CEO guide to driving company performance 

Executive Brief - Enterprise Research 

We looked at 4 of the Top Enterprise Research organisations and their studies, findings and insights

Understanding the dynamics of employee engagement and organisational performance is crucial for executives looking to foster a thriving workforce. Several comprehensive studies provide valuable insights into these areas, focusing on various aspects of workplace technology, employee satisfaction, and performance metrics.

Microsoft's Performance Equation Study: Microsoft’s extensive study, which analysed millions of data points across Office 365 and Azure in 31 countries with a sample of 31,000 executives, culminated in the New Company Performance Equation. This equation emphasises the synergy between productivity and engagement, illustrating that high engagement directly correlates with enhanced organisational performance. The findings highlight how adopting integrated technology solutions not only streamlines operations but also boosts employee satisfaction and collaboration. By leveraging this data, companies can make informed decisions on technology investments that drive both productivity and engagement.

Deloitte's Global Human Capital Report: Deloitte’s Global Human Capital Report, based on insights from 14,000 executives across 95 countries, uncovers critical trends impacting the enterprise workplace. This research identifies shifts in workforce demographics, evolving employee expectations, and the increasing importance of corporate culture in attracting and retaining talent. The report emphasises the need for organizations to adapt to these changes by fostering an inclusive environment and prioritising employee well-being. As companies navigate this landscape, leveraging the insights from Deloitte’s findings can help shape strategic initiatives that enhance workforce engagement and overall performance.

Gallup's Employee Engagement Study: Gallup’s research, which surveyed 15,000 executives across 10 countries, delves specifically into employee engagement levels and their implications for organisational success. The study reveals that only a fraction of employees—23% globally and just 10% in the UK—are highly engaged in their work. This lack of engagement is a significant concern, as it can lead to decreased productivity, higher turnover rates, and diminished company performance. Gallup’s findings advocate for a strategic focus on enhancing employee engagement through effective communication, recognition, and the use of technology, emphasising that small improvements in engagement can yield substantial financial benefits.

PWC and Munster University's Study on Immersive Meetings: The joint research by PWC and Munster University investigates the effectiveness of immersive meetings compared to traditional video conferencing platforms like Teams and Zoom. The study reveals that immersive meetings significantly enhance personal performance metrics, including problem-solving effectiveness, communication, and team cohesion. For instance, immersive environments can lead to a 58% increase in team-building effectiveness and a 32% improvement in problem-solving capabilities. These findings underscore the potential of immersive technology to transform collaboration in the workplace, fostering deeper connections and more effective teamwork.

Collectively, these studies provide a robust framework for understanding the intricate relationship between employee engagement, technology, and organisational performance. By harnessing these insights, executives can develop targeted strategies to improve employee engagement, adopt innovative technologies, and ultimately drive better performance outcomes. In an era where the workforce is becoming increasingly dynamic, leveraging data-driven approaches will be key to sustaining competitive advantage and fostering a resilient, engaged workforce.

Microsoft research has looked at:

Gallup’s Research on Employee Engagement

While Microsoft focused on productivity blockers, Gallup took a different approach, addressing the issue of employee engagement. Gallup’s research aimed to understand the current state of employee engagement on a global scale, recognising that disengaged employees contribute to a range of problems including low productivity, high turnover, and lack of innovation.

Gallup's findings revealed startling statistics:

• 23% of employees globally are highly engaged, with the remaining majority either disengaged or actively disengaged.
• In the UK, only 10% of employees report being highly engaged, which highlights a critical gap in the way organisations are addressing employee motivation and satisfaction.

Gallup identified several factors contributing to low engagement, such as:

• Lack of recognition and appreciation: Employees often feel unappreciated, which lowers motivation.
• Poor leadership: Ineffective leadership can disengage employees by failing to provide clear direction and purpose.
• Limited opportunities for growth: Employees who do not see pathways for development or feel unsupported in their roles are more likely to be disengaged.

