Interactions with HR positively impact a firm’s reputation as a place to work

Marcus Buckingham, head of people and performance research at the ADP Research Institute

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 study that involved 25 countries, which included Australia, 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 revealed the key interactions provided by HR which positively impact the employee experience, highlighting the value of HR in turning employees into company ambassadors. 

The study also had these 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: The study also revealed that if an employee finds Human Resources 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 didn’t
  • 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

ADP Research Institute Executive weighs in on the study

Marcus Buckingham, Head of People and Performance Research at the ADP Research Institute had the following insights on the study on the interactions of HR and employees.

“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.” 

“Our research found that the HR function is critical to the talent brand so much to the extent that every employee interaction that takes place, the specific services used and a personalized feel with a single point of contact are what influences a higher HRXPS.”

“The high-ranking, point of contact upends the industry trend of doing away with HR.” 

Sreeni Kutam, Chief Human Resources Officer, ADP had the following insights.

“The workforce now more than ever remains hyper-focused on the grave need for talent, as job vacancies soar and stiff competition for top talent remains every HR’s principal target.”  

“At the center of driving talent, both in acquisition and retention sits HR. Its importance now measurable with an industry benchmark to gauge the strength of the firm’s HR function.”

“As companies continue to ramp up hiring, HR has an opportunity to refocus efforts on the onboarding process as a critical touchpoint. 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.”