Employee Experience vs. Employee Engagement: 4 Differences To Know
Employee experience and employee engagement are two key concepts in creating a thriving work environment. What are the differences between these two workplace dynamics, how do they impact each other, and how can you improve your employee experience and engagement? Let’s find out.
Contents
What is employee experience?
What is employee engagement?
4 key differences between employee engagement and employee experience
How to measure employee experience and engagement
How to improve employee experience and engagement
FAQ
What is employee experience?
Employee experience refers to the employee’s journey within your organization, from their very first interaction through onboarding and daily work routines until after their eventual departure.
Many aspects impact employee experience, such as the quality of interpersonal relationships within the workplace, leadership style, and opportunities for professional development. However, there are three key components that form the overall employee experience:
- Physical experience: The physical experience relates to the work environment’s sensory aspects, from office layouts and noise levels to furniture comfort. All of these directly influence how employees feel about their work and the organization, impacting their productivity and energy levels.
- Digital experience: Digital experience centers on the technology and tools that employees use to carry out their tasks and collaborate with their team members. Intuitive and efficient tools for communication, accessing resources, and maintaining team connection are paramount for all employees.
- Cultural experience: Cultural experience embodies the company’s personality, including its values and daily behaviors. It’s the intangible elements that dictate the feel of the work environment. A positive cultural experience fosters creativity, collaboration, and empowerment, enabling employees to innovate, embrace new systems, and work to achieve the organization’s goals.
Each component contributes to how employees perceive working for your organization, directly influencing feelings, motivations, and attitudes toward work. It’s worth noting that even seemingly minute elements within these areas might tip the scales for your employees dramatically.
78% of EX experts say that senior management is paying more attention to EX than ever. And it’s for a good reason – organizations that deliver top employee experience report double the return on sales compared to their lower-rated counterparts.
What is employee engagement?
Employee engagement is the level of an employee’s dedication, commitment, and enthusiasm toward their work and the organization.
The key aspects that fuel employee engagement are:
- Emotional commitment: Central to understanding employee engagement is acknowledging emotional or affective commitment. Engaged employees typically have a sense of affection for their roles, thereby investing not only their time but also their heart into their tasks.
- Effective management: Research shows that 70% of team engagement is attributable to the manager. The more effective your managers are, the higher employee engagement your organization will have.
- Aligned goals: Engaged employees share a clear vision of the organization’s goals, reciprocating them within their daily tasks. They feel that their individual efforts contribute to the larger mission, fostering a sense of purpose and belonging within the company.
- Autonomy and active participation: When individuals feel trusted and empowered to make decisions and take initiative, they inherently feel more invested in their roles and the outcomes of their work. Highly engaged employees have opportunities to bring fresh, innovative ideas even to routine tasks, consistently pushing for excellence.
Developing an effective employee engagement plan that covers these elements helps businesses boost engagement and ultimately perform better. Highly engaged business units are 23% more profitable than teams with lower engagement levels. What’s more, Gallup estimates that globally, low employee engagement costs $8.8 trillion, accounting for 9% of global GDP.
4 key differences between employee engagement and employee experience
While the terms “employee engagement” and “employee experience” have different definitions, they are intricately connected. Understanding the differences between the two concepts can help your business strategize better approaches to foster both stellar employee experiences and high levels of engagement.
Think of it like this: Imagine that your organization is a ship. As such, employee experience could be seen as the entire journey embarked on by the crew—beginning when they first step onboard (the recruitment process) until they touch dry land again (their exit). It encompasses every interaction, emotion, and event experienced in between.
On the other hand, employee engagement refers to how passionate, dedicated, and vested the crew members are during that voyage.
In other words, employee engagement is an outcome of employee experience. However, engaged employees contribute to a positive work environment, which, in turn, helps improve the employee experience for everyone.
McKinsey found out that people who report having a positive employee experience are 16x more engaged than employees with a negative experience. They’re also 8x more likely to want to stay at the organization.
Recognizing this relationship is crucial for any organization aiming to build a productive workforce. Successful organizations understand that fostering an excellent working environment can lead to more engaged employees. That, in turn, transforms into greater productivity and improved business performance.
