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What's Happening
The newsletter for switched on people
Issue 64 | May 2004

Customer satisfaction and
employee satisfaction
Special Issue 2

Imagine speaking with a company representative who either doesn’t like their job or the company they work for. (I’m sure we all have at some point).  Imagine your level of customer satisfaction at the end of the interaction.

This topic is about how employee satisfaction has a direct impact on the level of service employees provide to both internal and external customers and the link to profitability.

Two of the factors indicating low employee satisfaction are:

  1. Employee retention
  2. Productivity

High employee turnover and low productivity are strong indicators albeit after the horse has bolted (more on that later).  If this is the case how does it link to productivity?

Low employee satisfaction
Low customer service level
Low customer satisfaction
Low customer retention
Low profitability and growth

I have heard managers say that their people get paid so they should be satisfied.  Money isn’t the only reason for satisfaction and by not addressing the reality; employee satisfaction has a direct impact on the bottom line.

So what can you do about it?  Employee retention and productivity are great indicators but they are only discovered after the fact and indeed the impact. Why not intervene earlier to ensure staff satisfaction and profitability? 

There are many ways to do this; by observation, surveys or focus groups or ideally a combination of these.  The data collected will give you an excellent leading indicator before your service levels and profits are adversely impacted.

Personally speaking

I thought twice about including this topic in this special customer service series because I thought that many people would see this as obvious. Then I thought about how many companies actually measure their employee satisfaction and realized it is the minority rather than the majority.

So whilst I’m talking about measuring satisfaction as being critical, it’s also important to note that it can raise many other issues about processes, project work, capabilities and more. You need to be ready to deal with all of these issues as they will contribute to productivity and profitability.  

Until next month’s special issue, take care.

Kind regards, Sam


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