HR Insights: Employee Experience vs. Employee Engagement

In today's competitive business landscape, HR people have to determine the difference between employee experience vs. employee engagement in discussions about workplace culture and productivity. While they are interrelated, they represent distinct concepts crucial to understanding and improving the modern workplace.

Employee experience encompasses the entire journey an employee takes within an organization, from recruitment to exit, focusing on the holistic impact of the workplace environment. On the other hand, employee engagement zeroes in on the level of commitment and motivation employees feel towards their work and organization. This blog delves into the nuances of these concepts, exploring their differences and synergies to help businesses foster a thriving workforce.

Employee Experience

Employee experience is how an employee feels about every aspect of their journey in the workplace. A positive experience begins when the employee applies to work with the company all through hiring, onboarding, and retention until the point of exit. Employee experience directly impacts engagement, and a positive experience leads to better employee engagement. Research from McKinsey reveals that employees with a positive experience have 16 times the engagement level of employees with a negative experience.

Employee Engagement

Employee engagement is how committed an employee is to helping their organization achieve set goals. Engaged employees are more likely to be productive, have high morale, and be retained in their organization.  A Gallup study reveals that companies with high engagement rates (average of 70%) prioritize ongoing communication through surveys, promote well-being, and integrate engagement into every stage of their manager-employee lifecycle.

Importance of understanding the differences

It is important to understand where and how employee experience and employee engagement impact employees in the workplace. Employees' engagement at work depends on their experience in different areas of work. The success and profitability of the business also depend on how engaged employees are. To put it simply, “experience” is what is provided to the employee by the organization, and “engagement” is how employees respond to the experience.

What is the meaning of employee experience?

Comprehensive Definition of Employee Experience

Employee experience is the sum of all interactions an employee has with the organization throughout their employment, from which perceptions are formed. It includes all the touchpoints from the point of hiring to exit. Employee experience is influenced by three main factors:

Physical: The work environment and its layout, including factors like sitting arrangements, lighting, and temperature. 

Technology: Tools and technology available for work

Culture: This includes the organization’s values, leadership styles, quality of interactions between managers and employees, inclusion, and processes such as onboarding, feedback, and development.

Components of a positive employee experience

Several processes contribute to a positive experience at work. These include:

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Onboarding: Onboarding is the employee’s first introduction to the organization and it helps communicate the employee value proposition to new hires. A Glassdoor study revealed that a strong onboarding process improved the retention of new hires by 82%.

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Culture: Organizational culture is key to shaping the experience of employees. Companies with a positive corporate culture are more likely to have happier and more engaged employees who are less likely to leave. A research study showed that cultural alignment with personal values is one of the major reasons employees (27%) accept a new job.

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Leadership: Good leadership sets the tone for a positive work experience because leaders model behaviors such as validation, assertiveness, appreciation, and communication.

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Career development: Opportunity for career development is one of the most sought-after work perks. According to a LinkedIn report,  94% of employees would stay at a company longer if it invested in their learning and development. 

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Work-life balance: Flexible work options such as hybrid and remote work help to promote a positive employee experience. Today, most companies pay attention to work-life balance and employee well-being to attract and retain talent. 

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Recognition and rewards: Lack of recognition is one of the main causes of employee disengagement, as people want their contributions to be acknowledged. Recognizing and rewarding employees is key to creating a positive employee experience.

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Performance management: Performance review software today goes beyond assessing employees’ job performance. It also involves carrying out surveys to obtain feedback from employees, understanding their strengths and weaknesses, and providing training that will help them improve. Performance management done right helps to give employees a positive experience in the workplace.

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Work environment: The physical environment at work is a crucial factor in employee experience because it impacts efficiency and productivity. It can also impact the health of employees.

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Technology: Technology is one of the most important aspects of work today and creates a positive experience at work. Without the right technology, employees will be unproductive. Workplace technology helps to improve collaboration, boost communication, improve teamwork, and ultimately boost productivity.

Real-world examples of employee experience

Salesforce - Onboarding

Salesforce has an engaging orientation process that includes hands-on training sessions, meetings with key executives, and a mentor to guide them in the first few months. The company also provides continuous training so employees can keep developing their skills and stay updated with the latest tools and technologies.

Microsoft - Employee Wellness

Microsoft provides its employees with wellness perks such as free personal and family counseling, stress management programs, and referrals for child and elder care. Some company benefits boost wellness such as free healthcare, PTO, sick days, and an allowance that covers fitness membership or home equipment.