Let’s summarize the differences between employee experience vs employee engagement.
| Aspect | Employee experience | Employee engagement |
| Scope | Spans the entire journey of an individual within a company, from onboarding to exit. | Focuses on an employee’s commitment level to their job roles or tasks. |
| Timeframe | Fluid, linking past interactions with current scenarios to predict future behaviors over extended periods. | Static by nature, referring to a specific moment where employees are either engaged or disengaged. |
| Responsibility | Shared responsibility among senior leaders, HR professionals, and others, encompassing job design, perks, and work culture. | Driven primarily by managerial efforts. |
| Measurement | Measured through ongoing feedback, touchpoints across the employee life cycle, and overall sentiment about the company culture. | Typically measured through surveys focusing on satisfaction, commitment, and alignment with company goals. |
Employee experience and employee engagement feed into one another. Consequently, neither aspect should be overlooked or undervalued in an organization.
How to measure employee experience and engagement
As an organization, it’s essential to know how engaged your employees are and understand their overall experience at work. Only then can you make improvements to the employee journey that will result in increased employee engagement and, ultimately, better organizational performance.
There are a number of methods you can use to evaluate employee experience and engagement at your organization.
- Utilize employee engagement surveys: These are designed to gauge how invested employees feel in their roles and the organization’s shared visions and goals. Key areas to explore include job satisfaction, manager effectiveness, support opportunities, recognition, and alignment with company values. Opt for anonymous surveys. Anonymity often encourages more honest feedback, especially from disengaged employees.
- Examine the entire employee life cycle: For a comprehensive view of employee experience, you need to understand how your workers perceive its different stages, from the onboarding process to becoming alumni. For example, you can conduct new hire satisfaction surveys, usability assessments of work tools, stay interviews, exit interviews, and other types of evaluations to gain insights into how employees feel at various touchpoints of their journey with the company.
- Analyze relevant HR metrics: For instance, high retention can indicate that employees feel valued and are inclined to stay with the organization long-term. Conversely, high employee turnover might signify that your employees’ experience isn’t that great.
- Conduct frequent measurements: Instead of just annual reviews, regular analysis of different aspects of employee experience and engagement allows for timely interventions. That way, you can continuously improve the work environment for your employees.
- Engage in open dialogues: Foster an environment where employees feel comfortable sharing their thoughts, concerns, and suggestions. Regular feedback sessions, town hall meetings, or one-on-one discussions with managers can provide invaluable insights into the employee mindset.
Creating a workplace where employees genuinely enjoy their roles requires consistent and thoughtful efforts across various areas.
By consistently analyzing data and engaging in meaningful conversations, organizations can gain an accurate understanding of employee sentiments and identify areas for improvement. This approach enables the development of effective strategies that enhance both employee experience and engagement within the company.
How to improve employee experience and engagement
What exactly you need to improve in the areas of employee experience and engagement will depend on the needs of your employees and your organization.
However, there are some general best practices that you can follow to boost employee experience and engagement and enhance business performance. Here goes.
1. Seek feedback and act on it
While gathering feedback and analyzing the data is essential, acting on it is even more crucial.
When employees see their feedback being implemented, it reinforces trust, shows that their opinions matter, and demonstrates your commitment to improving both engagement and experience.
Let’s say that your analysis showed that your onboarding process doesn’t provide new hires with a good idea of what’s expected of them. Acting on this feedback could involve revamping the onboarding process to include an additional session with the manager to discuss the roles, responsibilities, and goals of the new employee, and a follow-up session after the first 30 days to clarify any ambiguities.
This not only addresses the immediate concern but also sets a positive tone for new employees, showing them that the organization values their success and is proactive in ensuring they have the tools and knowledge needed to thrive.
2. Recognize good work
Recognizing employee achievements plays a vital role in improving both employee engagement and experience. An “Employee of The Month” initiative, other employee recognition programs, or simply acknowledging quality performance during Monday morning briefings boosts morale in all quarters – from top-most executives to the ground-floor staff.
Remember, appreciated workers are often engaged employees.
An international aerospace company aiming to boost employee engagement identified 17 uncoordinated recognition programs within their US enterprise. These programs lacked a shared vision, coordination, and measurable results.
The organization partnered with a brand experience solutions company, Centricity, to implement a cohesive recognition strategy. The new consolidated platform led to a doubling of non-monetary rewards usage, enhancing employee engagement while reducing recognition costs by 30%.
3. Equip your workforce with the right tools
Digital employee experience has become an integral part of how employees feel about their working for you. Equipping employees with the right tools and technology is now a necessity with a profound impact on efficiency and productivity.
Make sure to utilize tools that are user-friendly and tailored to workers’ specific job functions. For example, your frontline employees will require different tools than the team members at the headquarters.
