Firms in the top quartile for employee engagement consistently outperform their peers. Compared to those in the bottom quartile, they see 10% higher customer loyalty, 23% greater profitability, and an 18% boost in productivity. They also benefit from significantly lower employee turnover—18% lower in high-turnover industries and 43% lower in low-turnover ones—as well as substantial reductions in absenteeism (81%) and workplace incidents (58%). Source
If you're an HR leader and not laser-focused on Employee Experience (EX), you're missing a critical opportunity—and leaving real money on the table. The connection between EX and CX (Client Experience) is no longer a theory—it’s a business imperative.
Let’s explore five key reasons EX directly impacts your bottom line and how to start measuring it effectively to accelerate your journey to becoming a top-performing organization.
1. Great EX Reduces Costly Turnover
Think people leave for better pay? Only 1 in 10 (9%) leave because of money. That means nine out of 10 leave for other reasons, often within our control. Source
The real drivers? Culture, engagement, growth, and purpose.
Professional services firms lose an average of 15% of staff annually—at a staggering cost. Recruiting, onboarding, and retraining are expensive, but the hidden cost is deeper: when a high performer walks, others follow—and so do clients. Exceptional EX creates stickiness, loyalty, and retention from the inside out.
2. Top Talent Flocks to (and stays with) EX Leaders
Firms that prioritize employee experience are:
- 5x more likely to appear on Glassdoor’s Best Places to Work
- 4x more likely to be on LinkedIn’s Most In-Demand Employers list Source
In a competitive talent market, your workplace experience is your brand. Employees talk. Candidates listen. And the best ones want to work where people thrive.
3. Engaged Employees Innovate – and Deliver
Firms investing heavily in EX are not only 21% more productive, but they’re also 2x more likely to land on Forbes’ World’s Most Innovative Companies list.
Why? Because engaged employees don’t just show up—they lean in. They solve problems faster. They spot opportunities others miss. They treat your clients like their own. They drive your mission forward through service to clients.
When your people feel seen, heard, and valued, they perform at their best—and take the whole company with them.
4. Better EX = Better CX
Employee experience isn’t a separate initiative—it’s the foundation of client experience.
When employees are disengaged, clients feel it. When employees are invested, clients rave.
Think of it this way: Your team doesn’t just represent your brand—they are your brand. And the way you treat them shows up in every client interaction.
5. Strong EX Drives Stronger Profits
The numbers don’t lie:
- Companies that invest in EX see 2x the average profit
- They experience 5x the revenue growth of firms with poor engagement Source
Better EX leads to better people, performance, and client outcomes, which in turn leads to a better bottom line.
So How Do You Become an EX-Driven Firm?
The most common question we hear is: Where do I start?
Here’s your roadmap:
- Measure what matters. Don’t rely on assumptions. Start asking employees directly about their real experience—across the entire lifecycle, from recruitment to exit.
- Listen beyond HR’s lens. Your employees' truth is often different from what leadership thinks. Data is your compass. Gather it, analyze it, and act on it.
- Make it personal, not generic. Industry research is a helpful guide, but your firm is unique. Build your EX strategy around your people, your culture, and your values.
- Align EX with CX. HR doesn’t just support the business—HR drives the business when EX is aligned with client outcomes.
- Commit to continuous feedback. Your culture isn’t static—neither is your EX. Measure regularly and evolve with your people.
The Bottom Line
In today’s experience economy, employee experience is not just an HR priority but a strategic growth driver. When your people thrive, your clients notice. When your team is engaged, your firm excels.
If you want world-class CX, it starts with world-class EX. Are you measuring yours?
