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EX
Applying Market-driven Research
to find Compelling Employee Experiences
for the Future Workforce
Research conducted in association with The Global Alliance in Management Education and CBS
Research & Insights •
Introduction:
EX will Reign in the Future of Modern Enterprises
By Sven Hultin, Zalaris Group Advisory, Engagement & Storytelling
2
The EX Point of Departure......................................3
Assessing the Variables In Your EX Ascent............5
Understanding and Avoiding Pitfalls......................7
Crossing the EX Delta.............................................9
In November 2018, Zalaris
conducted a workshop on
“disruption” featuring MIT
Sloan Dr. Stephanie L. Woerner
at Epicenter Stockholm. The
importance of Employee
Experience (EX) was among
the major takeaways. Whatever
HR does going forward, the quality
of EX will be inextricably linked to an enterprise’s
overall success.
It comes down to engaging and retaining high-caliber
employees that ultimately stay longer to drive innovation
and productivity. This is reflected in Zalaris’ value
proposition, which can be summed up in three steps
that empower HR to align with the business, stay
relevant and effectively face disruption:
1. Prepare the transformation journey to the cloud.
Start with the core, including payroll fundamentals
and exceptional service levels for the total workforce.
2. Get to the cloud. Outsource core transactional HR
and HCM functions. Zalaris delivers holistic and
integrated next-generation end-to-end payroll and
HR services.
3. Move beyond the cloud. Aim agile and align with
business as a trusted partner. Whatever you do here,
you will find a way to change the company in a never-
ending cycle using all available transformation levers:
analytics, user adoption, automation, advisory services
and/or point solutions. The cloud is not the destination.
It’s the new beginning.
A trusted partner will remain crucial yet in changing
capacity as your modernized HR journey unfolds. In this
report, we engaged Copenhagen Business School and
CEMS to confirm the ideal way forward. Your awareness
and understanding of the issues and opportunities will
help ensure the best related decision making.
We look forward to supporting you every step of the way!
Quick Links to Key Content
3
5
7
9
3
By Mette Ma Pallesen, Jinwen Lu and Elias Linder
Agility is the new face of human resources management and payroll services. To ensure the best
possible employee experiences means being able to adapt and change as employee expectations
morph. Inaction on this front will easily doom many companies in the years ahead. Your employee
experience (EX) ambitions begin by answering these questions:
• What are the most promising and crucial employee-experience drivers for the future workforce?
• What tested framework for an agile market-driven approach will provide a closer connection with
business needs – and yield a structured and practical approach to gathering market insights?
• What are the significant factors that motivate young adults, the future workforce, and influence
their decision-making when choosing an employer?
The following chart illustrates how the traditional paradigm of HR services has shifted to a more
employee-centric model.
The Employee Experience Point of Departure
Key Questions All Companies Face
“The future of work is all about a compelling experience.” – Dr. Woerner, MIT Sloan
Zalaris increasingly empowers HR in an agile manner to prioritize the employee experience variables that matter –
using the data Zalaris already processes, alone or together, with select point solutions or service providers in the
Zalaris ecosystem. Source: A Zalaris-modified Everest Group illustration.
4
Aiming Agile
Current and prospective Zalaris clients will benefit from engaging in strategic business dialog that’s
differentiated by greater focus on how employee experiences relate to the development of new products,
services and solutions. Instilling more compelling employee experiences begins with a better understanding
of the current experiences and ways to elevate them. This baseline can be achieved through workshops,
surveys, interviews and ”design sprints” leveraging all available data (see Figure 1).
Figure 1: The three cycles addressed in this report and time frames.
Many HR transformation projects – and related internal/external market research – tends to be “waterfall”
oriented, a model for planning and execution that adheres to more traditional lines, both linear and sequential.
The process flows like a waterfall, downward, through set phases.
