Employee Experience at the Core of Customer Strategies
It has become increasingly clear that customer experience (CX) is not just about good sales skills or customer service. It is about the overall experience of the customer from start to post-purchase. Customers are focused on not just what they are buying but also on how they are treated along their entire journey. Good CX has consistently shown to help increase price premium, impulse buying, and loyalty. Consequently, one bad experience can drive a customer away forever. Customers pay for your products or services, but it is your people who can really deliver the experience.
Audrey says, “As it becomes clear that we are headed for a hybrid/blended model of work, employee experience (EX) has to be a key focus area for organisations. Organisations will have to support remote work and simultaneously evolve their physical workplaces so that employees have the choice to come into work. But business leaders and HR will definitely have to come together to re-evaluate their policies around employees and improving EX – irrespective of where they choose to work from.”
The Role of Productivity in the Digital Workplace
Productivity has been at the core of an organisation’s desire to be a digital workplace. Tim says, “A digital workplace is one that has the capability to support any employee to access the process, information or system they need on their device of choice, in their moment and location of need. In the wake of the pandemic, the digital workplace went from being a ‘good idea’ to an ‘absolute necessity’ – and the seeds were sown to build true digital workplaces, years ahead of plan.”
This is the time to retain that focus on productivity. A lot of energy is being spent in defining and measuring productivity. The focus seems to have shifted to how to get the best out of the remote/hybrid workforce. It is time for business leaders and HR to go back to the drawing board to re-define what productivity means to their organisations.
Tim says, “The focus should be on enabling productivity rather than on monitoring activity. Productivity is an outcome, not a process. So, measure the outcome, improve the process. Productivity will be driven at an organisational level through removing friction from overall operational processes, to make things more streamlined and effective to create more value.”
The True Implication of Flexibility
There has been a rapid shift in practices around working from home and flexibility. But it is time now for organisations to create a framework (policy, performance expectation and management) to manage these practices. Many companies do not really understand the implications of flexible working to their business. In fact, they may be unaware of shifts in work patterns that have taken place in the last few months and the impact these shifts are having on the business.
Framework around flexible working should be backed by data and an understanding of the feasibility of such practices. If your employee has to work on her compulsory day off, then you do not have a truly flexible work practice. This will have a negative impact on employee experience and ultimately on your business.
The Evolution of Employee Engagement
Audrey says, “One of the areas that business leaders and HR will have to bear in mind is that despite flexible working hours, employees might be overworked – it is emerging as a common problem with working from home. It is common that many employees are working longer hours.”
Ecosystm research finds that some organisations have been evolving their HR practices, since the start of this crisis (Figure 1).
But more needs to be done. Organisations have to work really hard to replicate their employee engagement and social hours in the virtual world. It is critical that organisations design mechanisms of keeping employees connected – to each other, as well as to the organisation. “Virtual social groups” not only provide this connection, it can also be a rich source of input for HR and wellness teams to quickly adapt their programs to meet the changing needs of employees.
Shift in Managerial Styles
Performance management has been traditionally done through annual cycles, and by monitoring and tracking. In the Future of Work, organisations will have to increasingly give their employees the choice of working from home. Meetings, check-ins, 1:1 and team huddles for close monitoring will not work in this remote/hybrid model.
It is time to stop close monitoring and really focus on outcome-based management. And this will have to start with re-skilling people managers. Training should be provided on softer skills such as emotional intelligence, being able to sense across boundaries and digital spaces, and being able to be responsive to employees’ needs. The people manager must evolve into being a coach and a mentor – internal coaching and mentoring networks will have to be established. Line managers, business leaders and HR teams will need to collaborate more to ensure that these skills are developed and that the right support system is in place.
For more insights on how organisations should evolve their Future of work Work practices to strengthen their agility and market competitiveness, read the report.
In Australia, Atlassian has made work from home a permanent option for their employees. They will continue to operate their physical offices but have given employees the option to choose where they want to work from.
Some organisations have gone beyond announcing these measures. Slack has talked about how they are evolving their corporate culture. For example, they have evolved their hiring policies and most new roles are open to remote candidates. Going forward, they are evaluating a more asynchronous work environment where employees can work the hours that make sense for them. In their communique, they are open about the fluid nature of the work environment and the challenges that employees and organisations might face as their shift their work models.
Organisations will have to evaluate multiple factors before coming up with the right model that suits their corporate culture and nature of work, but it appears that tech companies are showing the industry how it can be done.
