Employee Experience vs. Employee Engagement: Two Different Terms You Need to Know!

What makes employees stay with one company while leaving another? Is it the salaries? Does that "other company" treat them with a kindness they didn't find with us? Is it the management? Are the chairs in my office uncomfortable and the internet unstable?!

No need to be confused. Your employees' engagement within your organization, in the way you desire, depends on their experience within the organization. For your benefit and your organization's success, you must understand these two terms well. That's why we present this article to you.

In the contemporary business world, competition to attract and retain top talent is intensifying, making the understanding of workforce dynamics vital for any organization's success. Employee Experience (EX) and Employee Engagement (EE) are fundamental pillars for the success of any organization in today's business environment. Given the increasing competition for attracting and retaining the best talent, focusing solely on financial aspects is no longer sufficient. Instead, designing a distinctive employee experience and fostering a sense of belonging and satisfaction has become crucial for achieving companies' strategic objectives.

The terms "Employee Experience (EX)" and "Employee Engagement (EE)" are often used interchangeably, which can lead to some confusion. So, let's start by explaining each one.

First: Employee Experience (EX)

Employee Experience (EX) is the sum total of all interactions and touchpoints an employee has throughout their journey with an organization, starting from the moment they apply for a job until they leave the company or retire. This experience fundamentally determines how employees feel about their work and their organization.

This experience includes everything employees see, hear, think, and feel towards the organization. It is influenced by multiple factors that shape the daily work environment, including:

• The Physical Environment: Such as office design, the availability of quiet and collaborative spaces, and the tools and technologies available to perform work efficiently.

• The Cultural Environment: Shared values, mutual respect, ethics, integrity, and a sense of belonging. The cultural environment is largely based on the organization's philosophy.

• Daily Interactions: With colleagues and managers, administrative processes, and opportunities for learning and professional development.

Employee experience is not just about making employees feel good; it's about creating an environment where employees, by interacting with all its elements—everything they encounter daily—can thrive, innovate, and contribute to the organization's success.

Second: Employee Engagement (EE)

Employee Engagement (EE) is the level of an employee's involvement within the work cycle. It can be measured by the amount of enthusiasm and dedication an employee feels towards their job and their organization. It reflects the extent to which an employee is mentally and emotionally connected to their team and their organization. Engaged employees care about their work and the company's performance, and they feel that their efforts make a difference. They don't just perform their tasks; they put in greater effort to develop products and services, driven by a sense that all their efforts will benefit them, and they seek to explore new ideas that open up avenues for increased revenue, thereby contributing to the company's financial success and prosperity.

Great, But How Does Engagement Depend on Employee Experience?!

The fundamental difference lies in the fact that Employee Experience is the "input" that the company provides to its employees. It encompasses the settings, factors, and work environment that shape employees' daily working lives. In contrast, Employee Engagement is the "output" that results from that experience. In other words, imagine you're giving an AI a command to do

This employee experience does not solely depend on employee welfare, or in other words, it does not entirely depend on the comfort you provide to employees. The surrounding environment, the degree of discipline, fair task management and distribution, time management, the spirit of cooperation and understanding between teams, and everything an employee encounters from the moment they enter until they leave are all factors influencing that experience.

When companies provide strong and positive employee experiences, employee engagement naturally improves. Employees who have a positive work experience and love their work environment are more involved and productive, more connected to the company, and feel a sense of belonging and ownership. Here's a statistic to illustrate our point:

According to Gallup (a multinational American analytics and advisory company, known for its worldwide public opinion polls, founded in 1935 by George Gallup. The company provides analytics and management consulting services to organizations), engaged employees achieve:

• 43% lower turnover (in organizations with low turnover rates)

• 18% lower turnover (in organizations with high turnover rates)

• 41% fewer quality defects

• 81% lower absenteeism

• 23% higher profitability

• 18% higher sales productivity

• 10% higher customer engagement

Literally every touchpoint in an employee's journey – from recruitment and onboarding to performance reviews and development conversations – is an opportunity to increase their engagement or the opposite. Here's an example: if an employee uses outdated video conferencing software that runs slowly or freezes during a meeting, this leaves a negative impact on their experience and affects their ability to communicate effectively, thereby reducing their engagement. Can you visualize the picture clearly now?

Conclusion:

What is known as User Experience (UX), which you design and improve whether you offer your customers a physical product or a service, you naturally give it great attention because this user you care about is the one who pays you and brings you profit, and they must have an unparalleled experience to ensure their retention. The same idea applies to the employee: their experience at work determines their loyalty and engagement, and consequently, their retention within the organization.

Focusing on designing a positive employee experience is a proactive and effective approach to achieving high employee engagement, rather than merely measuring engagement as a reaction to what happens. This shift in perspective from "How do our employees feel?" to "How do we design their environment and interactions to ensure they have the best experience?" is crucial if you want the results mentioned in the statistics above.

While employee engagement reflects a "snapshot" of an employee's feelings at a certain moment, employee experience is the "complete story." It defines how employees feel about their work and their organization. When organizations invest in a strong employee experience, they not only improve employee morale but also directly impact the company's profitability, reputation, and customer experience.

Therefore, understanding these two terms and their relationship to each other enables organizations to build more comprehensive and impactful human resources strategies, focused on creating a thriving work environment that drives employees to excel and remain loyal.