Have employee experience leaders given up on retention?

As the quiet quitting trend shows no sign of letting up, how can today’s businesses build lasting, meaningful engagement across a disparate and demotivated workforce?

Chapter 1: The retention problem

Engagement is a major challenge for employers today

The Great Resignation and quiet quitting have sent shockwaves through the working world, catching many businesses off guard. The number of people who exclusively worked from home skyrocketed from a mere 5.7% in early 2020 to a staggering 43.1% by April of the same year [1]. As millions were abruptly thrust into remote work over the pandemic, a physical disconnect emerged between employees and their workplaces.

The unprecedented shift to remote work, combined with uncertainty about the future, spurred many employees to reflect on what they wanted and needed from work. At the same time, social isolation set in, leading to a rise in feelings of disconnect from both colleagues and purpose at work. As a result, we saw one of the sharpest engagement drops in history [2] - symptoms of which displayed in the form of mass resignations and the emergence of a new phenomenon: quiet quitting.

Now, three years on, retention and disengagement [3] challenges linger as employers struggle to create sustainable working conditions that meet employee expectations. Despite many workers returning to the office in some capacity, 30% of employees continue to work from home, and engagement levels have remained low [4]. Workforces are more disparate and disconnected than ever [5], and as dissatisfaction lingers, resignations continue to pose a major challenge, with turnover predicted to be 75% higher now than it was before the pandemic [6].

After an employee leaves, their organization feels the impact immediately. But ‘quiet quitting’ - in which an employee opts to put in the minimum effort required to keep their role - poses a subtle, but arguably more serious, challenge. Overall, the big concern is that with the culmination of top talent leaving and remaining employees working at less than capacity, businesses face stunted productivity, innovation, and growth - something they can’t afford in the current economic climate.

In the face of this challenge, employers must urgently reevaluate their strategies and proactively seek innovative ways to reinvigorate employee engagement, nurturing a culture that inspires passion, fosters collaboration, and fuels motivation to drive the organization toward sustainable success.

1. https://wiserd.ac.uk/publication/homeworking-in-the-uk-before-and-during-the-2020-lockdown/
2. https://www.gallup.com/workplace/468233/employee-engagement-needs-rebound-2023.aspx
3. https://www.robertwalters.co.uk/
4. https://www.gallup.com/394373/indicator-employee-engagement.aspx
5. https://wfhresearch.com
6. https://www.gartner.com/en/human-resources/trends/top-priorities-for-hr-leaders

The retention challenge: Recognized but not prioritized

Despite the ongoing problem of retention, Unily’s latest research has found that it is not a priority area for employers right now.

Surveying over two hundred business leaders in people-focused roles - across Human Resources (HR), Information Technology (IT), and internal communications - Unily found that just 1 in 5 respondents (22%) have chosen to prioritize employee retention in their role this year. 

This ranks retention as the area of least concern for business leaders - less important than the need to reduce digital friction (29%), keep staff safe online (27%), or create a standout employee proposition (27%).

Instead of cultivating their existing talent pool, employers are pouring their energies into attracting new talent, with almost 1 in 3 respondents (30%) prioritizing it this year - making it their second-biggest concern. Similarly, a quarter of respondents (25%) said that creating a standout onboarding experience for employees joining the business was a key focus area for them.

The highest priority for all was creating a consistent experience for employees across global markets - whether at their desks or in frontline roles (31%). Employers recognize that lack of consistency is a major challenge, but the data suggests that efforts to resolve this will not be motivated by talent retention. Instead, organizations are prepared to reset with new staff and accept the loss of existing, loyal, and tenured talent. This shortsighted strategy, aimed at building a brighter future for the next cohort, comes at a high cost and risks undermining the stability and expertise that long-serving employees bring to the organization.

Employers are adopting an ‘out with the old, in with the new’ approach that leans into well-established recruitment practices and avoids the harder task of reinvigorating engagement in the immediate term. In short, businesses are giving up on their current cohorts in the hopes of building talented new teams from scratch, favoring recruitment over retention as the ‘easier’ option.

However, this approach overlooks the costs and negative impact of high employee churn: decreased productivity, disrupted workflows, and loss of institutional knowledge. Moreover, it overlooks the fundamental principles of creating a winning culture by neglecting the needs of long-term team members and making them feel disposable. Such a mindset can have detrimental effects on culture, which can be fragile and challenging to restore, often taking decades. A more sustainable approach to talent management is needed.

