Employees who are satisfied, motivated, inspired and personally involved in their work — in a few words, employees who are engaged in their work — are more profitable for their employers.
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“…The products and services produced by the organization’s employees to be consumed by the organization’s customers are the embodiment of the attitudes and behaviors of the employees who produced them.” ________________________________ “It is an organization’s employees who influence the behavior and attitudes of customers, and it is these customers who drive an organization through the purchase and use of its products… [T]he proper target on which employees should focus is customers – employees have a direct effect on customer attitudes and behaviors, and hence, this is where the energy of an organization’s employees should be directed.” – From the Northwestern University study linking employee satisfaction and employee engagement to customer satisfaction. |
This statement seems logical, and — the connection between satisfied, motivated, engaged employees and an employer’s profits — is supported by findings in a study from a research center at Northwestern University.
To learn about employee satisfaction and engagement, the researchers surveyed 5,568 employees in 100 media-related organizations. The employees targeted in the survey were those not involved in face-to-face relationships between employees and customers. The findings in the study, then, show the attitudes and behaviors of employees not actively and directly engaged face-to-face with customers are “vitally important” to the success of the organization.
To learn about customer satisfaction, the researchers obtained survey responses from 37,036 customers. The study was conducted by the Forum for People Performance Management and Measurement, within the Medill Integrated Marketing Communications graduate program at Northwestern University. Heading up the study was James Oakley, a Purdue University business professor.
Engaged Employees Defined: The study defined “employee engagement” as “the degree of employee motivation and sense of inspiration, personal involvement, and supportiveness…” The study then expanded on this definition this way: Inspiration refers to the extent to which forces within and on employees leads them to behave in ways consistent with attaining the organization’s goals. Personal involvement is focused on the extent to which employees at all levels actively participate in shaping the organization and helping it achieve its mission. Supportiveness relates to managers being personally supportive and considerate of employees.
Here are some key findings from the study: There is a direct link between employee satisfaction and customer satisfaction:
- There is a direct link between customer satisfaction and improved financial performance.
- The key characteristic in an organization that explains the level of employee satisfaction is the degree of communication between people in the organization.
- The key to achieving employee engagement is employee satisfaction.
- Other keys to achieving employee engagement are the interaction between managers and employees (with regard to supportiveness and goal setting) and job design.
- Another significant key to achieving employee engagement is the organization’s culture. The best corporate culture for doing this is one where employees are expected to cooperate and work together, and at the same time take charge and provide a voice for the customer.
- Organizations with engaged employees have customers who use their products more.
- Increased customer usage leads to higher levels of customer satisfaction.
- It is an organization’s employees who influence the behavior and attitudes of customers.
- Customers who are more satisfied are less expensive to serve, use the product more, and therefore are more profitable customers.
Best Organization Culture: The study examined four types of organization cultures to learn what type of culture in the workplace had the most positive impact on achieving employee satisfaction and employee engagement. The best: A combination of a cooperative culture and a competitive culture.
The four cultures examined were:
- The Competitive Culture, in which employees are rewarded for taking charge and being in control… and where winning is highly valued and employees are rewarded for out-performing each other.
- The Cooperative Culture, in which employees are encouraged to set goals, take initiative, and work together to attain personal and organization objectives.
- The Passive Culture in which conflicts are avoided and employees feel they have to agree with, gain the approval of, and be liked by others in the workplace.
- The Aggressive Culture, which emphasizes adherence to directives and authority, inflexibly following rules, and waiting for direction from superiors before acting.
The study’s conclusion regarding the organization’s culture? “… the cultural type best suited to creating a motivated workforce is a solid mix of Cooperative and Competitive.” The study found that “employees must be expected to cooperate and work together, but they must also be expected to take charge and fight when necessary. The competition espoused here is healthy competition — finding the best solution to a problem by presenting and evaluating competing alternatives.”
Organization Climate: The study examined what it called “organization climate,” looking how such issues as communication, supervisory interactions, and job design have an impact on employee satisfaction and engagement. And the study found that the “key organizational characteristic for explaining Employee Satisfaction was Organizational Communication.” The study explained this as “the effectiveness with which information about the organization is sent and received by employees, and the upward communication in the organization, i.e., the effectiveness with which information is sent from employees to people in higher level positions.”
What’s an organization to do? The study concluded that to achieve a motivated workforce, “managers must first ensure that their employees are satisfied…” And one of the keys to creating a satisfied workforce “is the development of an effective communication environment, both up and down the organization.” This is in addition to having an organizational culture that is a combination of the best of the Cooperative type and the Competitive type.
Another key to motivating employees comes from the interaction between managers and employees, especially regarding “supportiveness and the extent to which managers establish and communicate expectations for performance.” Also, employees are more motivated “when their job is effectively designed in terms of autonomy and clearly defined roles.”
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Many Employees Not Engaged The Northwestern University study found that engaged employees mean better customer service, and this means more profits for the employer. So this raises an important question: Just how many employees are engaged? Actually, the more important question might be, How many employees are not engaged? A Gallup Management Journal national survey (conducted by The Gallup Organization several years ago) came up with an alarming answer to that question. The survey found that only 25 out of 100 employees were engaged. But 55 out of 100 employees were not engaged, they do their jobs without enthusiasm and with a “wait and see” commitment. And 19 out of 100 employees were actively disengaged — fundamentally disconnected from and actively dissatisfied with their jobs. |