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EXPERIENCE MANAGEMENT

Experience Management > Employee Experience > Ultimate Guide - Employee Experience
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What is EX? Your


ultimate guide to
employee experience
32 min read
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For an organisation to master employee experience (EX), it


must listen to its people at each stage of the employee
lifecycle and create personalised experiences. Dive deeper
into EX with our strategic ultimate guide.

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What is employee experience?


From the moment prospective employees look at your job opening, to the
moment they leave your company, everything that the workers learn, do,
see, and feel contributes to their employee experience. For your
organisation to master employee experience management, you must listen
to your people at each stage of the employee lifecycle, identify what
matters most to them, and create personalised, bespoke experiences.

The employee experience is foundational to business performance.


Sustaining customer experience efforts, improving products, and building
a strong and reputable brand all require the help of your employees.
Ultimately, it is their experiences – positive and negative – that will impact
how hard they work, how much they collaborate, or whether they are
invested in improving operational performance.

In a world where money is


no longer the primary
motivating factor for
employees, focusing on
the employee experience
is the most promising
competitive advantage
that organisations can
create.
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– Jacob Morgan, author of The Employee Experience Advantage

Discover the fundamentals of employee experience as explained


by the XM Institute

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The rise of employee experience


The shift from old-school employee engagement to the more holistic
approach of employee experience has been driven by a number of factors
– including social media, changing demographics, the pandemic, and more
volatile economic conditions.

+ Millennials, and increasingly Gen Z, want more opportunities to


have their say and companies need to get a deeper understanding of
groups who feel, think and behave differently to previous generations.

+ The war for talent is fiercer than ever before – there are now more
jobs and fewer candidates, and experiences are one of the last ways to
differentiate yourself as an employer in the hiring process

+ Organisations are changing faster than ever – digitisation,


disruption, hybrid working, and other economic forces are causing
companies to shrink and expand more rapidly. You need to understand
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the impact this is having on your people more regularly than once a
year.

+ There’s an expectation for personalised employee experiences –


employees now expect to be treated as a unique person, just like they
are when they interact with leading B2C brands as a consumer.

+ The explosion of social media and the potential for damaging


reviews to go viral has meant workplaces have become more
transparent to protect company and brand reputation.

By focusing on employee behaviours and improving the employee


experience, the world’s leading brands have discovered that there are

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knock-on effects: not just to traditional HR metrics like turnover and


absentee rates, but also on customer experience and overall profitability.

Learn from the world’s most successful HR leaders at X4

The business impact of employee


experience
Good employees are your greatest investment, and they’re hard to find.
When you’ve battled to attract and hire quality people, you don’t want to
lose them. Employee churn eats into your HR team’s time and also your
business’s bottom line. Investing in positive employee experience is crucial
to creating an engaged workforce who wants to stay with you, and it’s an
effective way of reducing staff turnover.

Companies that invest in


employee experience are
4x more profitable than
those that do not.
– Jacob Morgan

The organisations that invest most heavily in


EX are found:
+ 11.5x as often in Glassdoor’s Best Places to Work

+ 4.4x as often in LinkedIn’s list of North America’s Most In-Demand


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Employers

+ 2.1x as often on the Forbes list of the World’s Most Innovative


Companies

+ 2x as often in the American Customer Satisfaction Index

Source: Jacob Morgan

How to leverage employee experience to


drive customer experience outcomes
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As well as the above, it has been known for a long time that great employee
experience is critical for delivering great customer experience, which leads
to business success. Happy employees deliver great products, providing
exceptional service that drives a brand’s reputation, which in turn attracts
more happy employees.

Glassdoor research shows that there’s a clear correlation between


employee experience and customer satisfaction. On average, a 1-point
increase in Glassdoor company rating is associated with a 1.3 increase in
customer satisfaction:

Glassdoor research

There are three consistent patterns in which frontline employee


experiences are most strongly connected to customer experience
outcomes:

1 Expressing a connection with the organisation’s vision, values, and


purpose, or pride in the company’s products and services.
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2 Feeling safe, respected, cared for, and treated equitably.

