What is employee experience? The ultimate guide

The year 2024 brings a renewed focus on the employee experience. In today’s competitive business landscape, companies understand that a happy workforce directly translates to happy customers. 

A great employee experience fosters a culture of satisfaction and engagement, ultimately leading to higher-quality customer service. Imagine a passionate employee constantly battling internal hurdles to do their job. This frustration inevitably bleeds Into customer interactions. By prioritizing employee experience management, businesses create a win-win situation for employees and customers.

At Freshworks, we understand this connection deeply. That’s why we specialize in comprehensive learning, performance management, and development programs, supporting employees with the skills they need to serve customers confidently. We also prioritize building connections across teams and departments. 

This collaborative spirit helps create a sense of community and purpose, motivating employees to go the extra mile for each other and the customer. Through these initiatives, Freshworks cultivates a thriving workspace where employees feel valued and equipped to deliver exceptional customer experiences.

What is employee experience?

EX encompasses the entire employee journey, from the initial application to onboarding, development, performance, and even their exit. It’s the sum of all an employee's interactions and perceptions about their work environment. 

A positive EX fosters an engaging, motivating, and rewarding work atmosphere. Employees feel valued, supported, and empowered to do their best work.

Why is employee experience important?

Investing in employee experience (EX) isn’t just about creating a fun break room with ping pong tables (although that can’t hurt!). It’s a strategic investment with a proven return on investment for businesses. Enhancing the employee experience is linked to improving customer satisfaction; happy employees often lead to happier customers, creating a virtuous cycle that benefits all. Learn more about how to leverage this connection in our Comprehensive guide: Employee Experience: The Key to Better Customer Experience.

Best practices for providing quality employee experience

Every business wants its employees to wake up excited to tackle the day at work. What if businesses greeted them with a supportive environment, clear goals, and opportunities to learn and grow? This is the power of a quality employee experience framework. 

But why invest in an employee experience strategy? The benefits go far beyond keeping employees happy. Happy employees are more productive, engaged, and less likely to leave. They have the potential to become brand ambassadors, attracting top talent and boosting your employer's reputation. We'll explore how it impacts everything from employee retention and productivity to customer satisfaction and overall company growth. 

Enhanced employee loyalty

Satisfied employees are less likely to move to greener pastures. This translates to significant cost savings for companies. According to a study by the Work Institute, replacing a salaried employee can cost 33 percent of their annual salary. Companies can retain their top talent by creating a good employee experience, reducing costly turnover rates and ensuring a stable and experienced workforce. 

Higher engagement

Happy and engaged employees are more invested in their work. They go the extra mile, take initiative, and contribute innovative ideas. Research by Reward Gateway suggests engaged team members are 17 percent more productive than their disengaged counterparts. This translates to higher quality outputs, faster project completion times, and, ultimately, increased revenue for the company. 

Better recruiting

In today’s competitive job market, a strong employer brand built on positive EX is a powerful recruitment tool. A study by Glassdoor found that 69 percent of job seekers consider a company’s culture when making employment decisions. By prioritizing EX, companies create a workplace that attracts top talent, reducing the time and resources spent filling vacancies. Additionally, satisfied employees become brand advocates, attracting referrals from their networks and strengthening the company’s reputation as a great workplace. 

Increased productivity

Content employees are simply more productive. When employees feel valued, supported, and equipped to do their jobs effectively, they are more focused and efficient. A study by the Society for Human Resource Management found that a strong workplace culture can lead to a 17 percent increase in productivity. This translates to more work getting done in less time, allowing companies to meet deadlines, take on projects, and ultimately, achieve their business goals faster. 

Better profits

In addition to the benefits mentioned above, a positive employee experience can also lead to improved customer satisfaction. Employees who feel good about their work environment are likelier to go the extra mile to provide excellent customer service. 

A study by Tempkin Group found that companies with engaged employees outperform competitors by 10 percent in customer satisfaction. By investing in EX, companies can create a positive customer experience loop, where happy employees lead to happy customers, increasing customer loyalty and revenue.

By prioritizing EX, companies create a win-win situation for everyone involved. Happy employees lead to satisfied customers, a strong employer brand, and, ultimately, increased profitability. In today’s competitive market, prioritizing EX is no longer a nicety; it’s a strategic necessity for success.

