What do we mean by employee experience?
By Emma Wharton Love, Strategy Director at We are The Loves
You certainly don’t need us to tell you that your employees are your most valuable asset.
And it follows the experience our people have at work - the employee experience - has a huge impact on the success of our businesses in every arena: from employer brand, talent attraction and retention, right through to productivity, innovation, and wellbeing, and equally impacting customer satisfaction, and business agility.
According to a Gallup report from 2022, improving the employee experience can result in a 17% increase in productivity, a 20% increase in sales, and a 21% boost in profitability. Here we will look deeper into the concept and understand the significance of employee experience.
In a nutshell, what is employee experience?
Far from being a mere buzzword, employee experience (EX) paints a holistic picture of an employee's professional life, demanding continual nurturing and attention. It's an umbrella term that covers everything an employee experiences in their day-to-day work-life - the emotions they feel, the physical and virtual spaces they inhabit, the tools they use, and how they perceive the company culture. Right from onboarding to off-boarding, from recruitment to retirement.
However, it's crucial to note that EX isn't just about employee satisfaction or engagement - it's about constructing an environment where employees can thrive and feel valued, which, in turn, promotes higher productivity and engagement.
How a company treats its employees can significantly affect its reputation as an employer - it’s employer brand. Positive employee experiences can lead to positive word-of-mouth and enhance the company's reputation, which can influence customer perceptions and investor relations.
And so companies are are working hard to optimise all interactions and touchpoints with their employees to foster a positive work culture and enhance productivity. In this article, we'll explore this concept in-depth and understand why employee experience is so crucial in today's business environment.
Why is everyone talking about employee experience now?
In the changed expectations of ways of working brought on by the COVID-19 pandemic, where remote and hybrid models have become standard, the focus on employee experience has become even more crucial. A great employee experience is not just about talent acquisition and becoming employers of choice - it supports the whole ecosystem of work:
Retention
High-quality employee experience helps retain top talent. In a competitive job market, employees are more likely to stay with a company that provides a positive work environment. This saves the company costs related to turnover and recruiting.
Productivity
Employees who have a good experience at work are often more productive. They are more motivated and engaged, which can lead to higher quality work and improved performance.
Innovation
Positive employee experience fosters a culture of innovation. When employees feel their voices are heard, they are more likely to share their ideas and contribute to the innovation process.
Employee wellbeing
A positive employee experience can lead to improved physical and mental health for employees. This can lead to fewer sick days, improved morale, and higher job satisfaction.
Customer satisfaction
There is often a correlation between employee satisfaction and customer satisfaction. Happy employees tend to provide better customer service, leading to improved customer experiences and potentially increased sales and loyalty.
Adaptability
A positive employee experience can make it easier for companies to adapt to changes and challenges. Employees who are engaged and satisfied are more likely to be committed to the company's success and willing to adapt to new circumstances.
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What are the four pillars of employee experience?
Here we explore the essential pillars of employee experience as we see it: Culture, Connection, Technology and Place.
1. Culture - The heart of employee experience
At the core of an excellent employee experience lies a vibrant and inclusive company culture - set out in your employee value proposition (EVP). The pandemic exposed which organisations really had employee centric culture and which did not. Having a high-performing culture is as important as cutting-edge systems and processes in successful organisations – it’s their hidden asset and the foundation of employee experience.
This crucial pillar sets the tone for the organisation, creating a sense of belonging that aligns the personal values of the employees with the ethos of the company. An impactful company culture nurtures diversity and promotes mutual respect and understanding. These elements lead to enhanced job satisfaction, engendering an atmosphere where employees are motivated and empowered to do their best work.
Conversely, toxic work cultures are oh so damaging,. René Carayol draws our attention to the damaging effects of toxic work cultures. Such environments not only undermine employees' well-being but also hinder organisational success. A point which seems obvious, but is often an oversight.
However, creating a healthy work environment isn't just about relaxed Fridays or 'eliminating negatives'; it also involves fostering positives – like a sense of community and connection among employees. Read Carayol's complete article for more insights.
