Prevent The Great Resignation by increasing employee loyalty

In its September meeting, CX Network’s advisory board discussed The Great Resignation and its effect on businesses. Here, CX Network speaks to the head of the Qualtrics XM Institute, Bruce Temkin, in more depth about how employee engagement can protect companies from the great resignation trend.

CX Network: Why do you think The Great Resignation is taking place, and what are some of the CX consequences brands are at risk of experiencing? 

Bruce Temkin: Human beings have been cooped up for about 18 months, so there is some pent-up need to make some changes. In some cases, just any changes to break the monotony. During the pandemic, I think many people stayed put in their roles whether they were happy or not. We were all just trying to survive. So, some of the surge is just catching up with a normal level of job transiting that is been artificially surpassed for a while.

The move to remote work has also played an important role win a couple of ways. First of all, the dramatically increased number of roles where people can work from anywhere has opened up a myriad of new opportunities that is stimulating employees to consider new roles. Also, remote work has lessened the connection that employees have with the other people in their organizations. This lessens the mental hurdle associated with leaving. 

There are serious CX consequences whenever there is employee turnover. It takes time for new employees get up to speed, so either things do not get done or they are not done effectively while a company is looking for or training new employees. Remember, everyone ultimately impacts customer experience, so any employee turnover can be problematic. It is even more of an issue when the turnover happens with customer-facing organizations where the employee shortages and inexperience can have an immediate impact. 

CX: What have been the most inspired employee happiness initiatives you have seen in your career? 

BT: I have been privileged to see a lot of organizations create positive employee experiences. It only works if it is part of their ethos, and not just an initiative. You will not find a more engaged workforce than the United States Automobile Association (USAA), where employees are onboarded with a deep understanding of their target customers, U.S. military families. The connection between each person’s job and the mission to facilitate the financial security of its members, associates and their families. Every employee understands their role, right from the start, in delivering on that mission. Companies often try to force employee engagement by slapping on metrics and measurements or coercing them through compensation. While such extrinsic rewards may change some behaviors, people tend to be more motivated by four intrinsic needs: a sense of meaning, choice, competence and progress.

CX: How can brands limit the impact of the Great Resignation on customers? 

BT: We estimate that more than 70 million U.S. employees are at least somewhat likely to look for a new job within the next six months. That is a lot of people changing positions. This environment will not impact all organizations in the same way, so make sure you end up being one of the winners.

First of all, engage your employees to limit overall attrition and make sure to retain your most impactful employees. Along with the Great Resignation is a flow of new employees to new organizations, so make sure that your employer brand is so strong that you bring in the best of the best. With so much anticipated turnover, it is also critical to improve the efficiency and effectiveness of your onboarding efforts. I talk about “The Great Onboarding,” this is a key area of focus that often goes under-resourced and under-designed but likely needs immediate attention across many firms.

CX: How can good employee experience help boost customer experiences? 

BT: We often refer to a model called the “The Employee Engagement Virtual Cycle.”  Highly engaged employees not only behave in ways that benefit their organization – they work harder, help others, recommend potential improvements and go above and beyond what is expected of them – they also create better experiences for customers. Good employee experience cuts back on turnover, so it negates all of the negative customer experience that can occur when people leave. This tight connection between employee engagement and customer experience is the first component in a system that drives better business results.

CX: How can brands ensure employees feel fulfilled in their roles and see the difference they are making in society? 

BT: Wow, this is quite the question. It would be great for all employees to feel like the work they are doing is making a difference in society. I think a core to this is for organizations to focus on what I call purposeful leadership. A strong sense of purpose inspires and energizes people, and it motivates them to overcome obstacles. It is the foundation for building loyalty and commitment. Since leaders are ultimately responsible for ensuring that an organization behaves as a cohesive unit, they must articulate and commit to a clear purpose – one that aligns all employees’ day-to-day decisions and is more compelling than simply increased profits. Qualtrics’ XM Institute has identified five characteristics of purposeful leaders: Persuasive, Passionate, Propelling, Positive, and Persistent.

To discover more from Qualtrics, download their whitepaper ‘The ROI of Customer Experience in 2021’.