Landmark study: Interactions with HR positively impact a company’s reputation as a place to work

Landmark study: Interactions with HR positively impact a company’s reputation as a place to work
ADP Research Institute, logo

A new first-of-its-kind study by ADP Research Institute (ADPRI) shows that having even a single point of contact with HR positively influences an employee’s overall experience. A survey of 32,000 respondents found that when employees have a designated HR contact, they were twice as likely to value their company, and five times as likely to recommend their company as a place to work, compared to those who have no direct HR contact.

The 25-country study, which included India, debuts the HR XPerience Score (HRXPS) – a metric to measure the impact of the HR function on a company’s reputation as an employer – as seen through the lens of the employee experience. Generating a strong score is influenced by an employee’s relationship with HR.

The study reveals the key interactions and services provided by HR which positively impact employee experience, highlighting the importance of HR in turning employees into company ambassadors.

Other key findings:

  • Frequency of interactions matter: Employees are 7.4 times more likely to say HR is valuable when they experience seven interactions (compared to no interactions)
  • The more HR services used, the more positive the experience: Employees who use five services are 11 times more likely to say HR is a valuable function
  • Effective HR creates ambassadors: Employees are 8 times more likely to promote their company to others if they have a positive HR experience
  • HR retains talent: If an employee finds HR valuable, they are 3.7 times more likely to stay in that employment
  • Formal onboarding is important: Employees that experience a formal onboarding process are 8.5 times more likely to say HR is Value-Promoting compared to those who had no formal onboarding
  • Health services are key: Employees who receive health benefits and use them are 3.5 times more likely to say that HR has a positive impact on their workplace experience than those not offered health benefits.

“While companies have always tried to better understand what contributes to the talent brand, we now have a studied metric to effectively measure the HR function,” said Marcus Buckingham, head of people and performance research at the ADP Research Institute.

“Our research found that the HR function is critical to the talent brand – so much that every employee interaction that takes place, the specific services used and a personalised feel with a single point of contact are what influences a higher HRXPS. In fact, this high-ranking, single point of contact upends the current industry trend of doing away with HR.”

“The workforce remains hyper-focused on the need for talent, as job vacancies soar and competition for top talent remains high,” said Sreeni Kutam, chief human resources officer, ADP. “At the center of driving talent, both in acquisition and retention, as well as the talent brand, sits HR. Its importance can now be measured with an industry benchmark to gauge the strength of an organisation’s HR function.

“As companies continue to ramp up hiring, HR has an opportunity to refocus efforts on the onboarding process as this is a critical touchpoint, as uncovered in the study. A company’s talent is vital and this study shows where and how HR can make a direct impact on the talent brand of an organization.”