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IDCTECHNOLOGYSPOTLIGHT

Sponsoredby:Workday

Introduction

Recentworkforcedisruptionfueledbythepandemicand

socialunresthascreatedanessentialneedformature

employeeexperience(EX)programswithinorganizationstoengageemployeesaskeystakeholders.Acentral

componentofmatureEXprogramsistheirabilityto

underpinnewworkingmodels,includinghybrid,remote,

andfullonsite.Thisisaccomplishedbycreatingdigital

employeeexperiences,orEXbydesign,thatprovidea

foundationofsimplicityandconsolidationacrossinterfaces,onlinesystems,apps,andsurveyingmechanisms.Employeeexperiencemanagementsystemsmustbeintegratedintotheflowofworkbyprovidingpersonalizedemployee

journeyscuratedthroughpersonalizationusingartificialintelligence(AI),machinelearning(ML),andnatural

languageprocessing.Thiscreatesexperiencesthatreflecthowemployeesworkratherthanforcingthemtoworkaccordingtohowsystemsarebuilt.

PersonalizedEmployeeJourneys

Thepowerofcreatingdigitalemployeeexperiencesgoes

beyondworksimplification;italsoprovidesopportunitiesto

Matureemployeeexperienceprogramshelporganizationsbemoreresilient.Tofosterbetteremployeeexperiences,organizationsarelookingtoimplementintegrated,

cross-functional,end-to-endsystems.

OptimizingHumanPerformance:ProvidingtheRightPeopleExperiencesThroughDigitalAcceleration

April2021

Writtenby:LisaRowan,ResearchVicePresident,HR,Talent,andLearningStrategies,andLauraBecker,ResearchManager,EmployeeExperienceandSustainability/ESGServices

ATAGLANCE

KEYSTATS

AccordingtoIDCresearch:

?54%ofITexecutivesand58%ofC-levelexecutivesare

mostfocusedonemployeesatisfactionasakeyHRmetricfor2021.

?70%oforganizationswithmatureEXprogramswillhave

returnedtopre-2020growthtrajectoriesbytheendof2021.

WHAT'SIMPORTANT

MatureEXprogramscreatedigitalemployeeexperiences,

providingsimplifiedworkflowsacrossinterfaces,online

systems,apps,andsurveyingmechanisms.AsEXbecomes

integratedintoworkflows,collaborationbetweentheHRandITfunctionsisessential,ensuringwinsfor:

?TheCHROwhoprovidespersonalizedjourneysthroughdeepanalyticsandinsights

?TheCIOwhosupportsuniversalaccessandcross-

functionalinsightsthroughanend-to-endsolutionwithbuiltinsecurityandauditability

KEYTAKEAWAY

HRandITcollaborationthatprovidesemployeeexperiencesintheflowofworkwillbeessentialtosuccess.

curateindividualized,customemployeejourneysthatarepersonalizedthroughtheuseofemergingtechnologiesandthe

"human"/managerelement.Thesepersonalizedjourneysforemployeeswillenablefullemployeedevelopmentandprovidetheopportunitytomaximizeeachindividual'scareerpotential.Whetherincreasedmanager/employeecommunicationaboutperformanceimprovement,identifyingtrainingopportunitiesforreskilling,ormatchingskillsforgigprojects,theseactivitiesarebeneficialforemployeegrowthandsatisfactionaswellasorganizationalimprovementandproductivity.

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EXisrapidlybecomingakeydifferentiatorinthewarfortalentandemployeeretentionastheneedforacultureof

"belonging"hasbecomethenumber1priorityofemployeesforthecomingyears.Themostmatureemployee

experiencesareprovidedthroughanintegratedsingleplatformandincludeemployeelistening(thevoiceofthe

employee),well-being,employeeengagement,recognition,andopportunitiesforupskilling/learningtomaximize

careerdevelopmentandbenefits—allinterconnectedhumancapitalmanagement(HCM)domainsthatincludedigital

technologiesthatarecriticaldifferentiatorsinhiring,developing,andretainingtalenttoprovideacompetitiveadvantage

fororganizations.Researchhasconnectedemployeeexperiencewithbusinessperformanceandresilience,andtherefore,itisanimportanttopicinthefutureofwork.

