The business benefits of creating a positive employee experience

We talk a lot about employee experience here at People Insight. We’re passionate about creating an environment where employees can thrive, learn, develop and feel at their best. Across every stage of the employee lifecycle, employee experience should be considered and surveyed, to ensure our companies are doing the best they can. But what are the actual business benefits of a positive employee experience? Taking the time to implement organisational change and improve the day-to-day running of your business can be time-consuming and complicated — so what is the pay-off when it comes to the bottom line?

Related: What is employee experience?

1. Increased levels of employee engagement

Time and again, we’ve seen that a positive employee experience can seriously boost engagement — a famously big driver of business success. Engaged employees are more likely to be enthusiastic about their work, align with the company’s goals and put in discretionary effort — essentially, these are the members of your team who go above and beyond, and they’re enthusiastic about doing so. This heightened engagement leads to better performance, higher productivity and greater innovation, as employees are motivated to contribute their best efforts to the organisation.

2. Reduced employee turnover

High employee turnover can be a costly problem for businesses. Figures show that the average cost of replacing an employee in the UK lies at roughly £25,000, but this can increase to nearly £100,000 for senior and specialist roles. Thankfully, creating a positive employee experience can go a long way to reducing voluntary turnover rates. When employees feel valued, supported and connected to their workplace, they are more likely to stick with the company for the long term. 

3. Improved customer satisfaction

The employee experience has a direct impact on customer satisfaction. Happy, engaged employees are more likely to provide exceptional customer service, ultimately leading to improved customer satisfaction and loyalty. According to research by Deloitte, companies that prioritise employee engagement see a 10% increase in customer ratings and a 20% increase in sales. When employees are engaged and motivated, they are more likely to go the extra mile for customers, actively improving the overall customer experience and building long-term loyalty.

4. Higher levels of productivity

One of the best benefits of a positive employee experience is that it can lead to higher levels of productivity. When employees are engaged, supported and equipped with the right tools and resources, they are more likely to be productive and efficient in their roles. According to a study by the University of Warwick, happy employees are 12% more productive than their less happy counterparts. A positive work environment encourages employees to work more effectively, collaborate better and contribute more to the organisation’s goals, ultimately driving business growth.

5. Stronger employer brand

A positive employee experience is key to building a strong employer brand. When employees have a positive experience at work, they are more likely to become advocates for the company, sharing their positive experiences with others. This can seriously boost the company’s reputation as an employer of choice, attracting top talent and reducing recruitment costs. According to LinkedIn, 75% of job seekers consider an employer’s brand before even applying for a job. A strong employer brand can give companies a competitive edge in attracting and retaining the best talent.

6. Enhanced collaboration and teamwork

Creating a positive employee experience helps to create a culture of collaboration and teamwork. When employees feel valued and supported, they are more likely to collaborate with their colleagues, share ideas and work together towards common goals. A study by Stanford University found that employees who were encouraged to collaborate stayed on task 64% longer than those who worked alone. By promoting a positive work environment, organisations can encourage collaboration and teamwork, leading to better problem-solving, innovation, and overall performance.

7. Better mental health and wellbeing

A positive employee experience prioritises the mental health and wellbeing of employees — by creating a supportive and inclusive environment, companies can reduce stress and burnout, leading to improved wellbeing. Time and again, it’s been shown that employees who feel their wellbeing is supported by their employer are more likely to be engaged, productive and satisfied with their jobs. Prioritising employee wellbeing not only enhances the employee experience but also contributes to a healthier, more sustainable workforce.

If you’re looking to improve the employee experience within your organisation, get in touch today to arrange an employee survey. We’ll work with you to uncover what works, what doesn’t and how to create an environment your employees won’t want to leave.