Employee Experience Becomes a Top Priority for Human Resources Leaders, Highlighting Challenges – Study

Employee Experience Becomes a Top Priority for Human Resources Leaders, Highlighting Challenges – Study

DUBAI, United Arab Emirates  22 February 2021 —The number of decision-makers in human resources (HR) who say employee experience (EX) is the most important aspect of their HR strategy has nearly tripled over the last two years. The results were published in a new study from Forrester Consulting LLC commissioned by SAP, Qualtrics, an SAP company, and EY. Likewise, budget for EX has almost doubled over the same time period, from 6% to 11% and is expected to increase to 16% within two years.

Employee experience is at an inflection point as organizations look to support an increasingly remote workforce while maintaining culture, flexibility and productivity. Still, most EX initiatives remain relatively immature, according to the “Close the Employee Experience Gap” study, which surveyed 900 HR decision-makers and 900 full-time employees. Organizational silos, lack of executive support, inconsistent measurement, dispersed data and misalignments between HR departments and employees leave room for improvement in creating EX initiatives that drive lasting change.

For example, only 24% of HR teams have an executive sponsor for their EX work, and 71% say it is a challenge to gather real-time information about employee experience. Only 17% of HR organizations say they track KPIs that reflect cultural strength. While 81% of employees believe creating and sustaining a positive culture is the most important aspect to creating good EX, only 58% of HR managers agreed. Furthermore, only 15% of employees expect excellent EX from their companies.

“Learning and training, diversity and inclusion and a culture that encourages people to bring their whole selves to the workplace are all part of the employee experience,” said Jill Popelka, president, SAP SuccessFactors. “Employee experience cannot be isolated to HR or solely focused on increasing productivity. It needs a holistic strategy driven by leadership and shaped by continuous feedback from employees.”

Despite existing challenges, the study confirmed that EX initiatives can drive immense benefits for the overall business. HR leaders said that EX initiatives have a positive impact on workforce agility (59%) and organizational agility (67%). Meanwhile, nearly 80% of employees said that EX initiatives improve their productivity and quality of work. This translates into increased revenue, according to the 77% of HR leaders who said that EX initiatives have increased revenue and the 61% who said they saw improved profitability.

Read the full study and view the infographic. For more information, visit the HR and People Engagement area of sap.com and the SAP News Center.

Visit the SAP News Center. Follow SAP on Twitter: @SAPMENA,  @SuccessFactors, and @sapnews.

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About SAP

SAP’s strategy is to help every business run as an intelligent enterprise. As a market leader in enterprise application software, we help companies of all sizes and in all industries run at their best: 77% of the world’s transaction revenue touches an SAP® system. Our machine learning, Internet of Things (IoT), and advanced analytics technologies help turn customers’ businesses into intelligent enterprises. SAP helps give people and organizations deep business insight and fosters collaboration that helps them stay ahead of their competition. We simplify technology for companies so they can consume our software the way they want – without disruption. Our end-to-end suite of applications and services enables business and public customers across 25 industries globally to operate profitably, adapt continuously, and make a difference. With a global network of customers, partners, employees, and thought leaders, SAP helps the world run better and improve people’s lives. For more information, visit www.sap.com.

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