In It Together
The agile approach simultaneously aligns external stakeholder capability with internal planning, allowing
an organization to effectively leverage clients’ appetite to change, which, in turn, provides a competitive
edge in the marketplace for both parties. The value of market-driven research and action is unquestionable;
it accelerates the international flexibility of the company’s market intelligence and continuously keeps
its knowledge of market, industry and competition on the forefront to create sustainable value for the
organization.
The case to aim agile together makes profound sense as both Zalaris and its clients are already embarking
in this direction to improve operating model and delivery efficiency as well as overall end results. Here
are just some of the advantages:
• Agile-at-scale accelerates innovation speed by up to 80% (source: McKinsey  Company)
• Drives collaboration across teams and stakeholders to “fail and adjust” more rapidly
• Agile sprints sustain user-centric perspective vs. business-by-design mentality
• Breaks down the value chain across partner and client, connecting HR, business and IT
• Leverages combined insight from client business and operations as well as partners
Engaging clients and market in the innovation process is far more efficient than not doing it. A phased
approach takes too long. Agile thinking and action brings more benefits and enables a closer connection
to market needs with a structured and effective approach to gathering market insights.
5
For our exploratory research on “employee experience” trends, we defined the term as “the sum of all
touchpoints an employee has with an organization’s’ culture, people, and systems.”
This holistic journey employees have within their organizations begins from the first contact with
respective values and brand, through the application process and onboarding. The experience extends
through job exit and beyond (e.g., via alumni networks).
Your process of gathering, analyzing and interpreting information about a market, product or
service should encompass past, present and potential customers for these offerings. Research the
characteristics, spending habits, location and needs of your business’s target market, the industry as a
whole and its employee expectations.
A Baseline Scope and Anticipated Benefits
The participants included in the sample research consisted of two groups with different perspectives. Focus
was placed on young adults (18 - 30 years) as the core unit of analysis since they form the ”future of work”
as the next generation of job candidates for our clients. Therefore, we aimed to gain insights about their
opinions and expectations on employee experience. We also included senior HR professionals from large
corporations. With their expertise in the HR function, they shared proven ideas and concepts while offering
opinions on the most critical factors for compelling employee experience today.
Assessing the Variables In Your EX Ascent
Defining Employee Experience
What can organizations expect when investing
in a compelling employee experience?
Edge in the War
for Talent
In order to attract top talent,
organizations can craft compelling
employee experiences to
differentiate themselves in
the labor market
Proven Increase
in Productivity
A great employee experience
allows people to contribute
at their highest level, increasing
productivity, creativity and
employee engagement
Improvement of
Customer Satisfaction
Ultimately, there is a clear link
between employee satisfaction
and customer experience, which
leads to financial gains and
lasting competitive advantages
6
19 Key Variables Identified
The first agile cycle initially identified variables where Zalaris are able and relevant to add value:
ORGANIZATIONTASKS
• Interesting work tasks
• Work fitting my skills
• Purpose-driven work
• Ownership of tasks,
autonomy  responsibility
• Diversity in work tasks
• Sense of belonging
• Attractive organizational culture
• Encouragement of employee-
driven innovation
• Culture of open communication
and feedback
• Personalized employee journey
• Flexible work
• Work/life balance
• Personalized compensation
 benefits
• Individualized growth
opportunities
PERSONALIZATION
LEADERSHIP
• Authentic leaders
• Transparent decision making
• Ethical management
• Simple and user-centric
technology
• Up-to-date technology
TECHNOLOGY
Young adults and HR Leaders naturally prioritized differently, based on their work experience, academic
level and age. The most named cluster of priorities for young adults was, on average, personalization,
with 41% putting one of the clusters of variables in their top five. HR Leaders similarly agreed that
personalization is a priority yet put higher emphasis on matters of organization and leadership when
compared to young adults. A big difference can also be seen in the rating of technology, where only 3%
of young adults thought this cluster is of high priority (see Figure 2).
Figure 2: Study sample shows EX correlation and distinctions between young adults and HR leaders.