OrganizationswithmatureEXprogramsfocusonaworker'sexperiencesoverthecourseoftheworker'sjourneyatan

organization.EXincludestheabilitytoengageemployeesinallfacets—whetherthroughmaintainingacultureof

diversity,listeningtothevoiceoftheemployee,engenderingasenseofinclusionandbelonging,orpromotingemployeewell-being(mental,physical,andfinancial).Inaddition,EXbringsdata,processes,andpeopletogetherinaunifiedportalexperiencetoeaseworkerfrustrationsandgainproductivitytocreatebusinessimpact.Oftenworkersmustuse20or

moresystems/appsadayinalargeenterprise.Businessleadersarerealizingitistimetocreatemorefrictionless,collaborative,integrateddigitalworkspacesforemployeestofeelengaged,trusting,andloyaltotheirorganization.

EmpoweringemployeesthroughEXisnotanendinitself.OrganizationswithmaturelevelsofEXremainmoreresilientindifficulttimes,whichleadstobetterbusinessoutcomes.Employeelisteningandfeedbackmechanismsareessentialto

employeesuccessandproductivity.Managers'abilitytoactonemployeefeedbackandcreateactionplanstoaddressissuesresultsinsignificantlybetteroutcomes.Inaddition,organizationswithhigherlevelsofemployeeexperiencehaveworkerswhoplantostaywiththecompanysignificantlylonger.IDC'sEXMaturityIndexfoundthatemployeeswho

experiencedhigherlevelsofEXpriortoandduringthepandemicwere:

?1.5xmorelikelytofeelthattheirorganizationprovidesthemwitheverythingtheyneedtoperformtheirjobwell

?3xmorelikelytofeelthattheirorganizationisprovidingastrongCOVID-19response

?5xmorelikelytofeelstronglyengagedwiththemissionandpurposeofthecompany

EmployeeswhoworkfororganizationswithmatureEXprogramsaremoreengagedandcommittedtothecompany,addingsignificantbusinessimpactandresilience.Suchemployeesare:

?2xmorelikelytofeelthattheiremployercommunicateswellwiththem

?1.7xmorelikelytotrusttheiremployer

?30xmorelikelytofeelthattheiremployerinveststimeandefforttomakeworkersfeeltheyarepartofoneteamdrivingorganizationalgoals

?1.5xmorelikelytobelievethattheiremployerprovidethemwiththeprocesses,tools,andprocedurestodotheirjobswell

?1.7xmorelikelytoplantostayintheirjobsfor6–10moreyears

TheseresultsarestrikingandshowtheimportanceofmatureEXprogramsindeliveringbetterbusinessoutcomesusingbothtraditionalandnewkeyperformanceindicators(KPIs)suchasemployeeretention,absenteeism,andproductivity.

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SituationOverview

IDC'sEXMaturityIndexstronglysuggeststhatmatureEXprogramsleadtoorganizationalresilience.Infact,IDCpredictsthatbytheendof2021,70%oforganizationswithmatureEXprogramswillhavereturnedtopre-2020growthtrajectories

comparedwithonly20%oforganizationswithimmatureEXprograms.OneindicationofthisfocusisorganizationalspendonEX,whichisplannedforseveralkeyareas,including:

?Definingnewdigitalworkingmodelsemphasizingimprovedemployeeexperience,EXbydesign,byusing

innovativetechnologytopersonalizeworkerexperiencesthroughintelligentworkspacedesign(e.g.,simplifyingandunifyingprocesses)

?Employeewell-beingprogramsincludingphysical,mental,andfinancialcomponents

?Employeeengagement/listeningmechanismsincludingfeedbackandactionplansthroughmanagementbuy-in?Diversity,equity,andinclusion(DE&I)initiativesandaccountabilitywithbelongingasafoundationalcomponent

