How Healthcare Employee Experience Drives Patient Outcomes

Perceptyx has conducted research validating the important connection between employee experience and patient experience. Employee experience broadly describes what it's like to work in the organization and how employees feel about their experiences at work, while patient experience involves assessing how well the healthcare system is engaging in the behaviors of high-quality care that are important to patient outcomes. The healthcare landscape continues to evolve—well-being remains a top priority, technological advancements accelerate, operating margins face pressure, and workplace violence incidents persist. These dynamics necessitate ongoing exploration of this relationship to understand what aspects of the employee experience drive patient outcomes.

In our work, Perceptyx research has found evidence of primary employee experience drivers of patient experience: Safety Culture, Recognition, and Collaboration. These drivers align with the broader evidence and remain critical focus areas for healthcare organizations.

Employee experience in the healthcare industry continues to shift. Healthcare organizations face ongoing challenges in maintaining engagement and experience levels. Top-performing healthcare organizations work to weather these shifts, though maintaining stable performance requires sustained attention and investment.

C-Suite priorities continue to evolve. Tight operating margins and labor shortages lead to strategies emphasizing cost containment and an increased focus on sustainable recruitment and retention of the workforce. Furthermore, diversity, equity, inclusion, and belonging (DEIB) plays an important role as talent pools shrink to talent puddles, emphasizing the need to explore innovative and creative recruitment strategies. Technological disruption, primarily caused by swift advances in artificial intelligence, makes clear the need to reconsider how work is designed and define the new dynamic where employee performance is enhanced through AI assistance.

Which employee experience drivers influence patient experience?

How does engagement affect patient experience?

At Perceptyx, engagement is measured by four key components: pride in the organization, intent to stay, advocacy behavior, and intrinsic motivation.

Research findings consistently demonstrate a strong correlation between employee engagement and patient experience. Through analysis of HCAHPS data and corresponding employee experience (EX) data, it is evident that higher levels of engagement are frequently associated with a higher HCAHPS Star designation. Hospitals that achieved a 4 or 5-star rating demonstrated engagement scores approximately 7% higher than those with a 3-star rating, and approximately 12% higher than hospitals with a 1 or 2-star rating.

Why does advocacy stand out?

Furthermore, research indicates that specifically advocacy, measured by an employee's likelihood of recommending the organization as a good or great place to work, plays a significant role in this relationship. Hospitals with a 4 or 5-star rating had advocacy scores approximately 17% higher than those with a 3-star rating, and approximately 34% higher than hospitals with a 1 or 2-star rating.

How do other engagement facets compare?

Additionally, other facets of engagement, such as pride, intent to stay, and intrinsic motivation, also showed notable differences across star ratings. A 4+ star rating demonstrated an 18% higher score in pride compared to a 1 or 2-star rating. Intent to stay exhibited a 9% higher score for a 4+ star rating compared to a 1 or 2-star rating. Similarly, intrinsic motivation showed an 8% higher score for a 4+ star rating compared to a 1 or 2-star rating. These findings highlight the significance of employee engagement, advocacy, and other key components in shaping the patient experience within healthcare organizations.

How does employee experience influence patient experience?

Upon further analysis, three important employee experience elements emerge as strong influencers of patient experience:

• Leadership, especially of those at the highest level of the organization

• Safety culture

• Valuing employees

• Readiness for change

Having a strong safety culture and ensuring employees are valued are consistent aspects of the work experience observed in research. A key factor linking employee experience to patient experience is the power of strong executive leadership.

Why does senior leadership matter?

Historically, most organizations concentrated on frontline leaders when shaping the employee experience. Current conditions demand the same attention on executives, whose visibility and support guide employees through constant change. Healthcare continues to experience senior leadership transitions, with CEOs facing elevated departure rates. Research shows that a significant percentage of C-Suite leaders consider leaving for less stressful roles, demonstrating ongoing pressure at the executive level. Benchmark results show that favorability toward senior leadership is only moderate, yet it consistently drives retention and engagement.

• Competing priorities across quality, safety, and workforce demands require clear trade-offs.

• Change-management skills help employees stay confident during reorganizations and technology shifts.

Research demonstrates that organizations with a more positive patient experience tend to have a workforce that exhibits confidence in their senior leadership and possesses a clear understanding of the organization's vision.

To address these findings and enhance senior leader effectiveness, an action-oriented approach is recommended. One potential avenue for improvement is through executive leadership development initiatives. These programs can help cultivate the skills and competencies of senior leaders, enabling them to effectively lead and inspire their teams. Some organizations have leveraged technology to elevate behavioral insights to support the development of leaders. Additionally, implementing 360-degree feedback gives senior leaders a clear view of their strengths and growth areas. By taking these actions, organizations can foster an environment where senior leaders are better equipped to support theirworkforce, leading to improved employee experiences and, in turn, positively impacting patient outcomes.

How does safety culture support patient experience?

