More satisfied customers? It starts with employee satisfaction.

Studies have shown that employee satisfaction Plays an important role in the effectiveness of organisations. It has long been known that satisfied employees can also provide more customer satisfaction. Why does more employee satisfaction also provide more customer satisfaction? and is this related to quantify?

Known phenomenon

Research carried out by Hoseong and Beomjoon (2012) shows that more employee satisfaction leads to increased customer satisfaction. Also, for example, Guzman, Manautou (2004) came to the same conclusion in their research at a restaurant-chain. These are just two examples of studies that explain this context, but there are many other studies that have also shown this connection. So it is not a new fact that satisfied employees are necessary for customer satisfaction.

Logical explanations

According to the studies there are number of explanations for this relationship. The most important statement is that employees who are in contact with clients can develop awareness of customer needs and wishes. In addition, satisfied employees, employees who have the means to understand and serve customers optimally.  And not insignificant, satisfied employees have relatively much energy and drive to provide good service. Also, satisfied employees have sufficient "emotional abilities" to deliver empathy, respect and focus.

In addition, satisfaction among employees also ensures less absenteeism. Also, satisfied employees have better work morals than dissatisfied employees, this ensures increased productivity.

Chicken or egg?

Does customer satisfaction also return to employee satisfaction? No, say Hoseong and Beomjoon (2012). And they are not the only ones who have shown this. Also for example Chi and Ganesh (2009) showed that cowork satisfaction comes first and not customer satisfaction. This would imply that customer satisfaction depends on employee satisfaction.

How many employees satisfaction is enough?

Despite the strong correlations, we cannot specifically provide a minimum amount of employee satisfaction Capture. For example, it is clear that a large part of the most successful companies are also among the most attractive organizations to work for. But for the tipping point between satisfied or dissatisfied customers there is too little scientific data to explain this reliably.

Impact of employee satisfaction

Investigation of, for example, Gallup among a large number of organisations has shown that employee satisfaction Not only leads to less staff turnover. In the selected group of organisations with above-average employees a number of other measurement values were tested. Below an indication of the impact of above average employee satisfaction:

    • Customer loyalty (+ 56 percent)

    • Productivity (+ 50 percent)

    • Profitability (+ 33 percent)

  • Staff turnover (-50 percent)

Conclusion

Satisfied employees provide satisfied customers, but this is not the opposite. These results show, in any case, that employee satisfaction An important part is for the success of organizations and that this is an important topic for every organization. In any case, it seems that customer satisfaction, and thus organizational success, falls to a large and significant extent or stands at the level of employee satisfaction.

10th March 2015

"Creating A highly engaged and Productive Workplace Culture," The Gallup Organization.

Baxter W. Graham, "The Business Argument for Flexibility," HRMagazine (May 1996).

Peter Lucas, "Collaboration on Deadline," Knowledge Management (May 2001).

"Business Must Adopt Family-friendly Ethos," Irish Times (2 March 2001).

Ruth Davidhizar and Ruth Shearer, "Rewards with Dignity," Hospital Materiel Management Quarterly (November 1998).

Dory Devlin, "'s a Sure Bet in a changing Workplace," The Star-Ledger (12 July 1999).

3 Comments about "More satisfied customers? It starts with employee satisfaction."

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