Managing the employee experience: Why is it so important?
Is the pay cheque all that motivates your employees to show up every day? They probably expect much more from a job than that. The employee experience is what truly makes the difference.
We can confidently say that looking after your employees with a proactive people strategy is as important as looking after your customers.
Employees are the fuel that powers your business, especially if they’re well aligned with your company goals and values.
A positive employee experience can significantly impact that alignment, yielding tangible benefits like improved productivity and reduced turnover, as well as intangible benefits such as higher morale.
On the other hand, ignoring your employees’ needs can lead to higher turnover, directly affecting your bottom line.
Learn how to maintain a healthy attitude across the whole workforce with this employee experience guide.
Here’s what we’ll cover:
What is employee experience management?
Employee experience management encompasses all the ways an employee interacts with your company, even before they start working for you.
Every touchpoint, from the initial application process to an employee’s last day and beyond, shapes how they feel about working in your organisation.
Don’t confuse employee experience with the employee’s work experience or career trajectory.
The difference is that employee experience evaluates their impressions of the company culture and their colleagues, the emotions their job inspires, and how they feel about their daily tasks.
Of course, it also factors in whether they feel fairly compensated and have access to adequate benefits packages.
Many elements contribute to higher staff engagement, such as the technology they use, the perks you give them, their workspace, and their relationships with peers and managers.
Effectively managing employee experience means creating a positive and mutually beneficial journey for everyone on your team.
Employee experience vs employee engagement
You could say employee engagement is a consequence of an employee’s experience.
The employee experience is what they perceive and feel throughout their time with your company. It’s their holistic view of the time spent with your company.
Employee engagement, on the other hand, is how invested and motivated employees are in their work and in pursuing the company’s goals. It’s how they react to the experience.
Employee experience and employee engagement can both be measured through surveys and feedback, ideally via separate surveys.
Combining them in one survey could lead to a very long questionnaire, potentially impacting response rates and the depth of insights gained in each area.
Why attention to the employee experience matters
A positive employee experience makes your staff feel valued and supported, it positively impacts their wellbeing and their work ethic.
Here are seven reasons why well-curated employee experience can yield win-win results:
- Increased employee engagement: positive employee experience fosters a stronger connection between employees and their work, leading to higher levels of engagement and motivation.
- Improved productivity: happy and engaged employees are generally more focused and productive in their roles, promoting improved overall efficiency.
- Reduced employee turnover: when employees enjoy working in your organisation, they are more likely to stay long term. This reduces your recruitment and training costs.
- Enhanced company reputation: satisfied employees often become advocates for your brand, attracting new talent and customers.
- Better customer service: highly motivated employees are more likely to provide excellent service to your customers, leading to increased customer satisfaction.
- Fosters innovation and creativity: a supportive and positive environment gives employees the confidence to share ideas and contribute to innovation.
- Stronger company culture: focusing on employee experience helps build a positive and cohesive company culture where employees feel valued and respected.
The employee experience lifecycle
Just as your employees develop personally and professionally during their time with you, their day-to-day experience of working at your company also evolves.
There are at least four key phases of the employee lifecycle where such change occurs:
1. Employee acquisition
This initial phase covers everything from how potential candidates first encounter your company through the recruitment process and up to the job offer.
At this stage, they’re evaluating aspects such as your employer branding and the company culture they perceive through your interview style.
These early impressions significantly shape their expectations.
2. Onboarding
A well-structured onboarding process helps new employees feel welcome, properly equipped, and ready to show off their skills.
This is where you integrate them into a team and where they truly test the company culture.
3. Development and internal growth
This phase lasts for the duration of an employee’s time with your organisation.
Important elements include your ongoing efforts to provide opportunities for learning new skills, and clear pathways for promotions within the company.
Ultimately, you want to ensure they feel consistently supported in their professional development.
4. Offboarding and alumni contact
Even when an employee leaves, the way you handle their departure can leave a lasting impression.
Maintaining the connection through an alumni network can lead to positive referrals or future collaboration.
For example, the former employee may bring in know-how from potential partners.
Understanding these stages allows you to tailor your efforts to ensure a positive experience throughout the employee’s journey.
The 3 environments of employee experience
It’s clear by now that there are many factors contributing to the employee experience.
However, these can be broadly summarised across three key environments.
Each one contains elements you can mould to create a more positive and productive experience for everyone.
1. The physical environment
Tangible aspects of the workplace include the office space itself, its layout, aesthetic appeal, and the amenities available.
Do you provide relaxing spaces such as break rooms and quiet areas, for example? That is often where people become most creative.
Then there are the major tools and equipment employees need to perform their jobs effectively.
This goes from reliable computers and software to shared resources such as photocopiers and well-equipped conference rooms.
Even for hybrid and remote workers, you play a role in their comfort and productivity by helping them source resources for their home office setup.
You could provide ergonomic equipment stipends or reliable communication tools.
A well-designed and functional physical environment minimises distractions and ensures employees have what they need to deliver their best work comfortably and efficiently.
2. The cultural environment
This covers intangible but highly influential aspects of your company, such as its values, mission, and the overall atmosphere.
It shapes how employees interact with each other, your managers’ leadership style, and social aspects like inclusivity.
A positive cultural environment fosters a sense of belonging, encourages open communication, and makes employees feel valued and respected.
This is a cornerstone of morale and engagement.
3. The technological environment
Providing appropriate and reliable technology for all roles, whether desk-based or field-based, is essential for efficiency, safety, and overall job satisfaction.
Many office-based roles depend on digital tools and systems, including software, hardware, and network infrastructure.
User-friendly and efficient technology in these areas can significantly enhance productivity and reduce frustration.
Mobile networks mean this aspect is equally important to workers in the field too.
On-site workers may need access to digital blueprints on tablets, communication apps for site coordination, or software for managing equipment and safety protocols.
Drivers now depend on GPS navigation systems, electronic logging devices, or apps for dispatch and delivery information.
Employee experience examples in action
So what does a positive employee experience look like through the eyes of an average employee?
Here are two examples:
Better tools
Consider a company that invests in user-friendly software for expense management.
Employees can quickly learn how to use it, rapidly reaping the benefits of improved efficiency.
They waste less time on admin tasks, reducing frustration and helping them focus on core functions.
Flexible hours
Many businesses are open to flexible working arrangements these days.
Why? Employees know they are trusted and will use that freedom to manage their time more effectively.
With a better work-life balance they can clear their minds of personal issues, approaching work tasks with greater dedication.
Measuring employee experience
For a complete insight into how to improve the employee experience, honest feedback is essential.
Regular employee surveys can provide valuable insights into their satisfaction levels and pinpoint specific areas needing improvement.
A survey needs to be concise and anonymous to encourage truthful responses.
A well-designed survey includes mainly Yes/No questions that respondents can answer easily, plus space for writing freeform opinions.
You can also gather feedback through informal conversations, focus groups, and exit interviews.
This is why your company culture should value open communication and collaboration—employees need to feel comfortable sharing their thoughts.
Datasets within your company systems are another valuable source of information. For example, analysing help desk tickets can reveal recurring frustrations with technology.
Analysing employee turnover rates and absenteeism can indicate potential underlying issues, such as low morale or dissatisfaction with working conditions.
Tracking these metrics helps you understand what’s working well and where changes might be needed to enhance the overall employee experience.
Final thoughts
Prioritising the employee experience is a relatively new idea, initially considered a luxury by many companies. However, now it’s practically a necessity.
The good news is that HR software includes affordable tools for handling this aspect of employee engagement.
Create an employee experience that boosts their motivation, productivity, and retention.
A happy workforce is a solid basis for a resilient and thriving business.