50%
40%
30%
20%
10%
0%
Young adults HR leaders
Personalization Tasks Organization Technology Leadership
41%
35%
32%
28%
20%
45%
3%
18%
13%
35%
Comparison of the Priority Ranking of the EX Clusters
7
Why is it a top priority for HR to offer a compelling EX?
Millennials are looking for them wherever they work. Understanding the needs of the future workforce is
essential for an organization to attract and retain the crucial next-generation of top-tier talent. A compelling
employee experience acutally represents a great opportunity for organizations to differentiate
themselves on the labor market.
We found that only 4% of HR leaders see providing a compelling employee experience as a top priority
for their organization, even though young adults emphasized the absolute importance of experiences
when choosing their future employer. A sizable 26% of young adults surveyed would likely refuse to work
for an employer who is not able to meet their ”EXpectations.” Additionally, our research found that 60%
of European young adults will actively push their employer for a better employee experience.
Total Assessment Among Young Adults
During the assessment process that led to our net list of 19 compelling EX variables, we were able to
identify the most pressing areas for young adults. The opinion was still heterogeneous; therefore it
is important to not disregard the other factors, since young adults are looking for a holistic employee
journey. There is no ”silver bullet” for employee experience, nor personalization in general.
Understanding and Avoiding Pitfalls
Doomed to “Freedom of Choice” Implications and Inability
Figure 3: Study sample shows total percentages of top-5 rankings by surveyed young adults on their workplace priorities.
Individual growth opportunities
Work/life balance
Interesting work tasks
Purpose-driven work
Personalized compensation benefits
Flexible work
Sense of belonging
Ownership of tasks
Work fitting my skills
Open communication and feedback
Diversity in work tasks
Personalized employee journey
Ethical management
Authentic leaders
Employee-driven innovation
Transparent decision making
Up-to-date technology
Simple and user-centric technology
0 10 20 30 40 50 60 70 80 90 100
Young Adult Priorities  Solutions
Qualitative interviews with young adults clearly confirmed growth opportunities tailored to their needs as
a key differentiator when choosing employers. This underscores the potential for organizations to attract
early talent if they take the right steps and actions now. HR participants also rate this priority at the top of
their agenda.
HR leaders ranked work-life balance of less relative importance and emphasized overall flexibility over
effectively reducing work hours.
Interesting work task was higher rated by European than Asian young adults. HR was aligned with this,
but do not necessarily feel in control of addressing this variable. Clear communication regarding the
tasks of the future employees during recruitment processes can mitigate some risks of not being able to
align with every employee’s interest. It’s essentially about setting expectations properly from the start.
Most employees will highly value candor and honesty, of course, above many other traits.
Organizations must ensure that they can offer fulfilling and purpose-driven work – at least to some
extent; otherwise, they will likely have difficulties attracting talent given it is essential and highly
correlated with intrinsic motivation and high employee engagement. A clearly shared purpose can align
internal and external decisions while also supporting the attraction and retention of employees willing to
exceed the employer’s expectations.
HR leaders did not fully agree on personalized compensation  benefits as a top priority, with none of
these respondents placing this factor in the five most important things to provide employees. The young
adults, however, mostly agreed that personalized compensation and benefits is in line with their own
priorities. Research shows that rewards are one of the last areas of HR to become more personalized –
and that companies providing reward programs individualized to employees can claim a distinct
advantage on the talent market. It should be a high priority to meet expectations of the future and
present workforce.
8
9
When considering the study’s top five “EXpectations,” it’s an understatement to say there’s room for
improvement as shown in Figure 4.
There is clearly room for improvement on all top five variables (and likely across the entire EX toolbox),
presenting an opportunity for Zalaris clients to demonstrate possible solutions increasing the employee
experience factors. The data needed to act on these variables are sourced from across Zalaris next-
generation HR services for payroll and/or HCM suites and/or partner ecosystem. Qualitative data such
as this study will define general and individual initiatives; HR has the biggest appetite to do so for
personalized compensation  benefits, which is part of the core of Zalaris.
