Employee experience and employee engagement are often mixed up, but they mean different things. Knowing how they differ helps HR and L&D professionals create stronger cultures, keep great people, and improve performance.

In this article, we’ll unpack what each term really means, outline the key differences between experience and engagement, and explore how they work together to influence a positive workplace. We’ll also look at how developing leadership and learning capabilities can bring experience and engagement closer together.

Explore the bigger picture here: The Complete Guide to Employee Experience

What Is Employee Experience (EX)?

Employee experience, or EX, is everything an employee encounters and feels throughout their time with an organisation – from the first job advert to their last day. It’s influenced by the systems, people, and everyday moments that define working life.

A positive employee experience doesn’t just happen on its own. It’s built through clear policies, supportive processes, and leadership that truly reflect the organisation’s values. Every choice from how feedback is given to how learning is encouraged – shapes how people feel at work.

At Avado, we see employee experience through three key dimensions:

1. Culture – the values, behaviours, and environment people work within
2. Capability – the opportunities employees have to learn, grow, and develop
3. Connection – the trust, inclusion, and communication between employees and leaders

When these elements align, people feel valued, supported, and empowered – no matter they’re joining the organisation, taking part in learning, or being recognised for their achievements.

What Is Employee Engagement?

Employee engagement is the emotional commitment people feel towards their work, their teams, and the organisation as a whole. When someone is engaged, they bring energy, effort, and enthusiasm – they care about doing their job well and want to make a difference.

Engagement isn’t about occasional moments of happiness – it’s a result of meaningful work, supportive leadership, and an environment that helps people do their best. In simple terms, engagement reflects how employees feel about their overall experience.

Multiple studies link higher engagement to performance, retention, and wellbeing. For example:

• Gallup research  found that highly engaged organisations see 18 % higher productivity and 23 % higher profitability.
• McKinsey report highlights that organisations with strong employee experiences are 16× more engaged and 8× more likely to stay.
• On the UK side, CIPD’s research shows that wellbeing and work environment are core enablers of engagement – people are more motivated when both their psychological and physical wellbeing are supported.

Employee Experience vs Employee Engagement – The Main Differences

Although employee experience (EX) and employee engagement are closely linked, they’re not interchangeable. One influences the other, but they serve different purposes in how people relate to their work and their organisation.

Here’s how they compare:

	Employee Experience	Employee Engagement
Definition	The total journey and perceptions across all touchpoints	The emotional connection and commitment employees feel
Focus	Inputs: culture, systems, leadership, environment	Outputs: motivation, productivity, advocacy
Ownership	Continuous and holistic	Measured periodically
Timeframe	Shared across HR, leadership, managers	Primarily influenced by managers
Measurement	Feedback at every stage (journey, lifecycle)	Engagement scores, pulse surveys

Think of employee experience as the environment an organisation builds – the culture, leadership, and processes that shape everyday working life. Employee engagement is the energy that grows from that environment – the motivation, commitment, and sense of purpose people feel as a result of their experiences.

How Understanding the Difference Strengthens Your People Strategy

Understanding the difference between employee experience and employee engagement isn’t just about terminology – it gives organisations a strategic edge. When leaders see experience as the foundation and engagement as the result, they can design people strategies that build lasting performance rather than short-term satisfaction.

Recent insights from Avado’s survey highlight the top priorities employees value in today’s workplace:

• Flexibility and balance – 58%
  Employees increasingly seek the ability to balance work and life, viewing flexibility as a core element of a positive experience.
• Feeling valued and heard – 16%
  Recognition and inclusion remain essential to engagement. When employees feel their voices are heard, they’re more motivated and loyal.
• Career growth opportunities – 16%
  Opportunities to learn, progress, and develop are key drivers of commitment and long-term retention.
• A positive workplace culture – 10%
  A supportive culture built on trust, communication, and shared purpose reinforces belonging and satisfaction.

These priorities align closely with what defines great employee experience: trust, autonomy, and opportunities to learn and grow. When organisations deliver on these, engagement naturally follows.

How Experience and Engagement Work Together

Employee experience and employee engagement are closely linked – one fuels the other. A well-designed experience helps people feel motivated, supported, and valued, while engagement is the positive response that follows. Put simply, experience is the foundation and engagement is the result.

When employees feel respected, encouraged to grow, and trusted to do their best, they naturally become more engaged. But a poor experience – such as unclear expectations, lack of recognition, or limited opportunities to develop – quickly weakens that connection.