?Rewardsandrecognitiondesignedforsocialacknowledgment

?Peopleanalyticstogaindatainsightsfromsurveying,assessments,andoverallHRIStracking

AsignificantaspectofEXisinfluencedbydigitalcapabilities.Thetimehascomeforunified,frictionlessworkflowaccess

forworkers,includingfull-timeemployeesanddesklessemployees.Inthepast,EXmayhavebeenthoughtofas"just"anHRissue.Withtheriseofthechiefhumanresourcesofficer(CHRO)duringthepandemicchallenges,ithasbecome

increasinglyclearthatfunctionsmustcollaboratetoeffectrealchange.Giventheemphasisonenablingdigitalemployeeexperiences,theCHROandtheCIOwillneedtoworktogethertocreateintelligentdigitalworkspaceswithEXatthecore.Inadditiontoimprovingemployeesatisfaction,improvedworkflowssaveorganizationsbothtimeandmoneythrough

increasedworkerautonomy,whichcanlowertheburdenontheHRteam.Improvedworkflowsenhancedbydigital

capabilitiesalsoareessentialfortransformingwork.Nowisthetimetodevelopandimplementthe"right"organizationalsolutionstocreateEXbydesignforemployees.

Worktransformationiscriticalforeffectivelyscalingdigitaltransformationinitiatives.Worktransformationapplications

softwareautomatesbusinessprocessesthatcovertheentirespanofanemployee'srelationshipwiththecorporationandwilldrivegreaterstakeholder(includingemployee)engagement,innovation,andbusinessvalue,enablinganorganizationtoestablishcompetitivedifferentiationinadynamicbusinessenvironment.IDCresearchshowsthatemployeesas

stakeholdersarekeytosuccessfulbusinessoutcomes.IDChasequatedEXneedstoMaslow'shierarchyofhumanneeds.Therearefoundationallevelsthatareessential,suchasfeelingfinanciallysecure(physiologicalneeds),ultimatelybuildingtowardpersonalizingandmaximizingtheindividualworkerjourneytoself-actualization.Thus,providingmatureEX

programsleadstosignificantorganizationalresiliencewithmorecommitted,productiveemployeeswithlongertenures,allcontributingtofasterpost-COVID-19recoverytrajectories.

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ImprovingtheWorkExperienceintheNewNormal—EnabledThroughDigitalEmployeeExperiences

Organizationsmustdevelopplatformsthatarecollaborativeandeasytouseinordertocreatefrictionless,seamlessworkenvironments.ForEX,HCMplatformscansupportmakingtheworkenvironmentmorehuman;yettodoso,theymustbeintuitiveandcomprehensiveandautomateallthebusinessprocessesthatcovertheentirespanofanemployee's

relationshipwiththeorganization.

Newworkingmodels,emphasizingtheemployeeexperience,involveaparadigmshiftinhowresourcesaredeliveredtotheworker,acceleratingtheshifttodigital.Inaddition,humanizingtheworkexperiencecaninclude:

?Creatingaunifiedentrypointandintuitiveuserinterface,increasingworkerproductivityandsatisfaction

?Usingemployeelisteningandcommunicationtobuildamoreagileworkforce

?Providingsecureaccessfromanywhereonanydevice

?Personalizingupskillingandreskillingopportunitiesthroughemergingtechnologiestomaximizecareerdevelopment

DigitalAccelerationofEX:TheNeedforCHROandCIOCollaboration

Alongwiththetechnologyevolution,theroleoftheCHROhassignificantlyincreasedduringthepandemicandeconomiccrises,withCHROshavingearnedaseatattheC-suitetable.TheabilityoftheCHROtoinfluencebuyingdecisionsandtheimportanceofemployeeexperiencehasexpandedexponentially.ImperativesfortheCHROincludepurpose-builtsystemsforHRthatstreamlinetheabilityofemployeestofindinformationandtakeaction.ReducingthetimetocompleteroutineHR-relatedtasksisenhancedbysingle-systeminteractionthatincludesautomationandmachinelearningforpersonalizingfunctionality.Asforfocus,anEXsystemshouldsupportnewskilling,careerdevelopment,andcontinuouslearningand

includefeaturesthatcaptureemployeesentimentandfostereveryaspectofemployeewell-being.

