High Expectations: Employee Experience in 2025

Ignoring employee engagement comes at a steep price tag. A single, median-size S&P 500 company could be losing between $228 million and $355 million a year on disengagement and attrition, according to a study by McKinsey.

Yet creating a great workplace experience where employees are happy and productive is easier said than done. Companies have been focused on addressing long-known employee needs like compensation and career advancements, but employee expectations have evolved. To retain top talent, increase engagement, and raise performance, companies must take a step back and examine the needs and priorities of their people to shape a better experience.

Your Employees Expect More

Just as the world and your business have evolved, so have the needs of your most valuable resource: your employees. This year marked by the convergence of generational shifts and hybrid work models, is a clear sign that a one-size-fits-all approach is no longer viable. It's time to recognize the unique needs of each employee. Let's delve into how these two critical factors have shaped the individual needs of your workforce.

The Multigenerational Mix

Gen Z is set to surpass Baby Boomers in the full-time workforce segment in 2025.

This shift, while seemingly insignificant, will have a profound impact on your business's engagement rates. Baby Boomers have consistently shown high levels of engagement in the workplace over the past several years, while Gen X, Millennials, and Gen Z engagement rates are on a downward trend, as per Gallup's workplace research. With your most engaged and presumably more productive workforce segment declining, it's clear that a strategic response to the changing landscape is imperative. You cannot afford to overlook the needs of the people who drive your business.

While it may seem daunting to address the unique needs of each generation, it is crucial. Luckily, several critical needs overlap. Gen X and Millennials value autonomy and the freedom to complete tasks without constant supervision. Millennials and Gen Z are passionate about purpose-driven work and mental health. Work-life balance and workplace flexibility are expectations shared by all three generations. Recognizing and addressing these individual needs is key to creating a workplace that resonates with each employee.

By focusing on commonalities rather than differences, companies can drive positive changes across broader sections of their organizations.

Fluid Workplace Models

The pandemic has shifted our perception of the importance of the office. Many employees who continued to deliver high performances during COVID-19 have embraced the flexibility and work-life balance associated with remote work. They may no longer see many benefits from returning to the office and are pushing to continue fully remote work. On the other hand, some employees report feeling disconnected from business and their colleagues, negatively impacting their engagement and mental well-being.

While many companies continue to embrace remote work, some employers argue that a lack of in-office presence reduces employee engagement, ultimately hurting the business. They attempt to increase in-person attendance through creative perks; some even introduce rigid return-to-office (RTO) mandates. However, as Gartner's research shows, forcing employees to return to work will have an adverse effect on the employee experience and can negatively impact the retention of top talent.

So, what are the next steps in overcoming these generational and workplace challenges?

The Answer: Flexibility

The first step in creating a great employee experience is to understand and embrace the new terms of your employees.

The next step is to successfully realize the experience by implementing cultural changes. This means creating hybrid workplaces that allow employees to continue remote work while empowering them with tools to navigate the office space effectively to collaborate with colleagues and meet with partners and customers. It's ensuring employees are informed and feel plugged in with the business and each other. It's leveraging technology that enables them to do their best work with ease, regardless of where they are.

So, let's get started. At CXAI, we can help you adjust to the evolving workplace requirements, create an engaging and productive work environment, and optimize office space utilization. Our AI-powered, user-friendly platform streamlines tasks, communications, and workplace navigation, helping you improve employee engagement and productivity.

Schedule a call with our team today to help build a better workplace experience.

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