Crossing the EX Delta
EXercise Caution... Significant Gaps Ahead!
Can ALL Be Satisfied?
Every variable in this study was rated a top priority for at least someone – and that someone may be
vital for any company’s success. But is it realistic to be all things to all people? Of course not. The law of
averages should certainly apply in EX decision making, and all leaders should become acutely aware of
the factors that are of most profound collective importance for the satisfaction of their employees and
overall good of the company. At a minimum, set EXpectations up front on all aspects of the equation.
Figure 4: HR responses reflect mixed results in areas employees rate of highest importance/value.
To What Extent Are You Already Providing the Following Employee Experience Variables?
The EX journey should be a carefully honed balance of elements, both art and science, with much
greater sense of human understanding and empathy, backed by deep analysis of what attracts and
motivates the talent you wish to hire and retain. Other key points to keep top of mind:
• The future workforce is focusing more and more on personalization – but the increasing need
for personalization must not end up in the paradox of unfair treatment
• Factors most critical from an EX standpoint will vary by organization and business unit down
to individual levels; know the realities in your environment
• HR is in the best overall position to drive EX understanding, value and adoption across the
enterprise...and will be remiss in not responding to corresponding forces that are forever
changing how companies ultimately stay competitive
As illustrated in Figure 5, the challenges HR faces in continuously achieving EX success are complex
and multifaceted. However, the EX journey begins when a company becomes conscious of its necessity,
embarks on it, and fully accepts there’s never really an “end point.”
10
Personalized
Compensation
 Benefits
Very little flexibility
due to regulatory
pressure, little to no
bonuses allowed
Hard to implement
in subsidiaries/not
at HQ
Purpose-
Driven Work
Greater need to
inform people about
their individual
purpose in the
organization
Reaching everyone
with main messages
about values and
purpose
Interesting
Work Tasks
Need to cover a
lot of tasks that are
scheduled, e.g.
customer contact
Regulatory
requirements,
need for absolute
precision
Business context
allows only certain
kind of tasks
Figure 5: The challenges summarized here were derived from interviews with senior HR exectives
Individualized
Growth
Opportunities
Work/Life
Balance
Providing flexibility
to some extent, but
not enough
Internal issues,
expectations of
managers
Management trying
to replicate winning
concepts everywhere,
little personalization
Stuck on regular
thinking, too old-
fashioned way of
providing training
 career planning
Challenges HR Faces in Achieving EX Success
Instill EXpertise in Your Businesss…
Knowing the importance of EX is imperative. How you embrace and advance it in your culture depends
on the types of challenges involved, as captured in the pie chart (above) reflecting EX barriers HR
executives cited for this study. Takeaways include:
• Service providers and HR leaders should both develop viable approaches to instilling and optimizing
EX value for employees and customers
• Different pricing models and cost/benefit analyses can be applied to convince C-level executives that
EX deserves their commitment and investment
• Independent help abounds to accelerate your EX learning curve, implementation and outcomes;
know respective strengths, shortcomings and key ways to improve
11
Factors That Prevent HR From Providing a Better Employee Experience
Time-consuming
decision process of the
organization
Not important to
business context
Not knowing when
to start
Budget
Not a priority for the
C-level management
30%
32%
27%
9%2%
Zalaris and Zalaris products and services
mentioned herein, as well as respective logos
and trademarks, are registered trademarks of
the company. All other product and service
names mentioned are acknowledged as
trademarks (or subject to being trademarks)
of their respective companies.
© 2019 Zalaris
Postal Address		 PO Box 1053 Hoff • NO-0218 Oslo • Norway
Visiting Address		 Hovfaret 4b • NO-0275 Oslo
Telephone 		 +47 4000 3300
Telefax 		 +47 2202 6001
Website		www.zalaris.com
Email		info@zalaris.com
Research Accreditations/Acknowledgments
This report was independently researched and developed by the following individuals. Zalaris’ participation
was limited to providing HR market background, including enterprise-level business and industry context.
