What is Employee Experience and Why Does It Matter?

The modern employee can afford to be choosy. There is more competition for talent, and the labor market is still tight. With an excess of open positions and a lack of high-quality candidates, employers need to find ways to remain competitive in the hiring space. An easy first step is to look at the employee experience to see if yours could use some improvement. When employers create a positive workplace experience, employees are more likely to stay with the company and perform higher-quality work. Understanding the employee experience and its impact on your organizational goals is crucial for retaining your A Players.

What is Employee Experience?

The employee experience isn’t just something that takes place during an employee’s tenure. From the moment a candidate clicks on your job advertisement to the time they leave your organization, each experience plays a more profound role in determining your workforce’s satisfaction. In a traditional business environment, leaders have the opportunity to interact face-to-face with employees and have oversight into the sentiment of their staff. As organizations embrace a remote work format, the employee experience needs to adapt to fit an employee’s modern needs.

Think of the tools and technologies you use to complete your daily tasks. Are they working as smoothly as they should and supporting your team as you intended? Employees who face troubles with software updates, internet connectivity, and project management tools can easily become frustrated, negatively impacting your employee experience. Understanding what factors influence your employee’s experiences and how it affects your workplace goals will be crucial for recruiters hoping to remain competitive in the marketplace.

Why Does Employee Experience Matter?

We spend a good portion of our lives at work. Playing a vital part in our everyday lives, our jobs profoundly impact our perception of success and satisfaction. Whether it be executives or frontline workers, employees want a meaningful, customized, intuitive, and digital experience.

While employee experience hasn't been at the top of every list in organizations over the past decade, it has grown increasingly important. The events of 2020 have made it virtually paramount. Today’s employees want to find a sense of meaning and purpose in their work and want to work for an organization that demonstrates that they care about the people working for them. Tapping into your employees’ passions, concerns, career goals, and consumer expectations will impact employer brand, employee engagement, recruitment, and performance.

Engagement. Employees who are not happy at work are not likely to be engaged. And, as we’ve previously discussed, a disengaged employee costs you in profit and productivity. Employee engagement has long been a focus of HR departments. Naturally, as we move into a hybrid or remote work environment, leaders need to find unique ways to connect with their team and engage their employees. HR leaders can start their workplace culture off right by investing in a positive employee experience. You’ll see that your employees are more satisfied in their roles and more engaged with the company mission.

Recruitment. Let’s face it — bad news spreads quickly. If a candidate has a poor experience when applying for a job at your organization or an employee feels a lack of support in their role, odds are that news will spread. In today’s modern world, candidates research employers across a wide array of job search sites. Negative employee reviews can often dissuade sought-after talent from applying for your open roles. Employers need to spend time and resources fostering workplace culture and processes that create an enjoyable work environment if they want to remain competitive.

Retention. A Players want to work for organizations that invest in their workforce. By providing your employees’ resources to create a positive employee experience, you can reduce turnover rates by up to 37%. With turnover costing employers nearly 2x the amount of any given salary, finding ways to retain your top talent will be crucial for cutting costs. Ensuring your employees are happy and have the most enjoyable experience possible is one way to reduce the odds turnover.

Productivity. In organizations that prioritize a positive employee experience, absenteeism rates are lower. Additionally, employees are more likely to feel engaged in their work. When employees are highly motivated to perform in their roles, companies see 21% greater profitability. The bottom line is that investing in your employee experience can help you see large increases in the quality of your employee’s work and the level of talent you recruit.

When it comes to recruiting and retaining A Players, creating a strong and positive employee experience matters, it is important to remember that an employee’s experience at your organization culminates in all parts of their workplace experience. From initial outreach to the exit interview, all aspects of your process need to support a positive and inclusive experience.

ClearCompany has a proven track record of success with enabling organizations to transform their talent management and engagement strategies. With our award-winning and customizable solutions, leaders can create a positive employee experience specific to their industry needs. For more information about how ClearCompany can assist with your talent management needs, reach out to one of our experts or sign up for your free demo today.