To combat these issues, Gallup recommends:

• Active Engagement Strategies: Introducing recognition programs, providing opportunities for growth, and fostering open communication.
• Focus on Well-being: Implementing wellness initiatives that support employees’ mental and physical health, especially in hybrid or remote settings.
• Adopting Technology: Leveraging tools that foster collaboration and create a more dynamic, connected workforce, enabling employees to feel more engaged in their daily tasks.

While Microsoft’s research sought to solve productivity challenges by refining its technology offerings, Gallup took a human-centric approach, focusing on the emotional and psychological barriers to engagement in the workplace. Both perspectives offer complementary insights that, when combined, present a comprehensive roadmap to improving both productivity and engagement in modern organisations.

How to Drive Company Performance in 7 Steps

In today's competitive landscape, enhancing company performance is crucial for sustainable success. By incorporating virtual reality (VR) technology, businesses can improve employee engagement and overall productivity. Here’s a seven-step guide to help you navigate this transformative journey:

1. Understand the Research: Workplace Research

Start by delving into the latest workplace research. Reports indicate that 90% of UK workers are disengaged in their roles, leading to significant losses in productivity. Understanding these statistics, such as how a 1% increase in engagement can be worth $46,511 in market value, is vital. Familiarise yourself with studies that demonstrate the impact of immersive experiences on collaboration, communication, and overall employee satisfaction.

2. Bring Your CFO, HR, and CTO on This Journey

Transformation is a team effort. Involve your CFO, HR, and CTO early in the process. Their diverse perspectives will be crucial in crafting a comprehensive strategy that addresses financial, human resource, and technological aspects. This collaboration ensures that all facets of the organisation are aligned toward a common goal: enhancing performance through VR.

3. What Can a CFO Do?

The CFO plays a critical role in budgeting and resource allocation for new initiatives. By presenting the business case for VR, including potential returns on investment and long-term savings from reduced office space and commuting costs, the CFO can advocate for funding. They can analyse how improving employee engagement through VR translates to enhanced productivity and, ultimately, a stronger market value.

4. What Can HR Do?

HR is essential in driving cultural change within the organisation. They can implement training programs that introduce employees to VR tools and facilitate the transition to a more immersive work environment. HR can also focus on developing policies that support flexible work arrangements, allowing employees to thrive without the constraints of traditional office setups. Additionally, they can gather feedback to assess the impact of these changes on employee engagement and satisfaction.

5. How Can the CTO Help?

The CTO is responsible for the technological integration of VR solutions. They can evaluate the current IT infrastructure, ensuring it can support VR applications, and work with vendors to select the right tools. The CTO can also spearhead pilot programs to test VR's effectiveness in fostering collaboration and creativity among teams. Their technical expertise will be crucial in troubleshooting any challenges during implementation.

6. How to Implement Change: Educate the C-Suites

Educating your C-suite executives about the benefits and functionalities of VR is key to driving company-wide adoption. Conduct workshops, share case studies, and highlight successful VR implementations in other organisations. By demonstrating how VR can address disengagement and improve overall workplace dynamics, you’ll gain buy-in from leadership, making it easier to roll out the initiative across the company.

7. Develop Your Company Plan

Finally, outline a detailed company plan that incorporates VR into your business strategy. Set clear objectives, timelines, and metrics to measure success. This plan should address how VR will enhance collaboration, reduce the need for commuting, and ultimately improve employee engagement. Regularly review and adjust the strategy based on feedback and performance outcomes to ensure ongoing effectiveness.

Driving company performance requires a strategic approach that addresses disengagement head-on. By understanding the research, engaging key stakeholders, and leveraging VR technology, you can create a more engaged workforce that enhances your company's market value and operational efficiency.

CEO: Understand the Research

As a CEO, understanding the research behind employee engagement and workplace performance is critical to driving organisational success. Here’s a detailed breakdown of essential studies and findings that can inform your strategic decisions.

1. Microsoft Work Labs: Discover the Performance Equation

Microsoft's Work Labs highlights a fundamental equation for organisational success:

Productivity x Engagement = Performance.

