This post originally appeared on the Organizational Communication Research Center blog for the Institute for Public Relations. The current emphasis among business leaders on shifting corporate culture isn’t merely about culture for its own sake. Rather, these leaders recognize that culture defines the employee experience (EX) on the job. Culture helps employees connect with the organization’s greater goals and feel a sense of identity and meaning in their work. In short, it determines their level of engagement and, ultimately, their success.Employee Experience, Culture & How They’re RelatedWhat exactly is “employee experience”? According to Denise Lee Yohn, author and expert in brand leadership, EX comprises the sum of everything an employee experiences throughout his or her connection to the organization—every employee interaction, from the first contact as a potential recruit to the last interaction after employment ends.Too often leaders focus on well-being or career path as the sole driver of EX, without taking into account the co-mingling levers of corporate culture that shape an employee’s lived realities at work. MIT’s CISR research confirms that the definition of EX is changing with our digital landscape, which allows companies to re-imagine work and workplace culture.A recent Glassdoor study reveals culture’s crucial role as a driver of employee satisfaction. After controlling employee ratings for business outlook, career opportunities, culture and values, compensation and benefits, senior leadership, and work–life balance, the research showed culture and values scoring as much more important for job satisfaction—and the overall experience—than compensation and work–life balance.Employee Experience & Culture by the NumbersThe stakes couldn’t be higher for getting your employee experience and culture both aligned and optimized for peak performance. Consider the following statistics:
- Companies with scores in the top quartile of employee experience were 2x as innovative as those in the bottom quartile, according to the MIT / CISR research cited above. Quartiles were based on the percentage of revenue from products and services in the last two years. By intentionally cultivating employee experience and culture, these companies paved the way for employees to work together effectively and engage with customers in new ways to enhance revenue streams.
- A PwC survey of 2,000 executives and employees conducted in 2013 and again in 2018 showed that over the course of just five years, the number of respondents who claim their company’s culture will need to evolve over the next three to five years has increased by nearly 30%.
- According to a Deloitte study, 87% of organizations surveyed described culture and engagement as either “important” or “very important” to their success. Culture ranked as their single most important concern.
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