REAL ISSUES: EMPLOYEE ENGAGEMENT VS. EMPLOYEE EXPERIENCE

By Vivienne Liu
Research & Development Specialist

vivienne@pace-od.com

What is the difference between employee engagement and employee experience?

Despite heavy spending on employee engagement programmes, many organisations still struggle with unsatisfactorily low employee engagement scores. In fact, Aon Hewitt (2017) found a two per cent drop in global employee engagement scores between 2015 and 2016. 

It’s not surprising, then, that employee engagement continues to be a key focus for many HR leaders (Bersin, Mazor, & Melian, 2017). However, what’s different is the shift in the way engagement is addressed. Instead of focusing on employee engagement in isolation, HR leaders are moving towards an integrated view that combines various aspects of organisational culture, engagement and employee brand proposition into an entire employee experience. 

Employee Engagement

According to Aon Hewitt (2017), employee engagement is defined as “the level of an employee’s psychological investment in their organisation.” Having been linked to productivity, profit, customer satisfaction and retention (Quantum Work, 2017), employee engagement has received much attention from senior managers who pour millions of dollars into engagement initiatives in hopes of a positive impact on their bottomline. 

While these perks are effective — they do in fact yield higher engagement scores — their results do not last. Like adrenaline shots, each new initiative introduced causes engagement scores to shoot up, only to fall back down over time. Ultimately, these are just short-term fixes that address only the outcomes of how an employee experiences the organisation, and not the root cause. 

Employee Experience

Employee experience, on the other hand, is a more holistic approach that takes the long-term perspective. As with customer experience, the discipline of employee experience considers an employee’s entire journey with the organisation and carefully designs all the internal touchpoints to create a place where people want, and not just need, to work each day. 

According to Deloitte’s Simply Irresistible Organisation™ Model (Bersin et. al, 2017), such a positive employee experience begins with Meaningful Work, Supportive Management, Positive Work Environments, Growth Opportunities, Trust in Leadership, and Cross Organisational Collaboration.

Simply Irresistible Organisation.png

 

Unlike employee engagement programmes, a holistic employee experience design deals with the root cause of employee disengagement — the experience itself — providing a more sustainable solution. Moreover, studies also show that organisations that invest in employee experience outperform those that don’t by four times in average profit and more than twice in average revenue (Morgan, 2017). 

How does your organisation deal with disengaged employees? Knowing that the millions we spend on short-term fixes to increase employee engagement buys us so little, come and explore a framework that has leveraged on lab brain research to develop practical tools for managing motivation in a business context at the Real Motivation Symposium on 22 September 2017.

Sources:
Aon Hewitt. (2017). Global anxiety erodes employee engagement gains. Trends in Global Employee Engagement 2017.  

Bersin, J., Flynn, J., Mazor, A., and Melian, V. (2017). The employee experience: Culture, engagement, and beyond. Deloitte Global Human Capital Trends 2017, 51-62. 

Morgan, J. (2017). Why the millions we spend on employee engagement buy us so little. hbr.org

Quantum Workplace. (2017). 2017 employee engagement trends. 

Scott, R. (2017). Employee engagement vs. employee experience. forbes.com.