In recent years, as chronicled by SHRM, the Covid era saw a significant number of U.S. workers voluntarily exit their jobs, with figures ranging between 500,000 and one million in a given month. These alarming numbers, sourced from the U.S. Bureau of Labor Statistics, focused on two industry sectors predominantly comprised of deskless or hourly paid (overtime pay-eligible) employees. Specifically, the restaurant and hospitality verticals were the ones highlighted in the cited article. It’s perhaps safe to assume that a percentage of these workers quit because they were asked to work harder or less attractive shifts to cover for absentee colleagues. Another subset of the group, particularly those whose income was very dependent on gratuities, probably sought out new alternatives to maintain their previous earnings.
Naturally when workers don’t show up or quit altogether, a cascade of negative consequences can ensue, some of which can be hard or even impossible for a typical business to recover from. In customer-facing industries such as the two mentioned above (as well as retail, transportation, or healthcare), the reputation of an enterprise or brand can quickly plummet, along with its subsequent flow of customers and revenue. In other sectors such as manufacturing, the inability to ensure business continuity and meet contracted production targets can further hasten a decline.
But let’s move to the present day, where the effects of the pandemic might be in the rear-view mirror for many fortunate businesses, even while the individuals who make up the organization could still be reeling from impacts on their personal lives. It seems a logical assertion that these more fortunate enterprises didn’t rely on luck alone but were adept at delivering several aspects of a great employee experience (EX). This might involve consistently offering employees with opportunities for job satisfaction and recognition for their contributions. Equally as important, especially during uncertain times, is the fact that employees are afforded a reasonable degree of control and influence over their work lives. We know that when workers feel their needs, interests, and goals are considered, an organization is (1) more apt to attract and retain top talent, and (2) likely to have workers much more inclined to serve as ambassadors for their brand inside and outside the business.
A deeper examination of the benefits of delivering a great employee experience, or ‘EX,’ reveals more advantages than the two high-value outcomes mentioned above, especially when considering deskless workers specifically. Here are two such benefits that can be real difference-makers:
- Productivity gains: It’s frankly simple math that even modest upticks in employee productivity (e.g., as measured by revenue per employee or total revenue divided by total workforce) can translate into millions in value creation for any appreciably sized organization. To illustrate, for a business of 2,000 employees that has a revenue per employee (R/E) of $80,000, just a 5% productivity bump (to an R/E of $84,000) yields incremental revenue of $8 million (2,000 employees x $4,000). These gains become even more compelling for blue-collar industries and workforces. The context here is that turnover and disengagement rates tend to be higher and educational levels lower, so any opportunity for productivity gains—such as one might expect from offering a superior EX—should be pursued vigorously.
- Desire for new, valuable skills: Deskless workers have often been characterized as being less career-driven and more focused on near-term rewards from their work. This could, for example, be a result of spending less years on education beyond secondary school, leading to a perception of fewer career options. This is particularly true in comparison to even more growth-oriented career paths that place a high value on employee satisfaction. However, we must recognize that when employees feel valued and that their needs, interests and goals are being accounted for (through a commitment to a best-in-class EX), they tend to adopt a longer-term view of their role and career within an organization.
When this dynamic occurs, employers stand to see one of the most strategic, if not totally game-changing, benefits possible. The business becomes much more agile, able to strategically and operationally pivot when and how they need. Many experts view this ability as the number one source of competitive advantage, and it can directly result from having highly engaged employees who make a commitment to learn, grow, and significantly elevate their long-term value to the organization.
Clear Call for Action:
In a Willis Towers Watson survey conducted in 2021, 92% of employers stated that enhancing the employee experience will be a major priority going forward. This statistic was gathered before many of these organizations had sufficient time to reflect on what they could have done differently to counter the effects of the pandemic, so the number is likely higher today. Further, it is my strong contention that in the two years since this study was published, most enterprises have operationalized what it means to deliver an exceptional employee experience. As a result, these businesses have enjoyed the now universally expected benefits of better talent attraction and retention, as well as improved employee productivity stemming from more engaged, skilled, and committed staff.
Many organizations have also moved the needle on the increasingly vital mission of improving organizational agility. This progress is a direct result of extending robust workforce management system capabilities to deskless or hourly paid workers. Now, more than ever, this segment recognizes that their goals and expectations truly matter.
Moreover, the implementation of workforce management technology, a key pillar of an HCM Suite, that can be designed to address deskless workers’ interests in everyday operations, scheduling, time and attendance management, and personalized interactions is clearly making a huge difference, allowing these employees to feel more connected and engaged. This is critical for the almost 80 million workers aged 16 and older in the United States who are paid at hourly rates, or 55.8 percent of all wage and salaried workers.