Safety is undeniably a fundamental value within the healthcare industry. It is linked to high-reliability practices and principles, highlighting the critical importance of ensuring safe care environments for patients. Notably, when employees actively advocate for the organization as a safe place to receive care, it often aligns with patients' own perceptions. The link between employee advocacy and patient sentiment highlights the need to build and maintain a strong safety culture in healthcare organizations.

To drive improvements in the provision of safe, high-quality care, one actionable step is to first capture employee sentiment about the safety culture within the organization. At Perceptyx, we offer a Leapfrog-approved Safety Culture Survey that is quick, actionable, and can be utilized across both clinical and non-clinical populations. It provides valuable insights into areas that are directly connected to a strong safety culture, such as psychological safety, teamwork and collaboration, and continuous improvement. By identifying specific areas for improvement known to impact safety culture, healthcare organizations can develop targeted strategies to enhance these critical aspects.

It is also crucial to gather insights and ideas directly from the frontline staff, as they are the ones who are uniquely positioned to identify challenges and propose solutions to delivering safe, high-quality care. Their frontline perspective provides valuable input for organizational decision-making and process improvements. By actively engaging and involving frontline employees in the process, healthcare organizations can tap into their expertise and empower them to contribute to a safer care environment. This collaborative approach fosters a culture of continuous learning, innovation, and accountability, ultimately strengthening the overall safety and quality of care provided.

How do appreciation and recognition drive engagement?

Feeling valued and recognized have consistently served as top drivers of employee engagement, highlighting their foundational connection to a more favorable employee experience. It is important to dispel the common misconception that recognition and feeling valued are solely connected to compensation. In reality, most instances find that feeling heard, appreciated, and having a sense of belonging have a far greater positive impact on feeling valued than monetary rewards. To improve the sense of feeling valued and recognized, organizations can leverage the ability to crowdsource and prioritize actions. This solution proves helpful as it addresses the common challenge faced by leaders who are often unsure about how to enhance this aspect of the employee experience. Rather than assuming that employees are primarily interested in increased compensation, organizations can gather insights and ideas from their workforce to understand their specific needs and preferences. As one CEO said when quoting The Beatles during a results review with his Executive Leadership Team, "Money can't buy you love."

Many organizations are implementing new or enhanced recognition programs that encompass both formal and informal recognition. These programs aim to create a culture where employees feel valued and appreciated for their contributions. Formal recognition initiatives may involve the establishment of hubs or online spaces that provide a platform for employees to publicly express gratitude and recognize their colleagues' achievements. This not only allows individuals to feel recognized and appreciated but also encourages a positive and supportive work environment. Additionally, informal recognition plays a crucial role in making employees feel valued. One-to-one interactions and team meetings provide opportunities for managers and colleagues to acknowledge and appreciate each other's work in a more personal and authentic manner. By incorporating both formal and informal recognition strategies, organizations can cultivate an environment where employees consistently experience a strong sense of value and recognition, contributing to a positive employee experience overall.

What actions should healthcare leaders take now?

Priorities for leading healthcare systems continue to emphasize operating margins, which underscores the importance of finding efficiencies and demonstrating value. At Perceptyx — an organization committed to helping organizations and people thrive — our health care customers are gaining deep insights into their own culture's impact on their patient outcomes, including patient experience. Using an evidence-based approach, we've uncovered insights into the value of investing time and resources aimed at leadership development, embedding a strong safety culture, and valuing employees. Healthcare organizations excelling in these areas are generally able to provide a more positive patient experience through a highly engaged workforce that are advocates of the organization.

What is employee experience in healthcare?

Employee experience is the day-to-day reality of working in a hospital or health system. It spans culture, safety, leadership communication, recognition, growth opportunities, and other factors that shape how people feel about their jobs. Perceptyx tracks this with four engagement items — pride, intent to stay, advocacy, and intrinsic motivation — plus related drivers such as safety culture and feeling valued.

How does employee engagement affect HCAHPS and CMS star ratings?

Analysis shows a clear link. Hospitals with 4–5 CMS stars scored about 7 percentage points higher in overall engagement and 17 points higher in employee advocacy than 3-star hospitals. Facilities in the bottom engagement quartile rarely earn top HCAHPS recommend scores, while those in the top quartile are five times more likely to secure 4–5 stars.

Which parts of the employee experience matter most for patient experience?

Research points to three high-impact areas: 1) Trust and confidence in senior leadership, 2) A strong safety culture that supports error reporting and learning, and 3) Employees feeling valued through timely recognition and inclusion. Hospitals that score well on these items consistently outperform peers on HCAHPS measures.

How can healthcare leaders improve employee experience quickly?

Start with clear goals and regular listening. Use pulse surveys to spot friction, then act fast on the top issues employees raise. Prioritize executive leadership development, run a safety-culture survey, and launch both formal and informal recognition programs. Perceptyx customers use these steps to raise engagement scores and, in turn, patient experience ratings. Schedule a meeting to learn more.