Understanding the rise of recruitment over retention

With the impact of high turnover on business performance well documented, the overwhelming focus on recruitment over retention appears illogical. So, why is it that people-leaders are taking this approach?

1. Scope creep has left people leaders feeling overwhelmed

It is unsurprising that HR, IT, and internal communications leaders have had to deprioritize certain elements of their roles when we look at how those roles have changed over the past few years. 

For over a third of respondents (37%), the scope of their role has increased since the pandemic began, requiring them to do more work in less time. This was most common among those working in internal communications (50%), who had the monumental task of keeping staff informed, engaged, and supported through the pandemic. 

So, why have so many leaders seen their workloads increase in such a short space of time? The pandemic triggered a seismic shift in the way we work, rendering old blueprints obsolete. Business leaders have had to devote significant time and resources to establishing new strategies to navigate the ever-evolving employee landscape, or to dusting off employee initiatives that have been on the backburner for some time. Either way, the pressure on these departments has grown exponentially, with their responsibilities amplified tenfold.

2. Employee engagement is an ever-moving goalpost

Over the last decade, we have seen technology evolve at an exponential rate to transform the way we communicate. The rise of apps and platforms that allow us to interact with one another at the click-of-a-button has made instant, regular dialogue the norm, and set a new standard for high-quality, seamless digital engagement that enterprises now need to keep up with to capture employee attention. With employee expectations at an all-time high, establishing an engaged workforce has become an ever-moving goalpost.

Our research found that HR, IT and internal communications leaders feel employees want more from them, and their communication, as a result. Over a third of respondents said employees expect an ongoing, two-way dialogue with their employer (34%), and an immediate response to any queries they may have (38%). 

Sadly, the solution is not as simple as communicating with staff more frequently. A third of respondents (34%) said that employees already feel bombarded by communications, and they expect their employer to filter out the noise for them. This has left employers performing a delicate dance of communicating either too much or too little. 

It is not just fast and frequent correspondence employees are after - they want to see their employers adopting a more personable approach when they communicate. A third of HR, IT, and internal comms leaders said that staff now want to be spoken to in a way that is less formal (29%), ideally using many different, engaging formats such as interactive content (31%) and emojis (33%).

This has left employers struggling to understand what employees want...

Businesses are listening and using the many tools and techniques available to them to engage staff in different ways. One simple method, already widely deployed, is to use a variety of different channels and formats to communicate.

Posting or communicating through a company intranet (39%), text message (47%), and WhatsApp (38%) are the most popular alternatives to email (45%), which remains the most common method of information sharing. A mix of different formats like videos (38%) and graphics (32%) are also being employed, as well as more casual and creative alternatives like memes, gifs (33%), and emojis (41%).

But despite their best efforts to shake-up their communication style, many business leaders still feel they have no idea what employees really want. A third of those surveyed (33%) said that not understanding their employees is a major pain point in their day-to-day role. Similarly, four in ten (39%) felt a poor understanding of what employees want is preventing them from communicating better internally.

While a quarter of respondents (25%) have seen this result in a rise in dissatisfied employees handing in their notice, it seems businesses don’t know where to start to tackle the issue.

…and focusing on the wrong things

Many businesses are working hard to attract talented new staff and onboard them comfortably. But once their employment journey has begun - what comes next?

HR and internal communications leaders typically plan their workload around a yearly calendar, carving out specific moments in time to inform, engage and celebrate their employees. This can take the form of big corporate announcements, like a rebrand or new leadership appointment, or widely recognised events such as International Women’s Day and Earth Day.  

But employee engagement is disproportionately (and sometimes exclusively) focused on these timely opportunities - with little attention given to the in-between moments that make up most of the employment journey. In fact, one in five businesses (20%) now have a change manager whose role is entirely dedicated to communicating around few-and-far-between corporate milestones. 

But in reality, these moments make up just a small part of the employee lifecycle. Businesses are slowly realizing this, and trying to step away from a one-dimensional approach to engagement. Over the coming year, around 1 in 3 respondents (29%) plan to better understand how engagement varies throughout an employee’s time with a business.