2. Connection - a fundamental human need
Actively promoting human connection in our workplaces is fundamental in today’s technology enabled world, which unchecked can lead to loneliness.
The RSA made a fantastic short video on the role of human connection in creating a healthy work environment - focusing on the adverse effects of loneliness and the transformative power of human connection.
In an era where remote work and digital communication are the norm, proactively curating employee, team and all staff connection points can significantly mitigate feelings of isolation and contribute to a more inclusive, engaging work culture. Watch the RSA short to appreciate the importance of nurturing connection in employee experience.
3. Technology - The enabler
Technology is the catalyst that powers the modern workplace, making it a vital component of employee experience. The tools and technologies an organisation provides must enable its employees to perform their roles effectively and efficiently. Beyond task-specific tools, technology also encompasses platforms for communication and collaboration, which become even more vital in the era of remote or hybrid work models. A seamless technological experience not only improves productivity but also helps build a positive employee experience.
Digital is a crucial factor in talent retention, a recent study in the banking sector reported in a Business Leader article found that 94% of product managers would leave their current position to work for a bank with better technology, and 92% would leave for a bank with more ambitious transformation goals. The article highlights the importance of digital progression in employee experience. It also underscores the risks for organisations resistant to digital transformation, as a lack of perceived innovation can lead to talent shortages.
4. Physical space - for productivity and wellbeing
The third pillar of employee experience is physical space, which is not limited to the office environment but extends to remote work setups as well. A conducive work environment should provide safety, comfort, and the resources necessary for all employees, with a wide range of individual needs to perform their roles at their best.
Interestingly, Deloitte found there is a huge disparity between what employees expect and what companies currently provide in terms of workplace wellbeing. Is there an opportunity for your organisation to better meet expectations and stand out from the competition to attract the best talent? Check out Deloitte's report here.
Download our free guide to building your EVP —
How do I curate exceptional employee experiences?
You won’t be surprised to hear that crafting an employee experience is an iterative process that requires continuous effort and focus.
The first step is to regularly gather feedback from employees, providing insights into their needs, challenges, and overall workplace perceptions. This can be integrated into regular staff surveys but it’s important to use other methods to, ensuring every voice is heard. Try focus groups, peer-to-peer listening and anonymous feedback too. This feedback should then inform data-driven decisions, tracking patterns and trends over time to understand shifts in employee feeling and behaviour so that the employee engagement strategy can be tweaked accordingly.
The role of managers in shaping employee experience cannot be underestimated. They are the key touchpoints between the organisation and its employees, and so need to be equipped with the right training, tools and support themselves to enabled to support their teams effectively.
If problem areas have been identified, the organisation should work towards implementing necessary changes - these could range from introducing new policies, enhancing communication channels, or redefining roles and responsibilities.
Ideas you can implement to support your employee experience
Here are some ideas on how to curate a positive employee experience:
Purposeful onboarding: Make the first days and weeks meaningful for new hires. This can include an orientation program that covers the company's mission, vision, culture, and structure, as well as meetings with key people and a well-structured job training process.
Supportive leadership: Encourage leaders to be approachable, empathetic, compassionate and supportive. Leaders should regularly communicate with their teams and provide constructive feedback. This helps build trust and strong relationships.
Clear communication: Regular, clear, and transparent communication is key. This includes updates about the company, changes, expectations, and feedback. Regular team meetings and one-on-one catch-ups can be effective for this.
Recognition and rewards: Regularly recognise and reward employees' contributions. This can be through an official recognition program, shout-outs in meetings, or even just a simple thank you message.
Career development opportunities: Provide opportunities for growth and learning. This could include in-house training, external courses, mentorship programs, or opportunities for internal promotions. It’s not all about promotion today though - many people are now more interested in life-long learning and progression more than moving up. Especially Gen Z.
Work-life balance: Encourage employees to maintain a healthy work-life balance. This could mean flexible working hours, remote working options, or regular reminders to take breaks and use vacation days.