3 Being empowered, enabled, and rewarded for delivering great


customer service.

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CX and EX analysis – XM Institute

Qualtrics has launched CrossXM, a new product that takes the hard work
out of connecting your customer experience (CX) programs with your
employee experience (EX) programs. You’ll be able to identify which
employee experiences have the most (and the least) impact on the
customer experience. Armed with this information, you’ll be able to plan,
analyse, and monitor the impact of your employee experience initiatives.

Now it’s even easier to see how your employee, customer and brand
experiences impact each other, so you can prioritise the actions that will
have the biggest impact on your business.

Employee experience challenges in 2023


Clearly, creating a great employee experience is essential, but what are the
challenges in getting it right in 2023?
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Our research shows that there are four areas you need to focus on right
now:

1. Instilling confidence that you’re sailing a


successful ship
As the world and global markets become more volatile, it’s unsurprising
that job security and financial certainty are employees’ top priority. All your
employees need to know that they’re working for an organisation that will
continue being successful in the future, and pay them a competitive salary.

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However, just over half (57%) of people surveyed are satisfied with their
current pay and benefits, and that satisfaction has dropped 10 points since
last year.

2. Employees have been working at surge


levels for years. Now, they’re reclaiming
boundaries
Going above and beyond used to be an exception, but recently it has
become the expectation. Employers have leaned on employees throughout
disruption. Now employees are pushing back and reshaping their
relationship with work to set healthy boundaries and a better work-life
balance.

Of those who feel they have a good work-life balance, almost two-thirds
(63%) are willing to go above and beyond for their organisation.

3. Bad processes and inefficient systems are


fuelling the risk of employee burnout
The past few years have completely scrambled how organisations operate:
from how they hire and the tools they use, to remote work and the
processes in place to get things done.

More than a third (38%) of employees feel they’re burnt out. The top driver
of employee burnout this year is ineffective processes and systems – and
organisations may be taking too long to resolve them.

4. Being employed isn’t just about having a


job: it’s a part of a person’s value system
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More and more employees want to work for organisations with integrity
and purpose that matches their own, and at the same time, they crave
growth and development opportunities that fulfil, challenge, and motivate
them.

When employees feel that their organisation embodies these values,


they’re 27% more likely to have higher engagement scores, and 23% more
likely to stay working for more than 3 years.

So how do you understand what your people want so that you can meet
these current challenges head on? It all starts with listening:
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Have a meaningful conversation about pay and benefits and how to


meet employee expectations.

Avoid ‘job creep’ by ensuring equal and fair distribution of work-life


balance and flexibility, and identify pain points or barriers to flexibility
across your organisation.

Ensure your people have the resources they need and that you take
care of their mental and physical well being. Keep up with innovation and
upgrade work processes to streamline activities and combat the risk of
burnout.

Make the ‘company values’ conversation more prominent — take it


seriously and encourage your most senior people to do so, especially
leaders and other departmental role models. Create a culture of end-to-
end feedback to help employees develop.

Of course, to address all of these points it’s important to understand every


stage of the employee experience — and that’s what we’re going to cover
next.

Employee experience stages


Employee experience equals everything a worker learns, does, sees and
feels at each stage of the employee lifecycle.

The 5 stages of employee experience


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Recruitment This includes all the steps that lead to hiring a new
employee. Considerations are how long it takes to
hire, how much it costs to hire, the rate of offer
acceptance, and the hire’s quality. Were your job ads
attractive and clear enough to catch the attention
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and applications of the best candidates? Did your


interview process engage and reassure great
candidates so they quickly accepted your job offer?
How was the entire candidate experience?

Onboarding A new hire gets up to speed with the systems, tools,


and processes and comes to grips with the role’s
expectations. Most new employees need “ramp time”
to get up to speed and become productive in their
job. Obviously, the quicker they can do this, the more
profitable it is for your organisation. An effective
onboarding process translates someone’s initial
enthusiasm for their new job into a more meaningful,
long-term connection to the brand and a
commitment to doing great things while they’re
there.

