How Employee Experience Drives Business Success
"Engagement is when employees begin to take on an ownership mentality." – Kathleen Quinn Votaw, author of Solve the People Puzzle.
Across the globe, employee engagement is at an all-time low—and businesses are paying the price. According to Gallup, companies with disengaged employees could be losing up to 23% of potential profitability due to lackluster productivity, high turnover, and decreased customer satisfaction. Compounding the problem, a recent analysis from Korn Ferry describes a troubling new workplace trend called "job hugging." In today's uncertain labor market, many employees are clinging tightly to the job they have—not out of passion or loyalty, but out of fear of instability. This leaves organizations with a workforce that shows up physically, but not always mentally or emotionally.
The good news? Business leaders can turn this trend around by investing in one of the most important but often overlooked areas of organizational strategy: the employee experience. Just as companies devote energy to optimizing the customer journey, they must apply the same intentionality to cultivating the workplace experience. When employees feel seen, valued, and supported, the results ripple through the entire business.
In this article, we'll break down what employee experience means, why it matters, and how leaders can strengthen it to fuel long-term success.
What Is Employee Experience?
The concept of employee experience (EX) goes far beyond traditional HR processes or perks. At its core, it's about how employees perceive and interact with their work environment across every stage of the employee lifecycle—from recruitment and onboarding to daily operations, career growth, and eventually, employee exits.
Think of it as the employee journey:
- Recruitment & Onboarding: First impressions set the tone. A clearly-defined and timely recruitment and selection process followed by intentional preboarding and onboarding helps employees feel confident and connected from the very beginning (even before their first day!)
- Community Assimilation & Meaningful Work: How are employees introduced and welcomed into the day-to-day culture? Do they feel supported, equipped with the right tools, and empowered to contribute to goals that feel meaningful and impactful?
- Development & Growth: Opportunities for learning, mentorship, and career progression directly influence engagement and retention.
- Exit Experience: How your team members leave matters greatly. A respectful, transparent exit process can leave lasting goodwill—and influence employer brand reputation.
Much like a company curates the customer journey to enhance loyalty and lifetime value, leaders must curate the employee journey to inspire commitment and long-term contribution.
At TalenTrust, we emphasize that employee experience is not about perks or quick fixes—it's about building trust, alignment, and culture across every stage of the journey.
Why Employee Experience Matters for Business Success
The connection between employee experience and business outcomes is direct and undeniable. A positive EX fuels engagement, and engagement drives performance. Let's break down the key ways this link shows up in business results.
Higher Productivity and Innovation
When employees feel connected to their company's mission, they're more likely to bring creative ideas to the table. According to Gallup's research, engaged teams show 18% higher productivity compared to disengaged counterparts.
Lower Turnover Costs
The cost of replacing an employee can range from 50% to 200% of their annual salary, depending on the role. (Including the cost of leaving that position open before you find a replacement – Do you know your cost of vacancy? Calculate it here.) A strong employee experience fosters loyalty and reduces churn—helping organizations retain top talent even in competitive labor markets.
Better Customer Outcomes
Employee experience and customer experience are two sides of the same coin. When employees are engaged and supported, they're more motivated to deliver outstanding service. This "service-profit chain" effect is well documented in business research and remains a powerful competitive advantage.
Resilience in Uncertain Times
In the age of "job hugging," where employees may be staying but not necessarily thriving, businesses that actively invest in EX build resilience. A workforce that feels genuinely cared for is better equipped to weather economic shifts, technological disruption, and organizational change.
Profitability and Growth
Ultimately, all roads lead back to the bottom line. Gallup's global workplace study shows that companies with strong employee experience enjoy significantly better financial performance, including 23% higher profitability and 10% higher customer loyalty.
In short: when employees win, businesses win.
How to Improve Employee Experience and Build Workplace Community
The question for leaders isn't why EX matters—it's how to improve it. Building a thriving workplace culture requires both strategic intent and consistent follow-through. Here are six actionable strategies.
Design the Employee Journey With the Same Care as the Customer Journey
Map out your employees' end-to-end experience and look for gaps or friction points. Just as companies use journey mapping to understand customer pain points, organizations can apply the same lens internally. Every touchpoint matters.