7 stages of the employee life cycle

Currently, the fight for talent is fierce. Companies are no longer competing for skills and experience; they’re vying for the hearts and minds of employees. This is where EX takes centre stage. A positive EX establishes a culture of satisfaction and engagement, leading to a loyal and productive workforce. 

Think about it: happy employees are more likely to go the extra mile, provide exceptional customer service, and stay with the company for the long haul. Building out an EX isn’t just about creating a fun work environment; it’s a strategic investment with a proven return on investment.

A positive employee experience should include the entire employee life cycle, from the initial attraction to the post-employment phase:

Attract

In this world, your company culture is on display 24/7. A strong employer brand built on positive EX attracts top talent. Showcase your company’s values, mission, and unique work environment through social media, career pages, and employee testimonials. Highlight opportunities for growth and development to attract ambitious candidates who want to be part of something bigger. 

Onboard

The onboarding process sets the tone for the entire employee experience. A smooth and welcoming onboarding experience helps new hires feel valued and integrated into the company culture. Provide comprehensive training materials, clear expectations, and access to mentors to ensure new employees feel confident and prepared to succeed. 

Engage

Employee engagement goes beyond handing out wellness days and in-office pets. It’s about creating a work environment where employees feel valued, motivated, and connected to the company’s mission. Offer opportunities for professional development, create recognition programs that celebrate achievements and host a culture of open communication where employees feel comfortable voicing their opinions. 

Develop

Investing in your employees’ growth is an investment in your company’s future. Provide training programs, mentorship opportunities, and tuition reimbursement to help employees hone their skills and advance their careers. By supporting their professional development, you retain valuable talent and ensure your workforce has the skills necessary to meet the ever-evolving news of the business.

Perform

Employees need clear expectations and the tools and resources they need to succeed in their roles. Provide regular performance reviews and feedback, set achievable goals, and encourage employees to take ownership of their work. Welcome open communication and collaboration to ensure everyone is on the same page and working towards the same goals. 

Exit

Even departing employees can leave a lasting impression. Conduct an exit survey to get valuable feedback on the EX and identify areas for improvement. When the departing employee has a positive experience during their exit interview, it can leave a positive final impression and grow future brand advocacy. 

Alumni

Don’t underestimate the power of your alumni network! Maintain positive relationships with former employees by offering opportunities like networking events or re-engagement programs. These connections can become a valuable source of referrals and brand ambassadors for the company.

How to measure employee experience

How do you know if your EX efforts are paying off? Regularly measuring EX with employee engagement surveys is essential for identifying areas for improvement and tracking employee needs over time.

Here are some ways to gauge employee sentiment:

• Employee satisfaction surveys: These pulse surveys provide valuable insights into employee attitudes and perceptions of the work environment. They can reveal areas where employees are happy, and improvements can be made.

• Engagement surveys: Engagement surveys measure how connected employees feel to their work and the company. They can help you identify opportunities to increase employee motivation and productivity.

• Focus groups: Focus groups allow employees to gather in-depth feedback on a specific topic. They can be a valuable tool for understanding the employee experience from a more personal perspective.

• Exit interviews: Exit interviews offer a chance to learn from departing employees about why they are leaving and what the company could do to improve the EX.

• Retention rates: High turnover rates can indicate a negative EX. Track employee retention rates to see if your EX efforts lead to a more stable workforce.

• Absenteeism rates: Chronic absenteeism can be another indicator of employee dissatisfaction. Monitor absenteeism rates to identify potential issues with the work environment or employee well-being.

By combining these methods, companies can comprehensively understand their employee experience and take steps to create a more positive and productive work environment.

How to respond to negative employee feedback

Employee experience is more important than ever. A positive employee experience can increase productivity, engagement, and retention. On the other hand, a negative employee experience can have many negative consequences, including decreased morale, increased turnover, and damaged employer reputation. 

One of the most important ways to improve employee experience is to listen to feedback. This included both positive and negative feedback. Negative feedback can be challenging to hear, but it is also an opportunity to identify and address areas where you can improve.

Here are some tips for how to respond to negative employee feedback:

• Thank the employees for their feedback. Let them know that you appreciate them taking the time to share their concerns.

