What is employee experience?

As a business, it’s likely you’ve invested an abundance of time and money into improving your customer experience (CX), but have you taken the time to look at your employee experience (EX)? Your workforce is your company’s greatest asset. It’s time to look at what EX is, its benefits, and how to design or improve it. 

Every moment from the time a prospective employee looks at your job posting through the end of their employment with your company—including what they feel, learn, see, and do—is part of their EX. Company culture, workspace (which in the world of hybrid working, could include work environments and work locations), and technology are all important components of EX. Some may confuse employee experience with employee engagement, but they are two different concepts.

While the concepts may overlap, employee experience is more holistic and encompasses more elements than employee engagement. EX is what the employee has lived through during their tenure. Engagement is the process of trying to understand, evaluate, and respond to those experiences. In other words, employee engagement is an outcome of employee experience.

The employee lifecycle is composed of sequential stages of the employee journey with your company. There are 5 key stages in the employee lifecycle that are also milestones in EX. Each touchstone adds to the employee’s perception and emotional reaction to your company.

It is during recruitment that your prospective employee begins their experience with your company. First impressions are made with your job description—is it written in a way that indicates inclusivity? Does it describe and embody your company culture? Beyond the job listing, prospective employees interact with your application program, recruiter outreach, and interviewers. These experiences include ease of submitting an application, time to receive a response, and the attitudes of the Human Resource department and the interview panel team during the recruitment phase. 

Many aspects come into play to create a positive EX during the recruitment phase, from how effective employers nurture their employer brand, to how inclusive the job description is so that it attracts a diverse talent pool, to the smoothness of the interview process.  

In the onboarding phase, employees meet with Human Resources representatives, receive information about their role, and begin team orientation. The new hires may also meet with company leaders to help immerse them in the company culture. This process includes a benefits presentation, initial goals, and meeting the team. This is a time for employees to begin learning systems, tools, and processes. Effective onboarding can generate enthusiasm and commitment for the new job. Employees are slowly ramping up as they learn and grow into their roles.

During onboarding, the employee is immersed in company values and company culture. Ensuring new hires have a positive work environment and the tools they need to perform their jobs efficiently and easily are key in EX.

The development stage is active throughout an employee’s tenure. It ensures the employee has everything they need to perform their role effectively, and that they can grow in their role and advance within the company. Among the tools that HR and managers have to ensure effective employee development include regular 1-on-1 meetings with direct managers and skip-level meetings with the manager’s manager, a performance review system, setting goals and learning objectives, and receiving opportunities for training and development. Effective 1-on-1 manager meetings include discussions about goals and accomplishments and an exploration of areas to target for training and development. 

Strong EX in this stage is dependent on open communication with managers and leaders, and the availability of appropriate training for professional development.

Once an employee is fully integrated into the company, a good retention strategy will make sure they want to stay. With the cost of replacing an individual employee ranging from one-half and two-times the employee’s annual salary, according to Gallup, it makes sense to try to keep existing employees. 

When an employee applies for promotion or lateral move, their experience in the retention stage includes interaction with the internal application system, HR, and new managers and team members. The ease of this process has a definite impact on retention.

A company’s commitment to diversity, equity, and inclusion (DEI) is another factor in employee retention. In our April 2021 Workforce Happiness Index¹, workers who said their company is “not doing enough” to prioritize diversity and inclusion scored only 63 on the index. In contrast, both those who said their company is doing “about the right amount” and those who said their company is “going too far” on DEI issues achieved a much higher score of 751.

Lastly, when an employee expresses the desire to move within the organization, either laterally or to a higher level, EX is critical. If the experience is positive, the individual won’t feel compelled to look for a job elsewhere.

Employees leave for a variety of reasons—retirement, another job, or a major life change. The exit phase is initiated by the employee, and generally begins with a personal conversation with their manager and letter of resignation, which now is often sent by email. This is later followed by an exit interview, usually conducted by HR. 

An exit survey or interview will help you understand areas you may need to improve to reduce turnover and is the final touchpoint in their EX.

In corporations, there has been a shift from a focus on employee engagement to a more holistic employee experience. Employee engagement is the level of motivation, enthusiasm, and commitment an employee feels toward their job. Companies promote employee engagement because it improves productivity, retention, and leads to higher profits. Interestingly, employee engagement hinges on a great employee experience.