Elias Linder
Wirtschaftsuniversität Wien  Copenhagen Business School
Mette Ma Pallesen
Copenhagen Business School  University of St. Gallen
Jinwen Lu
Hong Kong University of Science and Technology  Copenhagen Business School)

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Employee Experience for the Future Workforce

  • 1. EX Applying Market-driven Research to find Compelling Employee Experiences for the Future Workforce Research conducted in association with The Global Alliance in Management Education and CBS Research & Insights •
  • 2. Introduction: EX will Reign in the Future of Modern Enterprises By Sven Hultin, Zalaris Group Advisory, Engagement & Storytelling 2 The EX Point of Departure......................................3 Assessing the Variables In Your EX Ascent............5 Understanding and Avoiding Pitfalls......................7 Crossing the EX Delta.............................................9 In November 2018, Zalaris conducted a workshop on “disruption” featuring MIT Sloan Dr. Stephanie L. Woerner at Epicenter Stockholm. The importance of Employee Experience (EX) was among the major takeaways. Whatever HR does going forward, the quality of EX will be inextricably linked to an enterprise’s overall success. It comes down to engaging and retaining high-caliber employees that ultimately stay longer to drive innovation and productivity. This is reflected in Zalaris’ value proposition, which can be summed up in three steps that empower HR to align with the business, stay relevant and effectively face disruption: 1. Prepare the transformation journey to the cloud. Start with the core, including payroll fundamentals and exceptional service levels for the total workforce. 2. Get to the cloud. Outsource core transactional HR and HCM functions. Zalaris delivers holistic and integrated next-generation end-to-end payroll and HR services. 3. Move beyond the cloud. Aim agile and align with business as a trusted partner. Whatever you do here, you will find a way to change the company in a never- ending cycle using all available transformation levers: analytics, user adoption, automation, advisory services and/or point solutions. The cloud is not the destination. It’s the new beginning. A trusted partner will remain crucial yet in changing capacity as your modernized HR journey unfolds. In this report, we engaged Copenhagen Business School and CEMS to confirm the ideal way forward. Your awareness and understanding of the issues and opportunities will help ensure the best related decision making. We look forward to supporting you every step of the way! Quick Links to Key Content 3 5 7 9
  • 3. 3 By Mette Ma Pallesen, Jinwen Lu and Elias Linder Agility is the new face of human resources management and payroll services. To ensure the best possible employee experiences means being able to adapt and change as employee expectations morph. Inaction on this front will easily doom many companies in the years ahead. Your employee experience (EX) ambitions begin by answering these questions: • What are the most promising and crucial employee-experience drivers for the future workforce? • What tested framework for an agile market-driven approach will provide a closer connection with business needs – and yield a structured and practical approach to gathering market insights? • What are the significant factors that motivate young adults, the future workforce, and influence their decision-making when choosing an employer? The following chart illustrates how the traditional paradigm of HR services has shifted to a more employee-centric model. The Employee Experience Point of Departure Key Questions All Companies Face “The future of work is all about a compelling experience.” – Dr. Woerner, MIT Sloan Zalaris increasingly empowers HR in an agile manner to prioritize the employee experience variables that matter – using the data Zalaris already processes, alone or together, with select point solutions or service providers in the Zalaris ecosystem. Source: A Zalaris-modified Everest Group illustration.
