Why Employee Experience Management Matters
AIHR describes employee experience management (EXM) as the practice of improving every interaction an employee has with their organization across the full career lifecycle. The focus comes as Gallup data shows global employee engagement has declined to just 20%, a development that raises serious economic concerns. Productivity losses linked to this disengagement could total $10 trillion, prompting HR leaders to take EXM more seriously.
SHRM Labs research reinforces the urgency: replacing a single employee costs anywhere from half to twice their annual salary. The Customer Service Institute adds that higher engagement drives stronger customer satisfaction. Real-world cases illustrate the idea. Zappos runs a four-week onboarding program and then offers new hires $2,000 to quit if they conclude the company is not right for them. CarMax added nearly 70 courses to KMX University in 2008 and provided more than one million hours of training; the typical employee completed close to 10 courses over the previous 12 months. MTU Aero Engines GmbH created profiles for employees in critical roles and built tailored development tracks for promising junior specialists.
AIHR’s EXM Recommendations
AIHR advises measuring employee experience through metrics such as:
- retention
- intent to stay
- employee referrals
- productivity
- absenteeism
- internal mobility
- Employee Net Promoter Score (eNPS)
The EXM lifecycle covers attraction, recruiting, onboarding, retention, development, offboarding, and alumni relationships. To build a program, AIHR suggests seven steps:
- audit the current employee experience
- set measurable objectives
- design initiatives for key lifecycle moments
- apply design thinking
- measure continuously
- close the feedback loop
- invest in manager skills
Several software platforms can support EXM programs, including Workleap, Culture Amp, Qualtrics, Lattice, and Staffbase. Pricing structures differ. Workleap charges $4,999 per year for Standard, $11,999 per year for Pro, and custom pricing for Enterprise. Lattice starts at $4 per seat per month for Engagement and $13 per seat per month for Foundations. Culture Amp and Qualtrics set prices based on employee count and product specifics, while Staffbase also offers custom rates depending on workforce make-up and related criteria.
“Strategy must connect feedback, manager skills, and workplace design to business outcomes.”
For organizations aiming to lift productivity and keep talented employees, employee experience management has moved from optional to essential. As engagement numbers fall, companies need investments that build a positive experience across every stage of an employee’s journey. That not only reduces replacement costs but also strengthens customer service, feeding into overall business success.
As organizations grapple with the pressing issue of employee engagement, it's crucial to understand the broader implications of hiring practices. A recent report highlights that many companies overlook the quality of their hiring, which can exacerbate disengagement and ultimately affect productivity and retention rates. This connection underscores the importance of a comprehensive approach to employee experience management, as addressing hiring quality is a vital step in fostering a more engaged workforce.