Development Employee development is an ongoing stage in the


employee journey, with individuals developing at
different rates across a variety of skills. As employees
develop within their roles, you need to quantify their
productivity, ability to be a team player, and
promotion aspirations. You also want to offer them
the chance to expand their skill sets, an increasingly
important differentiator for many employees looking
to have a “portfolio career” consisting of many
different experiences.

Retention Employees are now fully ramped and integrated into


the organisation. With a strong people retention
strategy, you can keep them performing, developing,
and contributing to the company’s success, as well as
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ensure they’re inspired by and connected to the


company’s core vision. It makes economic sense for a
company to do all it can to keep hold of existing
employees. It can cost up to 50%-60% of an
employee’s annual salary to replace them.

Exit Employees can leave for a whole host of reasons:


They may retire, move to another employer, or make
a life change. Every employee will leave your company
at some point, and finding out why is an opportunity
to improve and develop the employee experience for

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current and future employees. Leavers may be more


candid in exit interviews about why they’re going as
they may feel they have nothing to lose by being
brutally honest.

The ‘3 environments’ of employee


experience
As a new hire travels along their employee journey to their eventual exit
from your organisation, there are a few things that will shape their
employee experience. Jacob Morgan, author of The Employee Experience
Advantage, highlights three basic environments, no matter how large or
small your organisation, that make up employee experience:

1. Company culture
Difficult to define as each one is different, a company’s culture may be
what the C-suite tells you it is, what you understand of its mission, values,
practices and attitudes, or even the shop-floor camaraderie when senior
management isn’t in. It’s a mixture of leadership style and organisational
structure, sense of purpose and the mixture of personalities who work with
you. Corporate culture is the vibe that you feel when you come into work –
it can motivate or stifle, energise or drain, empower or discourage its
employees.

2. Technology environment
Imagine firing up a desktop computer on your first day and discovering
you’ll be working on Windows XP. Forward-thinking organisations invest in
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suitable tools for employees to get their work done efficiently, with future
developments in mind. The technology landscape is so vast, that it’s easier
than ever to give employees the tools they need to maximise their
efficiency and make them feel more confident in their role.

3. Workplace environment
Employees who work 9 to 5 in a windowless, air-conditioned basement will
have a very different experience from those who work flex-time in an airy
new glass building with an on-site gym, subsidised canteen, chill-out
lounges, and wellness programs. Employees who are happy in their work

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environment will concentrate better, have improved well-being, and will be


more productive. And the physical space is not necessarily always in the
office: Autonomy to work from home or in multiple workspaces can also
contribute to a positive employee experience.

Learn from the world’s most successful HR leaders at X4

How to improve employee experience


If you only focus on employee engagement and company culture, you’re
missing the trick of integrating all your workplace, HR, and management
practices to focus on the employee experience.

As you set out to improve the employee experience and the three basic
environments listed above, here are some other things to consider:

Hire a Chief Experience Officer (CXO)


With companies realising that improved employee experience leads to
increased customer loyalty, profitability, and revenues, there’s a new kid on
many C-suite blocks along with the CEO, CFO, CMO, CIO, and COO – the
CXO (Chief Experience Officer).

CXOs take ownership of all aspects of employee experience: employee


engagement, employee satisfaction, performance management, career
development, employee recognition, talent management, and keeping
most employees happy, whether they are remote workers or onsite.

CXOs bring their employee experience framework to the executive table


alongside finance, IT, operations, human resources, and marketing.
Reports to the CXO include EX managers who deliver on the strategy
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across the organisation.

The CXO role ensures that employee feedback is acted upon, and that any
changes are communicated to employees effectively. This is fundamental
to a positive employee experience, as demonstrating action creates a cycle
whereby employees are more likely to be engaged and deliver feedback.

Combine your O- and X-Data


You’ll gather an enormous amount of O-data (operational data) from an
employee throughout their time with you – from basic personal details, to

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training they’ve received and their salary history. Combine that with X-data
– what that employee tells you about their experience – and you will unlock
greater insight into why things are happening in your company and what
you can do better.

