Want to know why employee experience remains a priority? And how to maximize efforts in 2025?
According to McKinsey research, employee disengagement and attrition could cost a median-size S&P 500 company between $228 million and $355 million a year in lost productivity.
Companies that invest in employee experience are 4x more profitable than those that do not. – Jacob Morgan, author of the employee experience advantage
Don’t waste time hunting and retaining top talent. In this guide we share the essential elements of employee experience and how to create the ultimate employee journey in 2025.
What is Employee Experience?
Employee experience refers to the total interactions, perceptions, and emotions that employees have throughout their journey with an organization. It encompasses every touchpoint, from recruitment and onboarding to daily work, career development, and even the exit process.
Key Components of Employee Experience:
Work Environment:
Physical, digital, and emotional aspects of where and how work happens.
Employee Development
Opportunities for learning, growth, and career progression are crucial. 86% of employees say training and employee development programs improve engagement (LinkedIn Learning, 2024).
Company Culture:
Shared values, attitudes, and practices within the organization. A positive, inclusive, and purpose-driven culture fosters trust and belonging. 70% of employees say a strong culture makes them feel more engaged at work (Glassdoor, 2023)
Leadership and Management:
Transparent and empathetic leadership builds trust and drives alignment. 64% of employees believe trust in leadership is critical to job satisfaction (Qualtrics, 2024).
Employee Well-Being:
Holistic support for physical, mental, and financial health. Companies focusing on well-being see a 30% decrease in absenteeism (SHRM, 2024).
Feedback and Recognition
Real-time feedback and appreciation improve morale and motivation. Employees are 4.6x more likely to feel empowered when their contributions are recognized (Gallup, 2023).
Technology and Tools:
Seamless, efficient, and user-friendly tech enhances work productivity. 73% of employees state that better workplace tools improve collaboration (Microsoft Work Trend Index, 2023).
5 Employee Experience Trends for 2025
In 2025, engaged employees are those who see a connection between their work and a positive future, both for their own careers and for the world.
Trend 1: Focus on Supporting through Systems
With the rise of AI, team members have felt ever-increasing pressure to be productive. 38% of employees are feeling pressure from their employers to increase productivity.
According to the Qualtrics 2025 Employee Experience Trends Report, 2025 will bring an increased focus on supporting employees through enhanced systems and processes. This includes;
- Simplifying processes to enable employees to meet customer needs
- Improving how work gets done
- Developing new ways to serve customers
👉 Action Step: Use SOPs and processes for productivity and to alleviate employee burnout.
Trend 2: Instilling Trust Matters
Trust in leadership and a sense of inclusion are critical components of a positive employee experience. However, only 56% of employees believe their leaders would prioritize employee well-being above short-term gains. (Qualtrics)
This gap highlights the need for leaders to build trust by demonstrating a commitment to their employees’ long-term success.
👉 Action Step: Communicate and be transparent. Work on a purpose filled mission that inspires team members in the mission and vision of the company. Ensure that company values are lived and felt in everyday activities.
Trend 3: Comprehensive Employee Onboarding Strategies
Companies with well-organized onboarding improve new hire retention by 82% and productivity by over 70%.
The quality of employee onboarding sets the tone for the entire employee experience and impacts retention and performance.
First and last impressions are powerful, so much so that positive experiences often lead to employees and customers becoming advocates, while negative experiences can tarnish a brand’s reputation and recruitment drives. (Qualtrics)
👉 Action Step: Whilst employee onboarding may seem a standard requirement, it’s about really taking it to the next level with a top onboarding experience for new hires.
Trend 4: The Importance of Digital Employee Experience: AI and Automation
Going paperless isn’t an option, it’s an essential. But companies need to take it one step further if they want to create a positive impact on team members.
AI and automation in 2025 will be a focus to:
- Free employees from mundane and repetitive tasks
- Prevent employee burnout
- Offer specialized career development opportunities
👉 Action Step: Investigate AI Tools that help automate work.
Trend 5: Upskilling and Development
Employee development and opportunities for growth have always been key factors for employees when deciding on a new role. And with the rise of AI integration into workplaces, this takes on new importance.
According to a 2024 survey by PwC, 82% of leaders believe employees need new skills due to AI advancements.
👉 Action Step: Focus on employee training and development in 2025.