FromtheCIO'sperspective,EXsystemsideallyshouldhaveanarchitecturethatprovidesasinglesourceoftrusteddatacompletewithsecurityacrossbothoperationaldataandcontextualdata.Thesecurityshouldbebuiltinandauditable,allowingself-servicereal-timeanalytics.Inaddition,anyEXsystemshouldbeendtoendandsupportemployees

wherevertheyareviaanydevice,includingmobile.Toeffectivelycreatetheseworkenvironments,organizationsneedtobuildbridgestofurtherthecollaborationbetweentheCHROandtheCIOtoenablethedigitalaccelerationunderlyingthedigitalemployeeexperience.

BoththeCHROandtheCIOwillplayalargeroleinimprovingthedigitalemployeeexperience;andbuildingbridgesbetweenthetwowillservetofurtheraccelerateneededenhancementsandamatureEXfoundation.

FullDigitalIntegration

ThefullintegrationofEXcapabilitieswithcoreHRandothertalentsystemswilllikelydriveorganizationaladoptionofEX

evenhigherbycreatingamoreseamless,unifiedworkenvironmentforworkersandmanagers.IDCresearchhasfoundthatorganizationswithstrongEXprogramshaveemployeeswhoare5timesmoreengagedinachievingorganizationalgoals

and35timesmorelikelytofeelpartof"oneteam"drivingbusinessresults.OrganizationsareadaptingtheirEXstrategiesbyrecognizingtheimportanceofmanagingandmeasuringemployeesentimentandfeedback,providingwell-beingresourcesfortheiremployees,andcreatingtwo-waycollaborativedialoguestoactivelyrecognizeissuesandaddressthemtoimproveoverallemployeesatisfaction.

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3

ArecentIDCsurveyfoundthat62%oforganizationsintendtodeploysignificantlymorefrequentemployeetouchpoints

movingforwardwellpastthepandemic.Byinvestinginmorefrequentemployeetouchpoints,organizationscanuse

employeefeedbacktocreateactionableplansandtwo-waydialoguetoaddressissuesandputtherightbusinessprocessinplacetofacilitateimprovingtheemployeeexperiencetogainmaximumcompetitiveadvantage.Followinguponemployeefeedbackisalwaysimportant,butitisevenmorecriticalintimesofincreasedexternalstressfactors.Duringcrises,employeesneedgreatercareandextensivecommunicationtounitetheworkforcearoundtheorganization'scultureandvalues.Inturn,unitingtheworkforcearoundorganizationalvalueswillresultingreaterbusinessresilience,productivity,andimpact.

Intoday'sworld,HCMpracticesneedtointegrateEXattheircore—somethingseenacrosstheorganizationfromtheC-leveltoHRandIT.ArecentIDCsurveyof679respondentsaskedwhatHRmetricsexecutiveswouldliketoseeintheHRfunctionrelatedtodigitaltransformationin2021and2022.TheresultsindicatethatEXisintegraltobusiness

strategiesbyemphasizingmetricsfocusedonpeopleexperiences(seeFigure1).

Interestingly,theITexecutiveswhoweresurveyedselectedemployeesatisfaction(eNPS)asthetopmetric;indicatorslinkingdigitalinvestmentstoemployeebehaviorandindicatorslinkingemployeeproductivitytodigitizationalsoranked

highlyamongITrespondents.

FIGURE1:TopHRFunctionMetrics

Employees'satisfaction

(e.g.,employeeNetPromoterScore[eNPS])

Employees'mentalhealthandhappinessmetrics

Indicatorslinkingemployees'productivitywithdigitalization

Indicatorslinkingdigitalinvestmentsandemployees'behavior

Diversityandinclusionindex

Talentattraction

4743

44

45

5451

58

34

38

4343 43

40

4441

4539

52

2933

24

427

39

020406080

(%ofrespondents)

C-levelLOBITTotal

n=679

Note:ThesurveywasconductedfromOctober15toOctober30.

