From HCM To HXM: Why Experience Is The Key To Successful HR Strategies

Paul Kurchina

HR organizations have a front-row seat to one of the most significant forces shaping the global economy: a renewed focus on experience. As demonstrated in a statement signed by nearly 200 CEOs from top companies such as Amazon, Apple, GM, IBM, and SAP, business leaders are calling to put the needs of their employees, customers, suppliers, and local communities ahead of their shareholders’ interests.

This shift towards a more moral view of capitalism represents an incredible and much-needed fundamental change in the business world. In fact, a Gallup poll shows an undeniable correlation between employee engagement, experience, and business results. The survey suggests that companies with a more-engaging, more-focused employee experience achieved 17% higher productivity, three times more revenue per employee, and 40% lower turnover.

As organizations view their people experience as a board-level priority and HR as a strategic growth area, it’s clear that companies cannot ignore the employee experience. Now’s the time for HR to step up and accept its place as a strategic partner to the CEO.

Empathy and awareness shape a new era for the employee experience

As the world of work and its future continue to evolve at an accelerating pace, HR is in the driver’s seat as business tries to understand and navigate the human experience. By redefining human capital management (HCM) as human experience management (HXM), HR leaders are putting the employee experience at the center of the business, moving from data and process workflows to a renewed focus on employee journeys.

Displaying such empathy and awareness of the power of the employee experience is the perfect way to address today’s unprecedented changes in the workplace. Artificial intelligence, robotics, machine learning, and a long list of other innovations are coming every day and from all directions. Meanwhile, six generations are now represented in the workforce – all of whom are grappling with inevitable changes to their day-to-day work and professional opportunities.

Take, for example, a call-center team. Traditionally, agents were confined to working in a cube on a strict shift schedule. But this model is changing as companies allow their teams to work anywhere with access to a mobile device, computer, and business intelligence. This shift is providing an opportunity to hire better-qualified people, regardless of location. Plus, employees can take advantage of a more affordable way to work and build up their skills without feeling isolated and dealing with the frustration and stress of the everyday commute to and from work.

This winning strategy for employee engagement is also a win for the customer experience. Every HR innovation and digital advancement is an opportunity to enhance how customers engage and transact with the brands they love. By giving employees the tools, knowledge, and experiences they need to be successful, HR strategies can dovetail the efforts of their sales and marketing colleagues.

Knowing what’s at stake, this new era of experience requires more than just filling out forms. HR business partners must now speak to employees and resolve their issues while relying on chatbots to fulfill their administrative duties. Additionally, virtual reality can be used to allow new hires to explore a day in their new role and develop existing talent to close skill gaps and prepare them for future responsibilities.

These examples of digital transformation in the HR function are just a small representation of how people and technology complement each other. Together, they can define the future of work and business success with precision and validation – all while appealing to fundamental human needs.

Every moment of the employee experience matters

The more digital the workplace, the more human the experience will need to become. Every person possesses knowledge, competencies, and character qualities that contribute to business success. And when HR can match those assets to the employee experience, everyone – employees and customers –wins.

Find out how the employee experience can harness the power of people, leverage their superpowers, and spark joy. Watch the replay of the Americas’ SAP Users’ Group (ASUG) Webcast, “The Future of Work Is Now…#CarpeDiem.”

Paul Kurchina

About Paul Kurchina

Paul Kurchina is a community builder and evangelist with the Americas’ SAP Users Group (ASUG), responsible for developing a change management program for ASUG members.