The Ultimate Guide to Employee Experience (EX)

What is employee experience?

The employee experience (EX) refers to how an employee feels about your business or organisation. It is shaped by every interaction an employee has with a company, from their first day to their last. Everything from onboarding to payroll, leave requests, performance reviews and daily interactions at the workplace; all of it forms their employee experience.

Why employee experience matters

Employee experience matters because it affects every moving part of a business, from daily operations to overall profitability.

Happy, engaged and motivated employees are more than just productive—they bring positive energy to the workplace and uplift those around them, making work a pleasant experience for everyone. But their influence doesn’t stop there. Employees don’t just experience the workplace; they also talk about it. When they feel valued, they naturally share positive experiences, strengthening the company’s reputation and attracting top talent.

Unhappy employees are less productive, and their dissatisfaction can spread, lowering team morale and increasing turnover. In 2023, the Gallup State of the Global Workplace report found that low engagement costs the global economy US$8.9 trillion (AUD$14.1 trillion) every year, proving just how critical employee experience is.

The employee experience factors – and why they’re important

As workplace expectations evolve, HR teams are adopting a more holistic approach to employee experience. It's no longer just about engagement, work culture or free coffee—it’s about creating an environment where employees feel valued, supported, and motivated to do work.

A strong employee experience integrates HR strategies, management practices, and workplace processes. Some HR professionals suggest that the longer an individual works at a company, the better their employment experience. This makes sense, as many benefits like bonuses, rewards, and promotions will come with time. Regardless, creating a great experience from day one is what will keep employees engaged in the long run.

Let's explore the main factors that shape employee experience:

Recruitment

Job hunting today isn't just about finding the right job — it's about finding the right company. Most people search for jobs online on Seek, Indeed or Linkedin but a job opening alone won't be enough. Before applying, candidates research potential employers, evaluating company culture, work environment, benefits, and values to ensure everything aligns with their expectations. This is a clear reminder that a positive first impression and a strong online presence can make all the difference at the recruitment stage.

Here are some ways you can enhance recruitment efforts:

Job description: Clearly outline work experience needed, role responsibilities, work arrangements, compensation, and company culture to attract the right talents.

Company reputation: Monitor and manage reviews on social media and job platforms like Glassdoor, Seek and Linkedin as employer perception can impact applicant quality and volume.

The hiring process: Be mindful of how long it takes to hire, how much it costs, offer acceptance rate and candidate quality to avoid going over budget.

Onboarding

The onboarding experience begins the moment a candidate accepts an offer. Like recruitment, onboarding has become more digital, intuitive, and paperless to deliver a smooth user experience, reduce manual effort, and cut administrative costs. Important documents like contracts, personal information, taxation, and superannuation can be easily accessed anytime, from any device—eliminating paperwork.

At this point in time, even the most qualified candidates may find the first few weeks overwhelming as they adjust to new systems, processes, and people. Digital onboarding allows new employees to go through the process at their own pace, while still receiving the support they need.

Despite these improvements, some challenges may still arise:

Information overload: Newcomers are often flooded with new information all at once. They may even struggle with simple things like login details, passwords, and computer access. The key is to start with the basics and build on it.

Social integration: Making new connections can feel intimidating. You can facilitate the process by setting up meet-and-greet sessions with small groups, managers and team members to help employees feel connected and supported.
Role expectations: Lack of clarity can quickly lead to confusion and frustration. Provide clear job responsibilities, training, and ongoing feedback to help newcomers understand their role and how they contribute to the company. A well-planned onboarding process helps employees feel welcomed and supported from the start, helping them to settle in quickly and effectively.

A well-planned onboarding process helps employees feel welcomed and supported from the start, helping them to settle in quickly and effectively.

Employee engagement

Bringing in new employees is one thing; but keeping them engaged is another. Engagement goes beyond job satisfaction—it’s also about feeling motivated, committed and connected to their work, colleagues and company. Many businesses invest a lot in maintaining an engaged workforce – and for good reason.