Wellness programmes: Provide resources to support physical and mental health. This could include gym memberships, yoga classes, mental health resources, or regular health check-ups.
Inclusive culture: Foster a workplace culture that is inclusive and respectful. Celebrate diversity and provide resources for different cultural events, awareness days, etc.
Employee surveys and feedback: Regularly conduct surveys to gauge employee satisfaction and gather feedback. Use this feedback to make improvements.
Team building activities: Regular team building activities can help to strengthen relationships, build trust, and enhance communication. These could be anything from team outings to virtual game nights.
A work environment that reflects your culture and how you value your staff: The physical work environment reinforces culture and supports employee experience.
Provide autonomy and empowerment: Give employees the autonomy and the tools to do their work in the best way they see fit, and in a way that gets the best out of them as an individual. This empowers employees and can lead to increased satisfaction and productivity.
What’s vital across all of these is that whatever you choose, do it authentically and fully, don’t pay lip-service. And support the employee experience in a way that is in line with your company’s values and its customer experience too. The generation just coming into the workplace now - Gen Z - can sniff inauthenticity a mile off.
How do I measure employee experience?
The best way to measure anything is to triangulate a number of measures together and the same goes for measuring employee experience. One popular method is the Employee Net Promoter Score (eNPS), which gauges employee loyalty by asking how likely they would be to recommend their company as a good place to work. Regular employee satisfaction surveys will provide further detail into the employees' perception of their workplace depending on what your area of focus is.
Other valuable metrics include the turnover rate, as a high turnover often signals a negative employee experience.
We advocate looking at employee happiness as a whole - taking into account various factors such as engagement, satisfaction, work-life balance, and relationships at work.
Transforming employee experience into advocacy
An exceptional employee experience can be a potent employer brand advocate. A satisfied and engaged employee is more likely to speak positively about their employer, thereby promoting the organisations brand. To cultivate this advocacy, organisations must have a culture of open and transparent communication, making employees feel like they are part of the bigger picture.
In a world where authenticity is key, your employees are your most credible ambassadors. They are the heart of your brand, and their voices can amplify your message in ways that traditional marketing channels can’t. Employee advocacy programmes can positively shape an organisation’s reputation, but It's not just beneficial for the organisation, employees participating in such programs often see a positive impact too. They become more strongly engaged with the organisation, which can lead to higher retention metrics. It's also a huge boost to their personal brands, enhancing professional credibility and increasing their network reach, providing people with tools to help them navigate their future careers.
Forbes published an article listing 15 valuable tips and tricks to help brands turn their employees into company advocates. The tips range from establishing clear guidelines and expectations, investing in social media support teams, prioritising authenticity, and (most importantly) ensuring that their employees truly understand, and believe the company’s mission, vision, and values. Employee advocacy should never be forced as this would just result in misrepresentation and a feeling of inauthenticity, but instead should result from genuine feelings of pride related to the work they do. Read the Forbes article here.
Why work with an employee experience consultancy?
Working with an employee experience consultancy can provide organisations with expert advice, industry insights, and proven methodologies to enhance employee experience. According to a Gallup improving the employee experience can result in a 17% increase in productivity, a 20% increase in sales, and a 21% boost in profitability. Hence, investing in an employee experience consultancy doesn't only create a positive impact for the employees - it can also significantly enhance your business outcomes.
To sum up, focusing on the employee experience is no longer an optional luxury - it's a necessity for any forward-thinking organisation. With a well-defined employee experience strategy, businesses can bolster their employer brand, attract and retain top talent, and maintain a competitive edge in the volatile marketplace of today.
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Examples of bringing employee experience to life
Targeted recruitment film and brand storytelling conveying the unique values and behaviours of the fast-growing management consultancy Q5.
Photography showcasing the variety of careers on offer through Unilever’s graduate recruitment programme.
Developing a hybrid working EVP strategy and employee engagement campaign for the organisation behind our democratically elected house of the UK Parliament.