  • 4. 4 Aiming Agile Current and prospective Zalaris clients will benefit from engaging in strategic business dialog that’s differentiated by greater focus on how employee experiences relate to the development of new products, services and solutions. Instilling more compelling employee experiences begins with a better understanding of the current experiences and ways to elevate them. This baseline can be achieved through workshops, surveys, interviews and ”design sprints” leveraging all available data (see Figure 1). Figure 1: The three cycles addressed in this report and time frames. Many HR transformation projects – and related internal/external market research – tends to be “waterfall” oriented, a model for planning and execution that adheres to more traditional lines, both linear and sequential. The process flows like a waterfall, downward, through set phases. In It Together The agile approach simultaneously aligns external stakeholder capability with internal planning, allowing an organization to effectively leverage clients’ appetite to change, which, in turn, provides a competitive edge in the marketplace for both parties. The value of market-driven research and action is unquestionable; it accelerates the international flexibility of the company’s market intelligence and continuously keeps its knowledge of market, industry and competition on the forefront to create sustainable value for the organization. The case to aim agile together makes profound sense as both Zalaris and its clients are already embarking in this direction to improve operating model and delivery efficiency as well as overall end results. Here are just some of the advantages: • Agile-at-scale accelerates innovation speed by up to 80% (source: McKinsey Company) • Drives collaboration across teams and stakeholders to “fail and adjust” more rapidly • Agile sprints sustain user-centric perspective vs. business-by-design mentality • Breaks down the value chain across partner and client, connecting HR, business and IT • Leverages combined insight from client business and operations as well as partners Engaging clients and market in the innovation process is far more efficient than not doing it. A phased approach takes too long. Agile thinking and action brings more benefits and enables a closer connection to market needs with a structured and effective approach to gathering market insights.
  • 5. 5 For our exploratory research on “employee experience” trends, we defined the term as “the sum of all touchpoints an employee has with an organization’s’ culture, people, and systems.” This holistic journey employees have within their organizations begins from the first contact with respective values and brand, through the application process and onboarding. The experience extends through job exit and beyond (e.g., via alumni networks). Your process of gathering, analyzing and interpreting information about a market, product or service should encompass past, present and potential customers for these offerings. Research the characteristics, spending habits, location and needs of your business’s target market, the industry as a whole and its employee expectations. A Baseline Scope and Anticipated Benefits The participants included in the sample research consisted of two groups with different perspectives. Focus was placed on young adults (18 - 30 years) as the core unit of analysis since they form the ”future of work” as the next generation of job candidates for our clients. Therefore, we aimed to gain insights about their opinions and expectations on employee experience. We also included senior HR professionals from large corporations. With their expertise in the HR function, they shared proven ideas and concepts while offering opinions on the most critical factors for compelling employee experience today. Assessing the Variables In Your EX Ascent Defining Employee Experience What can organizations expect when investing in a compelling employee experience? Edge in the War for Talent In order to attract top talent, organizations can craft compelling employee experiences to differentiate themselves in the labor market Proven Increase in Productivity A great employee experience allows people to contribute at their highest level, increasing productivity, creativity and employee engagement Improvement of Customer Satisfaction Ultimately, there is a clear link between employee satisfaction and customer experience, which leads to financial gains and lasting competitive advantages
  • 6. 6 19 Key Variables Identified The first agile cycle initially identified variables where Zalaris are able and relevant to add value: ORGANIZATIONTASKS • Interesting work tasks • Work fitting my skills • Purpose-driven work • Ownership of tasks, autonomy responsibility • Diversity in work tasks • Sense of belonging • Attractive organizational culture • Encouragement of employee- driven innovation • Culture of open communication and feedback • Personalized employee journey • Flexible work • Work/life balance • Personalized compensation benefits • Individualized growth opportunities PERSONALIZATION LEADERSHIP • Authentic leaders • Transparent decision making • Ethical management • Simple and user-centric technology • Up-to-date technology TECHNOLOGY Young adults and HR Leaders naturally prioritized differently, based on their work experience, academic level and age. The most named cluster of priorities for young adults was, on average, personalization, with 41% putting one of the clusters of variables in their top five. HR Leaders similarly agreed that personalization is a priority yet put higher emphasis on matters of organization and leadership when compared to young adults. A big difference can also be seen in the rating of technology, where only 3% of young adults thought this cluster is of high priority (see Figure 2). Figure 2: Study sample shows EX correlation and distinctions between young adults and HR leaders. 50% 40% 30% 20% 10% 0% Young adults HR leaders Personalization Tasks Organization Technology Leadership 41% 35% 32% 28% 20% 45% 3% 18% 13% 35% Comparison of the Priority Ranking of the EX Clusters
