What is Employee Experience and Why is it important?
Employee experience refers to how employees see their organisation and how they feel about every aspect of their work life. The company's decisions regarding its employees have a significant effect on the degree of employee engagement because it is positively correlated with employee experience (EX). It is molded by their experiences with their coworkers, rules, procedures, and technologies at key moments in their careers. Employees who are enthusiastic about their jobs are more likely to be efficient and eager to contribute to the company's success. Corporate sustainability and employee engagement have an obvious correlation. High levels of engagement increase the likelihood that your company will prosper.
Your attempts to increase employee engagement could be ineffective if you're not tracking the return on investment. The term "return on investment" (ROI) refers to a performance indicator that organizations use to assess the effectiveness of their investments. It refers to directly measuring the amount of return on a particular investment. Organisations also need to measure how their investment in making the employee experience better is paying off.
It may seem as though the "employee experience" is an abstract notion, but it isn't. Higher engagement, greater retention rates, and lower labor turnover are just a few of the favorable results of investing in the employee experience.
According to behavioral science, individuals function most effectively under conditions of positive intrinsic motivation. Working is an incentive when people enjoy what they are doing. The workplace has evolved. We no longer live in a "get a salary" society. People want from their jobs more than just a paycheck; they want purpose, connection, recognition, advancement, and the chance to do their quality effort. Because of this, industry leaders like Google, LinkedIn, Apple, and Adobe have moved away from irregular employee engagement programs and towards a more comprehensive strategy that prioritises the employee experience.
According to studies, over a period of seven years, businesses with happy employees saw a 2.5x increase in revenue compared to companies with the poor employee experience.
To manage the whole Employee lifecycle, as well as the software used to monitor and measure it, is an expensive endeavor, so it only makes sense that those in charge of the budget should change course. Even the most skeptical CFO can see the significance of employee experience and engagement for reasons that are evident and reassuring. Customer satisfaction is one of the primary reasons why you can't afford to overlook employee engagement, whether you're trying to justify the purchase of a survey tool or are just planning the next week's team-building activity.
Evidence suggests that satisfied employees are more likely to be loyal and even advocate for your company and its products. 87% of Starbucks customers who responded to a survey said the company's workers' behavior contributed to their brand loyalty. Your employees have regular interactions with your customers, and those that are highly engaged will provide the best customer service possible. A pleasant experience fosters an emotional connection between the customer and your brand. Gallup research also demonstrates that higher levels of engagement in teams can experience up to 10% greater customer trust and loyalty.
The culture of your company and how your employees are treated may have an impact on whether or not customers renew their contracts. It might also draw outside attention from prospective consumers.
If you optimize the needs of your employees, prospects will notice the increased employee engagement and be interested in working with you. Customers will view your business favorably and have more confidence in you if it presents a positive environment where employees are treated respectfully and have their welfare taken care of.
It's not just a best practice but a requirement for your long-term success to invest in creating a positive employee experience in order to promote employee engagement. The HR software from Numla makes it easy for the HR team to improve the employee experience by streamlining processes, reducing paperwork, and allowing employees to focus on their core jobs, resulting in better planning and greater job satisfaction. This leads to accelerating the return on your investment.