Source:IDC'sCOVID-19ImpactonITSpendingSurvey,October2020

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ThefactthattheseissuesandmetricswillbemostvaluedinthecomingtwoyearsbytheHRfunctionisatestamenttotheimportanceofemployeeexperience,thenewcross-functioncollaborativenatureofinitiatives,andthefoundationalroleofEXandcollaborationinanorganization'srecoveryandresilienceduringdifficulttimes.

Trends

TherelationshipbetweenrobustemployeeexperienceprogramsandbetterbusinessoutcomesisalreadyimpactingITspendforengagementtechnologies(surveying,well-being,recognition,etc.)andthecreationofintelligentdigital

workspaces.It'snotjustaboutcreatingUIandsingle-portalaccess;it'saboutcreatingexperiencestodrivechangeandengagement.Organizationsplanonincreasinginvestmentsdespitethecurrenteconomicandpandemicrealities.IDCresearchrepeatedlyshowsemployeeandworkforceengagementtechnologiesasareasofincreasedspenddespite

tighterITbudgets.Infact,44%oforganizationsworldwide,and47%intheUnitedStates,plantoincreasespendingonthesetechnologies.Intotal,over70%plantomaintainorstepupspending.

WhilethemarketforEXtechnologyisgrowing,ithasbeenfragmentedbetweenpure-playtechnologyvendors(each

focusingonsurveys,well-being,recognition,etc.),HCMvendorsenteringtheEXspace,andprofessionalservicesfirms

focusingonEXaspartofworkforce,workdesign,andHRtransformationinitiatives.Somepure-playtechnologyvendors,particularlyontherecognitionside,arenowblurringboundariesintermsofofferingsbytreadingintonewterritory.

Recently,traditionalITservicesvendorshavealsoenteredtheEXmarket.

Theconvergenceofsomeoftheseplayerswithintheecosystemistobeexpectedandwillcreatemorefluid,accessiblesolutionsforcustomerswithEXfunctionalityandfeatureintegrationatthecore—makingEXbydesignmoreaccessibletoemployees.ItwillalsoprovidegreaterdepthofproductandvisibilityfororganizationsintotheirworkforcetoimproveoverallEXandbusinessperformance.

TraditionalHCMcompaniesthataremovingquicklyinto"experiencemanagement"arewell-positionedtofacilitatethe

integrationofEXintotheirplatformswiththeircoreHRandothertalentcapabilitiesthatcandriveorganizationaladoptionofEXevenmorestrongly.Oftenthesefeaturesareembeddedinworkflowstoimproveemployeeproductivitywithseamless

capabilities.Byprovidingemployeeswithaunifiedentrypointtosystems—withpersonalizationandreal-time,context-awareapplications—organizationsaimtoimprovetheemployeeexperience,benefittingworkers,managers,andtheorganization.

ConsideringWorkday

Workdayisaproviderofcloud-basedfinancialandHCMsoftware.Accordingtothecompany,elevatinghumanperformanceistheprimarydriverofdigitalacceleration.WorkdaywasquicktorecognizetheEXtrendandhasbeenbuildingaroundits

"peopleexperience"functionalityforsometime.Thecompany'sPeopleExperienceofferingsaredesignedtomeetthe

demandforimprovedemployeeexperiencesbydeliveringpersonalized,ML-driventechnologythatwillmeettheindividualworker'sneedsandresultingreatertrustandloyaltytotheemployer.AccordingtoWorkday,PeopleExperiencecapabilitieswillharnessdatatopersonalizetheemployeeexperience,creatingatailored,immersiveenvironmentthatwillenablegoalalignmentandachievementthroughouttheorganization.ForWorkday,PeopleExperienceisthefoundationofemployee

experience(seeFigure2)designedtoengageworkerswithapersonalizedapproachthroughmachinelearningandnaturallanguagetechnologies(enablinganalyticsofqualitativetextcommentary).Inaddition,Workday'splatformcanbeintegratedwithcollaborativetoolssuchasMicrosoftTeamsandSlacktoprovideaunified,frictionlessenvironment.