This equation emphasises that high levels of engagement can significantly enhance productivity, ultimately leading to improved performance across the organization. Engaged employees are more committed, motivated, and willing to go the extra mile. By focusing on strategies that boost engagement, such as implementing VR technology, you can effectively increase overall productivity and, in turn, enhance your company’s performance.

2. Gallup Report: State of the Workplace

The Gallup Report: State of the Workplace reveals concerning statistics about employee engagement globally. The report indicates that, on average, only 23% of employees worldwide are highly engaged, while the figure is even lower in the UK, with just 10% of workers actively engaged in their roles.

This disengagement poses significant challenges for organizations, including decreased productivity, increased turnover, and lower overall morale. By addressing these engagement issues head-on, CEOs can reverse this trend and foster a more motivated workforce.

3. Microsoft Work Trends: Financial Impact of Engagement

According to Microsoft’s work trends research, a 1% increase in employee engagement can lead to an increase in company share value by approximately £46,511 per employee. This statistic illustrates the direct correlation between engagement and financial performance.

Investing in initiatives that enhance engagement—such as immersive VR experiences—can yield substantial returns for your organization. As employees become more engaged and connected to their work, the positive impact on the bottom line becomes increasingly evident.

4. PWC and Münster University: Benefits of Immersive Meetings

Research conducted by PWC and Münster University highlights the effectiveness of immersive meetings in boosting team dynamics and overall workplace performance. Key findings include:

• 58% Increase in Team Building: Immersive VR experiences foster collaboration and connection among team members. By creating a sense of presence and shared experience, teams can build stronger relationships, leading to improved collaboration and trust.

• 32% Improvement in Problem-Solving Effectiveness: VR technology enhances the ability of teams to brainstorm and address challenges creatively. The immersive nature of VR allows for more dynamic interactions, enabling teams to approach problems from new angles and devise innovative solutions.

• 16% Enhanced Communication: Effective communication is vital for organizational success. The research shows that immersive meetings improve communication effectiveness, allowing for clearer expression of ideas and better understanding among team members. This can lead to more productive discussions and faster decision-making processes.

Conclusion

Understanding these key research findings is essential for CEOs aiming to enhance employee engagement and drive performance. By recognizing the importance of the performance equation, the staggering statistics from the Gallup Report, and the financial implications highlighted by Microsoft, leaders can take informed steps toward creating a more engaged workforce.

Moreover, leveraging immersive experiences, as evidenced by the PWC and Münster University findings, can significantly enhance team dynamics and problem-solving capabilities. By prioritising engagement and investing in innovative solutions like VR, you can set your organization on a path to success.

Support Your C-Suite Team

What Can Your CFO Do?

What Can Your CTO Do?

The Chief Technology Officer (CTO) plays a pivotal role in integrating and championing the use of immersive technologies like VR and Microsoft Mesh within your organisation. Here's how your CTO can lead the charge and unlock the full potential of these innovations:

1. Drive Immersive Training Sessions to Boost Staff Understanding

• Lead Immersive Training Initiatives: The CTO can organise and implement immersive training sessions using VR technology. These sessions can simulate real-world scenarios, allowing employees to experience hands-on training in a virtual environment. 

• Encourage Engagement and Participation: By making training sessions more interactive and lifelike, the CTO can foster higher levels of engagement among employees, improving retention of knowledge. Immersive training provides employees with opportunities to practice and perfect their skills in a risk-free environment, leading to increased competence and confidence.

• Track Learning Outcomes with Data: The CTO can implement tools to monitor and assess employee performance during these sessions, providing HR and management with valuable data on training effectiveness, progress, and areas for improvement. This data-driven approach will ensure continuous improvement in training programs.

2. Support Commuting Out – Teleporting into a Customised Mesh Room

• Remote Work Innovation: The CTO can champion the idea of replacing physical commutes with virtual “teleportation” into customised Microsoft Mesh rooms. Employees can attend meetings, collaborate, and participate in projects without the need to travel, reducing both commuting time and associated stress.