#2 Tech companies evolve their capabilities to enable the Future of Work
Right from the start of the crisis, we have seen organisations make technology-led pivots. Technology providers are responding – and fast – to the changing environment and are evolving their capabilities to help their customers embrace the digital Future of Work.
Many of these responses have included strengthening their ecosystems and collaborating with other technology providers. Wipro and Intel announced a collaboration between Wipro’s LIVE Workspace digital workspace solution and the Intel vPro platform to enable remote IT support and solution. The solution provides enhanced protection and security against firmware-level attacks. Slack and Atlassian strengthened their alliance with app integrations and an account ‘passport’ in a joint go-to-market move, to reduce the time spent logging into separate services and products. This will enable both vendors to focus on their strengths in remote working tools and provide seamless services to their customers.
Tech companies have also announced product enhancements and new capabilities. CBTS has evolved their cloud-based unified communications, collaboration and networking solutions, with an AI-powered Secure Remote Collaboration solution, powered by Cisco Webex. With seamless integration of Cisco Webex software, Cisco Security software, and endpoints that combine high-definition cameras, microphones, and speakers, with automatic noise reduction, the solution now offers features such real-time transcription, closed captioning, and recording for post-meeting transcripts.
Communication and Collaboration tools have been in the limelight since the start of the crisis with providers such as Zoom, Microsoft Teams and Slack introducing new features throughout. In August Microsoft enhanced the capabilities of Teams and introduced a range of new features to the Teams Business Communications System. It now offers the option to host calls of up to 20,000 participants with a limit to 1,000 for interactive meetings, after which the call automatically shifts to a “view only” mode. With the possibility of remote working becoming a reality even after the crisis is over, Microsoft is looking to make Teams relevant for a range of meeting needs – from one-on-one meetings up to large events and conferences. In the near future, the solution will also allow organisations to add corporate branding, starting with branded meeting lobbies, followed by branded meeting experiences.
While many of these solutions are aimed at large enterprises, tech providers are also aware that they are now receiving a lot of business from small and medium enterprises (SMEs), struggling to make changes to their technology environment with limited resources. Juniper has expanded their WiFi 6 access points to include 4 new access points aimed at outdoor environments, SMEs, retail sites, K-12 schools, medical clinics and even the individual remote worker. While WiFi 6 is designed for high-density public or private environments, it is also designed for IoT deployments and in workplaces that use videoconferencing and other applications that require high bandwidth.
#3 The Future of Work is driving up hardware sales
Ecosystm research shows that at the start of the crisis, 76% of organisations increased investments in hardware – including PCs, devices, headsets, and conferencing units – and 67% of organisations expect their hardware spending to go up in 2020-21. Remote working remains a reality across enterprises. Despite the huge increase in demand, it became difficult for hardware providers to fulfil orders initially, with a disrupted supply chain, store closures and a rapid shift to eCommerce channels. This quarter has seen a steady rise in hardware sales, as providers overcome some of their initial challenges.
Apart from enterprise sales, there has been a surge in the consumer demand for PCs and devices. While remote working is a key contributor, online education and entertainment are mostly prompting homebound people to invest more in hardware. Even accessories such as joysticks are in short supply – a trend that seems to have been accelerated by the Microsoft Flight Simulator launch earlier this month.
The demand for prime real estate has been hit by remote working and organisations not renewing leases or downsizing – both because most employees are working remotely and because of operational cost optimisation during the crisis. This is going to have a longer-term impact on the market, as organisations re-evaluate their need for physical office space. Some organisations will reduce office space, and many will re-design their offices to cater to virtual interactions (Figure 1). While now, Ecosystm research shows that only 16% of enterprises are expecting a reduction of commercial space, this might well change over the months to come. Organisations might even feel the need to have multiple offices in suburbs to make it convenient for their hybrid workers to commute to work on the days they have to. Amazon is offering employees additional choices for smaller offices outside the city of Seattle.
But the Future of Work and the rise of a distributed workforce is beginning to show an initial impact on the real estate industry. Last week saw Pinterest cancel a large office lease at a building to be constructed near its headquarters in San Francisco. The company felt that it might not be the right time to go ahead with the deal, as they are re-evaluating where employees would like to work from in the future. Even the termination fees of USD 89.5 million did not discourage them. They will continue to maintain their existing work premises but do not see feel that it is the right time to make additional real estate investments, as they re-evaluate where employees would like to work from in the future.
There is a need for organisations to prepare themselves for the Future of Work – now! Ecosystm has launched a new 360o Future of Work practice, leveraging real-time market data from our platform combined with insights from our industry practitioners and experienced analysts, to guide organisations as they shift and define their new workplace strategies.
