How to improve employee experience


How to improve employee experience improve employee experience
Table of Contents

What is employee experience?

Employee experience is defined as the totality of a worker’s experiences in a firm. It includes cultural experiences such as interactions with coworkers, leaders, and HR, as well as user encounters with workplace technology and even experiences with their workspace or surroundings.

Just as customer experience (CX) is a catch-all phrase for all consumer interactions with a business, employee experience (EX) encompasses all staff interactions with an organization. Employees are increasingly regarded as an organization’s “clients.” This is especially true in departments responsible for aspects of business culture, such as communications, HR, and IT.

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Why is employee experience so important?

Employee experience is clearly important in the employee journey, but its consequences extend well beyond that, having measurable implications on corporate culture and financial performance. Employee experience influences performance, productivity, and profitability. Perhaps this is why over 80% of business leaders polled by Deloitte regarded it as significant or extremely important.

The employee experience has an influence on five crucial areas:

1. Employee involvement and satisfaction

Employee engagement and satisfaction are directly affected by the employee experience. When people have a job that they like, their workflows become more streamlined, and they can do their tasks more simply and successfully. Those who have had a favorable employee experience are more inspired to participate with their work, team, and business as a whole. This might include putting in additional effort on the job, staying current on corporate news, and/or looking for improved methods or ways of working.

This is why many organizations and human resource departments monitor employee engagement indicators. Some major corporations have even created a chief employee experience officer post, which controls the employee experience in the same way that a CMO manages the consumer experience.

2. Talent acquisition

Today’s job seekers are searching for meaningful employment, not simply rich positions. They are vetting firms as potential employers vet them. Prospective workers frequently analyze perks, environmental practices, and diversity, equality, and inclusion policies throughout the employment process, in addition to corporate review sites like Glassdoor and anonymous workplace conversation apps.

A pleasant employee experience and a strong shared culture may foster employee advocates across all of these categories and platforms, attracting more applicants and providing firms with easier access to top talent.

3. Retention of employees

Employees evaluate their new organization from the outset of the onboarding process, just as employee performance is evaluated from day one. Companies that are hesitant to offer access to the systems, servers, tools, and information that their employees require for work reduce productivity and create a terrible first impression. According to certain surveys, up to 40% of newly hired workers quit their positions within 6 months, making the HR employee experience more difficult.

According to the Harvard Business Review, popular reasons for leaving include greater prospects for professional advancement, cultural issues, compensation, work transfers, and supervisor relationships. These are all aspects of the employment experience.

4. Customer satisfaction

There is an evident link between employee experience and customer experience (CX). According to Gallup, organizations with highly engaged workforces beat their competitors in terms of earnings per share by 147 percent. Glassdoor research backs up this claim, claiming that “on average, a 1-point rise in Glassdoor company rating is connected with a 1.3-point increase in customer satisfaction.” Even marketing industry professionals advocate that organizations begin by improving their staff experience if they want to increase their customer experience.

5. Profitability

The stats don’t lie when it comes to connecting employee enjoyment with corporate effect. Several studies from industry-leading consultants, institutes, and corporations demonstrate obvious linkages between EX, profitability, and company success:

Employee experience (EX) and profitability statistics

  • Companies in the top 25% of employee experience claim a 2x return on sales and a nearly 3x return on assets – EX leaders at IBM’s Smarter Workforce  
  • MIT found that EX leaders earn 25% more than competitors with low EX.
  • EX leaders have 4x greater average profits, 2x higher average sales, 40% lower turnover, and a 24% fewer workforce. SHRM’s Jacob Morgan
  • EX leaders outperformed the S&P 500 by 122 percent — Accenture
  • Gallup estimates that disengaged employees cost organizations between $450 and $550 billion per year.

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How to improve employee experience

A better employee experience is dependent on two essential factors: leadership and workplace practices. They may give a business with the tools and insights it needs to provide a more favorable experience for its employees.

1. Concentrate on performance management

Only two out of every ten employees feel their performance is managed in a way that encourages them to produce their best job. One method to do this is to encourage your supervisors to practice active listening. Another way is to sketch out the path using staff polls known as pulse surveys. “These enable you to monitor the mood and frustration levels of employees at different times of the day and while working on different activities,” according to the Academy to Innovate HR. This data may then be utilized to identify areas for improvement.”

2. Create a foundation for the employee experience

Create an employee experience framework to define expectations for employees throughout their careers. Determine how your company’s common mission and values will relate to each of the seven stages of the life cycle, and then apply the same logic to your employee experience plan.

3. Enhance your technology

Check that your digital employee experience is functioning for all of your employees. This doesn’t always mean pushing IT to acquire a bunch of new apps; it might also mean making better use of the ones you currently have. Work with your IT staff to find a method to integrate all of your organization’s systems so that your employees don’t have to switch between tools every day and your firm can communicate efficiently across all the channels.

4. Create a transparent culture

That may sound difficult, but with the correct technology, it’s simple to construct a digital source of truth where workers can get all of their information. Create a separate content stream for your CEO or senior leadership, where they may submit updates or even casual video messages. However, after you’ve established this direct channel of communication, be sure it works both ways. Make it possible for your employees to provide feedback and for your organization to act on it.

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Benefits of exceptional employee experience

The study establishes five Index dimensions. When employees have a favorable work experience, they display a better feeling of:

Belonging – a sense of belonging to a team, group, or organization

Purpose – Understanding one’s work’s purpose is essential

Achievement – a sense of achievement in one’s job.

Happiness – good emotion that arises during and after employment.

Vigor – the presence of energy, enthusiasm, and excitement during work 

When these dimensions thrive inside a business, the results are dramatic: improved work performance (96 percent vs. 73 percent), much higher levels of discretionary effort (95 percent vs. 55 percent), and significantly higher levels of employee retention (21 percent vs. 44 percent).

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The work experience necessitates a sense of communal accountability. The days of HR being solely responsible for employee experience are long gone. Employee experience management is now the responsibility of C-suite executives, corporate communicators, and IT specialists. They may become one of the top 6% of businesses that are really immersive by collaborating to build corporate technology, culture, and the physical workspace.

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