How do you convince the C-Suite of the importance of Employee Experience?

by Dr. Timo Tischer

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Aug 23, 2022

The most powerful case that I’ve seen to convince executives of the importance of Employee Experience has been a CFO-ready business case. It showed nearly a million US dollars of cost savings by reducing early attrition through an improvement of experiences during the first year of employment.

One of our clients, a large retail organization, was facing an issue: Many sellers across their stores were leaving within their first year of employment. The attrition rate was incredibly high, and so was the resulting cost of replacement.

When turning to an Employee Experience approach, our client measured Employee Experience, backed up quantitative results with qualitative insights, and was able to identify the key issues to solve. Together with employees, the team developed several solutions to improve the new hire experience.

As a result, the early attrition rate dropped by over 30%. Compared to the starting position with high attrition, costs for onboarding and overtime were about a million US dollars lower – for only 200-300 positions to fill. And there’s more value not reflected in this figure: The previously high attrition also led to lost revenue due to capacity constraints which the organization was able to reduce.

That was the most powerful case I’ve seen so far, but not surprising. Considering average cost per hire between USD 2,000-5,000, it may be wise for organizations to start with quantifying the impact on attrition when creating an Employee Experience business case.

It would be great to hear what your experiences are: How do you convince executives to take care of Employee Experience? What is your approach to creating an Employee Experience business case?

#EmployeeExperience #EX #PeopleExperience #HRTransformation

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