• Personalised Virtual Workspaces: With customised virtual environments tailored to individual departments or project teams, the CTO can enhance the sense of presence and interaction within these Mesh rooms. These virtual spaces can be branded and personalised to replicate real-world meeting rooms, making remote work feel more connected and engaging.

• Increase Flexibility: By promoting virtual teleportation into workspaces, the CTO can also support flexible work arrangements. Employees can engage from anywhere in the world, which opens the door to a more diverse, global workforce and greater work-life balance for current staff.

3. Champion New Microsoft Mesh Upgrades, Guest Access, and White boarding Studio

• Stay Ahead with Microsoft Mesh Upgrades: The CTO can stay at the forefront of technological advancements by closely monitoring and adopting the latest Microsoft Mesh upgrades. These upgrades may include improved graphics, enhanced interaction tools, or new collaborative features that further improve team engagement and productivity.

What Can HR Do?

HR plays a crucial role in harnessing the power of immersive technology to enhance recruitment, onboarding, training, and employee well-being. By leveraging virtual reality (VR) and related technologies, HR can elevate the employee experience and drive organisational performance in the following ways:

1. Implement a Human Technology Upgrade

• Align Technology with Human Needs: HR can lead the charge in implementing technology upgrades that focus on enhancing the human experience in the workplace. By adopting immersive tools such as VR, HR can create environments that foster better engagement, learning, and collaboration. These tools bridge the gap between employees working remotely or in different locations, providing a seamless digital workspace that feels more human and connected.

2. Evaluate Immersive Recruitment

• Revolutionise the Hiring Process: HR can leverage immersive recruitment strategies to attract top talent. Through VR, candidates can virtually tour the company, interact with future colleagues, and experience the culture before they even start. This not only helps candidates get a better sense of the role but also improves the quality of hires by ensuring a better cultural and skill fit.

• Virtual Job Simulations: Offering job simulations in VR gives potential hires a firsthand experience of their future roles. HR can create scenarios where candidates can demonstrate their skills and problem-solving abilities, leading to more accurate assessments of their capabilities.

3. Upgrade First Impressions

• Immersive Onboarding for Stronger Engagement: First impressions are critical, and immersive onboarding through VR can significantly enhance the way new employees experience the company. By creating virtual environments where new hires can meet colleagues, explore the organization, and engage in dynamic training programs, HR can leave a lasting impression. This also helps new employees integrate more quickly and feel more connected to the company’s culture from day one.

4. Implement Technology for Employee Well-being

• Support Employee Well-being through VR: HR can implement VR wellness programs that provide mindfulness exercises, virtual fitness challenges, and mental health resources. These virtual well-being initiatives can be tailored to each employee’s preferences, helping reduce stress and improve overall employee satisfaction.

• Reduce Commuting Stress with "Teleporting In": Virtual reality can eliminate the need for daily commuting. Employees can "teleport" into customised virtual environments, such as meeting rooms, collaboration spaces, or even a virtual version of the office. This flexibility not only improves work-life balance but also reduces stress associated with long commutes, ultimately boosting employee satisfaction and engagement.

5. Evaluate the Power of Immersive Induction and Onboarding

• Faster, More Effective Onboarding: Immersive induction and onboarding programs in VR can accelerate the learning process for new employees. HR can create fully interactive onboarding modules that allow new hires to explore the company’s values, procedures, and tools at their own pace. This speeds up their acclimation to the role and reduces the time it takes for them to become fully productive.

• Enhanced Training Absorption Rates: VR-based learning offers greater engagement compared to traditional training methods. Employees are more likely to retain information and develop skills quickly when learning is hands-on and immersive. HR can evaluate the effectiveness of this approach by tracking key metrics such as training absorption rates, employee retention, and performance improvements.

6. Cut Travel and Training Costs

• Reduce Travel Expenses: Immersive technology allows employees to collaborate and train without having to travel. HR can reduce significant travel costs associated with in-person training, conferences, or company meetings by shifting to virtual environments, allowing teams to interact effectively from anywhere.