• Take the feedback seriously. Don’t dismiss the employee’s concerns or try to make excuses. 

• Investigate the issue. Once you have heard the employee’s feedback, take some time to investigate the issue. This may involve talking to other employees, reviewing data, or observing the workplace.

• Develop a plan. Once you understand the issue better, develop a plan to address it. This plan may involve changing policies, procedures, or the work environment.

• Communicate the plan to the employee. Let the employee know what steps you are taking to address their feedback. 

• Follow up. Once you have implemented the plan, follow up with the employee to see how things are going.

Following these tips can turn negative feedback into a positive opportunity to improve your workplace.

Responding to negative employee feedback is essential to creating a positive employee experience. Following the tips above can turn negative feedback into a positive opportunity to improve your workplace.

Enhance employee experience with Freshservice

Freshservice, a leading cloud-based IT service management (ITSM) platform can be a powerful tool for boosting employee experience in several ways. A positive EX encourages a culture of satisfaction and engagement, leading to higher-quality customer service. Envision a passionate employee constantly battling internal hurdles to do their job. This frustration inevitably bleeds into customer interactions. By prioritizing employee experience, businesses create a win-win situation for employees and customers.

Streamline IT service requests

A nightmare is employees constantly battling IT issues, wasting time navigating complex ticketing systems, or waiting for slow responses. Freshservice eliminates this frustration by offering a self-service portal where employees can easily submit IT requests, track progress, and access knowledge base articles for quick solutions. 

This feature allows employees to resolve minor issues independently, freeing up IT staff to focus on more complex problems. Additionally, Freshservice automates routine tasks like password resets and software updates, reducing wait times and streamlining the IT service delivery process. Reduced frustration and faster resolution times create a more positive and productive work environment for everyone.

Boost collaboration and communication

Freshservice fosters a culture of collaboration and open communication between employees and IT teams. The platform provides a centralized platform for discussions and updates related to IT requests, ensuring everyone is on the same page. 

Employees can collaborate on technical issues within the ticketing system, share screenshots and documents, and work together to find solutions. This transparent communication loop helps employees stay informed and feel valued in problem-solving.

Entrust employees with self-service 

Freshservice's intuitive knowledge base empowers employees to find answers to common questions and troubleshoot minor issues independently. The platform allows you to build a comprehensive knowledge base of articles, FAQs, and how-to guides on frequently encountered issues.

By giving employees the tools and resources to resolve simple problems, Freshservice reduces reliance on IT support and fosters a sense of ownership and control. This saves valuable IT resources and cultivates a more self-sufficient and empowered workforce.

Enhance transparency and visibility

Freshservice provides real-time insights into IT service performance through customizable dashboards and reports.  These insights allow IT teams to identify trends, prioritize workloads, and proactively address potential issues before they disrupt employee workflows.  Transparency fosters trust with employees who can see their concerns being heard and addressed. Additionally, managers can use these reports to track the efficiency of IT processes and identify areas for improvement.

Support a hybrid workforce

Freshservice creates a seamless employee experience in today's hybrid work environments. The platform is accessible from anywhere, on any device, ensuring remote employees have the same level of support as their in-office counterparts.

Freshservice integrates seamlessly with popular collaboration tools like Slack and Microsoft Teams, allowing employees to submit IT requests and track progress without leaving their preferred communication platform. This fosters a sense of inclusion and ensures remote employees receive the support they need to stay productive and engaged, regardless of location.

Optimize IT resource management

Freshservice streamlines IT workflows and automates routine tasks,  freeing up IT staff to focus on more strategic initiatives. The platform's asset management capabilities provide a complete view of all IT assets, including hardware, software, and licenses. 

This comprehensive overview allows IT teams to track asset lifecycles, schedule maintenance, and optimize resource allocation. By maximizing IT resources efficiently, Freshservice ensures IT can provide a consistently positive experience for all employees.

Investing in Freshservice is an investment in your employees. By streamlining IT services, fostering collaboration, and entrusting self-service, Freshservice helps create a work environment where employees feel supported, valued, and empowered to do their best work.  This translates into a more engaged, productive, and satisfied workforce - the key ingredient for sustainable success in today's competitive landscape.