Ecosystm Principal Advisors; Tim Sheedy (Technology), Ravi Bhogaraju (People & Organisations), and Mike Zamora (Infrastructure & Offices) provided holistic view of what the Future of Work will look like.
First, let me share a couple of general observations. Currently, we are still in the eye of the storm. Many are unable to see any light at the end of the tunnel. There is quite a bit of negative sentiments, and some fail to see that the situation will ever improve. I am sure similar thoughts occurred during other crises: the 1918 Pandemic (Spanish Flu); the Great Depression of the 1930s; the Dot.com bust of 2001; SARS in 2003; and the Global Financial Crisis/Great US Recession of 2007. During each of these events, a sense of impending Armageddon came over much of the population. Certainly, in each instance, people did experience some personal and social permanent changes, with which they learned to adapt and cope. But, inevitably, the world did go on and Armageddon did not occur.
One of the basic truths I believe, is that humans require and crave interaction with other humans. Think about the videoconferencing applications. The use of these apps grew exponentially as the main communication channel. Instead of just audio, it was audio and video. These mediums greatly assisted society in coping and adapting. Mankind, and the Natural World, will always find a way.
Here are the predictions from the article:
Companies that traffic in digital services and e-commerce will make immediate and lasting gains
Remote work will become the default
Many jobs will be automated, and the rest will be made remote-capable
Telemedicine will become the new normal, signaling an explosion in med-tech innovation
The nationwide student debt crisis will finally abate as higher education begins to move online
Goods and people will move less often and less freely across national and regional borders
After an initial wave of isolationism, multilateral cooperation may flourish
I very much agree with the author’s first prediction. This one is fairly obvious, as it has proven true throughout the crisis with providers such as Amazon, Zoom and others. It is expected to continue into the post COVID world. This is also evident from the findings of the Ecosystm research on the impacts of COVID-19. Organisations intend to continue to use digital technologies, even after the immediate crisis is over (Figure 1).
A Natural State of Equilibrium will Emerge
I believe for each of the areas described in the predictions, there will be various levels of long-term modification. None of them will return to their pre COVID-19 state, as we have all experienced going down the rabbit hole. During the pandemic, due largely to the lockdowns, the pendulum swung significantly towards one side. Many times, when people predict a new view, the current state is considered the New Normal. For me, the relevant question is: Will things stay as they are now, or will there be a new natural state of equilibrium? If so, what will it look like, in each of these areas? I don’t believe there is one answer, or one New Normal for all the dimensions being discussed. I believe a new normal state will potentially be different for each individual, each company/entity and each condition. In a post COVID-19 world there could be 50 shades of grey in each of these areas.
One of the predictions states that remote work will become the default. It must be remembered that part of work is a collaborative effort. While video conferencing has enabled collaborative efforts, the importance of the accidental interaction at the break room, printer, etc. can’t be under-estimated. It is these unscheduled interactions that enable accidental collaboration which can lead to great solutions. Thus, there will be many shades to the Future of Work – there will not be one absolute.
A similar example is a prediction for higher education. Part of the learning process a university offers is interacting with people who are not similar to your background or beliefs. That is one of the benefits of a diverse university. Similar to the corporate environment, many different types of learning environments will enable a person to gain great experiences from the time at university.
The advantage of all these alternatives will be the additional options and benefits to people post COVID compared to the pre COVID-19 world. It will present many great opportunities for entrepreneurs and innovators, as well as end-users and consumers. It will create new and iterative ‘middle spaces’. It will be possible for a David to emerge and challenge a Goliath(s).
The two Chinese characters for the word ‘crisis’ are “danger” and “opportunity”. Just as we are in a dangerous time now, it has also presented new and different opportunities. Those opportunities will continue to exist even when the danger has passed. I am also reminded of the old expression “May you live in interesting times”. It very much applies to all of us now and in the future. I wish the same for all of you.
So, the fact that only 33% prioritise employee experience (EX) (Figure 1) shows a gap in understanding how to achieve excellent CX. In this gap lies the true opportunity of gaining sustainable competitive advantage.
Reset During COVID-19
Due to COVID-19 all of us have had to re look at who we are and how we operate. It has really changed the world of work and business, almost overnight. Companies have invested a significant amount of time on just enabling their employees to stay safe and work from home. Overnight, access to physical offices was gone and everyone was transitioned to digital workspaces.
The Ecosystm Digital Priorities in the New Normal study, that was initiated to gauge the immediate and longer term impact of the pandemic finds that during the crisis, the focus on employees increased drastically, with 75% of organisations introducing measures to manage their employees, while 30% focused more on their customers.
