As organisations continue navigating an ever-changing workplace landscape, the latest EX Report from our sister company, The EX Space, provides a comprehensive snapshot of trends, challenges, and opportunities in the field.
During a recent webinar, The EX Space team unpacked the findings, sharing thought-provoking insights into the state of EX and engagement.
Here’s a quick summary of the key highlights and takeaways.
The Changing Face of EX Teams
One of the most striking findings in this year’s report is the shift in how EX is structured within organisations. In the previous year, nearly half of respondents reported having a dedicated EX or engagement function. This year, that figure has dropped to just 15%, with EX increasingly embedded within HR (rising from 26% to 57%). While this restructuring could streamline collaboration, this could be seen as a step backwards, potentially signalling an “EX recession” driven by economic pressures and budget cuts.
This shift raises important questions: Are organisations deprioritising EX due to tighter budgets, or does it reflect a broader misunderstanding of its strategic importance? Participants in the webinar noted that EX-savvy organisations see the clear connection between EX and CX (Customer Experience), but in many cases, EX still lacks sufficient senior leadership understanding and buy-in.
Budgets, Buy-In, and Strategy: Barriers to Progress
The report underscores a persistent challenge in EX: a lack of investment. Over a quarter of organisations surveyed reported having budgets under £10,000, with 36% needing to make a business case for every expenditure. Perhaps most telling, only 19% of respondents felt their allocated budgets were sufficient to deliver on their EX plans.
This lack of resource ties directly to another key finding: the need for greater senior leadership buy-in. Without a clear strategy and compelling data to demonstrate ROI, gaining the support of decision-makers remains a significant hurdle. As Emma noted, many organisations pay lip service to the idea that “people are our greatest asset” but fail to back this up with meaningful investments.
The Role of Data and Technology
Encouragingly, organisations are leveraging data and technology to advance their EX initiatives. The use of real-time data collection tools has increased, while reliance on traditional annual surveys has declined. This shift reflects a growing emphasis on agility and actionable insights. AI is also beginning to play a role, with 18% of organisations reporting its use in EX. While adoption is still limited, AI holds potential for personalising and streamlining EX efforts, freeing up time for more human-centred activities.
However, as Emma cautioned, data alone is not enough. Organisations must move beyond measurement to actionable outcomes. Gathering insights is just the first step—success lies in using this information to improve experiences meaningfully.
Evolving Priorities: What’s Next for EX?
The report highlights several evolving priorities for practitioners:
- Redesigning Workplace Experiences: While focus on redesigning specific employee experiences, like onboarding, has slightly decreased, it remains a core area of EX work.
- Line Manager Capability: Despite their critical role in shaping day-to-day employee experiences, only 14% of organisations believe their managers have a good understanding of EX plans, and just 12% think they possess the right skills.
- Hybrid Work and Purpose-Driven Cultures: Amid ongoing debates around return-to-office mandates and flexibility, forward-thinking organisations are striving to create people-first workplaces that balance individual, team, and organisational needs.
Emma and Lee also emphasised the importance of defining EX in the context of an organisation’s unique purpose and culture. Clear definitions and strategies are foundational to winning leadership support and making measurable progress.
Challenges Ahead: Senior Buy-In and ROI
One of the most concerning findings is that only 35% of organisations measure the impact of their EX efforts, and just 15% can demonstrate financial ROI. This lack of measurement not only limits the ability to refine strategies but also hinders efforts to secure leadership buy-in. As Emma noted, “The business case for investing in people is well-established, yet it’s not translating into action.”
Looking Ahead: Optimism Amid Challenges
Despite the challenges, there’s reason for optimism. Nearly half of respondents believe EX will improve over the next 12 months, driven by advancements in technology, evolving workplace dynamics, and the growing recognition of EX as a driver of organisational success.
As the webinar concluded, Emma posed a thought-provoking question: How can EX professionals drive the transformational journey their counterparts in IT have experienced? Just as IT leaders have evolved from back-office technicians to strategic C-suite players, EX must make a similar leap to secure the resources and influence it deserves.
Ready to Dive Deeper?
The full EX Report provides detailed insights, trends, and strategies to help you navigate these challenges and opportunities. Download the report here or join The EX Space for access to resources, tools, and a community of professionals dedicated to tackling this, and advancing employee experience.