Beyond just individual tasks, it’s also essential to invest in tools that promote collaboration. This is especially important in a world where remote work is becoming more prevalent. Platforms that facilitate seamless communication, file sharing, and project management can significantly enhance productivity. They also help foster a sense of unity among teams, regardless of their physical location.
Employees who feel they have the resources to do their best work have a positive employee experience, resulting in higher levels of engagement and increased job satisfaction.
4. Promote work-life fit
Work-life fit refers to balancing work and life in a way that leads to satisfaction in both.
Different employees have different preferences. While some might want to climb the corporate ladder and are willing to put extra effort into that, others might prefer working shorter hours and dedicate the rest of their time to activities outside of work.
You need to design your HR practices with deep consideration of employee preference and go beyond a one-size-fits-all model. Consider offering sufficient days off, remote working opportunities (where applicable), flexible schedules, compressed workweeks, and other initiatives that enable employees to shape their work-life fit.
5. Ensure psychological safety
Employees should feel safe to take risks, voice their opinions, and make mistakes without fear of punishment. A culture of psychological safety encourages innovation, open dialogue, and a sense of belonging.
In a safe environment, individuals are more likely to share unique ideas, collaborate across teams, and actively participate in discussions, even if their views differ from the majority.
When employees believe their contributions are valued and that they won’t face retribution for expressing dissenting opinions or making honest errors, they become more invested in their roles and the organization’s success.
By actively promoting and maintaining a culture of psychological safety, companies enhance employee wellbeing and drive innovation and growth from within.
6. Offer professional development opportunities
Access to training and development opportunities helps equip your team members with the skills and knowledge required to excel in their roles and within modern work environments.
For example, you can offer workshops, courses, or even tuition reimbursement for further education and show you’re committed to your employees’ professional and personal growth.
Furthermore, employees are more engaged when they see a clear path for career progression within the organization. Regularly discuss career goals with your employees and provide them with opportunities for advancement or lateral moves to areas of interest.
In just one year, xDesign, a software consultancy based in Edinburgh, soared over 30 places to rank as the No. 1 UK’s Best Workplace for Wellbeing™ in the Large size category.
The company, which supports renowned brands in creating digital products, achieved impressive employee survey scores, with 97% agreeing that “this is a great place to work.” To accomplish this, xDesign took a comprehensive approach to improving employee experience and wellbeing:
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- Encouraging camaraderie from the start: They emphasized community-building and social activities for both in-office and remote workers, starting from the preboarding phase.
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- Flexible development for all: xDesign revamped their performance review process, opting for continuous feedback and tailored conversations. They also provided a platform for transparency around roles and allowed employees to endorse colleagues for promotions.
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- Checking in on people’s wellbeing: The company’s People Operations Team conducted regular wellbeing check-ins with all employees and used anonymous pulse surveys to gather feedback on well-being topics.
7. Implement health and wellbeing programs
Physical, mental, and financial wellbeing directly impact employee experience and engagement. Yet, stress and burnout are common challenges for many employees.
Offering programs such as health check-ups, mental health and financial wellness resources, or fitness memberships can help mitigate these issues and show employees that the company cares about their total wellbeing.
Employees with high levels of wellbeing are more productive. Research indicates that higher wellbeing at work is positively correlated with increased business-unit level profitability.
Investing in the health and wellbeing of their employees essentially means investing in your organization’s own long-term success and sustainability.
Key takeaway
While employee experience and employee engagement are different workplace concepts, they are deeply interconnected. Creating a positive employee experience lays the foundation for high levels of employee engagement.
A positive employee experience, characterized by a supportive work environment, open communication, and opportunities for growth, naturally leads to higher levels of engagement.
Conversely, engaged employees who are deeply committed and invested in their roles contribute to a more positive and collaborative workplace, enhancing the overall experience for everyone.
For organizations, understanding and nurturing this symbiotic relationship is key to building a motivated, productive, and loyal workforce that drives sustained success and growth.
FAQ
While they are distinct concepts, employee experience and employee engagement are closely related and influence each other in various ways. A positive employee experience often leads to higher levels of engagement, and, in turn, engaged employees then contribute to a better overall workplace experience.
Employee experience encompasses the entire journey an employee has with a company. Examples include the onboarding process, the work environment and workplace layout, tools and technology provided, training and development opportunities, interactions with colleagues and management, feedback mechanisms, and the exit process.
Employee engagement refers to the emotional commitment and involvement an employee has toward their organization. Examples include an employee’s willingness to go the extra mile, active participation in team meetings and projects, enthusiasm about their role and the company’s mission, and a strong alignment with the company’s values and goals.
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