In today's business world, a company's most valuable asset is its talent. So, what is the secret to retaining this talent and getting the highest performance? Answer: Employee Experience (EX).
EX, which has become one of the most talked-about concepts in HR in recent years, can be defined as “the sum of all interactions between your employees and your company.” However, this definition falls short of doing justice to the strategic importance of EX.
What Exactly is Employee Experience?
Employee experience refers to the experience of an employee throughout the recruitment process.
Onboarding is the totality of experiences at all touchpoints during the onboarding period, from the daily work environment to career development opportunities and the separation process.
In McKinsey's definition: “What employees feel, think, and experience while doing their jobs.”
The 3 Key Components of EX:
- Physical Experience: Office environment, work tools, technology infrastructure.
- Emotional Experience: Appreciation, sense of belonging, manager-employee relationship.
- Mental Experience: Learning opportunities, meaningful work, career vision.
Why is EX Critical for Companies?
Power to Attract and Retain Talent
PwC research: 65% of employees are willing to move to a company that offers a better experience.
Qualtrics data: Employee engagement is 40% higher in companies with a strong employee experience (EX).
Performance and Efficiency Improvement
Gallup: 17-21% higher productivity in EX-oriented companies.
MIT Sloan study: Companies with good EX have twice the innovation capacity.
Direct Impact on Customer Experience
Forrester: 0.80% correlation between employee experience and customer experience.
Example: Starbucks' EX model, which focuses on “Partner (employee) Happiness,” increases customer satisfaction.
Impact on Financial Results
Willis Towers Watson: Companies with strong employee experience (EX) have 50% higher stock returns.
HBR: ROI on EX investment is 4:1.
5 Concrete Steps to Improve EX
Start with the Recruitment Process
- Improve candidate experience (fast turnaround, transparent process),
- Offer a realistic job preview,
Implement Personalized Onboarding
- Create a plan for the first 90 days,
- Introduce a buddy system,
Create a Culture of Meaningful Feedback
- Weekly check-ins,
- Use real-time feedback tools,
Listen to Employee Voice
- Regular EX surveys (measure eNPS),
- Create employee advisory boards,
Support the Career Journey
- Individual development plans,
- Opportunities for horizontal and vertical mobility,
A Striking Example from Turkey: Garanti BBVA
In line with Garanti BBVA's vision of “Glorifying People”:
- Employee mobility is ensured with the “Dynamic Career” model.
- Investing in emotional intelligence with the “People First” program.
- Continuous improvement is ensured through regular EX measurements.
The result: Consistently high ranking in the Great Place to Work rankings.
Conclusion: EX is No Longer an Option, but a Necessity
In the business world of 2025:
- Talent wars are heating up.
- Employee expectations are radically changing.
- Digital transformation is reshaping EX.
According to Gartner's prediction, companies that do not prioritize EX in the next 5 years will experience talent erosion.
Remember: Investing in your employees' experience is investing in your company's future. Take action today to make EX a strategic priority.
At PeopleHub Employer Branding Agency, we measure your employee experience and provide evidence-based strategies to improve it. Contact us and let us guide you on your EX journey!