This is a complete reversal in the focus of the organisations. Employees have come into sharper focus. This should be good news. Yes, it is – but partly so.
Initial focus has been rightly on safety and on employees being able to work from home. This was an “adapt” mode, focussed on services like payroll, handling employee queries and onboarding without disruption. After the initial crisis-handling, organisations have been able to focus on digital learning and skills enhancement, while others have been trying to increase productivity (predominantly through giving access to collaboration tools).
The Journey Ahead
As we continue to work in the new normal, one thing comes out even stronger: the new experience needs to be seamlessly connected between all channels – and be agile and more human. It is now even more evident that organisations and people – that are its lifeblood – need to constantly adapt and pivot to meet these changing landscapes.
Customer expectations have evolved in the last few months from a cost and product view, to being loyal to companies that show more empathy and are able to solve their problems. Employee expectations have also evolved, simultaneously – and it now goes beyond a good pantry and an engaging, fun-loving environment. Employees today value connectedness, and expect the organisation to show more care (so they can do their work effectively), and create opportunities for them to grow (job security) as they continue to grapple with the situation.
Thus, the more relevant the EX product and the faster it can adapt to the evolving situation, the better it translates into better engagement and loyalty. But what will definitely be required of organisations, is a continued focus on their employees. If we compare the business priorities before and after COVID-19, we get an indication that EX might once again be left behind in organisations’ obsession about their customers (Figure 2).
The gap is not as wide as before COVID-19 hit us – but there appears to be a shift towards a customer focus. This is evolving differently from our expectations and can potentially cause a misalignment.
Opportunity to Reshape
The reset has pushed EX and CX expectations closer to each other when it comes to designing experience with the company. The opportunity lies in taking a more holistic view of the company business – bringing HR, IT, Customer Success and Marketing teams together into agile tribes and guilds – to design a consistent CX by improving EX.
This would help to increase the speed of prototyping new experiences, and consequently drive greater visibility of what is needed – from skills to IT systems. Overall, it will drive a greater degree of connectedness between the employee and customer worlds; resulting in better engagement and loyalty.
More insights on the impact of the COVID-19 pandemic and technology areas that will see transformation as organisations get into the recovery phase can be found in the Digital Priorities in the New Normal Study
Edmunds.com wrapped the traditional Facilities and Human Resources functions into a combined WEE Team which represents Workplace and Employment Experience. They engaged in a campaign to rid the company of the term “Human Resources”
Airbnbhas a dedicated team to “drive the company’s health and happiness”
Nitro has “turned old-school HR on its head and instead created Employee Experience (EX)
In our upcoming CX research, the early data is showing that EX is the number two initiative for businesses across the globe in 2019. And for information workers, the technology that sits in front of them is a HUGE component of their experience – and their ability to get and stay productive.
Productivity Should Be The Focus Of Our EUC Strategies
Smart businesses understand that. They allow employees to choose (or bring) the devices that they need to remain productive. While desktop PCs might not be making a comeback, they are increasingly being adopted as an alternative to the “laptop as one device” strategy that many businesses embrace. Sometimes a powerful computer with a big screen (or multiple screens) is what people need to get the job done. Other times a small form factor desktop is perfect. Employees may need tablets or smartphones. And other times they need regular laptops, convertibles, or 4G connected laptops. Smart businesses also focus on seamless security – knowing that security is a key enabler of productivity. We are seeing that “The best, most secure device for the job” is taking off as a EUC hardware strategy in businesses that are striving to build a productive and enjoyable employee experience. This helps them to keep employees productive and will help them attract and retain the best talent.
And EUC goes beyond the device to the entire user experience
Collaboration initiatives often disappoint. Limited adoption, and limited interoperability between applications limits effectiveness. There is often a disconnection between the collaboration system and how it helps employees hit their goals. Microsoft is currently rebooting its collaboration strategy – and has created a more modern system that more closely mimics the processes of a typical information worker (Teams). Slackis also taking the world by storm – as it is a collaboration tool that helps people the way they work today – it doesn’t require any training.
IT Operations professionals need to take a fresh look at EUC – but this time within the context of the other initiatives in your business. Do you already have a team focusing on EX? Are there initiatives you can help with – or piggyback on? There is real academic research proving the link between happiness and productivity – or the “state of flow”. IT holds the key to productivity – and therefore happiness – for information workers in particular – it’s time to step up and put employee experience and productivity – not costs – at the centre of our IT end-user computing strategies.