What every HR leader needs to show the CFO

PwC research shows that investing in the employee experience not only builds trust—it yields financial returns. The key is putting resources where they’re needed most.

Employee experience as a driver of financial performance

  • From reduced absenteeism
  • From reduced resignations
  • From increased productivity
0
0.5%
1%
1.5%
2%
Well-being
89
From reduced absenteeism: 4.5
From reduced resignations: 19
From reduced productivity: 76
Training
79
From reduced absenteeism: 3.1
From reduced resignations: 41
From reduced productivity: 55
Development opportunities
76
From reduced absenteeism: 4.6
From reduced resignations: 19
From reduced productivity: 76
Workplace stress
67
From reduced absenteeism: 3.7
From reduced resignations: 36
From reduced productivity: 59
Leadership
64
From reduced absenteeism: 3.1
From reduced resignations: 45
From reduced productivity: 52
External CSR
52
From reduced absenteeism: 4.8
From reduced resignations: 19
From reduced productivity: 77
Compensation
49.5
From reduced absenteeism: 3
From reduced resignations: 45
From reduced productivity: 52
Autonomy
44
From reduced absenteeism: 4.5
From reduced resignations: 19
From reduced productivity: 76
Diversity
43
From reduced absenteeism: 4.6
From reduced resignations: 20
From reduced productivity: 76
Work environment
36
From reduced absenteeism: 4.2
From reduced resignations: 19
From reduced productivity: 76
Schedule flexibility
30.5
From reduced absenteeism: 5
From reduced resignations: 20
From reduced productivity: 77

August 16, 2022

HR leaders know that improving the employee experience is good for both employees and the business. But where to start? How can organisations prioritise their investments to getbetter—and more predictable—results? To learn more, a research team from PwC Netherlands looked at 11 drivers of employee experience, everything from compensation and well-being to the office environment and working-hours flexibility. The team then drew on a range of academic studies around the world to determine the relationships between the drivers and three beneficial corporate outcomes: reduced absenteeism, reduced employee turnover and increased productivity. The upshot: making investments in all areas can yield savings equivalent to 12.6% of revenues.

But getting there isn’t as simple as placing an across-the-board bet. For one thing, as the chart above shows, improving different aspects of the employee experience yields different results. Across the organisations included in the study, investing in employees’ mental and physical well-being delivered the highest returns, with training and career-development running a close second and third, respectively. What’s more, every company is different: one might have a robust wellness program while lagging badly on diversity; another might offer highly competitive compensation packages while lacking a flexible-hours policy. This means that, before pouring resources into the employee experience, CFOs need to work closely with HR leaders to examine their organisation’s strengths and weaknesses, eliciting honest and robust feedback from employees in order to make informed decisions on where to invest.

Take a closer look at PwC’s research to maximise the ROI on your employee-experience strategy.

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Bastiaan Starink

Bastiaan Starink

Partner, PwC Netherlands

Tel: +31 (0)65 375 58 28

Jan Willem Velthuijsen

Jan Willem Velthuijsen

Chief economist, PwC Netherlands

Tel: +31 (0)88 792 75 58

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