Foster Belonging and Community
Belonging is one of the most powerful drivers of engagement. According to a 2024 Forbes article, employees who feel a strong sense of belonging at work report significantly higher levels of well-being and productivity. Leaders can foster belonging through employee resource groups, team-building opportunities beyond "happy hours," transparent communication from leadership, and recognition programs that celebrate diverse contributions.
Prioritize Growth and Development
Professional growth is a cornerstone of employee experience. Providing training programs, mentorship, and clear career pathways communicates that the organization is invested in employees' long-term success.
Listen and Act on Feedback
Employee experience isn't static—it evolves with organizational needs and societal shifts. Regular pulse surveys, focus groups, and one-on-one check-ins give leaders valuable insight. The real key is action: if employees share feedback but never see change, trust erodes quickly.
Support Well-Being and Flexibility
Work-life balance has moved from being a perk to being a baseline expectation. Supporting employee well-being—through flexible scheduling, mental health resources, or wellness initiatives—sends a clear signal that the company cares about more than just output.
Recognize and Reward Contributions
Recognition is one of the most cost-effective ways to boost engagement. From informal thank-yous to formal recognition programs, consistent acknowledgment reinforces positive behaviors and fosters a culture of appreciation.
For leaders who aren't sure where to begin, TalenTrust's strategic talent advisors partner with businesses to design intentional strategies that improve culture, retention, and long-term success.
Real-World Examples of Strong Employee Experience
Putting these strategies into practice may look different for every organization, but there are plenty of examples from companies that have made employee experience a true priority. Some of today's most admired employers show how intentional efforts to support and engage people can create lasting business impact.
Salesforce, for instance, is frequently ranked as one of the best places to work thanks to its deep investment in employee well-being. From wellness reimbursements to flexible schedules and a culture rooted in continuous feedback, the company ensures that employees feel supported both personally and professionally. Adobe offers another compelling example. By replacing traditional performance reviews with its "Check-In" system, Adobe shifted the focus from rigid evaluations to regular, informal conversations between managers and employees. This change fostered greater trust, open dialogue, and stronger relationships across the organization.
Patagonia, meanwhile, demonstrates the power of aligning company mission with employee values. By empowering its people to participate in environmental activism, the brand creates a sense of shared purpose that goes beyond day-to-day work. Together, these examples show that employee experience isn't about gimmicks or surface-level perks—it's about building systems that prioritize trust, autonomy, and belonging.
The Future of Employee Experience
The workforce is evolving. Younger generations are vocal about demanding transparency, flexibility, and purpose-driven work. At the same time, technology is reshaping how organizations connect, communicate, and deliver value to employees.
Looking ahead, the most successful companies will be those that treat employee experience as a strategic priority, not an afterthought. This means investing in leadership training, leveraging data to understand engagement patterns, and embedding EX into the fabric of organizational strategy.
As Korn Ferry notes in its "job hugging" analysis, fear-based loyalty is not sustainable. Employees want to feel proud of where they work, not just secure. Building a positive employee experience transforms job huggers into brand ambassadors—and ensures long-term business resilience.
Conclusion: Reframing Success Through the Employee Lens
The link between employee experience and business success is clear: engaged employees drive stronger performance, happier customers, and healthier bottom lines. But beyond the financial impact, there's a deeper truth—organizations that invest in their people create workplaces where individuals can thrive, innovate, and build meaningful careers.
As Kathleen Quinn Votaw observed, engagement happens when employees take ownership. Leaders who cultivate a strong employee experience give their teams the tools, trust, and community to do exactly that.
In a competitive and uncertain market, the choice is simple: companies can either let disengagement drain profitability—or they can commit to building workplaces where people truly want to stay, grow, and contribute. The future belongs to the latter.
Partner With TalenTrust
If you're ready to strengthen your culture and build a thriving workplace, TalenTrust can help. Our team of trusted talent advisors partners with leaders to improve the employee experience, reduce turnover, and unlock business performance. We work closely with organizations to design strategies that align people, purpose, and performance, ensuring every employee feels valued and empowered to contribute. By investing in your workforce today, you're not just improving engagement—you're building a sustainable competitive advantage for the future.
Discover how TalenTrust can help you put people at the center of your strategy. Reach out to us today!