What is the difference between employee satisfaction, employee engagement and employee experience? They all seem similar, but they all have their own key factors that are essential for company success.
There is a well-known saying in the business world. The customer wants three things from the service provider: quality, timely service and a good price. The service provider, often exasperated, responds by saying: "Choose two of the three, you can't have all three." As both a service provider and an employer, I understand both sides. On the other hand, a similar situation applies to employees. Just like our customers, they expect satisfaction, loyalty and a good experience. We cannot tell our employees to choose only two of these and not all of them because these three issues are actually intertwined with each other and affect each other. If desired, these three elements can be handled successfully and a good experience can be provided to our internal customers, our employees. As Success Programme, we argue that 50% of the responsibility for engagement lies with the employer and 50% with the employees, this is a topic for another article, but I mention it so that you don't say "so what, we will both satisfy, create engagement, and provide a good experience, do the employees who expect all this from us have no responsibility?" Of course they do, but in this article we will discuss the 50% responsibility that falls on you as an employer, manager or human resources.
For Human Resources, for example, consider these three sensitive issues:
I think there is no reason why HR leaders cannot deliver excellent results in all three of these areas, but to do so requires a clear understanding of how they differ and how they are interconnected.
Let's start with Employee Satisfaction. By our definition, Employee Satisfaction is transactional. That is, the company tells the employee what it will give them in return for their labor (these are usually basic needs, such as wages, insurance, food, some fringe benefits), and if this exchange proceeds as promised at the beginning, employees are satisfied with their work. Over time, new elements of satisfaction can be added. For example, the now fashionable remote working opportunities. As long as this exchange between employer and employee remains in balance, satisfaction will continue. However, it is important to remember that the focus of employee satisfaction is on the individual feelings, positive or negative, that the employee has about his or her employment. Employee Satisfaction is therefore subjective in nature and often focuses on the immediate happiness and emotional state of the employee. The person who was very satisfied yesterday may seem dissatisfied the next day, or the person who said they were very satisfied yesterday may leave their job.
Employee Engagement, on the other hand, goes beyond happiness or temporary feelings of happiness and is more meaning-driven. Emotions are at the heart of Employee Engagement, but these emotions are supported by intrinsic motivation. Our Business Partner Dr. Tracy Maylett has defined Employee Engagement better than anyone else in my opinion:
I like this definition from our partner because it shows that Employee Engagement is not just about fluctuating moods or emotions. His use of the terms "energetic", "passionate" and "dedicated" shows that engagement is actually an important motivating force.
Another interesting point I have observed about Employee Engagement and Employee Satisfaction is the fact that they sometimes do not overlap. In other words, engaged employees can sometimes be unhappy, but the main reason why these employees continue to be engaged even if they are unhappy is that they find meaning in the workplace that is much more important than mere job satisfaction. Therefore, when addressing engagement, it is important to look at the factors that drive engagement rather than satisfaction measures.
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However, these definitions do not explain how measuring an employee's emotional state in terms of satisfaction or engagement relates to a company's Employee Experience. This is because they are not the same thing. So you cannot compare apples and oranges.
Satisfaction and engagement are outcomes of the Employee Experience. The employee experience is the totality of employees' perceptions of their interactions with the company they work for. At its core, the employee experience is the cultural environment of the company where critical employee perceptions (good or bad) are formed that translate into engagement and satisfaction. A simple way to understand the employee experience is to answer the ubiquitous question "What is it like here?". Imagine a current employee explaining to a new hire how things work in their department, including current rumors and well-known stories that have happened before. This is Employee Experience.
Over the years, we have meticulously measured satisfaction and engagement. We've even learned what issues drive engagement, but we've never stopped to ask ourselves the question: What actually creates these two emotional states - engagement and satisfaction - at a fundamental level? The answer is Employee Experience.
So let's go back to my premise that you can improve Employee Satisfaction, Employee Engagement and Employee Experience simultaneously. Again, the answer to this question is yes! You can build these three areas at the same time because it is clear that you need to focus on a single independent variable - the Employee Experience. The other two are dependent variables or outcomes that go up and down depending on how well your company fulfills the Employee Experience.
Of course, from a theoretical point of view, this is all great, but where does one start if they want to put it into practice? Unfortunately, there is no universal guide on how to create your Employee Experience. It would be like saying there is only one way to parent a child. Your EX depends on your company's unique strengths, challenges, needs and goals.
But a simple thought experiment can help. Based on my example above, think of all the questions a new employee might ask a senior employee about "how things work in the company". What are the questions that can be addressed?
Here are some suggestions to revitalize your Employee Experience to keep your creative side alive:
What is the common element of each of these questions? Each of these questions, at its core, involves an expectation of the employee or the company. This observation reveals that the key to a successful Employee Experience is to align the expectations of your employees with the company requirements that help the company succeed in a crucial way.
You must have realized that it will take some time to create your list. Because for your list to be effective, it needs to be made up of hundreds of questions. So keep a notepad and jot down these questions, even if they come to mind while waiting for your coffee at Starbucks. Be attentive and patient.
After a while you will see that the topics will start to develop around your questions. As you categorize these topics, you will see areas that need attention. These are areas where the beliefs of your employees and the expectations of the company are no longer aligned. We refer to these as expectation gaps. Your starting point in improving your Employee Experience is to address these expectation gaps.
However, this is only the starting point. But it is a good place to start! Do not procrastinate! If you don't start focusing on your Employee Experience, things will stay the same or get worse. It is very rare, if not impossible, for positive organizational change to happen spontaneously.
For more information on how to create the right Employee Experience for your company, we recommend reading our latest book The Employee Experience, How to Attract Talent, Retain Top Performers, and Drive Results (2017) published by WILEY.
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