It really is that simple.
We are often asked by clients about the link between employee engagement and customer satisfaction and if highly engaged employees really do improve the customer experience.
Well, there is a well-documented link between employee engagement and customer satisfaction. According to a study by Gallup, highly engaged work teams can result in a 10% increase in customer satisfaction scores and a 20% increase in sales compared to disengaged teams (Gallup, 2013). Another study by Hay Group found that companies with engaged employees outperform those with low engagement by 202% (Hay Group, 2016).
The link between employee engagement and customer satisfaction can be explained by the fact that engaged employees are more committed, productive, and customer-focused. When employees feel valued and supported, they are more likely to go the extra mile to meet customer needs and provide exceptional service (Robinson, 2017).
So, there is a clear link but what next?
Here are some of the best ways to improve both employee engagement and customer satisfaction:
- Provide training and development opportunities: Offering training and development opportunities for employees can help to improve their skills and confidence, which can lead to improved job satisfaction and engagement. This can also result in better service for customers, as employees are better equipped to meet their needs (HR Daily Advisor, 2018).
- Encourage employee feedback: Encouraging employees to share their ideas and feedback can help to create a more engaged and motivated workforce. This can also provide valuable insights into customer needs and preferences, which can inform business strategies and improve customer satisfaction (Robinson, 2017).
- Recognise and reward employees: Recognising and rewarding employees for their hard work and achievements can help to improve engagement and motivation. This can also lead to better customer service, as engaged employees are more likely to go above and beyond to meet customer needs (HR Daily Advisor, 2018).
- Foster a positive work culture: Creating a positive work culture that values collaboration, innovation, and open communication can help to improve engagement and satisfaction among employees. This can also result in better customer service, as employees are more likely to work together and support each other to meet customer needs (Robinson, 2017).
- Provide flexibility: Offering flexible working arrangements, such as remote work options or flexible scheduling, can help to improve employee satisfaction and engagement. This can also lead to better customer service, as employees are better able to balance their work and personal responsibilities (HR Daily Advisor, 2018).
- Empower employees: Empowering employees to make decisions and take ownership of their work can help to improve engagement and motivation. This can also result in better customer service, as employees are better able to use their judgment and creativity to meet customer needs (Robinson, 2017).
Increased customer satisfaction and advocacy is only one reason why organisations take employee engagement so seriously. As part of the work we do, we help our clients understand what engages and disengages their people and then help put plans in place to increase engagement and thus improve customer satisfaction (be it an internal or external customer).
There are many other reasons why employee engagement is critical to business success – to find out more, why not contact us on 01255 870735 or drop us an email at email@example.com. Alternatively, if you want to discover how employee insights, delivered from bespoke staff surveys including pulse surveys, 360 feedback surveys and other employee engagement surveys can make a huge difference to your business, contact us today.
Gallup. (2013). State of the American Workplace. Retrieved from https://www.gallup.com/workplace/236081/state-american-workplace-report-2017.aspx
Hay Group. (2016). Employee Engagement Matters: How to Build a High-Performance Workforce. Retrieved from https://www.kornferry.com/content/dam/kornferry/docs/pdfs/employeeengagementmatters.pdf
HR Daily Advisor. (2018). Employee Engagement and Customer Satisfaction: How They Are Connected. Retrieved from https://hrdailyadvisor.blr.com/2018/05/08/employee-engagement-customer-satisfaction-connected/
Robinson, D. (2017). Employee Engagement and Customer Satisfaction: Exploring the Link. Retrieved from https://www.business.com/articles/employee-engagement-customer-satisfaction-exploring-the-link/