Employee experience is a term that has become more and more popular in the last few years.
As a result, it's also one of the most misunderstood terms in HR today. Many people think that employee experience means having an open floor plan or free snacks at work. But this isn't true.
The employee experience is the total of all interactions an individual has with a company.
This includes everything from their interactions with management, their co-workers, and even how they view benefits such as health insurance or retirement plans.
In this article, you will learn what exactly employee experience means, why it's monumental in your organisation's success, how to design an exceptional employee experience and how to measure it.
What makes up employee experience?
Employee experience is defined as seeing the world through your employees' eyes. This includes how they interact with your organisation from the day they visited your company website until they leave the organisation.
Employee experience is very similar to customer experience — how customers perceive your brand while interacting with your business.
The term 'employee experience' was popularised by Jacob Morgan in his book 'The Employee Experience Advantage'.
According to Morgan, the employee experience highlights 3 environments that make up the employee experience:
- Cultural: the sense of collaboration and community with the people in the organisation.
- Technological: the tools your employees use to get work done
- Physical: the working environment they're in
Why is employee experience important?
Improving your employee experience takes time and resources, so why should you care to invest in it?
Many organisations are taking the leap to improve their employee experiences because an organisations' financial success is directly linked to the employee experience.
Glassdoor analysed the companies awarded as 'Best Places to Work' and compared their performance with the S&P 500. It turns out that all companies outperformed the S&P 500 by 53 - 122%
Kristine Dery, a research scientist of MIT Sloan Center for Information Systems Research (CISR), surveyed 281 executives and showed similar results. The top quartile employee experience produced 51% of revenue versus 24% for the bottom quartile. The top quartile's NPS score was 32 while the bottom quartile had 14.
A research done by Jacob Morgan showed that organisations that invested in cultural, technological, and physical aspects have 4x higher average profit, 2x higher average revenue, and 40% lower turnover.
This is why 95% of HR executives prioritise employee experience as a focus area. They understood that a positive and effective employee experience is imperative to an organisation's success.
How to improve your employee experience for everyone
Before we get to the actionable steps, you need to understand two things: the life cycle of an employee experience and ONE fundamental action that creates a positive employee experience.
The life cycle of an employee experience starts from attracting to departing, as shown in the image below.
Any tactics you implement in any stage of the life cycle depends on this fundamental action: how well you listen to your employees and execute their feedback.
Many organisations start to realise the importance of listening to their employees and act on their feedback to create the most exceptional employee experience.
Remember, trying everything on the shelf is not the smartest method. Knowing what your employees need and then implementing relevant strategies can yield the most results.
So, let's move on to the tactics you can use today to improve employee experience in different stages of their life cycle.
How to measure employee experience?
How do you capture the moments that matter in an employee's experience?
From hiring to departing, each employee goes through different events and experiences. Some moments enhance their experience, and some do not.
Although it's been a tradition to send out employee surveys every year to capture feedback, more HR teams are modernising the methods to capture more accurate data.
Here are 6 ways to gather data:
- On-demand survey: Short pulse surveys to gather feedback from multiple stages of the employee lifecycle.
- Workspace usage: Data about space utilisation, room reservation, other physical spaces usage that you offer in the physical environment. Having a workplace management system can help document all these data in one place.
- Technology usage: Data about the frequency of software is used in an employee's computer, its duration, and usefulness to the employee.
- Employee benefits usage: Data about the frequency of an employee benefit is used and the amount reimbursed. Using an employee benefits platform helps keep these data in one convenient portal.
- Internal business processes: Employee referrals, turnover, transfer, attendance, promotions. Each data point may lead to a deeper insight into the employee experience.
On-demand feedback: An online platform easily accessible by employees to drop any feedback at any point of their employee experience. This enables HR to capture more accurate vital moments.
How Mednefits can help you deliver a positive employee benefits experience
Mednefits help simplifies employee benefits for your organisation by automating repetitive administrative work, enabling access to hundreds of healthcare providers in Singapore and Malaysia, and making it affordable for everyone.
With Mednefits, organisations can save over 100+ hours of administrative work, achieve 3x employee satisfaction, and gain 20% benefits bonus per employee for free.
Mednefits helps businesses take care of their employees with its automated, affordable, and accessible employee benefits platform. Request to join Mednefits for free to help process and track claims in real-time, while controlling costs.