Negative experiences at work are bad for business

It is easier than ever for individuals to communicate at work – but that doesn’t mean the quality of the interaction is going up, or that people are better informed.

Research by Microsoft shows that employees are struggling with this “digital debt”, and they are wasting precious time searching for information at work (62% of the 31,000 employees surveyed globally).

A core problem is communication. Not only do meetings lack clear aims, goals and takeaways, but employees aren’t very good at sharing information and knowledge with one another.

This phenomenon has been termed ‘quiet constraint’ by Kahoot! Its research found that the reasons why employees didn’t share information was because they were never asked to (26%), there was no easy way to do so (23%) and they felt their self-expression was being stifled by their employer (23%).

All of this is bad for business – but now Culture Amp has put a figure on the financial impact of bad employee experience.

Culture Amp’s report found that when there were employee experience issues this could cause a company’s share price to underperform by 9.2% over the next six months.

The biggest financial impact came from issues with employees being able to access the information they need, and a lack of workplace recognition.

These findings are based on six-year analysis of the impact of a  employee survey responses on the share price movements of more than 500 Culture Amp clients who were publicly listed across 26 stock exchanges.

The financial impact of bad EX

Of course Culture Amp’s data is for public companies, but that doesn’t mean it isn’t relevant for organizations of any size and type. Ultimately, having an engaged workforce, that feels recognized and empowered (and able) to their jobs, is good for business. Period.

Dr Arne Sjöström, lead people scientist at Culture Amp, tells UNLEASH: “During challenging economic times, it can be easy for people and culture initiatives to slip down a leader’s list of priorities.

“This data demonstrates what a dangerous situation organizations could find themselves in if this happens. Ignoring the employee experience risks not only underperforming in the market but also losing out to more engaged competitors.”

But what actions do employers need to take to turn the tide around workplace experiences?

Culture Amp’s report suggests that employers, and particularly HR teams, start by improving knowledge management systems and information flows.

Sjöström explains it is essential that “everyone understands why and how decisions are being”.

In addition, “sufficient clarity is needed on an individual’s role to create a sense of certainty while performance management processes should be as fair and rigorous as possible to ensure that employees feel recognized for their contribution”.

Are you ready to reap the rewards of great employee experience and thrive financially as a recession looms?

If this article caught your interest, you can find more like it here. Enjoy!