Quick Take: Salesforce’s new “The Experience Advantage” report reveals that a focus on improving employee experience (EX) can boost revenue growth (up to 50% or more). The report’s full findings, which are detailed in this article, also show a deep disconnect between C-suite perception and the experiences of their employees.
As companies define flexibility in a success-from-anywhere world, they must first reimagine meaningful employee experience (EX). But while EX initiatives have traditionally focused on benefits like retention and employee satisfaction scores, one ultimate benefit is often overlooked — revenue growth.
While the role and importance of customer experience (CX) has historically been easier to quantify, the role of EX and its impact on growth has been harder to define – until now. Salesforce’s The Experience Advantage: Transforming Customer and Employee Experience for the Future of Work report found that by focusing on EX, a company can increase revenue growth by up to 50% or more.
Stronger employee experience leads to happier customers and growth
EX has historically been seen as HR’s responsibility – not part of a broader, company-wide effort requiring cross functional leadership and resources. And, while it has been a valued part of organizations for many years, it traditionally hasn’t been seen as a growth driver.
That’s why, in 2020, we worked with Forbes Insights to test the hypothesis that employee experience was the key to better customer experience and high revenue growth.
That report, The Experience Equation: How Happy Employees and Customers Accelerate Growth, produced in partnership with Forbes, found that 89% of revenue growth leaders surveyed reported that happy employees yielded happy customers. Additionally, companies with high CX & EX versus low CX & EX saw 1.8x faster revenue growth.
In other words: EX → CX → Growth.
New report uncovers deeper EX results
The 2020 report left us wondering how we could quantify the direct impact of employee experience on growth. During the second half of 2021, we decided to build on the work by embarking on a new journey to quantify and identify how EX impacts revenue growth. And, we wanted to expand our baseline insights from 2020, which are based on American data.
Our global research, published in The Experience Advantage: Transforming Customer and Employee Experience for the Future of Work report, found that:
- Breaking silos between employee experience and customer experience can lead to a massive opportunity for revenue growth of up to 50% or more.
- There are five core elements of employee experience that impact customer experience and growth: trust, C-suite accountability, alignment, recognition, and seamless technology.
- There is a disconnect between C-suite perception and employee experience:
- 70% of leaders report their employees have access to what they need to grow in the company. However, just 38% of employees agree with that statement.
- 52% of C-suite members believe their corporate technology is working effectively, compared to just 32% of employees.
- 74% of C-suite executives say that no one at their company truly owns the employee experience.
- 73% of C-suite executives say they do not know how to use their company’s employee data to drive change.
How Salesforce approached the Experience Advantage research
To develop the latest report, we worked with Zeno DXI to survey over 4,100 C-level executives and employees across 12 global markets to identify the key elements of EX that impact revenue growth.
We then commissioned a first-of-its-kind retail study with Dr. Lalith Munasinghe, Professor at Barnard College, Columbia University, and Kate Gautier, a Doctoral Researcher at Stanford University and Co-Founder of Talenteck Research Labs to illustrate the measurable impact of EX on CX and growth.
The survey’s results and case study show how the pandemic catalyzed long-emerging trends, and provide an opportunity to rethink experience and supercharge growth.
Leaders must prioritize and celebrate CX and EX strategies to grow
Employees are now the number one stakeholder for companies. We are in the midst of a massive transformation of how, where, and even why we work.
The data shows that the path forward must include a business evolution wherein companies rethink how to serve employees and customers. Business leaders can begin immediately by prioritizing and celebrating approaches that value them both.
Download the full Experience Advantage report for complete insights.