Studies show:

Engaged employees are happier, less stressed and take fewer sick days. They are also more motivated, and willing to invest time and energy in their role.

Disengaged employees tend to be less productive, have higher absenteeism and turnover rates, ultimately costing the business more money.

For example, a customer support employee may feel like they’re just answering calls all day. But when they understand how their role directly increases customer satisfaction and contributes to the company’s success, they feel more engaged and motivated.

Development and retention

Retention and staff turnover remain major concerns for small-medium sized Australian businesses. In 2023, only 64% of Australian employees would stay with their company if offered the same benefits and pay elsewhere. Research also shows a strong connection between employee engagement, satisfaction and retention rates.

Effective retention strategies include:

Regular feedback and clear communication: Engage employees in open conversations about their roles, expectations, and performance to ensure they feel valued and supported.
Recognition and rewards: Reinforce their sense of purpose, and pride in their work by acknowledging and rewarding employee efforts and achievements.
Opportunities for growth and development: Provide clear growth opportunities and training to encourage long-term commitment.

Replacing an employee can cost 50%-60% of their annual salary, making it clear why retention strategies are essential. Experienced HR teams understand the importance of a positive employee experience, as a proactive way to retain employees.

Offboarding

When an employee leaves, it's easy to just move on—but understanding why they left can provide valuable insights. Recent data from the Australian Bureau of Statistics shows that job turnover remains high:

“57% of employees have been with their current employer for less than five years, and 19% for less than a year"

This highlights the importance of identifying why employees leave. What's driving them away? Exit interviews or surveys can uncover workplace patterns, leadership challenges or cultural issues that may be pushing employees out the door.

It's easy to overlook a low-performing employee's departure—but what if a high-performing employee resigns? It could be hinting at a bigger issue. This is why feedback matters, regardless who leaves. Offboarding isn't just about saying goodbye, it’s a chance to help the businesses grow and improve the overall employee experience.

Employee experience challenges

The modern workplace is evolving quickly, and redefining employee experience. To stay competitive, companies must be ready for these shifts in technological advancements, employee expectations and workplace dynamics.

Let's explore some of the emerging employee experience challenges:

Hybrid and remote work struggles:
Since the COVID pandemic, we've seen more and more companies offer more hybrid/remote working arrangements. While this offers flexibility, they also risk making employees feel isolated and disengaged. It's crucial to have strategies in place to support this new arrangement, this could look like: regular check-ins, virtual team building, fostering an open and collaborative culture to keep team members connected and engaged.
Change in expectations:
As more Millennials and Gen Z enter the workforce, expectations are changing. Unlike previous generations, they are very individualistic, vocal about their needs and value personalised experiences —from career path, benefits to flexible working arrangements. A one-size-fits-all approach won't work with this crowd. To retain talents, companies must seek better understanding and design personalised experiences.
The fight for talents:
The job market is more competitive than ever, not just for jobseekers but also for companies trying to attract and retain top talent. Salary alone is no longer enough. Employees today look for workplaces that offer good culture, career development, flexibility and work-life-balance.

According to Ipsos, more than half of young Australian employees plan to leave their current employer within the next two years (52% of those aged 18-24). This signals a clear need for organisations to reevaluate their employee experience strategy, in order to become employers of choice and retain talent.
Social media & the risks:
Employer branding and PR has never been more crucial than right now. In Australia, it's reported that 86% of employees and jobseekers research company reviews and ratings to decide on where to apply for a job. Employee reviews on platforms like Linkedin, Glassdoor and the likes can make or break a company's reputation. Therefore, companies must be proactive in addressing concerns and prioritise employer branding.

Employee experience strategies

An effective employee experience involves more than just culture and engagement. It requires a well-rounded approach that blends workplace environment, HR strategies, and leadership practices. Happy employees are great, but making them feel valued, supported and set up for success in their roles becomes the real gamechanger —boosting productivity, well-being and business growth.