• Evaluate Training Savings and Gains: Immersive training saves costs by reducing the need for in-person training facilities, travel, and trainer fees. HR can measure the savings against the improved outcomes in employee performance, speed of training, and overall knowledge retention. With virtual reality, HR can also offer training programs on demand, eliminating the need for repetitive, live sessions and allowing employees to learn at their own pace.

7. Teleporting In – Commuting Out

• Offer Remote Work Alternatives: HR can implement VR technology to provide remote employees with an experience that mirrors being physically present in the office. Employees can "teleport" into virtual workspaces for meetings, collaborative projects, or even daily check-ins, fostering a sense of presence and inclusion without the need for physical commuting. This flexibility can improve productivity while supporting work-life balance.

By embracing immersive technology, HR can revolutionise the entire employee lifecycle—from recruitment and onboarding to training and well-being—while driving cost efficiencies and improving employee engagement. The adoption of VR-based solutions will make it easier for HR to provide more meaningful, effective, and engaging experiences for employees, ultimately benefiting the entire organisation. 

HR: Championing the Human Benefits of Technology

1. Communicate the Human Benefits of Technology Policies: HR should lead the way in ensuring that employees understand how immersive technologies improve their work-life balance. From reducing commute stress to enhancing collaborative efforts, HR can articulate the tangible human benefits that technology brings, making the workplace more connected, flexible, and engaging.

2. Teleporting In – Communicating Without Commuting Out: HR can promote a "teleporting" approach, where employees use immersive technology to attend meetings and collaborate without the need for commuting. This saves time, reduces stress, and offers more flexibility for employees, improving overall satisfaction and engagement.

3. Champion Visible Impacts on Employee Experience: By driving the adoption of VR and immersive technologies, HR can show measurable improvements in employee well-being, engagement, and performance. This includes creating reports or showcasing success stories of how immersive technology has positively impacted recruitment, onboarding, training, and collaboration.

4. Drive Induction Room Changes: HR can implement VR-based induction rooms to transform the onboarding experience for new employees. These rooms can be customised to introduce new hires to the company culture, teams, and processes in an engaging, interactive way—improving retention and the speed at which employees become effective in their roles.

5. Transform Training and Development Practices: HR should lead the change in traditional training methods by implementing immersive VR training. Whether it’s for soft skills, safety training, or product knowledge, VR enables employees to train in lifelike simulations, improving absorption and effectiveness.

CFO: Leading the Financial Strategy for Immersive Technologies

1. Close Internal Meeting Rooms: By evaluating the usage of physical meeting spaces, the CFO can reduce or eliminate underused meeting rooms and shift meetings to virtual spaces. This move leads to significant cost savings in office rent and facility maintenance, especially in large headquarters.

2. Measure Carbon Tax Savings: With reduced travel and a lower reliance on physical office spaces, the CFO can calculate carbon footprint reductions, which can lead to potential savings in carbon taxes or credits. This aligns with broader corporate sustainability goals and enhances the company's ESG (Environmental, Social, and Governance) performance.

3. Measure Travel Cost Reductions: The CFO can assess the substantial savings in travel costs, including airfare, lodging, and other expenses typically associated with physical meetings. 

4. Shift HQ Floor-plate to a Smaller Area: By closing physical meeting rooms and reducing the need for large office spaces, the CFO can evaluate the possibility of shrinking the HQ’s physical footprint. This allows the company to move to a smaller, more cost-efficient office space, optimising operational costs while leveraging immersive meeting rooms.

CTO: Driving Technology Innovation and Adoption

1. Champion Meta Quest and Microsoft Mesh: The CTO can lead the introduction and adoption of Meta Quest headsets and Microsoft Mesh within the organisation. These technologies enable immersive collaboration, training, and engagement, allowing the company to stay ahead in digital transformation.

2. Champion Immersive Training to Drive Adoption: The CTO should promote the use of immersive VR-based training across different departments. By demonstrating its effectiveness, the CTO can help the company embrace more engaging training methods, improving employee skill sets and overall performance.