Chapter 2: Laying the groundwork for lasting engagement

Employee engagement is a journey, not a sprint

For too long, employers have targeted their engagement efforts at specific, brief, infrequent moments in time - for example, when an employee is first brought into the business.

But employee engagement is made up of so much more than this. In fact, these moments represent just a small handful of the opportunities employers have to engage their staff. 9 in 10 business leaders (90%) see engagement fluctuate across the employment lifecycle - with over a third (37%) witnessing dramatic changes in engagement over an employee’s tenure.

While for some, engagement scores increase after the onboarding process (29%) and around specific business milestones (28%), much of the variation we see is down to other factors. For example, one in five IT, HR, and internal comms leaders (21%) feel as though employee engagement fluctuates completely at random.

Fundamentally, no two employee journeys are the same. They peak and trough, often unpredictably, and this in turn impacts engagement levels. Understandably, employers have attempted to simplify the mammoth task of understanding engagement by mapping and treating different employee journeys as the same. However, in the era of personalization, cookie-cutter approaches only exacerbate feelings of being a replaceable cog in the ‘machine’.

So, what do employees want?

It's the question 4 in 10 employee experience leaders are asking themselves. So, what do employees really want from their employer?

1. To feel heard and cared about

In recent years, we have seen employers splurge on adrenaline-shot perks that promise to deliver greater employee satisfaction - from gym memberships to discounted shopping and snacks in the office.

While employees still value their benefits package, it is no longer the main factor in keeping them engaged in today's working world. Only a quarter of IT, HR, and internal communications leaders (25%) believe that an employee's benefits package holds significant importance. Instead, employees want to work for a business that aligns with their personal needs and values. Business leaders also recognize that employees want to feel listened to (28%) and rooted in a company that possesses clear values, reflected in its corporate culture (27%). 

This significant step-change has happened in a short space of time. And while some employers are starting to recognize it, many are struggling to adjust to it. Just 2 in every 5 respondents (39%) felt their business was up to the task.

2. A consistent experience for all

More than three years after the pandemic began, the working world has yet to return to “normal”. Workforces remain more disparate than ever. Most large, international businesses are now a unique, ever-changing blend of frontline, hybrid, and remote staff. For many people, their day-to-day work lives are drastically different from just a few years ago. 

In this time, most businesses have failed to find one unified solution to reach and engage all their employees. This explains why this year, the number one priority for IT, HR, and internal comms leaders in their roles is creating a consistent experience for employees, wherever they are based. Almost a third (31%) of respondents said this was a key focus for the year ahead.

It is worth noting, though, that for the remainder of those surveyed (69%), creating a consistent employee experience is not on their radar. Perhaps they have given up on the possibility of a better, more unified experience for their scattered workforce.

3. A smooth, frictionless digital experience

After unprecedented innovation in recent years, expectations of our day-to-day digital experience are higher than ever - both at work and in our personal lives.

At work, this means employees are becoming increasingly dissatisfied with old, clunky technology, and have come to expect a consistent and smooth digital experience. Two thirds of IT, HR and internal comms leaders (64%) have witnessed this change. This dissatisfaction may, in part, be down to having too many platforms that create digital friction and slow staff down as they try to work, as reported by 39% of leaders. The mass acquisition of single Line of Business (LOB) applications as a quick fix during the pandemic to address the challenges of remote work has contributed to the issue. However, the lack of consideration for the broader employee experience and the impact of this app proliferation has led to confusion, decreased productivity, and mounting frustration.

Now, as we emerge from the other side, enterprises must recognize that this app overload is a critical area of concern that directly affects employee engagement. Efforts should be focused on streamlining and harmonizing the digital ecosystem to reduce confusion and uplift engagement levels.

Getting the digital experience right is an absolute “must” for employers. An alarming 7 in 10 respondents reported that digital experience impacts “heavily” on their business’s ability to retain (69%) and attract (68%) employees. Similarly, over half of those surveyed (53%) felt a high-quality digital experience is key to keeping employees engaged throughout their tenure. Overall, 3 in 10 business leaders (29%) are focusing on tackling digital friction this year. This leaves the majority of employers needing to step up their efforts to distill their digital offering into a simpler, more effective user experience.

