Marvin OnumonuPoor employee experience is directly affecting business performance, with 78% of HR leaders saying it harms business outcomes, according to research from scarlettabbott.
Four in five senior employee experience leaders said experience has become more important in the last three years, and 94% said company values are key in shaping employee experience.
However, only one in three said values are properly embedded in their strategy.
The biggest barrier to better employee experience was a lack of leadership buy-in, with 43% saying this was the main issue.
Other problems included a mismatch between what employees need and what leaders prioritise, especially in communication, strategy and daily work.
Pay, benefits and recognition were also seen as falling short of what employees expect, with many saying reward packages need to be rethought and better explained.
Only 7% said their senior leadership team is still not committed to employee experience, but the report said this is now a quantifiable business risk.
Artificial intelligence (AI) and return-to-office (RTO) mandates were also highlighted.
Additionally, experience has become 80% more important to employees in the last three years.
91% said company values are important in shaping experience, and 84% said social and environmental, social and governance (ESG) aspects have become more important in the last five years.
64% said expectations for employee experience are not aligned with employees’ day-to-day lives.
Jo Stark, senior consultant at scarlettabbott, said: “Whatever your working model – home, office, or hybrid – successful change starts with leaders.
“It’s not just about communicating the benefits, but ensuring teams experience them.
“Leaders must speak authentically, tackle cynicism, and recruit and empower others to own the change.
“When they do, they create a more adaptable, thriving organisation.”
Charlie Sampson, director of consultancy at scarlettabbott, said: “While concerning on the surface, this stat highlights the opportunity organisations have to reset what leadership truly means.
“Buy-in can only happen when employee experience stops being seen as an add-on, and is instead recognised as the force for good it really is.
“It’s not about teaching leaders new tricks, it’s getting the fundamentals right for proper accountability, growth and communication.”
Sampson added: “Knowing those at the top believe in your employee experience strategy empowers everyone to realise its full potential.
“Those organisations with strong, consistent leadership are in the best position to create a best-in-class employee experience that can drive greater commercial success.
“No amount of employee experience initiatives can compensate for poor leadership.”
He said: “Any employee experience strategy needs leadership capability at its core, acting as the guides for organisational culture.
“The sweet spot is helping leaders develop the skills and confidence to co-create a supportive, energised, and high-performing culture that enables people to thrive.”
Frazer MacRobert, consultant at scarlettabbott, said: “It’s time to demystify AI. Employees want to understand its practical applications to boost performance and improve experience, rather than being touted as a magical do-everything tool.
“Leaders must role model, advocate, and invest in training to support responsible and effective integration – targeting the areas AI can be most helpful for.”
