EMPLOYEE EXPERIENCE

1 Commissioned by Microsoft The Definitive Guide 2021. EMPLOYEE . EXPERIENCE . Can you win the new war for talent? You won't if you think it's about money or titles or job security. The post-pandemic era is quickly becoming defined by EMPLOYEE EXPERIENCE : how your organization shapes the way people work and live from productivity to flexibility, wellbeing, health, and everything in between. n The Reason EX Excellence Is Important Good practices around EMPLOYEE EXPERIENCE (EX) can drive signi cant impact for business, people, and innovation in your organization. COMPANIES LEVERAGING THE RIGHT EX STRATEGIES ARE.. BUSINESS OUTCOMES INNOVATION OUTCOMES. more likely more likely more likely to delight to be a great to adapt well customers place to work to change more likely more likely more likely more likely to exceed to create a to engage to innovate financial sense of and retain effectively targets belonging employees PEOPLE OUTCOMES.

2 N The Irresistible Organization: A Framework for EX. The EX Framework will help guide the thinking around the work we do; the teams we work on;. our managers and how they coach and support us; the digital, physical, and cultural workplace;. holistic wellbeing and health; how we grow and develop; and how much we trust the organization. Meaningful Strong Positive Health and Growth Trust in the Work Management Workplace Wellbeing Opportunity Organization Jobs and Clear goals Tools, processes, Safety and Open, facilitated Mission and values t with stretch and systems to security in all job and role purpose beyond opportunity get work done aspects of work mobility nancial goals productively Autonomy and Regular Appreciation, Personal tness, Career growth Transparency, agency coaching and recognition, and health, and in multiple paths empathy, and feedback rewards physical wellbeing integrity of support leadership Agile teams.

3 A focus on Flexible Psychological and Many forms of Continuous supportive management hours and emotional well- learning as investment in coworkers development workspace being and support needed people Time to focus, Transparent, Inclusive, diverse, Family and A culture that Focus on innovate, and simple and sense of nancial support supports society, recover performance belonging and learning environment, management community and community Technology and Services Foundation (security and access); Support systems; Insights apps; Talent apps; Communication apps; Work technology n The 6 Top Research Findings EMPLOYEE EXPERIENCE is incredibly complex, multifaceted, and multilayered, but our top ndings help reduce the noise and present the messages for EX excellence.

4 Consistent, mission-first Focus on trust, transparency, people investments in any 1 inclusion, and care. 4 business climate improve business performance. A supportive culture plays EX excellence directly leads 2 a big role in EX. 5 to business outcomes. Innovation and sustainable HR capabilities and the growth depend on equitable 3 rewards and building 6 right technologies are vital to a great EX. communities at work. n The EMPLOYEE EXPERIENCE maturity model Our study identi ed four levels of EX maturity . According to analysis of responses, only 20% of companies represented in our survey are at Level 4. Percent of surveyed companies at each level LEVEL. Equitable Growth 20%.

5 4. LEVEL. 3 Purpose-Driven Business 25%. LEVEL. Supportive Environment 23%. 2. LEVEL. Transactional E ciency 32%. 1. n Moving Up the maturity Curve Business, people, and innovation outcomes all improve as organizations mature. There is a lot of value in moving up the maturity curve. Business People Innovation Outcomes Outcomes Outcomes LEVEL. Equitable 4 Growth 81% 85% 81%. LEVEL. Purpose-Driven 3 Business 76% 70% 62%. LEVEL. Supportive 2 Environment 65% 42% 38%. LEVEL. Transactional 1 E ciency 36% 17% 20%. Percentage of organizations that accomplish excellence at each level. Highlight indicates the biggest increase from level to level. n The Importance of Technology Without the right technologies, companies can't get insights into EMPLOYEE sentiment, provide personalized and relevant experiences and development opportunities, or support employees at scale.

6 THE USE OF TECHNOLOGY AND ITS. CORRELATION TO OVERALL EX maturity . LEVEL People Analytics Equitable 4 Growth Advanced Knowledge Tools Adaptive Learning Tools 83% of Work and Support Tools +. companies LEVEL. Purpose-Driven Linked and Integrated into do not use 3 Business advanced people analytics LEVEL Advanced Collaboration +. Supportive 2. Tools Environment Next-Generation Interfaces LEVEL Security and Privacy +. Transactional 1 Ef ciency Enterprise Communications EMPLOYEE Portal n What Business and HR Leaders Need to Know When we asked our survey respondents about the state of EX in their organization, we got over 1,200 comments. Here are some common themes: What's working well?

7 What's missing? We have a strong focus on We purposely staff up with more 78% physical safety at work 6% people to allow for creativity and great customer service BENEFITS AND PERKS INTUITIVE SYSTEMS AND TOOLS. We offer individualized packages for We don't enable performance and remuneration and benefits based on productivity through systems, processes, employees' needs. and leader support.. FLEXIBILITY TIME FOR DEVELOPMENT. We provide flexibility in when and where We don't allow time for development you work. and growth. You have to do that on top of your daily work.. COMMUNICATION. We have regular communications to keep PEOPLE ANALYTICS. everyone involved. We are missing the measurement of EX and relating it back to what's working and what's not.

8 To learn more about EMPLOYEE EXPERIENCE , see The Definitive Guide: EMPLOYEE EXPERIENCE , which includes the following: n The Complete Research Findings n Advancing Through the Levels (and Research Methodology) of the EX maturity model n The Irresistible Organization: n Building HR Capabilities and The EX Framework Operationalizing the EX Team n The 15 Practices That Matter n Special Section on Technology n The Detailed EX maturity model n Examples of Excellence: True-life stories from Adobe, Deutsche Telekom, IBM, Kraft Heinz, and Unilever COPYRIGHT The Josh Bersin Company, 2021 | All Rights Reserved | Not For Distribution | Licensed Material