Google - Culture

The company culture at Google is aimed at employee satisfaction and productivity. The culture encourages innovation and creative thinking, so employees are not confined to desks but have access to various types of spaces to work, which stimulates creativity. Google is also big on inclusion. An example is a career site that focuses on people living with disabilities, and support for such employees, including personal care assistance, sign language interpreters, and visual support assistance.

What are the three types of employee engagement?

Definition and importance of employee engagement

Employee engagement refers to the commitment and level of enthusiasm employees have towards their work and the organization. Engaged employees are usually motivated, dedicated, and willing to contribute to the organization’s success. When employees are engaged, they will go the extra mile to achieve the company’s goals.

Employee engagement is important because:

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1. Employee productivity is enhanced and the company is more profitable. Studies show that companies with better employee engagement have 18% more productivity and 23% more profitability.
2. Employee retention improves with higher engagement. Employees who are engaged are less likely to be looking for another job. Turnover rates of low-engagement teams are usually between 18% - 45% higher than highly engaged teams.
3. When employees are engaged, they perform better and go the extra mile at work. They tend to provide great customer service, which leads to satisfied and loyal customers.
4. Engaged employees are more likely to bring innovative ideas to work. Engagement boosts creativity and the willingness to take initiative.
5. Engaged employees are usually very motivated to perform and have lesser rates of burnout. 

3 Types of Employee Engagement

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Cognitive Employee Engagement

This is the intellectual and mental ability and effort an employee applies to work. It involves bringing critical thinking and problem-solving skills to get work done. Cognitive engagement motivates employees to learn and develop new skills that make them perform better at work, leading to more work satisfaction and retention. 

Emotional Employee Engagement

This describes the feelings, attitudes, and affective responses employees have toward their work and organization. When employees are engaged emotionally, they usually have a positive attitude to work and feel connected to organizational goals. For example, emotionally engaged employees work better in a team and collaborate well with others. One way to engage employees emotionally is through appreciation and recognition programs. 

Behavioral Employee Engagement

This is demonstrated through observable actions and participation. Behaviourally engaged employees are usually involved in company activities, volunteer to help others, and participate actively in discussions at meetings. Examples are employees who consistently meet or exceed performance targets, attend meetings, actively contribute to team projects, and volunteer for ERGs.

What is the difference between employee satisfaction and employee engagement?

Employee satisfaction is the level of happiness and contentment employees have in their jobs and workplace. Employee satisfaction encompasses all aspects of the job such as the job itself, compensation, relationships with managers and colleagues, the organizational culture, work-life balance, growth opportunities, and job security.

Comparison between employee satisfaction and engagement

Employee satisfaction has a direct impact on employee engagement. Employees who are unhappy and dissatisfied with their work and workplace will also be disengaged and perform below expectations. However, employee satisfaction may not be enough to get the best out of employees. A satisfied employee may be content to come to work, perform the work required, and collect a paycheck, but they may not be engaged. This means a satisfied employee might still want to leave for better opportunities.

A survey on employee satisfaction measures happiness and satisfaction with job conditions but an engagement survey will measure the emotional commitment and excitement of employees towards their job and workplace. Also, employee engagement software is linked to better productivity while employee satisfaction may not necessarily mean more productivity for the organization.

What is the difference between employee engagement and employee relations?

Employee relations is the effort of an organization to build and sustain a positive relationship with its employees. Aspects of employee relations include workplace communication, conflict resolution, collective bargaining, adherence to fair labor practices and labor laws, and creating a safe and fair work environment.

Key differences between  engagement and relations

Scope: Employee relations are broader and include legal and policy aspects, whereas employee engagement is more focused on the emotional and psychological state of employees.

Objective: Employee relations aim to maintain a harmonious and compliant workplace, while employee engagement seeks to enhance motivation and commitment.

Approach: Employee relations often deal with resolving issues and preventing conflicts, whereas employee engagement focuses on proactive strategies to improve morale and performance.

How both concepts contribute to employee experience

Employee relations and engagement both contribute to employee experience because their implementation impacts all aspects of the employee journey and shapes employee experience.

Conclusion

Employee experience covers the broad spectrum of an employee's interactions with the company while employee engagement focuses specifically on their commitment and involvement in their work and the organization. Both concepts are important to a positive and productive workplace. When both concepts are integrated, there is a more complete understanding of employee needs and motivations.

In the future, employee experience and employee engagement will be shaped by issues surrounding flexibility, personalization of experiences, well-being, and advanced analytics. These trends will create a more supportive, engaging, and fulfilling work environment.