Employee experience is all the interactions and perceptions an individual has with their employer, including culture, workspace, and support systems. It is a unique selling proposition (USP) for both existing and prospective employees. Today, organizations are choosing to enhance EX with a fulfilling work environment, opportunities for growth, meaningful recognition, and support for work-life balance through flexible benefits, remote work support, and prioritizing employee wellbeing.
In an interaction with AdvantageClub.ai, Sunny Kumar, Head, Performance and Rewards, EPL Limited, shared his thoughts on the notable highlights of the rewards and recognition segment in 2023. He also highlighted the role of leaders in fostering employee experience in the organization. Read the edited Q&A excerpts below.
By Abid Hasan
Could you share your assessment of the employee experience and rewards and recognition segment in 2023? What were some of the notable highlights?
Employee experience is the overarching umbrella that defines the company’s USP to its existing and prospective employees. The single differentiating factor defines how the company’s talent pool will look today and tomorrow. In today’s world, as Gen Z talent enters the workplace, the employee experience that a company can offer this population is also undergoing a significant shift. Gone are the days when companies rewarded performance and loyalty through their rewards program. More and more companies are shifting towards providing a differentiated employee experience through gender-diverse policies and practices, processes geared towards facilitating location-agnostic workplaces, and freedom to balance work pressures with time devoted to promoting self-learning and diverse hobbies.
A shift is also being seen towards making the employee experience instant through bringing in online platforms for recognition, rewards, social interactions, showcasing talent, etc. Overall employee wellbeing (physical, mental, and financial) is one area where a lot of focus is being put on ensuring that the employees perceive themselves as an asset to the organization.
Rewards and recognition form a small subset of this overall employee experience paradigm. In terms of the visible changes post-COVID, employees are looking for more flexibility in their compensation structure, emphasizing decreasing the variable components of the total pay. With more and more people entering the equity markets for quick profits, their focus is on here and now rather than on what they will get one year down the line.
Recognition practices have also seen a shift towards immediate appreciation on a grander scale. Employees are looking for a pat-on-back for every milestone/target achieved, irrespective of the event’s significance. Appreciation practices are gradual, including recent trends of social governance and actions, sustainability, climate change, diversity, etc.
What significant factors will influence employee recognition in 2024?
Employee recognition is crucial to fostering a positive work environment and driving engagement. As we enter 2024, several significant factors are poised to shape how employees are recognized and what truly resonates with them. Here are some key aspects to consider:
Emerging Technologies
- Data-driven insights: Technology like AI and analytics can track employee contributions and identify performance beyond immediate outputs. This data can be used to personalize recognition based on individual strengths and preferences.
- Social recognition platforms: Gamified platforms and interactive tools can create a fun and engaging environment for recognizing colleagues and celebrating achievements.
- Micro-recognition: Real-time feedback and instant appreciation through technology can reinforce positive behaviors and boost morale continuously.
New Operating Models
- Hybrid and remote work: Adapting recognition programs to cater to a distributed workforce will be crucial. Virtual platforms and asynchronous recognition methods can foster inclusion and ensure everyone feels valued.
- Gig economy and freelancers: As freelance work and diverse employment models gain traction, flexible recognition programs that cater to non-traditional employees will be necessary.
Workforce Dynamics
- Generational differences: Recognizing generational preferences is key. Boomers may value financial rewards, Gen X might appreciate time off, while Millennials and Gen Z might prioritize learning opportunities and social impact.
- Diversity and inclusion: Recognition programs should be inclusive and avoid biases. Highlighting the achievements of underrepresented groups and celebrating diverse strengths can build a more equitable work environment.
- Focus on wellbeing: Recognizing efforts that contribute to employee wellbeing, such as mental health initiatives or work-life balance practices, can demonstrate genuine care and boost morale.
Macroeconomic Factors
- Inflation and rising costs: The value of rewards may need to be adjusted to maintain employee appreciation in the face of rising costs.
- Remote work tax benefits: Utilizing recognition programs that leverage tax-advantaged rewards for remote work expenses can be highly impactful.
Personalization and Authenticity
- Tailoring recognition to individual preferences: Understanding what motivates each employee and offering personalized rewards shows genuine investment in their wellbeing and career development.
- Meaningful recognition: Recognition should be specific, sincere, and aligned with company values to resonate with employees and have a lasting impact.
- Transparency and fairness: Clear criteria and communication about recognition programs create trust and ensure everyone has a fair chance to be recognized.
In what way are leaders responsible for fostering and maintaining employee experience?
Leaders play a pivotal role in fostering and maintaining a positive employee experience, acting as the architects of the work environment and shaping how employees perceive their daily lives at the organization. Here are some key ways in which leaders contribute to this crucial aspect:
Culture Creation and Branding
- Setting the tone: Leaders establish the company culture through their behaviors, values, and communication style. A positive, respectful, and open culture fosters employees' sense of belonging and engagement.
- Articulating the vision and mission: Communicating the organization's goals and purpose gives employees a sense of direction and motivates them to contribute their best.
- Empowering employees: Leaders who trust and empower their teams create an environment where individuals feel valued, autonomous, and responsible for their work.
Prioritizing Wellbeing and Work-Life Balance
- Promoting healthy work-life balance: Leaders who set boundaries, encourage flexible work arrangements and discourage presenteeism demonstrate care for employee wellbeing and prevent burnout.
- Encouraging mental and physical health initiatives: Providing resources and programs that support employee' mental and physical health demonstrates genuine concern for their overall well-being.
- Creating a safe and inclusive workplace: Leaders who actively address discrimination, harassment, and bias create a safe and comfortable work environment for everyone.
Fostering Collaboration and Communication
- Open communication: Encouraging open dialogue, active listening, and feedback creates a safe space for employees to share ideas, concerns, and suggestions.
- Building strong relationships: Leaders who invest time in building genuine relationships with their team members foster trust, connection, and a sense of community.
- Promoting collaboration: Leaders who effectively delegate tasks and encourage teamwork create a more synergistic and productive work environment.
What is your mantra to create a happy workplace?
For a happy and prospering workplace, it is important that it is filled with people who are happy in their minds, focused on their deliverables, and have a comfortable working relationship with their co-workers. Companies need to reinforce these behaviors through their employee experience programs and maintain a balance between competition and collaboration. The world is moved to a place where success is possible only through cooperation and positive competition. It helps creativity to thrive and prosper. Any workplace that does not foster this culture will find it hard to maintain a competitive advantage in the long term.
