Unveiling the Impact: Employee Experience on Your Bottom Line

It's no surprise to HR that employee engagement has a huge impact on company performance. But is your leadership team giving employee experience the priority it should?

We'll explain why you should care about the employee journey and what kind of ROI you can expect from investing in your team.

But before we dive in: What is employee experience? Essentially, it is the sum of all the interactions an employee has with their employer, from the hiring process to the exit interview and beyond. Think about things like cultural onboarding, employee recognition, leadership development, employee engagement, and more.

Why is this all so important? Let's start with the obvious: happy employees are more likely to stay with the company. This means a lower turnover rate, which in turn leads to lower costs for recruiting, hiring and training new employees. Additionally, an employee who feels good about their job is more likely to excel at their job and achieve great results.

But it's not just about retaining employees.

A positive employee experience can also have a big impact on customer experience. Think about it: If you're unhappy at work, you'll have a hard time putting on a smile and providing good customer service. On the other hand, if you feel valued and supported by your employer, you are much more likely to be engaged and committed to providing customers with a great experience.

Let's take the example of Zappos, the online retailer of shoes and clothing. Zappos is known for its excellent customer service, and that's partly because the company focuses on its employees' experience. New hires first go through an extensive four-week training program that introduces them to the company culture and gives them the skills they need to provide world-class customer service. But it's not just about the training; Zappos also offers a number of perks and benefits that make employees feel valued and supported.

The result? Zappos has some of the highest employee satisfaction scores in the industry, which translates into satisfied customers who are more likely to become repeat buyers. A win-win situation.

And this isn't just anecdotal evidence. Studies have shown that companies with a positive employee experience also tend to have better financial performance. Glassdoor economic research found that companies with high employee satisfaction experience 122 percent higher profit growth than their competitors. That's a pretty big deal!

So what can companies do to improve employee satisfaction? There are many different factors to consider, but some best practices include fostering a strong company culture, providing growth and development opportunities, regular recognition and reward, and transparency and communication with employees.

Another good example is Salesforce, the cloud-based software company. The company has made employee experience a priority by investing in its ohana culture that values inclusivity and community. As part of this culture, Salesforce offers a range of programs and benefits to support employees, including voluntary time off, wellness programs and paid parental leave. In addition, the company regularly collects feedback from employees and uses this feedback to make improvements and address concerns.

Of course, every company is different, so there is no one-size-fits-all solution. But it's clear that considering employee experience can pay big dividends.

In short: happy employees = happy customers = better business results. This isn't rocket science, but it's a reminder that the people behind the scenes play a huge role in the success of any business.

Remember, investing in employee experience isn't just a perk—it's a strategic move that drives profitability and customer loyalty. IceHrm can help your company elevate its EX game for long-term success.