5 WAYS EMPLOYEE EXPERIENCE DRIVES PROFIT đź’°
Gone are the days when HR was all about hiring, firing, and simply staying on the right side of the Fair Work. These days, we’re focused on attracting and retaining top performers — and making sure they stick around.
Why? Because when someone walks out the door, it’s not just a goodbye. It’s a blow to momentum, team morale, customer relationships… and your bottom line.
In this post, we’re diving into 5 big reasons why employee experience isn’t just HR fluff — and how creating a people-first culture is one of the most underrated growth levers for scale-ups.
1. Employee turnover is (really) expensive
According to Josh Bersin of Deloitte, the cost of losing an employee can range from tens of thousands of dollars to twice their annual salary.
And it’s not just the financial hit.
Think about everything it takes to replace them — advertising, screening, interviewing, onboarding, training. That’s hours of time and energy pulled away from core work.
Then there’s the team impact: morale dips, productivity stalls, and the rest of the crew stretches to cover the gap.
And perhaps most importantly, every person who walks out the door takes with them a whole bank of business knowledge — insights, relationships, context — that isn’t easily replaced.
As Bersin puts it, employees are “appreciating assets.” They become more valuable over time.
2. Engaged teams = happier customers
According to Gallup, companies with engaged employees scored at least 10% higher in customer satisfaction than their competitors.
Why? Because when your team feels supported, empowered, and motivated, that positive energy flows directly to your customers.
Your team are the face of your brand — they interact with your clients, answer their questions, solve their problems, and shape how people feel about doing business with you.
When they’re engaged, they do it better. They care more, show up with a better attitude, and are more likely to go the extra mile.
3. A strong employee experience makes it easier to recruit top talent
People today have more choice — and higher expectations — when it comes to where they work.
It’s no longer just about pay or job titles. Many are actively seeking out workplaces that feel supportive, human, and aligned with their values.
That’s where a thoughtful employee experience comes in. Things like a clear onboarding plan, meaningful development pathways, and real investment in wellbeing can make all the difference when someone’s deciding whether to join — or stay with — your business.
In short, your Employee Value Proposition is more visible than ever. A strong one helps attract the right candidates. But it’s just as important for retention — especially when losing a great employee can be so costly, both financially and culturally.
4. When teams feel good, they work better
When people feel engaged at work, they tend to bring more energy, focus, and creativity to what they do. But when engagement drops — often due to unclear expectations, lack of connection, or rising burnout — productivity usually drops with it.
And burnout is becoming more common. According to McKinsey, at least 49% of employees feel at least somewhat burnt out.
It’s a complex issue, but one thing is clear: when we invest in the employee experience, we build healthier, more sustainable workplaces where people can actually thrive — not just get through the week.
Gallup’s data supports this too. Highly engaged teams are:
17% more productive, and
41% less likely to face issues with absenteeism.
Our view is that when you prioritise engagement — and give your team the space to rest, reset, and grow — performance often takes care of itself.
5. Employee experience supports business growth (in all the right ways)
When people enjoy their work and feel genuinely connected to it, that shows up in the numbers in really good ways.
Gallup research tells us that businesses with engaged employees see:
21% higher profitability
17% higher productivity
20% higher sales
Engaged employees are often more present, more thoughtful, and more likely to notice (and care about) the things that impact customers and team performance.
Whether that’s spotting gaps in the process, or helping improve systems — these small behaviours add up. In fact, highly engaged teams have been shown to drive a 23% boost in overall profitability.
So while engagement might feel like a soft metric, it has very real business outcomes — especially for growing organisations.
Investing in the employee experience supports not only your people, but the long-term health and performance of your business too.
Need some strategies to scale and gain that competitive edge?
We've got your back!
Book a time to explore our Outsourced HR service here.
Creatively yours,
Team EmployeeXP
