Employee Experience Directly Impacts ROI

Jacob Morgan
2 min readMar 9, 2022

Every year, companies invest billions of dollars into employee engagement programs. But engagement scores aren’t improving.

Employee engagement efforts act as an adrenaline shot that temporarily makes employees happier by introducing a new perk, but the scores fall as the excitement fades. Employee experience, on the other hand, is all about changing core workplace practices.

If you want an engaged workforce, you have to start with employee experience. And investing in employee experience has a stellar ROI.

When you invest in a physical good, like buying a new phone or a fancy pair of shoes, your satisfaction goes down over time. But if you invest in an experience like a trip or activity, your satisfaction goes up over time.

It’s the same with employee experience.

I researched more than 250 of the world’s top employee experience companies and found they had strong ROI in three main areas:

  • Companies that prioritize employee experience appear on other best-of lists up to 40x more often. That includes lists of best or most innovative companies in their industry or most loyal customers.
  • Companies that prioritize employee experience have stronger business metrics, including significantly lower turnover. Although these companies are 20% smaller than others, they are more productive because they have higher revenue and profits. They are making more money and doing it with fewer people.
  • Companies that prioritize employee experience outperform other companies with their stock price.

Clearly, investing in employee experience delivers a strong ROI in every area possible.

To create an engaged and productive workforce, invest in employee experience and make sure your core workplace practices align with your employees’ needs and motivations. The efforts are well worth it.

I put together a video which talks about this in more detail. Please check it out below and if you want more content like this you can subscribe to my Youtube channel.

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Jacob Morgan

4x Best-Selling Author, Speaker, & Futurist. Founder of FutureOfWorkUniversity.com. Exploring Leadership, Employee Experience, & The Future of Work