This is the first in a three-part series of articles on “The Path to Becoming a People-Centric Organisation.” Read the second and third articles.
Organisations have long recognised the critical role of external Customer Experience (CX) in differentiating their performance in the market. However, it has taken nearly two decades to grasp the equal importance of Employee Experience (EX). While "customer experience" yields 240 million results on Google in July 2023, "employee experience" lags at 30 million results.
Despite the discrepancy in popularity between the terms "customer experience" and "employee experience," there is unanimous agreement that EX lies at the core of delivering exceptional CX and, in turn, superior organisational performance. As the saying goes, "EX drives CX", or happy employees drive happy customers1.
As aptly put by Sir Richard Branson:
"Clients do not come first. Employees come first. If you take care of your employees, they will take care of the clients.” (Sir Richard Branson)
Since the term "employee experience" was coined around 2015 by Jacob Morgan and Ben Whitter, interest has surged in understanding the relationships between EX, CX, and organisational performance.
A comprehensive study conducted by Josh Bersin Company2 confirms the significant advantages of a people-centric approach.
Organisations that successfully address employee experience see significant benefits for business, people, and innovation.
Sir Richard Branson's insight stands validated—prioritising employees ensures multifaceted success.
But wait, how does that work?
The People Centricity Formula illuminates the path to building thriving organisations that empower employees to thrive and succeed in their personal and professional lives.
While the notion of "EX drives CX" is appealing in its simplicity, it lacks the depth to comprehend the underlying mechanisms that propel the success of people-centric organisations. To bridge this understanding gap and enhance people-centricity, we present the People Centricity Formula©.
Let’s define the ingredients.
People’s expectations refer to what individuals expect from work, work relationships, and the organisations they work for.
People's expectations in the realm of work encompass a wide range of dimensions, categorised into three main areas: transactional, relational, and transformational elements.
These multifaceted expectations significantly influence how individuals perceive, interpret, and react to their work experiences. Expectations act as a cognitive lens through which people evaluate their surroundings. When expectations align positively, it leads to higher people success (e.g., satisfaction, engagement, performance well-being). Conversely, unmet expectations can result in psychological strain, disengagement, and attrition.
Understanding and effectively managing these diverse expectations are key prerequisites to designing and delivering fulfilling work experiences. Leaders must be aware of the intricacies involved in shaping and aligning expectations. Transparent communication, clear goal setting, and equitable policies play vital roles in meeting employee expectations. Moreover, fostering a culture that empowers employees to find purpose and meaning in their work creates an environment conducive to personal and organisational growth.
In conclusion, individuals bring a unique set of expectations to their work environment, profoundly shaping how they will evaluate how they work experiences.
Organisational reality encompasses the holistic work experience that an organisation provides to its talent, comprising contributions, behaviours, and enabling channels.
Organisational reality comprises three crucial dimensions that intricately shape the work experience for employees.
Effectively managing these dimensions is pivotal in creating a positive work experience. Aligning contributions with employee expectations, promoting positive behaviours, and leveraging effective enablers enable businesses to cultivate a fulfilling and meaningful work environment.
People Experience refers to individuals' holistic perception of their work experience with an organisation. This arises from various experiential touch-points formed during their daily work interactions and moments that matter throughout their journey with the organisation—from hire to re-hire.
People Experience holds immense significance as it profoundly influences individuals' attitudes and behaviours in the workplace. At the core of this importance lies the profound impact of meaningful work experiences on how individuals interpret and respond to their expectations, whether met or unfulfilled. These experiences play a pivotal role in shaping employees' emotions, thoughts, and actions within the organisational context.
People Fulfilment refers to the cognitive and emotional state that arises when work experiences fulfil individuals’ needs and expectations and align with their purpose, mission, and values.
The 2021 Edelman Trust Barometer survey3 found that for people leaving or looking to leave their jobs, the top reason is that they want more personal fulfilment from work.
When people encounter positive and meaningful experiences that align with their expectations, it fosters a sense of contentment and fulfilment, leading to higher levels of motivation and commitment to the organisation. Meaningful experiences address employees' profound needs and expectations, reinforcing their sense of value and contribution to the company.
Conversely, negative or unmet expectations in the workplace can lead to a cognitive breach where employees feel that the employer has failed to deliver the expected contributions, promised or not. Effective communication can repair the breach if the organisation can explain the reasons behind the unmet expectations. However, if the organisation is unwilling to discuss or recognise the breach, it will result in a sense of violation that triggers negative emotions, ultimately impacting behaviours in the workplace. This is where employees may engage in "quiet quitting," re-evaluating their level of contributions towards their employer, or "loud quitting," making their voices heard by resigning.
Ultimately, people experience matters because it is intricately linked to both individual and organisational success.
People Success refers to the visible and invisible expressions of individual and collective fulfilment. People's success is made of purpose, potential, performance, happiness, and healthiness.
People Success refers to the visible and invisible expressions of individual and collective fulfilment. It is made of purpose, potential, performance, happiness, and healthiness. This all-encompassing concept revolves around the cognitive and emotional state that arises when work experiences fulfil individuals' needs and expectations and align with their purpose, mission, and values.
At the heart of a people-centric organisation lies the unwavering commitment to nurturing people success. By placing employees at the forefront, organisations can create a positive and supportive work environment, fostering a sense of belonging, engagement, and loyalty among their workforce. Such an environment, where employees feel valued and fulfilled, directly translates into delivering exceptional customer experience, which ultimately fuels organisational success.
In conclusion, Sir Richard Branson's wisdom serves as a guiding light, emphasising that a people-centric organisation is not just about prioritising employees; it is about empowering them to thrive and succeed in their personal and professional lives. Recognising the profound impact of employee experience on customer experience and organisational performance, a people-centric approach drives excellence, innovation, and sustained success. It is a journey that fosters people success at its core, enriching the lives of individuals and empowering organisations to thrive in an ever-evolving business landscape. By championing the holistic fulfilment of their people, organisations can achieve greatness and leave an indelible mark on both their workforce and the world they serve.
In this next article of our three-part series, we introduce the transformative concept of the People Centricity Framework©. Built upon the foundation of the People Centricity Formula©, this framework bridges the gap between theory and practice. It equips organisations with six powerful levers, encompassing diverse dimensions, to enable their journey towards becoming truly people-centric.
Before I leave you, I almost forgot to mention that Sir Richard Branson knows how to walk the talk when being a role model CEO.
By CEO, we mean Chief Experience Officer4. What did you expect?
AUTHOR
Tanguy Dulac is the Founder & CEO of PeopleCentriX, a research and advisory firm that empowers leaders shape a future-fit world of work. If you want to connect, please reach me at tanguy.dulac@peoplecentrix.eu
NOTES
Some words that inspired me during my writing experience
Some sounds that inspired me during my writing experience
Our monthly newsletter is for leaders who make strategic decisions about people strategies and experiences. It contains curated content about trends, thought leadership, case studies and events.
