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Employee Experience vs Engagement: What Really Drives Retention?

Issue Abstract

Abstract 

In today’s rapidly evolving workplace, employees seek more than just financial security; they expect opportunities for personal growth, flexibility, and a sense of meaning in their careers, making employee engagement (EE) and employee experience (EX) critical for organizational success. Although often confused, EE and EX are distinct yet complementary: engagement refers to the emotional commitment, motivation, and energy that employees invest in their roles, while experience encompasses the holistic journey of employees throughout their lifecycle with the organization, from recruitment and onboarding to career growth and eventual exit. Grounded in Kahn’s (1990) theory of psychological meaningfulness, safety, and availability, engagement has been shown to drive productivity and loyalty, whereas employee experience, gaining prominence in the mid-2010s, emphasizes workplace culture, inclusivity, leadership support, and well being as determinants of retention and satisfaction. Through case examples such as Infosys, TCS, Adobe, and Salesforce, this paper demonstrates how organizations that integrate EE and EX not only foster innovation and resilience but also strengthen employer branding and reduce attrition costs. Current trends— including AI-driven people analytics, hybrid work models, wellness programs, and Gen Z expectations for purpose-driven work—are reshaping HR practices and challenging organizations to adapt proactively. However, issues such as difficulty in measuring engagement, cultural differences, superficial approaches, and investment challenges continue to hinder effectiveness if not addressed holistically. Evidence suggests that organizations balancing EE and EX achieve 21% higher profitability, improved innovation, and stronger retention, highlighting that surface-level perks alone are insufficient without genuine cultural transformation. This study concludes that EE and EX are not optional but essential HR strategies that must be integrated to build sustainable organizational growth, foster employee trust, and ensure competitiveness in the global talent market. 

Keywords: Employee Engagement, Employee Experience, Retention, Productivity, Workplace Well-being


Author Information
S. Swetha, R. Ramya, D. Vidhya Lakshmi
Issue No
9
Volume No
5
Issue Publish Date
05 Sep 2025
Issue Pages
111-122

Issue References

References 

 1. Anees, M. (2025), Fundamentals of employee engagement | An ultimate guide. BRAVO. https://getbravo.io/fundamentals-of-employee engagement/ 

2. Gallup Q12® employee engagement survey. https://www.gallup.com/q12 employee-engagement-survey/ 

3. Workday, Inc. (2022), The Evolution of Employee Experience [PDF]. https://forms.workday.com/content/dam/web/en us/documents/ebooks/evolution-of-emp-exp-ebook-enus.pdf

 4. Deloitte Global (2025) 2025 Gen Z and Millennial Survey [PDF]. https://www.deloitte.com/content/dam/assets shared/docs/campaigns/2025/2025-genz-millennial-survey.pdf

5. Gartner Strengthen Your Employee Value Proposition. https://www.gartner.com.au/en/human-resources/insights/employee-value proposition 

6. Infosys Limited, Employee wellness and experience. https://www.infosys.com/content/dam/infosys-web/en/about/corporate responsibility/esg-vision-2030/employee-wellness-and-experience.html 

7. Employee Branding Trends in 2023 by Eva Baluchova on LinkedIn. https://www.linkedin.com/pulse/employer-branding-trends-2023-eva baluchova/ 

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11. Vantage Circle (2025) – Explains differences and synergy between experience and engagement, with examples from Google. https://www.vantagecircle.com/en/blog/employee-experience-vs-employee engagement

 12. Auzmor: Employee Experience vs. Employee Engagement https://auzmor.com/blog/employee-experience-vs-employee-engagement/ 

13. HR (2024) — Provides 23 key employee experience statistics showing the impact of EX on engagement and retention. https://www.aihr.com/blog/employee-experience-statistics/ 

14. McKinsey (2023) — Insightful article emphasizing the continued importance of employee experience in talent retention. https://www.mckinsey.com/capabilities/mckinsey-digital/our insights/employee-experience-still-matters-talent-retention-at-gccs 

15. ScienceDirect (2024) — Academic paper exploring the relationship between employee experience and engagement. https://www.sciencedirect.com/science/article/pii/S2214845024000814