SMG Blog

Happy employees, stronger business: Why EX is your growth engine

Published on May 28, 2025

<span id="hs_cos_wrapper_name" class="hs_cos_wrapper hs_cos_wrapper_meta_field hs_cos_wrapper_type_text" style="" data-hs-cos-general-type="meta_field" data-hs-cos-type="text" >Happy employees, stronger business: Why EX is your growth engine</span>

We’ve all heard it: happy employees make happy customers. But this isn’t just a feel-good mantra, it’s a measurable business driver.

New research shows companies that invest in employee experience (EX) can increase revenue by up to 50%. And organizations with highly engaged teams see 59% less turnover. Yet despite the upside, U.S. employee engagement has hit a 10-year low.

So what’s the solution? It’s not just perks or one-off programs. It’s intentional employee experience design that aligns your culture, tools, and support systems to empower people at every level.

What is employee experience?

EX is about how people feel throughout their time with an organization. It spans every interaction, from recruitment and onboarding to daily work, development, and departure.

EX is shaped by relationships, support systems, and how well the workplace fits with an employee’s values. It’s not accidental. It’s purposefully designed to drive engagement, growth, and fulfillment.

While work location gets a lot of attention, the biggest impact comes from how organizations support their people—wherever they are. A great EX program strengthens individuals and the business as a whole.

Why EX is uniquely challenging for frontline-heavy organizations

For businesses that rely on frontline and entry-level employees, delivering a strong employee experience comes with unique hurdles. These workers often have limited access to digital tools, less schedule flexibility, and fewer direct communication touchpoints with leadership. High turnover and fast-paced environments can make it harder to build a sense of connection, purpose, and growth.

Yet, as faces of the brand, these employees shape customer experiences every day. Elevating their experience requires intentional, inclusive design that meets them where they are and gives them a voice in the process.

How to start building a better EX strategy

A strong employee experience starts with intention. It begins by defining your purpose—whether it's boosting engagement, improving retention, or supporting performance—and aligning your strategy with company values and culture. Set clear, measurable goals and secure leadership buy-in to drive accountability.

Great EX is shaped with experience design, when roles, tools, and workflows are first defined. Involve employees early to ensure you're shaping experiences that reflect their needs. Also, prioritize open, two-way communication, and tailor your approach to different roles and work styles to foster inclusion. 

Most importantly, EX is a never-ending process. Embed continuous listening across the employee journey and act on what you hear to keep evolving and improving.

Turn insight into action

Creating a strong employee experience isn’t just about gathering feedback or setting lofty goals, it’s about what happens next. The real impact comes from how organizations respond, empower, and evolve. Here's how to bring your EX strategy to life in meaningful, lasting ways:

Create a safe space for honest feedback

When employees feel safe to speak openly, they’re more likely to share honest, meaningful insights. This kind of transparency helps uncover the real issues affecting customer experience and gives you a stronger foundation for building action plans that make a difference.

Make feedback count

Collecting feedback is just the beginning. What you do with it is what really matters. Acknowledge input, communicate what, if anything, is changing as a result, and celebrate small wins to build trust and momentum. Closing the loop shows respect, encourages continued engagement, and reinforces a culture of accountability.

EX is everyone’s job, but especially managers

Managers play a pivotal role in shaping the day-to-day employee experience. They’re the bridge between strategy and execution, so make sure you equip them with the right tools, training, and real-time insights. Managers who lead with empathy, listen actively, and model the company’s values, create a ripple effect across teams. Empowering managers means empowering culture.

Design with intention, evolve with agility

The best employee experiences are thoughtfully designed to meet the needs of employees today, but flexible enough to evolve over time. Dig deep to understand what matters most, involve employees in shaping the solutions, and stay open to change. Agility isn’t just a mindset, it’s a must for staying relevant and resilient in a fast-moving world.

The bottom line

Employee experience is no longer a nice-to-have, it’s a business imperative, particularly for businesses that rely on frontline employees to deliver exceptional customer experiences. When you invest in your people, you’re investing in the culture they create, the brand they represent, and the performance that drives your organization forward.

Ready to turn employee experience into a competitive advantage? Start by listening with purpose, designing with intention, and acting with empathy. Let’s work together to build a healthy EX strategy.