Here are some ways you can make this happen:

Continuous listening and feedback

The simplest yet one of the most effective ways to improve employee experience is to simply listen. Employees want to feel heard and valued at work. By collecting feedback, businesses can use these insights to improve and adapt. Here are some ways to actively listen to employees:

Regular pulse surveys: Short, frequent check-ins to track workload, engagement, leadership effectiveness and workplace environments.

Employee Net Promoter Score (eNPS): A quick way to measure employee satisfaction and loyalty, which could be paired with other surveys (engagement, culture, DEI) for a complete picture.

Open-door policies & anonymous feedback channels: Encouraging honest communication through a mix of one-on-ones, and confidential feedback methods.

Listening is the first step, but what matters more is taking action, and making real change in the workplace.

Leadership styles

With great power, comes great responsibility. Leaders set the tone for employee experience, and overall workplace culture, as their influence trickles down to every level of the organisation.

When managers prioritise engagement, well-being, and collaboration, employees feel valued and more connected to the company’s mission. Regular one-on-one check-ins provide opportunities to discuss career goals, challenges, and overall well-being. Additionally, positive reinforcement, recognising achievements and encouraging open dialogue can have a profound impact on employees.

Employee-centric culture

Rigid, outdated policies can be a major roadblock in employee experience. In these modern times, a one-size-fits-all are no longer effective. Today's workforce expects more flexibility in work arrangements, personalized career paths, tailored benefits and learning opportunities that align with their individual needs.

To boost engagement and retention rates, companies must investigate creating workplace policies that truly reflect real employee needs.

Hire a Chief Experience Officer (CXO)

As outlined by Qualtrics, many organisations are appointing a CXO to oversee EX initiatives, employee engagement, performance management, and workplace culture.

A dedicated EX leader ensures employee feedback translates into meaningful action and that EX remains a business priority—not just an HR function.

How technology improves employee experience

Outdated and inefficient processes? Nothing more frustrating than that for employees, managers and HR leaders. Thankfully, modern technology has transformed the way we do things, paving the way for smoother workflows and everyday operations.

Here's how:

Automate repetitive tasks: Scheduling, rosters, timesheets and leave requests can all be done with one click, without human effort.

Real time updates: Employees can clock in and out, change duties or even log breaks. For example, changing employee availability is easy and won't cause staffing shortages or gaps.

Compliance with ease: Minimize the risk of non-compliance and possible hefty fines, with in-built reminders and alerts that can be set up well in advance.

Security for remote workers: With more people working remotely, or out in the field, their safety and wellbeing are major concerns for employers. Location tracking within newer systems allows employees to log their whereabouts for an extra layer of security.

Signs of a successful employee experience

1. Flexibility
You know one size doesn't fit all, so your employee experience has more flexibility. For example, you encourage hybrid working that suit different work styles and life stages.

2. Autonomy
It is a priority. Your systems and workplace practices empower your people to be productive, efficient and independent. People can get on with their jobs with ease.

3. Seamless user experience
You use technology that enhances your employee experience, not hinders it. The tools used are intuitive, efficient and designed for ease of use.

4. Regular check-ins
You actively listen through surveys, feedback loops and practice open communication to be proactive, and make your employees feel supported and heard.

5. Connection
Employees feel connected to one another and have access to the best platforms for collaboration.

6. Simplicity and efficiency
Employees have access to a workforce management system that makes everything easy. They can easily update details, check policies, connect with HR and leaders without trouble thanks to well thought-out processes.

How Workforce Management (WFM) technology can help enhance employee experience

We’re now living in a world of diverse work models; where hybrid, remote, and flexible arrangements are the norm. While some industries have long operated this way, the pandemic accelerated the shift—leading many employees to expect greater flexibility in how, when, and where they work.

To support this, many businesses are turning to cloud-based Workforce Management (WFM) technology that is accessible to all employees, no matter their location.

But how does WFM technology impact employee experience? The answer lies in accessibility and efficiency. Whether an employee is working from the office, home, on-site or remotely, workforce management systems make this an easy process; enhancing the employee experience. From schedule to payroll, leave requests—everything is just a click away for both employees and HR teams.