Chapter 3: Unily’s winning formula for an engaged workforce

Technology is here to help

The digital age has drastically changed the way people interact with businesses. Over two-thirds (69%) of respondents say the majority of interactions they have with employees are through a digital interface. This shift to digital is a crucial component of the overall employee experience, with 78% of organizations using an intranet or employee experience platform. Done right, it can be used to transform employee relations by helping employers understand, engage and communicate better with staff. Done poorly, it risks damaging productivity, satisfaction, and, ultimately, the ability to hold onto top talent. 

It is clear that technology is here to help. For those using a multi-functional employee experience platform, fewer than 1% said they had yet to observe the benefits across the workforce. 

Overall, 6 in 10 IT, HR and internal comms leaders (58%) have seen employee engagement scores increase since using a dedicated platform. This has had a direct impact on retention, as almost half those surveyed (47%) have witnessed an increase in employee tenure too.

Respondents using Unily as their employee experience platform were highly likely to rate the  digital employee experience as “good” (96% vs. a 78% average across all respondents). This is closely mirrored by employee engagement scores, which half of all Unily users (50%) describe as “extremely good” compared to just 31% on average.

But legacy systems are holding back progress

Despite the huge suite of employee experience tools and platforms on offer, business leaders are still struggling to engage their staff in the way they want to. Some respondents said their existing platforms don’t allow for proper segmentation (27%), customization (23%), and measurement (31%) - which is preventing them from understanding and engaging employees on a more personal level.

Fundamentally, many platforms are not designed to integrate seamlessly with pre-existing technology. A third of IT, HR and internal comms leaders said their current platforms do not work well within the wider tech stack (32%) or across the many different devices used by employees (33%). 

In contrast, Unily is built from the ground-up, on an existing tech stack, and can be adapted, personalized and scaled up as needed. Offering the widest range of customization tools of any employee experience platform, Unily delivers automated, multilingual, multichannel campaigns that can be extensively targeted, tracked and measured. 

Unily’s winning formula for an engaged workforce

So, how can businesses overcome the challenges of a disparate, demotivated workforce, and build lasting, meaningful engagement with employees? 

1. Unite your employees on a single platform that brings together all the applications and information they need. This will set up the foundations for consistent employee experience, no matter where or how an employee works. Chosen platforms need to deliver consumer-grade user experience that satisfies the gen-z demand for mobile access and offer interoperability with other LOB apps to eliminate digital friction woes. Robust platform analytics on a platform used by everyone will allow people leaders to accurately track engagement trends across the entire cohort, at last.

2. Get clever with comms using personalization, targeting and AI-powered automation to give communications a marketing-grade uplift. Counteract a rising volume of content with intelligent delivery mechanisms underpinned by best-in-class technology to limit noise and deliver personalized communications to employees. Lean into recommendation engines that help you curate stories into a Netflix-like experience.

3. Move into the journey mindset by identifying and enhancing moments that matter across the employee lifecycle. Recognize that engagement fluctuations are more to do with employees personal experiences than moments of business change. Invest time into identifying engagement breaking points across the employee lifecycle. Think about unique moments of change for individuals, be that promotions, role changes or personal milestones like paternity and maternity leave. Leverage technology to assist in identifying these opportunities and then use it to design repeatable experiences that celebrate moments that matter.

4. Embrace automation to create repeatable journeys with high impact, while saving valuable time for your people leaders. Using technology to design and deliver repeatable journeys not only brings much-needed consistency to the employee experience, but helps people leaders claw back time previously spent on highly manual endeavors. Working “smart, not hard” is crucial in preventing scope creep from overwhelming your dedicated internal champions, and smart technology is an essential enabler for making it happen. 

5. Unite cross-functional teams as meaningful employee journeys cannot be designed in isolation. Organizations need to bring together HR, IT, and Internal Comms functions to work as one to create a consistent, elevated employee experience that tackles employee engagement holistically. To truly eliminate friction from the employee reality, functional silos must be replaced by a joined-up approach that puts the employee firmly at the center.

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About the research

This research was conducted by Censuswide, which surveyed 218 Heads of Internal Comms, Heads of HR, IT Leaders and Intranet Managers at international businesses with over 10,000 employees, across the UK and US. The research was conducted between 23rd and 30th March 2023.

Censuswide abides by and employs members of the Market Research Society in the UK, which is based on the European Society for Opinion and Marketing Research (ESOMAR) principles.