What Is Employee Experience And Why It Matters?

15 January, 2021

Employee experience, often abbreviated as EX, refers to the workplace factors that influence an employee's experience during their lifecycle.For a business leader, the expertise to create a positive experience for their workforce is of vital importance. But often people confuse between EX and employee engagement, thus, let's find out- what is employee experience?

Employee engagement is an important aspect of every company’s optimum success and team-building opportunities. An engaged employee will invariably have a better experience and have higher levels of job satisfaction as well.

But as HR managers and leaders, do you know how to design the ideal employee experience? Let’s learn about it in details:

What is Employee Experience (EX)?

Definition- An employee’s journey from the day of joining until their last working day with the implementation of a successful customer experience, technological environment, culture, products, and services is called employee experience.

Core Components of Employee Experience

The primary elements of employee experience are shaped by the day-to-day interactions of a worker. However, there are additional components that managers need to focus on to attract and retain the top performers.

The components include:

Company Culture

It is generally challenging to define company culture as it implies the behaviors, attitudes, and activities that define what it is like to work for a company. It is a representation of people’s feelings about their place of work and the people they collaborate with.

The crux of a company culture revolves around shared values and goals and are often set with leadership qualities for the business to evolve and grow over time. All of this together sets the “personality” of an organization.

Hence, corporate culture is a pivotal part of creating a great employee experience as it directly influences how people feel about their jobs and their tenure at the organization. It highlights the reasons behind an employees' motivation, dissatisfaction, or engagement.

Physical Work Environment

The second component is the physical environment. It comprises sensory elements a worker experiences throughout their working hours, for instance, the comfort of the office chair, noise from the busy streets, the smell of coffee, etc. Such aspects affect an employee’s ability to perform their best and remain focused, thus affecting employees’ experience.

Physical needs may vary from employee to employee, but the overall work environment is imperative for onsite and remote workers. Whether an individual is working in an office cubicle or connecting from a home office, physical surroundings help to create an environment where employees feel happy about their work and have a smooth journey in the organization.

Workplace Technology

Technology is the priority for many organizations as it is an integral part of the customer experience. But, many companies and human resources tend to neglect this as an essential component of employee experience. Work technology is a basic need for employees, as every worker requires certain tools to do their work in an efficient and secure manner.

Workplace technology is a means to enhance employee experience because it directly impacts higher employee productivity and performance. Employees who receive the required resources and data at the right time, will have a better understanding than those who lack tech support at work.

Employers need to provide their employees with relevant, updated workplace technology, and tools. Outdated or insufficient technology at work might create a sense of dissatisfaction and decreased productivity amongst employees.

Advantages and Importance of Employee Experience

As an employer, you must invest in employee experience as it enhances a company’s ability to retain its employees and inspire people to work their best.

Certain advantages of shaping a great employee experience are:

  • High-level engagement
  • Lower turnover
  • Enhanced customer experience
  • Greater job satisfaction
  • Lower chances of burnout
  • Enhanced productivity
  • Stronger peer relationships

For instance, a recent survey comprising 1100 employees found that 43 percent of workers expected or already saw a better employee experience, leading to increased productivity. 30 percent said EX led to enhanced profits and more customer satisfaction.

Implementing a great employee experience is far beyond business metrics like KPIs and performance management to increase productivity and profit. It is about employees, the way you and the team treat them, and all the necessary equipment to perform their tasks. Hence, EX is a crucial part of employee engagement and employee satisfaction.

Importance of Employee Experience

The advantages and benefits of employee experience mentioned above encompass the importance of employee satisfaction and why it is a priority. Let’s have a more detailed look at why:

Successful organizations can retain their employees. If the economy is doing good, talent acquisition becomes a far easier process. But during unrest like recession or the COVID-19 pandemic, great EX can help companies become become resilient while attracting and retaining top performers.

As a whole, a company that holds a positive employee experience has higher customer experience scores and positive revenue growth. Many studies have shown a direct link between employee experience and customer experience.

Your employees’ perception and experience affect every other aspect of your company’s operations. Generally, an employee with a happy and ideal experience will be more satisfied and efficient.

Employees with positive experiences will show better commitment and tend to stay in your organization for a longer time than employees with negative experiences. Thus, it results in a lower attrition rate.

Efficient and happy workers advocate for the organization they work for. They bring in more referrals and promote the brand that help to build a great company culture. This is one reason why company review sites like Glassdoor have garnered such remarkable success and popularity. Bad reviews will turn away candidates from your company, whereas positive comments will bring in more talents and popularity.

Thus, employee experience is vital to enhance engagement levels, improve company culture, and increase productivity, positively impacting the company’s revenue and profits.


We believe employee experience plays an essential role in the growth and success of an organization. And a smooth employee journey is imperative for employee wellbeing and productivity.

Do tell us what you feel about employee experience, and how have you implemented it in your organization?!

This article is written by Gautam Gayan. He works as a Content Marketer at Vantage Circle. Apart from being a passionate content creator for HR services and employee engagement, Gautam is a theatre enthusiast, an avid reader and an aspiring poet. For any related queries, contact editor@vantagecircle.com