Understanding employee experience (EX)

Employee experience (EX) encompasses every part of an employee’s experience at an organisation. From the moment a prospective employee considers your business through to leaving is covered by EX. It covers:

• the recruitment process – including how prospective employees hear about your company and what attracts them to it
• onboarding – including the training that employees get so they understand their role, what’s expected of them and the wider context of the company
• time in the role – including employee development opportunities, performance reviews
• promotions – covering sideways moves, secondments and moves up the ladder
• exit – covering how employees leave your company and exit interviews they are involved in.

Employee experience refers to how people feel and what they think about the interactions they have throughout all of these touchpoints. It includes how employees interact with your business, what they feel about their working environment and resources available to them, their team, leadership and organisational structure and culture.
Employees’ feelings about their encounters and observations at each stage of the employee life cycle – from attraction and onboarding to development and offboarding – define the employee experience, which means that every touchpoint in the employee life cycle is important.

The employee experience is dynamic as it encompasses the entire relationship that employees have with their organisation. This relationship shapes their work experience so understanding and managing this is critical for businesses wanting to foster an engaged and productive workforce.

Key components of employee experience

The employee experience is influenced by many different components. Each component plays a crucial role.

Remuneration and benefits

Salary and benefits are, of course, a key part of employee experience. Remunerating staff appropriately will ensure that you attract top talent; however, it’s only one part of the experience.

Consider how learning and development opportunities, volunteer opportunities and access to other services (salary sacrificing etc.) can build on remuneration.

Physical environment

The physical work environment is another component. Offering work-from-home flexibility is critical for many employees and if you do have a physical workplace then ensuring that it is attractive is critical. Consider:

• the comfort of furniture
• noise levels
• natural light
• relaxation areas.

These elements play a role in creating a positive work environment that enhances concentration, wellbeing and productivity.

Digital experience

Digital experience and technology are critical factors. Many employee interactions have shifted from face-to-face to automated self-service through online portals and dashboards. Employees now expect simplified, online access to services and user-friendly tools that improve the employee experience.

Research on technology in the workplace has found that 70% of employees say they don’t have the technologies to support day-to-day work (Workforce 2023).

Workers say that technology is an important part of the employee experience and they want modern technology solutions – however, many businesses aren’t providing the right solutions.

Company culture

What is your company’s commitment to diversity, equity and inclusion? How does it recruit people? How do teams conduct check-ins and performance reviews? How does your company approach innovation and adaptability? Does your workplace have a mission or values statement and does the daily experience reflect it? What would your workforce say about the culture?

A company’s culture encompasses many factors and is closely aligned with EX. Starting from leadership down, company culture captures the ways that the organisation is governed, how strategic decisions are made, what people experience of their leaders, how people are recognised, how poor performance is handled and how employees are expected to get on with their work.

Employee development

Employee development opportunities provide employees with the tools and support they need to close capability gaps and improve skills. Investing in ongoing training, professional development and employee coaching is a tangible way of demonstrating to employees that your business is invested in them and wants them to succeed.

Employee development opportunities can support people as they grow into new roles within your business and are critical for succession planning and retention.

Read Improve employee experience by supporting learning to explore more.

Workplace policies

What policies are in place at your organisation? Why are they there? Do policies support people and give employees autonomy or are they restrictive and designed from a micro-management perspective? While many organisations require certain policies from a legal and compliance perspective, consider if all your policies are supporting employees or restricting them.

Management practices

Do employees have autonomy and what sort of management styles does leadership practice? Leaders and management make strategic decisions and set the tone for what people experience in the workplace. People-focused management is generally considered to deliver better employee experience than a micro-management, traditional hierarchical approach.

Work-life balance

Ensuring that people have a positive experience of an organisation often means that they need sufficient time away from it! Employee wellbeing services, decision-making that considers burnout, and support for stress management can all contribute to a great employee experience.

Read Employee experience trends in a changing environment for more ideas on the factors that contribute to employee experience.

The importance of employee experience

Investing in all touchpoints of the employee experience:

• helps you attract great talent – people are choosing to work at companies with ‘a compelling employee-value proposition or places known for great learning opportunities’ (Fulcher et al. 2021)
• improves retention – happy employees are more likely to stay with your organisation
• lifts performance – happy employees tend to be more likely to deliver improvements in customer satisfaction
• gives you a competitive advantage – happy employees are more likely to innovate and take the lead on new projects and initiatives
• reduces business costs – high employee turnover can be costly and disruptive; improving retention means that you reduce recruitment costs and reduce disruption.