  • 7. 7 Why is it a top priority for HR to offer a compelling EX? Millennials are looking for them wherever they work. Understanding the needs of the future workforce is essential for an organization to attract and retain the crucial next-generation of top-tier talent. A compelling employee experience acutally represents a great opportunity for organizations to differentiate themselves on the labor market. We found that only 4% of HR leaders see providing a compelling employee experience as a top priority for their organization, even though young adults emphasized the absolute importance of experiences when choosing their future employer. A sizable 26% of young adults surveyed would likely refuse to work for an employer who is not able to meet their ”EXpectations.” Additionally, our research found that 60% of European young adults will actively push their employer for a better employee experience. Total Assessment Among Young Adults During the assessment process that led to our net list of 19 compelling EX variables, we were able to identify the most pressing areas for young adults. The opinion was still heterogeneous; therefore it is important to not disregard the other factors, since young adults are looking for a holistic employee journey. There is no ”silver bullet” for employee experience, nor personalization in general. Understanding and Avoiding Pitfalls Doomed to “Freedom of Choice” Implications and Inability Figure 3: Study sample shows total percentages of top-5 rankings by surveyed young adults on their workplace priorities. Individual growth opportunities Work/life balance Interesting work tasks Purpose-driven work Personalized compensation benefits Flexible work Sense of belonging Ownership of tasks Work fitting my skills Open communication and feedback Diversity in work tasks Personalized employee journey Ethical management Authentic leaders Employee-driven innovation Transparent decision making Up-to-date technology Simple and user-centric technology 0 10 20 30 40 50 60 70 80 90 100 Young Adult Priorities Solutions
  • 8. Qualitative interviews with young adults clearly confirmed growth opportunities tailored to their needs as a key differentiator when choosing employers. This underscores the potential for organizations to attract early talent if they take the right steps and actions now. HR participants also rate this priority at the top of their agenda. HR leaders ranked work-life balance of less relative importance and emphasized overall flexibility over effectively reducing work hours. Interesting work task was higher rated by European than Asian young adults. HR was aligned with this, but do not necessarily feel in control of addressing this variable. Clear communication regarding the tasks of the future employees during recruitment processes can mitigate some risks of not being able to align with every employee’s interest. It’s essentially about setting expectations properly from the start. Most employees will highly value candor and honesty, of course, above many other traits. Organizations must ensure that they can offer fulfilling and purpose-driven work – at least to some extent; otherwise, they will likely have difficulties attracting talent given it is essential and highly correlated with intrinsic motivation and high employee engagement. A clearly shared purpose can align internal and external decisions while also supporting the attraction and retention of employees willing to exceed the employer’s expectations. HR leaders did not fully agree on personalized compensation benefits as a top priority, with none of these respondents placing this factor in the five most important things to provide employees. The young adults, however, mostly agreed that personalized compensation and benefits is in line with their own priorities. Research shows that rewards are one of the last areas of HR to become more personalized – and that companies providing reward programs individualized to employees can claim a distinct advantage on the talent market. It should be a high priority to meet expectations of the future and present workforce. 8
  • 9. 9 When considering the study’s top five “EXpectations,” it’s an understatement to say there’s room for improvement as shown in Figure 4. There is clearly room for improvement on all top five variables (and likely across the entire EX toolbox), presenting an opportunity for Zalaris clients to demonstrate possible solutions increasing the employee experience factors. The data needed to act on these variables are sourced from across Zalaris next- generation HR services for payroll and/or HCM suites and/or partner ecosystem. Qualitative data such as this study will define general and individual initiatives; HR has the biggest appetite to do so for personalized compensation benefits, which is part of the core of Zalaris. Crossing the EX Delta EXercise Caution... Significant Gaps Ahead! Can ALL Be Satisfied? Every variable in this study was rated a top priority for at least someone – and that someone may be vital for any company’s success. But is it realistic to be all things to all people? Of course not. The law of averages should certainly apply in EX decision making, and all leaders should become acutely aware of the factors that are of most profound collective importance for the satisfaction of their employees and overall good of the company. At a minimum, set EXpectations up front on all aspects of the equation. Figure 4: HR responses reflect mixed results in areas employees rate of highest importance/value. To What Extent Are You Already Providing the Following Employee Experience Variables?