At Avado, we see learning and leadership capability as the bridge between the two:

• Learning builds capability – When employees have access to learning and development, they feel invested in and equipped to succeed.
• Leadership shapes experience – Managers have the greatest influence on how people experience workday to day. Gallup’s Meta-Analysis research shows that around 70% of the variation in team engagement comes down to the manager.
• Connection strengthens engagement – Open communication, coaching, and recognition foster a sense of belonging, turning good experiences into genuine engagement.

When learning is part of everyday life and leaders model supportive behaviours, engagement doesn’t need to be pushed – it grows naturally from a healthy workplace culture.

Common Challenges to Avoid

Even with the best intentions, many organisations find it difficult to balance employee experience and engagement effectively. Below are some frequent challenges and how to overcome them:

• Focusing on engagement surveys instead of improving experience
  Measuring engagement without addressing the underlying experience is like checking your health without changing your habits. Surveys and pulse checks are valuable, but their purpose is to guide meaningful action.
• Investing in perks instead of meaningful development
  Free lunches and social events can lift morale for a short time, but lasting engagement comes from purpose, learning, and growth opportunities that make people feel valued.
• Seeing EX as only HR’s responsibility
  Employee experience is shaped by every interaction – from leadership decisions to daily management. Building a strong experience takes commitment across the whole organisation, not just from HR.
• Overlooking the manager’s influence
  Gallup’s research shows that managers account for about 70% of the variation in team engagement. Equipping and supporting managers is one of the most effective ways to strengthen both experience and engagement.
• Keeping learning separate from the employee experience
  Learning shouldn’t sit apart from daily work. It’s an essential part of how people feel supported, confident, and connected.

By identifying and addressing these challenges, organisations can create an environment where engagement develops naturally from a well-designed employee experience.

Building a Stronger Experience That Drives Engagement

Creating an engaging workplace starts with designing meaningful experiences, not just measuring results. The most effective HR and L&D teams take a proactive, structured approach that connects everyday experiences with long-term engagement.

Here’s how to do it:

1. Listen and learn
   Begin by understanding what employees are really experiencing. Use lifecycle surveys, focus groups, and informal feedback to identify the moments that shape their journey – from onboarding to career development.
2. Empower managers
   Managers influence the daily experience more than any policy ever could. Give them the tools and confidence to coach, communicate, and recognise achievements. When leaders feel equipped to support their teams, engagement naturally increases.
3. Design for growth
   Learning and development sit at the centre of employee experience. Providing clear opportunities for skill-building and internal mobility shows employees that their future is valued – boosting both satisfaction and retention. According to LinkedIn’s 2024 Workplace Learning Report, 94% of employees would stay longer at a company that invests in their learning.
4. Foster connection
   Encourage open communication, collaboration, and regular recognition. Frequent check-ins and transparent feedback help people feel valued and heard.
5. Measure, act, and iterate
   Treat employee experience as an ongoing process. Gather insights, share findings, take visible action, and refine your approach over time.

It outlines a simple five-step model – from setting clear principles to strengthening manager capability and supporting hybrid teams to help you create experiences that genuinely connect with your people.

Bringing It All Together

Employee experience and employee engagement are closely connected, but understanding the difference helps HR and L&D leaders make a lasting impact. Experience is what organisations create; engagement is the response they inspire.

When the experience is shaped around culture, capability, and connection, engagement grows naturally. People who feel trusted, supported, and encouraged to develop are more likely to stay, perform, and advocate for their organisation.

At Avado, we believe learning and leadership capability sit at the centre of both. By equipping managers, creating opportunities for growth, and building a culture of continuous learning, organisations can shape experiences that genuinely engage their people – not just for now, but for the long term.

Explore the full picture: The Complete Guide to Employee Experience to discover how to design, measure, and enhance every stage of the employee journey.

If you’re looking to develop the skills that strengthen culture and engagement, explore Avado’s CIPD qualifications:

• CIPD Level 3: The CIPD Level 3 Certificate in People Practice is perfect for those beginning their HR or L&D journey.
• CIPD Level 5: The CIPD Level 5 Associate Diploma in People Management helps experienced HR professionals deepen their expertise and drive more impactful outcomes.
• CIPD Level 5 L&D: The CIPD Level 5 Diploma in Organisational Learning and Development supports L&D practitioners aiming to lead change and build learning cultures.
• CIPD Level 7: The CIPD Level 7 Advanced Diploma empowers senior HR leaders to influence business strategy and shape the future of work.

These accredited programmes are designed to help HR professionals build the capabilities that power great employee experiences.