Do you still doubt if the Purpose Economy is a fact? Just go to a mall and see which companies are new and successful and who don’t exist anymore. The purpose economy is there and should be an absolute key topic of every Strategic HR plan. More than ever, it’s time for HR leaders to think market-oriented and close the gap between the (employer) brand promise and the execution of their leaders and teams.
Despite great recognition for Human Resources (HR) as a source of added value within organizations, the importance of a clear Purpose and Employee Experience are poorly understood. Many HR departments are still wrestling with a classical HR approach and with a single focus on HR processes and instruments such as competency management, strategic workforce planning and talent management programs. What is the purpose of using all of this without alignment with the goals of your organization? And why is it necessary that HR plays a significant role in improving Customer- and Employee Experience?
Customers are willing to pay more for a great experience
Great companies have great leaders who are aware of the Purpose Economy. They are in a battle to turn customers into Raving Fans. Customers are rewarding great Customer Experiences more than ever! According to the American Express 2014 Global Customer Service Barometer customers are prepared to spend more money for excellent service. More than two third of (American) consumers say they are willing to spend 14% (!) more for the same product or service at a company that they believe delivers excellent service. The study also makes clear that Word of Mouth influences customer behavior the most.
I believe that social challenges and the desire for self- expression and community are new market opportunities in the Purpose Economy. Just as data storage and software development formed some of the Information Economy markets, things like sustainable energy and resource sharing are emerging as Purpose Economy markets. By thinking of these as markets, we can imagine powerful new ways to create value by helping people and the planet. By using the language of economics and investment, we attract the human and financial capital needed to build and grow markets in the Purpose Economy.
Aaron Hurst – Author of “The Purpose Economy”
Customer Experience is good business because it creates loyal customers who are willing to pay more for a memorable experience. Your internal customers are your employees; they make the difference. During the last decade, leaders have placed the emphasis on employees ‘responsibility to know the customers’ needs and meet them. These days many employees (especially the Millennial’s) are expecting the same from their employer. According to the Global Workforce Study 2014 of Tower Watson (among 32,000 participants) 70% of employees agree that their organization should understand employees to the same degree that employees are expected to understand customers. However, the research shows that fewer than half (43%) of leaders understand their employees this way.
If your employees are not happy at work, it’s unlikely they will be able to create customer loyalty. You need to go to the limit to keep your employees as happy as you want your customers to be. When an employee is passionate about what he or she does, they will be fully engaged to improve themselves, their performance, and the business in general. Continually improving performance starts with a good knowledge of the desired customer and employee experience.
88% of employees are not passionate about their job
Unfortunately, the majority of employees are not passionate. In 2014, Deloitte released a report that found 88% of employees don’t have passion for their work, and so they don’t contribute their full potential. Of course, passion is much stronger than engagement. But it should go without saying that engagement comes first, happiness and performance will follow.
A clear ‘why’ of the organization is not only necessary to attract and retain customers, but also employees. Therefore, leaders and HR have a crucial role to put employees first, starting by developing and executing a HR plan that is focused on the desired customer- and employee experience. Here are 3 ways to kick start your journey:
What is the existence of HR?
Start with the purpose (Why) of the organization and existence of HR. Take the desired customer- and employee experience as a starting point before you design or execute your HR instruments and processes. Start ‘Reverse’! For example make sure the desired Customer- and Employee Experience is incorporated in your Performance Cycle.
What is the desired experience of your brand for your customers and employees?
Design ‘Reverse’ will help you to keep only relevant processes and organize them to work together to provide employees with a seamless experience that brings real value to both the employee and to the organization. For example, start with a project team. Ideally multidisciplinary (Leaders, HR, Marcom, IT, etc). Do a gap analysis and close the gap by improving your approach.
The way people look at a job is decisive to a great extent for how they behave and what they achieve.
Andre A. Wiringa – Author of “Reverse“
What does a great employee experience look like from end to end?
Focus on creating and designing a compelling employee experience: seeing the world through the eyes of your employees, staying connected, and being aware of their major milestones. The employee experience should reflect and drive your culture, helping employees live your (brand) promise and lead with purpose. Make a practical Employee Journey (from start to finish) together with different stakeholders in your organization. Use the outcomes to re-design your HR strategy, up-skilling and leadership programs.
Do you want to improve Employee- and Customer Experience in your organization? Join the Be(come) a STAR program. If you want to incorporate this in your (immersion) training program, you can become a Certified STAR Facilitator. Including a three day course, complete training toolkit and much more. Read more about the program and download the factsheet.