For example: O-data tells you to spend money on employee perks; X-data
tells you whether your employees like those perks and what they’d prefer
instead.

Enlist C-suite and leadership support


Research shows the connection between EX and business outcomes. Your
organisation’s business leaders will want to see a direct link to business
key performance indicators (KPIs), such as increased productivity, greater
employee retention, company reputation, excellent scores, and a healthy
return on investment. Excellent employee experience delivers all these.
Capturing these results in easy-to-understand dashboards and reports
gets your most important stakeholders on your side.

Designate ownership to a senior leader or


team
Senior HR leaders, such as learning and development directors and
recruitment directors, are the natural choice to own your program and
report its data and actions to the CXO and executive team. Work with them
so they understand their responsibilities and the actions you intend to take
when the data is in. However, keep in mind that every leader in your
organisation will play a role in building exceptional employee experiences.
Encourage business leaders across the organisation to implement the Five
I’s of Employee Engagement – inform, inspire, instruct, involve, and invent.
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Listen to all your employees!


Learn about what your employees are doing every day. Trial new ways of
simplifying work and improving productivity and performance, making
every event along their lifecycle engaging, meaningful, and personal. Where
your company is international, understand that different cultures will have
different views and opinions.

Be prepared to invest in the work


environment
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Redecorated, light premises; autonomy to work from home; fresh new


furniture and tech; real coffee on tap; space and permission to take time
out to be creative or make their own customer service decisions; even an
office dog. Offer the things that make your employees want to come into
work. When you make a habit of asking them what they want through
surveys, they’ll tell you.

Measure it
Replace annual or biannual employee engagement surveys with regular
pulse surveys and open feedback platforms. Include candidate interviews,
engagement surveys, ongoing performance conversations, annual
performance reviews, and exit interviews to gather real-time
understanding of the issues your employees face.

Instead of chasing a metric, remember to keep the focus on EX


improvements and better business outcomes. Always ask two questions
whenever you’re reviewing results:

1 What did we learn?

2 What improvements are we making?

I’ve put the content from ‘Employee experience jobs’ here – it sits better

Our insights into the


employee experience
have moved on leaps and
bounds – we can now give
leaders the actions they
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need to focus on to have


an impact on their teams.
– Carl Tabisz, Senior Engagement Manager, Asda

How to design your employee experience


strategy
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When you consider that employee experience is ultimately about creating


personalised experiences, developing an employee experience framework
is a challenge – especially in the face of constant change. Yet if you
embrace a growth, rather than fixed mindset. and break down your EX
strategy into three basic elements, you’ll be able to design and shape a
compelling employee experience for your workforce:

1 Discover the moments that matter to your employees by collecting


regular feedback from across the employee lifecycle

2 Make company culture, technology and the physical workplace the


best they can be

3 Broaden your traditional HR team functions to recognise the


importance of customer experience and how employee experience
impacts it

No company, small or
large, can win over the
long run without
energised employees who
believe in the mission and
understand how to
achieve it.
– Jack Welch, former CEO of GE

Now that you know how to design your employee experience strategy,
what tools and technologies do you need to make it a reality? Let’s take a
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look.

Employee experience workplace


technology
These days, you cannot have an employee experience strategy without
employee experience technologies. In fact, setting up the technology
should be a priority: you need to hear every voice in your organisation,
whether it’s in the office, on job sites, or remote.

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You’ll need a single, all-encompassing listening engine with tools to help


you understand and design the unique employee experiences your diverse
workforce requires, to ensure you can take action when and where it
matters most, across every touchpoint.

Employee listening engine

For a comprehensive end-to-end employee experience, this engine must


include:

Listening tools
Instead of asking for feedback, listen for it all the time, across an incredible
array of channels. A listening engine that applies artificial intelligence and
machine learning to engagement responses in real-time can analyse:

+ Customer comments in recorded video feedback

+ voice calls in customer care centres


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+ Conversations in SMS and chat applications

+ Website and app feedback

+ Employee feedback in collaboration tools, e.g. Microsoft Teams and


Slack

+ Feedback on company review sites

+ Social media sentiment

+ Feedback from any internet-connected smart device

Check out Qualtrics Employee Engagement to see how you can level up
your listening strategy.