Benefits of a Great Employee Experience
Organizations with a focus on EX reap multiple advantages, directly impacting their bottom line and competitive edge. Giving new hires a great employee experience matters because top talent is the key to operating efficiency and scaling. The faster new team members can onboard and be effective in their roles, the faster an organization can deliver on customer experience and innovation.
1. Higher Productivity
A positive employee experience enables employees to be more engaged and efficient. According to Gallup, highly engaged teams show 21% greater productivity.
2. Improved Employee Retention
When employees feel valued and supported, they are more likely to stay. A study by Qualtrics shows that companies with strong EX see 40% lower turnover rates.
3. Enhanced Customer Satisfaction
Happy employees lead to satisfied customers. A 2023 MIT study revealed that companies excelling in EX also achieve double the customer satisfaction ratings compared to competitors.
4. Better Recruitment Outcomes
A compelling employee experience attracts top talent. According to LinkedIn, 92% of professionals would consider changing jobs for a company with a stellar reputation for employee experience.
5. Innovation and Growth
Satisfied employees are more likely to contribute creative ideas. EX-focused organizations report a 2x increase in innovation metrics, according to Deloitte’s 2024 Human Capital Trends report.
Employee Experience and SOPs
The more your team members feel empowered in their roles, the better the employee experience. 
Additionally, from the way you communicate to how you manage Standard Operating Procedures (SOPs), employee experience has a direct impact on how your people view — and talk about — your brand. And the better reputation your brand has, the better your ROI. 
But what does it take to engage employees so they can’t wait to come to work each day? And how do you drill down on employee experience to boost productivity and revenue?
It’s simple: create the best procedures possible and make their every-day easy to love.
Standard Operating Procedures (SOPs) can contribute to a great employee experience by providing clear and consistent guidelines for employees to follow, which can help reduce confusion and errors.- SOPs can also ensure that all employees are aware of the company’s policies and procedures, which can help foster a sense of accountability and ownership among employees.
- Additionally, having SOPs in place can make it easier for managers to train new employees and ensure that they are performing their duties correctly.
Overall, SOPs and processes can help create a more efficient and organized work environment, which can lead to a more positive employee experience.
Learning in the flow of work boosts Employee Experience
Learning in the flow of work is all about offering employees quick and easy access to snackable learning content on the go.
Imagine your employee is about to write a sales email, but the queries start rolling out: ‘What’s the best wording for this again? How do I structure my email? What are our company taglines?’
Answering all those questions = a lot of wasted time for your employee and their colleagues.
But there’s a better way. With Whale’s Chrome Extension, your SOPs are instantly accessible as soon as employees open different tools. So, next time your employee goes to write that sales email, they’ll have all the information they need at their fingertips, with no digging necessary.
Now that’s what we call an awesome employee experience. 
Bottom Line? Employee Experience Boosts Business Return in 2025
By 2025, leaders will face one of the most challenging and intricate business landscapes in history. This is being influenced not only by AI and technology changes but also by socio-political changes.
To stay ahead amidst evolving talent demands, rapid technological innovations, and increasing compliance complexities, it’s essential to prioritize what truly counts—your people.
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FAQs about Employee Experience
What are the 5 Stages of Employee Experience
The 5 stages of employee experience are;
- Recruitment: During this stage, potential new employees are looking to be wooed by employers and employers look to attract the best talent.
- Onboarding: Once an individual officially becomes a new hire, they enter the onboarding stage. This ideally lasts a minimum of 90 days and up to one year.
- Development: As employees develop within their roles, you need to focus on their development with opportunities for growth, training and development.
- Engagement & Retention: As time goes on, the employee enters the engagement and retention phase. Considering it can cost up to 50%-60% of an employee’s annual salary to replace them, it makes sense to focus on retaining top talent.
- Offboarding: Offboarding marks the conclusion of their lifecycle at your company.
What 3 Environments impact Employee Experience
The 3 environments that impact employee experience include;
- The physical environment
- People and Technology
- And the cultural environment
How Can We Improve the Employee Experience?
Foster Open Communication
Provide Flexible Work Options
Invest in Career Development
Enhance Employee Well-Being
Recognize and Reward Achievements
Leverage Technology
Build a Culture of Inclusion and Trust
Enhance the Physical Work Environment
Encourage Collaboration and Team Building
Regularly Measure and Improve
These steps can significantly enhance the employee experience and contribute to a more engaged, productive, and loyal workforce.
