The third annual ITSX Summit at Dynamic Earth in Edinburgh kicked off with a keynote speech by Sharn Kleiss, employee experience strategy lead  at Gallagher.

Titled Understanding & Improving Employee Experience: Insights from the ‘State of the Sector’ Report, the speech delved into the latest findings from Gallagher’s annual employee communications report, offering actionable insights for HR, internal communications and IT professionals.

Gallagher, a global risk management, insurance and consulting firm with more than 50,000 employees, approaches the thorny issue of mitigating people-related risks by enhancing employee satisfaction and productivity.

“We know that if employees are content at work, if they’re happy, they’re going to be more productive,” says Kleiss.

According to Kleiss, a direct correlation can be drawn between this and a tangible reduction in risk.

The State of the Sector report – now in its 17th year – that Kleiss builds from in her speech, surveyed over 2,000 internal comms and HR  leaders, primarily from the UK and US, complemented by qualitative insights from 60 focus groups. In her talk, Kleiss highlighted four sections from the report: intersectional accountability, the impact of AI, the digital employee experience, and the challenges of change management.

Kleiss emphasised the distinction between employee employee experience( (EX) and digital employee experience  (DEX).

“When we talk about employee experience, I’m talking about all that make up an employees’ day-to-day, from onboarding to relationships, culture, processes, systems, as well as the physical workspace,” said Kleiss.

Conversely, DEX, Kleiss explains, is shared across HR, IC, and IT departments. The marrying point (or,  often, bottle-neck) for these two converge at comms (or, specifically, ‘communicators’), who Kleiss says often bear the brunt of ensuring quality is met when it comes to EX and DEX.

She says: “The top two accountabilities for communicators are behaviour change and employee engagement.”

According to Kleiss, these responsibilities are shared with HR and IT, but communicators often find themselves at the intersection of these functions, acting as the “connective tissue” of the organisation. 

Kleiss, citing the report, stated that while 50% of communicators said they could reach all employees effectively, many expressed dissatisfaction with their tools. Less than half felt they had the right tools for personalisation and segmentation, leading to a haphazard approach to communication. 

“Rather than the spray and prey approach, which is like, ‘Hey, we’ll have a big email, take what you’re ready for,’ we need to be able to reach certain departments, job levels, or sites with specific information,” Kleiss said. 

Moreover, 23% of communicators reported spending a significant portion of their week maintaining tools and technology, diverting time from more strategic activities. “They’re not only lacking the right tools for the job, but they’re spending a good chunk of time maintaining an ecosystem that’s not fit for purpose,” Kleiss noted. 

Collaboration: The Key to Success 

One of the report’s standout findings was the importance of collaboration between departments.

Kleiss revealed that the average communicator has seven key performance indicators (KPIs), six of which are shared with other departments. The sole KPI communicators own is reach metrics, such as open rates and click-throughs. 

However, the relationship between communicators and IT departments remains strained. “8% of communicators have an obstructive relationship with their IT department, while 44% describe it as transactional,” Kleiss shared.

This lack of collaboration has tangible consequences. Organisations with strong interdepartmental collaboration see better use of data, improved ROI, and higher satisfaction in achieving their purpose. 

“When you are collaborating, you should see a better use of data, prove the return on investment of your department, and feel more satisfied that you’re delivering against your purpose,” Kleiss explained. 

Where Does AI Fit Into This?

AI emerged as a critical topic in this year’s report, according to Kleiss.

While 36% of organisations have a dedicated group or individual responsible for AI, 38% of communicators reported having no governance or guidance in place. “If the communications department doesn’t know about it, it doesn’t exist to employees,” Kleiss warned. 

In terms of organisational posture, the risks of unregulated AI use are significant. 

Employees may input sensitive intellectual property into public AI tools like ChatGPT, or organisations may invest heavily in AI tools that go unused. 

“There’s a role to play for the Holy Trinity of internal comms, HR, and IT to come together and get in front of the story about how we’re implementing AI,” Kleiss said.  

Transparency around AI use is also lacking. Only 5% of communicators specifically disclose their use of AI in messages, while 35% haven’t even considered the issue. “This is a conversation that needs to be had,” Kleiss emphasised. 

Change Fatigue Becoming a Growing Concern

Change management remains a persistent challenge for organisations. 

Kleiss dicussed how this year, the report introduced “change fatigue” as a barrier to success, and it immediately jumped to the second spot. “It’s gone beyond fatigue. It’s change exhaustion, it’s disconnection,” said Kleiss.

Poorly coordinated change initiatives exacerbate the problem. One participant in a focus group that Kleiss cited shared an example of two stakeholders launching separate change initiatives for the same group of employees on the same day, without realising the overlap. 

“If people aren’t on board with the change, you’ll see a reduction in engagement and productivity,” Kleiss warned. 

Despite the prevalence of change, just over half of communicators have a person-reviewed change communications plan, and one in five lack a change comms strategy altogether. 

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“There’s a risk here that the change is not going to be implemented, resulting in a huge waste of money and time,” Kleiss said. 

Kleiss concluded by urging communicators to reflect on their purpose within their organisations. 

“Communicators have a say in their purpose, and we ask them every year what the purpose of internal comms is in their organisation,” she said. The top three answers this year were strategic alignment, culture and belonging, and organisational agility. 

However, Kleiss challenged communicators to think beyond their traditional roles. “While they have to flex for the employee experience, does HR ever contemplate its purpose? Does IT? Maybe we just love pain,” she quipped. 

“Think about your purpose and how that shapes the perception of your department, but also build those relationships. If you are more collaborative, you will deliver on your KPIs.”