Focusing on employee experience is not just about keeping employees happy; it directly correlates with improved business outcomes and long-term success.

Strategies to improve employee experience

Employee experience management requires the development of strategies aimed at each touchpoint in the employee life cycle. It involves improving employee engagement, culture, HR practices, learning and development planning, and ensuring your people have access to the tech that supports them.

Designing an effective employee experience strategy involves several steps:

• Employee journey mapping helps identify significant moments in the employee life cycle that need attention.
• Analysis of metrics like attrition rates and employee satisfaction scores can reveal trends impacting employee experience.
• Consider the employee experience like you consider the customer experience! Listening to employee feedback, identifying their needs, and creating strategies that will appeal to them is critical.

Let’s take a look at some strategies.

Focus on culture

Leaders and managers, along with workplace policies, shape the employee experience. Consider how your leadership can foster a culture that values diversity, creativity, collaboration, and empowerment among employees.

By embedding your company’s values into the everyday employee experience you’ll lift the way your employees experience the workplace.

Use technology

Enhancing the digital employee experience requires using technology. Transitioning to modern platforms can streamline the way employees:

• interact with and update each other
• access HR and other services (like booking desks etc.)
• manage projects and deadlines
• set learning and development goals and track progress.

Ensure that the tech you use supports workflows and minimises employee frustration. Automated actions and real-time workflows promote smoother operations, while digital assistants and chatbots can provide personalised support.

Using technology, like YakTrak’s employee development software, makes it easy for your people to take ownership of their learning and development goals and for your leadership team to embed learning, development and on-the-job coaching. It reduces clutter and ‘busy work’ so your people can focus on what they need to.

Offer learning and development opportunities

Access to learning and development significantly contributes to the employee experience. Continuous learning opportunities make employees feel valued and engaged. Regular feedback and on-the-job coaching enhance employees’ capabilities and can close skills gaps.

Providing these opportunities in an ongoing, meaningful way will promote a culture of continuous improvement.

Focus on employee wellbeing

By supporting the mental and physical health of your employees, you’ll create a workplace where your workforce feels cared for and valued. Flexible work arrangements and promoting a healthy work-life balance boost morale and engagement. Consider:

• offering programs and/or discounts such as yoga classes or gym memberships
• encouraging employees to take regular breaks and build daily exercise into their workday
• providing employee assistance programs to offer support for personal and/or work-related stress.

Effective workload management significantly reduces the risk of burnout. Implementing work-life balance initiatives and workload management strategies is also essential when you’re considering wellbeing.

Consider employee recognition and reward programs

Recognition and rewards acknowledge employees’ contributions and achievements. Celebrate significant milestones like promotions, retirements and new roles.

Tracking progress: Key performance indicators (KPIs) for employee experience

Frequently asked questions

What are the key components of a positive employee experience?

A positive employee experience relies on several factors and encompasses touchpoints at all points of the employee life cycle. It involves having a positive company culture, effective digital tools and a focus on wellbeing. Putting your people first at every stage of the life cycle will mean that you’ll be empowering your people to thrive.

How can organisations measure employee experience?

To effectively measure employee experience, you can use engagement surveys, pulse surveys and exit surveys while tracking KPIs like engagement, reputation, productivity and retention.

Why is learning and development important for employee engagement?

Learning and development is vital for employee engagement as it makes people feel valued and helps to drive career growth. By fostering a culture of continuous learning and regular feedback, your employees will feel as though the business is invested in them and their success.

Why should my business focus on employee experience?

Employee experience impacts customer satisfaction, business success and company performance. Engaged employees who have positive employee experiences are more likely to be loyal, high-performing employees who will make a difference to your company’s success. 

Fulcher J, Cote T and Marasco K (2021) People operations: automate HR, design a great employee experience, and unleash your workforce, Wiley, Hoboken, New Jersey.

Workforce (2023) Workforce Reports State of Work 2023, accessed 19 August 2024. https://business.adobe.com/resources/reports/state-of-work-2023.html