Strengthening the software tools tied to employee experience have numerous benefits, these are most often tied to job satisfaction and time savings/efficiency gains leading to higher profits and better marketplace positioning. Benefits typically include:
- More engaged, productive employees.
- Lower absenteeism rates.
- Increased quality of work.
- Improved customer relations.
Why is employee experience important?
The benefits of employee experience above encapsulate why employee satisfaction should be such an important priority. Here’s a more detailed look at why.
The most successful organizations attract and retain top talent. When the economy is good, the competition for top talent is highly competitive and the need for effective talent acquisition and retention grows. During difficult times, such as the COVID-19 pandemic and recession, attention to employee experience can help companies become more competitive and prevent the worst repercussions.
Employee perceptions and experiences will affect every other aspect of a company’s processes. Happy employees who perceive their experience as good are more engaged and complete tasks more effectively and efficiently.
Employee experience directly affects other specific aspects of the workplace. For example, employees who have positive experiences are more likely to commit to and stay at an organization than employees who have negative experiences. They are also more likely to promote the company as a great place to work, leading to more referrals for open positions and increased fill rates, since most job seekers are easily swayed by employee perceptions of the work experience and company culture. This is one reason why company review sites — such as Glassdoor — have grown in popularity. Bad reviews will turn candidates away from a company, while good reviews will draw them in.
Employee experience also affects worker engagement. Higher engagement levels improve company culture and increase productivity, ultimately creating a positive impact on the company’s revenue and profits.
Employee experience vs. employee engagement
The difference between employee experience and employee engagement lies in the difference between experience and engagement. Put simply, employee experience is holistic and encapsulates everything an employee thinks, feels and sees. In contrast, employee engagement refers to how positively an employee is occupied with or committed to the job. Employee engagement is one result of the overall experience and tends to be much more specifically associated with productivity.
Employee engagement — versus employee experience — tends to be associated with a narrow focus on technology tools, measurement or perks such as free food. These types of factors can be a part of an employee experience strategy, but they do not supplant a holistic and long-term approach to creating happy, loyal and productive employees.
It’s important to note that there are many variations of the definitions of employee experience and employee engagement and associated differences. Vendors and industry watchers may all have their own specific definitions. Regardless of these variations, after a decade-plus of the employee experience term coming to prominence and companies focusing on the idea of employee engagement, many studies show the majority of companies are not making progress, and employees are overall not happy at work.
