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An SMB’s Guide to Improving the Employee Experience

ExtensisHR8 minute read
Group of happy employees clapping in office

Quick look: The employee experience includes every interaction a worker has, from the hiring process to their last day—and a business’s success relies on it. When staff feel empowered, organizations can achieve increased productivity, reduced turnover, higher profits, and more. Below, explore what defines the employee experience, the advantages it brings to both teams and employers, and how partnering with a professional employer organization (PEO) can improve it.

When it comes to work, the employee experience is everything.

From new hire orientation to exit interviews, the employee experience spans every stage of the employee lifecycle.

Honing your company’s employee experience is incredibly important. However, its broad scope can be overwhelming for small business leaders who may already juggle many responsibilities.

This guide breaks down what the employee experience includes, the value it brings to workers and businesses, and strategies to elevate it, including the benefits of partnering with a trusted PEO.

What is employee experience?

Employee experience refers to the overall journey a worker has with an organization. It encompasses their every interaction and perception from when they consider applying for a job, through their time working there, to when they leave the company.

Key components of the employee experience include:

  • Recruitment and onboarding: How streamlined, welcoming, and informative the process is.
  • Workplace culture: The values, behaviors, and environment defining how the company operates.
  • Technology: How well employees’ systems and tools support them in their roles.
  • Work-life balance: The benefits and flexible policies that contribute to workers’ well-being.
  • Management and leadership: The quality of the relationships and communication staff have with their supervisors and leadership.
  • Career development: Opportunities for growth, training, and promotions.
  • Recognition and rewards: How employees are appreciated and incentivized.

Why is employee experience important?

A strong employee experience is crucial to your team’s wellness and your business’s long-term success. When staff enjoy their work and feel appreciated, it leads to higher engagement, improved performance, reduced turnover, and a more resilient workplace culture.

Here is how investing in a high-quality employee experience can benefit your organization:

Boosts performance

When people have fulfilling work experiences, they’re more motivated, focused, and productive. Feeling connected to the organization and recognized for their contributions may inspire them to consistently go above and beyond.

Reduces turnover

According to the Society for Human Resource Management (SHRM), staff with a positive employee experience are nearly 70% less likely to leave.

This elevated retention rate enables employers to save time and reduce hiring, onboarding, and training costs.

Improves recruiting

Satisfied workers naturally act as brand ambassadors, sharing their sentiments by word of mouth and on social media or job sites like Glassdoor.

Businesses may also communicate information about their employee experience, such as their benefits offerings and professional development initiatives, as part of their employer branding strategy.

Ultimately, this makes your organization more appealing to potential talent and helps them envision a career there.

Strengthens company culture

Company culture and employee experience go hand in hand. A supportive work environment naturally breeds a strong culture centered on trust, collaboration, and a sense of purpose.

Elevates business standing

Companies with positive employee experiences tend to have more satisfied customers and higher levels of innovation. After all, happy staff ultimately lead to happy customers, driving successful business outcomes.

Further, per Gallup, organizations with higher employee engagement rates achieved 23% higher profits.

Supports holistic wellness

When staff enjoy their jobs and feel seen and cared for by their employers, they are less stressed, less burned out, and more resilient.

Additionally, research suggests poor well-being can cause reduced productivity, increased turnover, and higher medical costs.

How to improve employee experience

An organization’s success hinges on its employee experience. However, with so many moving parts, business leaders may be unsure how to optimize theirs. Here are some considerations to keep in mind:

Listen (and act)

Knowledge is key. To make work more enjoyable for your staff, you must first understand how they feel. Employee feedback can be gathered through:

  • Pulse surveys
  • One-on-one meetings between managers and direct reports
  • Exit interviews

Just as important as hearing these opinions is acting on them, even if that action is simply explaining why or why not certain decisions were made. This step holds a significant opportunity for businesses, as Harvard Business Review found that while nearly half of C-Suite executives believed their company excels at acting on staff feedback, only 31% of workers agreed.

Hone your onboarding experience

First impressions matter. Create a warm welcome for new hires by sending them pre-boarding information and a friendly welcome greeting before their first day, assigning them a mentor or buddy, and making the onboarding process feel personal, structured, and easily understood.

Encourage open communication

Open communication is associated with increased employee engagement, stronger inclusivity, and higher productivity levels.

Organizations can demonstrate transparent dialogue by:

  • Hosting companywide town hall meetings with question-and-answer sessions
  • Setting clear expectations
  • Encouraging sharing anonymous opinions via suggestion boxes

Prioritize professional development

Showing you care about your employees’ growth is important. A recent study discovered that 92% of workers who attended a workshop reported that their jobs inspired them to go the extra mile, versus just 33% of those who had not participated.

Businesses can demonstrate this by:

Promote overall well-being

Well-being involves a person’s physical, mental, and financial health, which are supported by benefits including:

Cultivate an welcoming environment

Business leaders can foster belonging by establishing employee resource groups (ERGs) and encouraging collaboration and interdepartmental connections.

Practice work-life balance

Flexibility is highly sought after and is established by allowing remote or hybrid work (if possible), offering ample paid time off, and encouraging and normalizing using it.

Provide the right tools

Smooth internal processes mean fewer bottlenecks and more engaged employees. Equipping staff with intuitive, efficient technology and systems—and training on how to use it—reduces frustration and enhances productivity.

Recognize and reward

Nearly one in three workers who left a job within the first six months said that being recognized more for their contributions would have caused them to stay longer.

SMBs can show appreciation by designing an employee recognition program that offers personalized, meaningful rewards and includes both peer-to-peer and manager-to-employee methods. Employers should also celebrate milestones, like work anniversaries and professional achievements.

Plan for the entire employee journey

It’s critical to design your workplace experience strategy with the full scope in mind, from recruitment to departure and everything in between.

  • Beginning of journey: Focus on streamlined recruiting and hiring, and an onboarding experience that sets workers up for success.
  • Middle of journey: Support and reward staff as they develop new skills, transition into new roles, etc.
  • End of journey: A respectful goodbye during offboarding can leave a positive, leasing impression.

Measure every step of the way

You don’t know what you don’t know, and gathering quantifiable data provides clarity and enables you to refine your employee experience approach effectively.

Some crucial human resources (HR) metrics to measure are:

  • Employee net promotor score (eNPS)
  • Internal survey results and comments
  • Retention, turnover, and absenteeism rates
  • Onboarding and exit interview feedback

PEOs: your partner in upgrading your employee experience

The health of your business relies on its employee experience. However, it can be challenging, especially for SMBs, to find the time and resources to optimize their strategy.

That’s where a PEO can help. PEOs are a type of outsourcing provider that help their customers manage their HR, employee benefits, payroll, risk and compliance, and more.

ExtensisHR is a PEO that combines a boutique level of service with nationwide capabilities, enabling companies to create rave-worthy work environments by providing:

Establishing and maintaining a positive workplace experience is an ongoing initiative with continuous rewards, and we’re here to help you achieve that.

Looking to enhance your company’s employee experience? ExtensisHR can help. Learn more about our PEO solution, or contact us today to start a conversation.

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