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TwonewofferingswithinPeopleExperienceareWorkdayJourneysandWorkdayHelp.WorkdayhasalsoaddedVIBE—aDE&Isolution.

WorkdayJourneysenablesorganizationstoprovidepersonalizedexperiencesthatguideworkersthroughimportantmilestonesoftheemployeelifecyclesuchasonboarding,careerdevelopment(becomingamanager),ordealingwithCOVID-19withadedicatedtoolkit.

WorkdayHelpisaservicedeliveryapplicationprovidingknowledgeandcasemanagementcapabilitiesforfasterandmoreintuitiveresolutions.

WorkdayVIBEhasthreecomponentsthatlendthemselvestoviewtheintersectionalityofmultipledimensionsof

employees,withthemostcommoncombinationsbeinggenderandethnicity,genderandage,andgenderandsexualorientation.VIBEprovidesover60identityfields,suchasgendercodes,ethnicity,veteranstatus,andLGBT.Usingthesehighlyspecificidentities,employerswillbeabletobreakdowndataatamicroleveltoexaminetrendsandpatterns.

Mostrecently,WorkdayannounceditsacquisitionofPeakon,anemployeelisteningplatformthathelpsorganizationsharnessthevoiceoftheemployeetoturnemployeeinsightsintoactions.WiththeadditionofPeakon,Workdaynowprovidesanend-to-endemployeeexperienceplatformthatcombinestoolsandapplicationsfromWorkdaywith

Peakon'scontinuousemployeelisteningandmeasurement.

FIGURE2:Workday'sEmployeeExperienceManagement

Skillsandcapabilities

Workday

Inclusionandempowering

Employee

Collaborationandgrowth

Experience

Management

Elevates

Reducedfriction/

increasesimplicity

Engagement

Employeeneeds

Source:Workday,2021

Inadditiontoincreasedemployeeengagement,WorkdayenablesgrowthwithinseveralkeyEXareas,includingpeopleanalytics;DE&I,belonging;andcareerdevelopment.DeeperdatainsightsandadvancedanalyticsthroughWorkday

Prismwillenableinsightsintoworkerexperiences,trenddetection,andproblemidentificationandtheabilitytocreateactionplanstomakepositivechanges.

AsanintegratedEXsystemthatincludesmachinelearning,self-service,securityandanalytics,Workday'splatformcanappealtotheneedsofboththeCHROandtheCIO.

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Challenges

EmployeeexperienceintegrationintotheHCMspaceisarelativelynewtrend.TheoverallmarketforEXisbecoming

increasinglycrowdedandcomplicatedasHCMvendors,pure-playtechnologyvendors,andITservicesvendorsenteringthemarketareembeddingEXlayersintoworkflows.Workdaywillneedtoclearlycommunicatehowitsplatformcan

providethepeopleexperiencecapabilitiesthatHRandITneedtodeliverrobustemployeeexperiences,createemployeesatisfaction,andincreaseproductivitythroughcohesiveplatformintegration.

Conclusion

Thepandemicandsocialunresthavechangedthewayorganizationsviewtheworkforce;

Thepandemicand

employeesarenowseenaskeystakeholders.Positiveemployeeexperiencesareintegral

socialunresthave

toachievingbetterbusinessoutcomes.TraditionalHCMsoftwaresolutionvendorshavebeeneyeingamovetowardembeddingemployeeexperiencesacrosstheirplatformstoenhancetheworkerexperienceandmakeworkmoreengagingandfrictionless.Workdayhasbeenoffering"peopleexperience"functionalityformanymonthsnow,andthe

changedthewayorganizationsviewtheworkforce;

Peakonacquisitionwillservetogivethecompanysignificantlymoredepthinthe

employeesarenow

employeelistening,feedback,andactionspace,enablingcustomerstoprovidemore

seenaskey

matureEXprograms

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