3. Champion New Microsoft Mesh Feature Upgrades: Staying ahead of technology changes is key, and the CTO should champion the regular use and updates of Microsoft Mesh features. New upgrades like guest access, advanced collaboration tools, or white-boarding studios should be integrated as soon as they are available to enhance company-wide productivity.

4. Look for Innovative Use Cases Across the Company: The CTO should seek out new and innovative ways to apply immersive technology throughout the organisation. For either immersive client presentations, virtual site visits, or enhanced remote team collaboration, the CTO can uncover diverse use cases that will deliver added value across departments.

Each member of your C-suite has a critical role in driving this immersive transformation—from enhancing employee experience and engagement to optimising costs and embracing innovative technologies. Together, they can create a future-focused, agile organisation ready to lead in the era of immersive work environments.

Drive Change by Educating – Company-Wide

1. Engage a Carbon Efficiency Company to Measure Impact: Begin by partnering with a carbon efficiency consultancy to measure how immersive technologies reduce the company’s carbon footprint. By gathering hard data, you can demonstrate the environmental benefits of virtual meetings and the reduction in travel. This data will resonate with both internal stakeholders and external audiences focused on sustainability.

2. Educate the C-Suite with Headset Demos: Arrange headset demos for the C-suite to experience the power of immersive technology firsthand. By allowing executives to engage directly with VR tools like Meta Quest and Microsoft Mesh, they can see how these technologies will transform meetings, collaboration, and training within the company. This practical exposure can break down any resistance and help build their advocacy for the technology.

3. Encourage the C-Suite to Roll Out an Immersive Meetings Policy: Once the leadership team understands the potential of immersive technology, push for the formal adoption of an immersive meetings policy. This policy would mandate the use of virtual meeting spaces for team collaboration, reducing the need for physical meetings and fostering engagement, productivity, and collaboration among remote and hybrid teams.

4. Drive Home the Human Benefits with a New Technology Communication Plan: Implement a company-wide communication strategy that focuses on the human benefits of immersive technology. Emphasize how it improves work-life balance by eliminating the commute, enhances well-being, and fosters stronger collaboration in virtual environments. This messaging will help employees at all levels see the personal advantages of the transition, increasing adoption rates.

5. Push the CFO to Maximize ROI and Cost Savings: Encourage the CFO to track and report on the tangible financial returns from adopting immersive technologies. This includes reducing travel expenses, shrinking the office footprint, and cutting meeting room costs. With clear ROI data, the CFO can build a business case for broader adoption of VR across the company.

6. Publish Results to Highlight Successes: Work with the CFO to publish the company's financial and operational gains from this transformation. Sharing the measurable cost savings, carbon reductions, and productivity boosts across internal channels will further solidify leadership support and help build momentum for continued technological innovation.

By educating your C-suite and driving change at all levels, you can create a culture where immersive technology is not only embraced but seen as a critical asset to the company’s future success.

Conclusion

The journey to incorporating VR and immersive technologies into your workplace is not just a technological upgrade; it’s a transformational shift in how your company operates, collaborates, and performs. By leveraging insights from critical workplace research, such as Microsoft's Performance Equation and Gallup's global engagement data, you can directly address the widespread issue of employee disengagement. With just a 1% increase in engagement translating to £46,511 in market value per employee, the stakes have never been higher.

As a CEO, your role is to guide this transformation by supporting your C-suite in embracing their individual roles. HR will drive immersive recruitment, faster onboarding, and more effective training, while the CFO will focus on cutting costs through reduced office space and travel, and evaluating the ROI of these investments. The CTO will champion Meta Quest and Microsoft Mesh technologies, integrating immersive collaboration tools that position the company at the forefront of innovation.

Through clear education, actionable policies, and data-driven results, you can shift your company towards an immersive, sustainable, and highly engaged workforce. From reducing the company’s carbon footprint to transforming employee experiences, this move will not only drive financial returns but also future-proof your organisation in the competitive landscape. The time to act is now—lead the charge by adopting immersive technologies and unlocking the full potential of your company’s performance.

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