 1,145 business executives conducted in March and April 2019. The respondents hail from eight countries (the US, UK, Germany, Australia, New Zealand, Japan, China and Brazil) and work in six sectors (automotive, energy/oil & gas, financial services, healthcare, manufacturing and retail). They have senior roles in their organisations, just under half (49%) being C-level executives and the remainder being directors, business unit or department heads, and senior managers. The vast majority of them (81%) work in businesses employing more than 500 people, and nearly half (48%) employing more than 5,000. Additional insights were obtained from in-depth interviews conducted with senior HR and IT leaders in organisations. Our thanks are due to the following individuals: • Mukta Arya, head of human resources, South-east Asia and head of people and talent development, Asia-Pacific, Société Générale • David Gill, assistant vice-president, employee experience, Northwell Health • José Antonio Güereque, innovation director and chief information officer, Arca Continental • Valerie Hughes-D’Aeth, chief human resources officer, BBC • Art Mazor, principal partner and HR transformation global practice leader, Deloitte Consulting • Elina Petrillo, assistant vice-president, HR technology, Northwell Health • Florian Wies, regional lead, country integration, Merck • Jerry Zhang, chief information officer, Coca-Cola Greater China & Korea This report was written by Denis McCauley and edited by Pete Swabey. For more insight on technology and the employee experience, visit theexperienceofwork.economist.com. © The Economist Intelligence Unit Limited 2019 The experience of work 3 The role of technology in productivity and engagement Executive summary The more engaged employees are in their The clear conclusion is that business leaders work, previous research suggests, the likelier have several technology levers they can it is that they will contribute to the success of pull to brighten their employees’ journey an organisation. They will be more productive through the organisation, from the time than less engaged colleagues, as well as they are recruited to their departure and more innovative and self-starting—critical even later. The challenges to doing this attributes when business models and the well are numerous, above all getting IT competitive environment are changing and HR to collaborate effectively toward rapidly.1 But what specifically fosters such this end, but companies featured in this attributes? In recent years a consensus has report are finding ways to meet them. formed around the idea that, rather than one or two individual factors, it is the totality Other key findings of the research are: of an employee’s involvement with the organisation—the “employee experience”— Responsibility for improving the that ultimately influences their contribution employee experience is often blurred. to success. Shaping the employee experience tends to be a shared responsibility among multiple Today, the employee experience is firmly senior executives. This can, however, often on the senior management agenda of the signal a lack of leadership clarity and lead vast majority of firms, judging by the results to a vacuum. The risk of this is apparent in of a survey conducted by The Economist the survey, as little more than one third of Intelligence Unit. The research also makes C-suite respondents strongly agree that clear that nothing influences the employee they take full responsibility for it across the experience more than the quality of the organisation. Only a few more say they take organisation’s leadership. But technology is full responsibility for it even within their own also an important contributor, and especially teams. As companies mature digitally, C-level so at firms whose employees are, according executives, including the CIO, take on more of to respondents, more engaged and more a leadership role in this area. productive than their rivals (termed “high performers” in this report). The same is true Access to information breeds engagement at organisations that are further along in their and empowerment. Having ready access digital transformation than others (termed to the data and insights they need to do “digitally more mature” organisations). their jobs, wherever they are located, does Perceived improvement in the employee more to influence employee engagement experience has also been greater at these and productivity, and ultimately their overall groups than in the rest of the sample. experience, than other technology factors. 1 See, for example, Hay Group, Engaging Hearts and Minds: Preparing for a Changing World, 2015, http://info.haygroupupdate.com/rs/494-VUC-482/ images/Hay_Group_Engaging_Hearts_and_Minds_Report.pdf?aliId=105813088; Susan Sorensen (Gallup), “How Employee Engagement Drives Growth”, June 20th 2013, https://www.gallup.com/workplace/236927/employee-engagement-drives-growth.aspx; and V Kumar and P Wilton (Chartered Management Institute), “Briefing note for the MacLeod Review”, 2008, cited in David MacLeod and Nita Clarke, Engaging for success: enhancing performance through employee engagement, 2009, https://dera.ioe.ac.uk/1810/1/file52215.pdf © The Economist Intelligence Unit Limited 2019 The experience of work 4 The role of technology in productivity and engagement For many companies, that translates into of their function. To overcome the lack of “mobile first” policies and efforts to perfect understanding that hampers collaboration, their use of collaboration tools, the digitisation many firms are taking practical measures of onboarding, training and other employee- such as employing specialists with knowledge development activities, and efforts to recreate of both disciplines and developing common the consumer experience at work to the metrics. extent possible. Companies struggle to measure IT and HR may not be natural partners, improvement in the employee experience. but bridges are being built. In the survey, Although virtually all companies in the the two functions appear to feel they have survey measure employee engagement and a joint stake in improving the employee productivity, and most are striving to devise experience. For example, similar numbers suitable metrics to capture improvements of IT and HR respondents say they feel in the employee experience, not many are personally responsible for this within their as yet registering success. Less than one- team or more widely. At high performers and third, for example, “strongly” confirm that digitally more mature organisations, a large they can quantify such improvements in proportion of both IT and HR executives financial terms. A higher proportion of high say the objective is part of the strategy performers, however, are able to do this. © The Economist Intelligence Unit Limited 2019 The experience of work 5 The role of technology in productivity and engagement 1. Understanding the employee experience In 2011 the polling organisation Gallup their day-to-day experience at work, right published research suggesting that a up to their departure from the organisation staggering 89% of employees worldwide and beyond. were not engaged in their work. This meant, the firm said, that most employees are Since then, the employee experience has been “emotionally detached and likely to be squarely on the management radar in large doing little more than is necessary to keep businesses. It remains so today across most their jobs”.2 It was around that time that sectors, according to executives interviewed the concept of employee experience began for this study, being a matter of senior to attract the attention of senior HR and management discussion at the vast majority other business managers. They wanted to (81%) of firms represented in our survey understand what levers they could pull to (although not to the same degree in all parts boost employee motivation and engagement. of the world: for example, the discussion is The concept provided them with something “extensive” at more than half of US firms, but more, however: an understanding that the at far fewer in Germany and Japan). Several contribution of employees to the success organisations interviewed for this research of the organisation is influenced by their have established management roles with subjective experience of interacting with it, explicit responsibilities in this area (and the from the first steps of recruitment, through exact term in the title).3 Figure 1: On the agenda Where the employee experience is a topic of senior management discussion (% of respondents) All respondents Aus/NZ Brazil China Germany Japan UK US Somewhat 39 53 23 22 51 46 43 34 Extensively 42 37 59 45 26 31 46 51 Source: The Economist Intelligence Unit. 2 Gallup, State of the
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