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Predictive analytics
AI-driven analytics and advanced statistical and human language tools
automatically model your experience and operational data 24/7 to identify
key areas of focus.

These tools help you to uncover insights deep from within your employee
feedback system, spotting trends in open-text feedback with sentiment
and topic analysis.

Automated actions and workflows


Automate actions and real-time workflows for frontline managers, with
feedback-to-action loops for every employee experience.

With automated actions and workflows, you can go from insight to action
and start closing gaps across your organisation.

DEI capabilities
Design your culture of belonging and create an empowering experience for
all your people. Enable leaders to easily view the most impactful actions
they need to close DEI gaps.

With the right DEI solution, you can use research-backed methodologies
and purpose-built tools to drive meaningful change at scale.

Onboarding optimisation
Build the foundation for successful teams with onboarding surveys and
insights that decrease ramp time, boost productivity and drive early
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engagement among your new employees.

Using tools like Qualtrics Candidate Experience, you can turn onboarding
and candidate engagement into your competitive advantage. You can
design and improve the overall experience, as well as grow your talent
pipeline, reduce costs, streamline processes and much more.

Exit interview diagnostics


With real-time exit insights, you’ll understand why your top performers
leave, and drive actions across the organisation to retain your top talent
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and build a happier, more engaged workforce.

You can also monitor the impact of the changes you make to increase
retention — from how those changes influence engagement to the benefits
they have on your organisation’s bottom line.

Employee surveys
Still the most trusted and secure way to collect feedback at scale.
Employee surveys allow you to tap into the thoughts and feelings of your
workforce and discover what they value most. Once you understand what
drives and engages them, you can start to develop people-centric
strategies that improve retention, well-being, inclusion, productivity and
satisfaction, helping to push your organisation forward.

Below we’ll highlight some of the most vital types of employee experience
surveys you need as part of your experience management toolset.

Learn from the world’s most successful HR leaders at X4

Types of employee experience surveys


To deliver personalised experiences, it’s crucial you understand how
employees feel at different stages of their employee lifecycle: when they
join you, as they develop, and as they leave. What experiences have been
positive, and where could you, as a company, make improvements?

An employee experience management program should incorporate


different types of listening elements to measure employee engagement
and experiences at key moments in the lifecycle. To gain a deeper
understanding of how your employees feel, your listening program must
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generate feedback on a regular basis.

For example, pulse surveys capture a regular, structured measurement of


employee attitudes, and ad-hoc surveys collect just-in-time feedback on
things like organisational changes, new programs or policies, or corporate
initiatives.

Engagement surveys
Employee engagement is a measure of someone’s connection to their work
and how they think, feel, and act toward helping their organisation meet its

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goals. These reviews – typically conducted annually – are particularly


useful at the retention stage of the employee lifecycle, as they indicate how
involved and engaged established employees feel in their work.

Employee engagement has an impact across the business:

+ Increased performance – Research shows that business unit-level


engagement is predictive of future customer experience metrics,
productivity, and financial performance

+ Lower attrition – Engaged employees are 87% less likely to leave


their organisation, which means reduced costs in having to recruit new
staff, train them and wait for them to ramp up to full productivity

+ Increased revenue – According to Bain & Company, companies with


highly engaged workers grew revenues 2.5x as much as those with low
levels of engagement

+ A better customer experience – 70% of engaged employees


indicate they have a good understanding of how to meet customer
needs; only 17% of non-engaged employees say the same

Candidate reaction surveys


Candidate reaction surveys evaluate your company’s ad-to-hire process
for new employees. A good survey will capture the experiences of both
successful and unsuccessful candidates, making everyone feel that they
matter and their voices are heard, whatever the outcome. It’ll reveal the
effectiveness of your reach with advertising and marketing, brand, and
recruitment processes. And treating unsuccessful candidates well
enhances company reputation by creating advocates who had a positive
experience with you.

Check out our free candidate experience survey template today.