  • 10. The EX journey should be a carefully honed balance of elements, both art and science, with much greater sense of human understanding and empathy, backed by deep analysis of what attracts and motivates the talent you wish to hire and retain. Other key points to keep top of mind: • The future workforce is focusing more and more on personalization – but the increasing need for personalization must not end up in the paradox of unfair treatment • Factors most critical from an EX standpoint will vary by organization and business unit down to individual levels; know the realities in your environment • HR is in the best overall position to drive EX understanding, value and adoption across the enterprise...and will be remiss in not responding to corresponding forces that are forever changing how companies ultimately stay competitive As illustrated in Figure 5, the challenges HR faces in continuously achieving EX success are complex and multifaceted. However, the EX journey begins when a company becomes conscious of its necessity, embarks on it, and fully accepts there’s never really an “end point.” 10 Personalized Compensation Benefits Very little flexibility due to regulatory pressure, little to no bonuses allowed Hard to implement in subsidiaries/not at HQ Purpose- Driven Work Greater need to inform people about their individual purpose in the organization Reaching everyone with main messages about values and purpose Interesting Work Tasks Need to cover a lot of tasks that are scheduled, e.g. customer contact Regulatory requirements, need for absolute precision Business context allows only certain kind of tasks Figure 5: The challenges summarized here were derived from interviews with senior HR exectives Individualized Growth Opportunities Work/Life Balance Providing flexibility to some extent, but not enough Internal issues, expectations of managers Management trying to replicate winning concepts everywhere, little personalization Stuck on regular thinking, too old- fashioned way of providing training career planning Challenges HR Faces in Achieving EX Success
  • 11. Instill EXpertise in Your Businesss… Knowing the importance of EX is imperative. How you embrace and advance it in your culture depends on the types of challenges involved, as captured in the pie chart (above) reflecting EX barriers HR executives cited for this study. Takeaways include: • Service providers and HR leaders should both develop viable approaches to instilling and optimizing EX value for employees and customers • Different pricing models and cost/benefit analyses can be applied to convince C-level executives that EX deserves their commitment and investment • Independent help abounds to accelerate your EX learning curve, implementation and outcomes; know respective strengths, shortcomings and key ways to improve 11 Factors That Prevent HR From Providing a Better Employee Experience Time-consuming decision process of the organization Not important to business context Not knowing when to start Budget Not a priority for the C-level management 30% 32% 27% 9%2%
  • 12. Zalaris and Zalaris products and services mentioned herein, as well as respective logos and trademarks, are registered trademarks of the company. All other product and service names mentioned are acknowledged as trademarks (or subject to being trademarks) of their respective companies. © 2019 Zalaris Postal Address PO Box 1053 Hoff • NO-0218 Oslo • Norway Visiting Address Hovfaret 4b • NO-0275 Oslo Telephone +47 4000 3300 Telefax +47 2202 6001 Website www.zalaris.com Email info@zalaris.com Research Accreditations/Acknowledgments This report was independently researched and developed by the following individuals. Zalaris’ participation was limited to providing HR market background, including enterprise-level business and industry context. Elias Linder Wirtschaftsuniversität Wien Copenhagen Business School Mette Ma Pallesen Copenhagen Business School University of St. Gallen Jinwen Lu Hong Kong University of Science and Technology Copenhagen Business School)