Are you aware of how your employee experience matters regarding your company’s performance and results? Truth is, your employee experience impacts everything in your business (yes, outside your HR or People department!). It has a direct impact on your employee engagement, productivity, results, and overall performance and happiness.
Check out these 9 statistics to see why employee experience matters and why doing everything you can to make it the best it can be is worth it!
What is Employee Experience?
Employee experience are all the events and experiences your team will encounter during their time at your company. This encapsulates your employee’s feelings towards your company culture, your management style, their work environment, as well as salary and benefits.
9 Reasons why Employee Experience matters
1. A good employee experience increases productivity
When employees are engaged in a good employee experience, they feel more motivated and productive, and are more likely to complete their projects successfully and achieve better results. These engaging employees will be willing to go the extra mile to ensure their project will be released on time and successfully.
In fact, according to a Gallup research on company culture, highly engaged employees mean a 41% reduction in absenteeism and a 17% increase in productivity.
2. Engaged staff help your company’s growth
If your employees were more productive and motivated, you would get better results, right? Now, better results mean an increase in growth and profitability.
Companies need to realize employee experience matters not only to the staff’s benefit, but also to the company’s. Motivated employees who thrive and complete their projects on time and successfully help your company grow bigger and faster.
According to the same Gallup research, businesses with highly engaged staff result in 21% greater profitability.
3. Improved employee experience means higher customer satisfaction
An IDC survey on employee experience confirmed that 85% of their respondents agreed that an improved employee experience and higher employee engagement mean a better customer experience and higher customer satisfaction.
How would this result happen? When employees are comfortable and engaged in the business, they are more likely to provide better customer service.
However, that isn’t all. Remember how we said a good employee experience brings the best results? This theory applies to customer experience too. Your engaged staff will always look out for the best user experience that will consequently bring you better results and profit.
Gallup also confirmed that engaged businesses achieve a 10% increase in customer ratings and a 20% increase in sales.
4. Disengaged employees are costly
Now, we don’t want to be negative. However, employee experience matters because disengaged employees will cost you a lot of money.
When employees are disengaged and unhappy, a couple of things can happen:
- They are more likely to not work as hard to provide the best outcome, which will result in less customer satisfaction and profit.
- They will eventually leave the company, causing turnover.
Another Gallup study on increasing productivity confirmed that disengaged employees cost their company the equivalent of 18% of their annual salary.
5. Motivated teams stay loyal
Motivated employees not only are more productive, but also stay loyal to their company and promote it. A happy worker is more likely to recommend their company’s product and use it in their day to day, increasing profits.
Employee experience is also a positive factor for your employer branding. A research on engaged employees stated they are 23 more times more likely to recommend their organization as a great place to work.
6. A positive company culture reduces employee turnover
Given our previous points, it’s no surprise that employee experience matters in reducing turnover. When an employee is engaged and believes in their work, they are less likely to look for a better job elsewhere.
Engaged employees choose to develop their career and grow in the organization that provides them a better employee experience. In fact, a study on company culture confirms that engaged companies achieve 59% less turnover.
7. Happier employees mean healthier employees
Employee experience matters because it helps your employees’ mental health. Engaged staff in a positive work environment are less likely to suffer from work-related stress and burnout.
A Gallup research on employees’ health problems confirmed that actively engaged employees experience 1.25 unhealthy days a month, while actively disengaged employees experience 2.17 unhealthy days a month.
8. Employee experience helps employee development
Staff who are happy with their employee experience are more likely to stay at that company, and therefore develop their skills and knowledge.
This result not only applies to employee development regarding promotions and career growth. Dedicated employees will also want to learn more about their company to provide the best results and make informed decisions.
A 2019 US L&D report on workplace learning stated companies with highly engaged staff were 94% more likely to offer training to employees.
9. A good employee experience attracts great talent
How many posts on social media by happy employees promoting their company have you seen? We imagine it’s many!
Engaged staff are more likely to post on their socials about your company. It does not matter if they make a long post on LinkedIn about how good their company is, or if they flood their Instagram feed with pictures in your offices.
All the publicity your employees share on their social media creates your employer brand and attracts talent. So, employee experience matters even before your candidates are hired!
- 35% of employees obtained their current job from a referral.
- 46% of job seekers agree that employee experience is very important for choosing a job.
- 15% turned down an offer because of bad company culture!
4 Steps to start building a better Employee Experience
Now that you understand why employee experience matters, it’s time to get to work!
So, why don’t we prepare an easy employee experience plan? We propose 4 steps that will help you create the best plan for your team, focused on the areas of improvement you need to tackle.
1. Find the areas you need to improve
Before you start building your employee experience plan, you need to understand which areas you lack in. This step will help you put a special focus on the aspects your employees need more assistance on, making your plan more effective.
For example, if you’re currently moving your team from working at the office to hybrid remote work, you will need to focus on your hybrid remote company culture and how it impacts your employees.
2. Build channels for feedback
When building any kind of strategy, it’s always best to offer channels for feedback, as well as the creation of a feedback culture. When your employees have platforms to share their insights and opinions, you will always understand how they feel and what they need. You could use employee surveys, or even talk to them directly during 1:1 meetings.
Once your strategy has been established and is up and running, you can use these channels to check what is working, and how you can make adjustments to improve results.
3. Provide psychological safety
Your employees will know best what they want out of their employee experience! Make an effort to give them a voice and let them know they can be comfortable using it to share their opinions. Providing psychological safety is the best way to get honest opinions and the best results.
4. Rely on real-time data to make decisions
Collecting feedback once a year is not useful in the long-term, so make sure you’re building a habit to share feedback, and collecting data regularly. Nailted offers a platform where your employees can share their insights through frequent feedback loops. Detailed people analytics with real-time reporting and metrics, along with the employee mood map, will allow you to always be up to date on the impact of your actions in building a world-class employee experience.
Remember, keeping informed on how your employees feel is the best way to stay up to date on what they need! Book a demo with one of our People & Culture experts and let your team know you understand employee experience matters!