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Onboarding surveys
Onboarding introduces a new hire to their colleagues, their role,
expectations, and available resources and embeds them into your
company culture. It’s important to find out what your new hires think of
their “ramp time” by using onboarding surveys. Gather first impressions
from day one, then regularly perform surveys once new hires have had a
chance to settle in and form their opinions. The onboarding experience
sets the tone for the whole employee journey, and it’s strongly linked with
important employee experience and engagement KPIs.
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Training feedback surveys


Training sessions are crucial to a successful onboarding process, but
they’re also important milestones during the development and retention
stages. Gathering data before and after every training event during the
lifecycle will map an individual’s growth and highlight where the
organisation could enhance learning and development more efficiently.

Performance reviews
More regular reviews – pulse surveys every three to six months – and
“performance management conversations” with managers are becoming
the new normal. Specific metrics could be included in performance review
feedback, or the focus could be on developing “soft skills” like how an
employee interacts with colleagues.

360 reviews
Manager and employee performance reviews can reveal only part of the
picture of how an employee functions in your organisation. Also known as
multi-rater feedback assessments, 360 reviews include appraisals by a
senior, a junior, and a peer, as well as a self-assessment. Because they’re
anonymous, 360 reviewers are more likely to say what they really think.
That said, they are best used only for team and professional development,
not to rate and reward individual performance.

Exit surveys
You’ll probably get your most honest feedback at the exit interview. It’s an
ideal opportunity to ask those questions that your organisation most
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needs answers to, particularly where staff turnover is high. You’ll be able to
understand your attrition rate better when you can link exit surveys with
your other lifecycle surveys such as 360 reviews and employee
engagement.

Pay and benefits optimisation surveys


In a Glassdoor survey, 60% of employees said that benefits were a major
factor when weighing a new job offer. And 80% of employees would choose
better perks over a pay raise. Using pay and benefits surveys, you can find
out what your employees really want and analyse their responses to create

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a benefits package that helps you attract and retain talent, while
optimising your overall spend.

Always on surveys
There’s a growing trend for daily surveys that include a handful of very
simple questions about how employees are feeling. By providing an on-
demand, anonymous channel for employees to provide feedback, offer
insights, and raise issues, you can capture a real-time snapshot of
company morale and employee satisfaction. For example, if morale seems
low one day, this could mean a change in tone from business leadership
communications.

Skills for employee experience


professionals
Including the tools outlined in this article, it’s important to invest in the
right skills to ensure your people leaders maximise their capabilities.

Employee experience management is part of the larger discipline of


Experience Management (XM) that aims to improve the fore core
experiences of a business: customer, employee, product, and brand.

To master employee experience management, companies should adopt


the XM Operating Framework, which is built on a combination of
technology, culture, and six competencies. Within each competency are
three to four skills that you must master to realise the value of XM.
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XM Core Competencies – XM Institute

To get started, you need to understand your organisation’s strengths and


weaknesses. Use the XM Institute’s Employee Experience Maturity
Assessment to evaluate where you sit now, and then use it every six to 12
months to see how you are improving within the six XM competencies and
evolving through the five stages of EX maturity.

For us, the focus around


employee experience is
on creating a seamless
experience around the
things somebody needs
to do as an employee
while allowing them to
focus on the business we
hired them for—
development, sales,
leading new products
[and so on]. We’ve
actually created a VP
level role to strictly focus
on the employee
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experience.
– Adam Khraling, VP of Global HRIS, American Express

The recent upheavals and changes in business, economy, and society are
unprecedented. What’s clear is that employee experience directly affects
how your business navigates change, disruptions, and economic volatility.
Great employee experience, as we’ve seen, has a positive impact on your
whole business, from recruiting new hires to delivering profit. Investing in
EX roles, departments, and technology to join the dots between employee

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engagement and business performance has never been money better


spent. If you’re looking for an all-in-one solution to help you navigate
employee experience and deliver precisely what your people expect of your
organisation, look no further than the Qualtrics Employee Experience
platform. It’s the solution every organisation needs to deliver more human-
centric experiences.

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