I believe there is a correlation between employee happiness, customer satisfaction, and increased profit margin. We all know in order for a company to stay in business it must produce profits. Too often though, the focus is centered around profits and not enough on the drivers of profits, the employees. Employees tend to treat the customers, whether internal or external, to the extent to which they are satisfied and happy with their current position. The question becomes how does a leader create enthusiasm and ensure job satisfaction for their team members.
Most satisfied employees feel empowered. This means they must have the tools, support, training and ability to make decisions. In addition, a leader needs to become more of a coach than a “teller” or dictator. Coaching creates an atmosphere of collaboration, trust, and confidence, where constructive and sincere feedback is accepted. Remember, “The worst feedback is no feedback”.
Employees need to understand how their job function contributes to the bottom line of the organization. Employees will tend to work harder if they feel like their work is meaningful and adds value. My first job in high school was at a dry cleaner. I staffed the front counter taking in clothes, entering the information into the system and creating an invoice for the customer. The job was not exciting and every day I wished for the fewest customers possible. When a customer came in I would get the order entered as fast as I could and get back to doing nothing but wait for the next customer. Looking back, I imagine that not everything was entered properly and those mistakes, although small, cost the company some profits.
I wonder if it would have been different if the manager took some time to explain how my work added value to the company through something simple like a scorecard. What if we created a scorecard review of my key functions so I could see the importance of the work I was doing. Even the “front counter” employees need to understand how important the work is that they are doing.
If employees are happy, customers are happy. When customers are happy, they come back and tell others of their experience. Repeat business and referrals equal greater profit. Sometimes we need to step back and look at our own performance. Are we focusing solely on the profit and forgetting about the people driving the profit? Are we creating an atmosphere where employees are coached or are we a dictator? Do the employees know how important their job function is? Do the employees feel empowered and find their work meaningful? Are we tracking the important functions that help build profit? We need to look at these questions often as we lead for greater profit.
Tags: employee feedback, employees and profits, happy employees, importance of employees
I lead change in a unionized business. The ultimate thing that I know above all else is the people of this business matter. The leadership team matters. The office workers matter. And the shop floor mechanics matter. We are all in this change effort together. Success will not come at the hands of one over the other.
To reach into a culture that has many engraved traditions and habits it becomes paramount to know how to effectively move the change meter. Here are the things I have found effective.
1. Engage everyone from the leadership suite to the shop floor in self directed work teams.
2. Repetition of the message of change, competitiveness, and productivity is key to success.
3. Respect everyones diverse opinions, ideas, and contribution.
4. Find the key differenciators that matter to each person. (Their WIIFM)
5. Re-energize each persons art.
6. Seek happiness at work, in life, and you will move the productiviy dial.
7. Keep moving forward. The message of change is most important.
The world is changing. We must learn to compete better in order to beat countries that want to striip away American business at the hands of cheap labor and cheap goods. Our advantage is in the heart, souls, and hands of each American worker. It is time to flip on the switch and bring businesses, organizations, or teams into the light of change. It matters to all of us.
Good article and I could not agree more. A happy and appreciated employee is paramount to a successful company. Which, of course, has to come from the leadership of the company, top down.
Jeff
“If employees are happy, customers are happy. When customers are happy, they come back and tell others of their experience.” – And they will be more loyal, both customers and employees.
This is a winner circle, as happy employees stay longer in their job — > gainging experience — > becoming better — > providing even better customer care — > making your customers into followers…
Bravo on this post. Empowered employees and great service are integrally connected. Empowered employees are far more likely to come across as sincerely caring about the customer. Customers want to interact with someone who can actually help “them” — not just execute a robotic procedure and then stare into the universe. Great listening, knowledge, caring action — all add up to a customer satisfaction home run.
Here is a post for leaders to get all to care about the customer:
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http://katenasser.com/leaders-get-all-your-employees-to-think-customer-care/
I welcome your comments and thoughts on this post at the blog.
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I will RT your post on Twitter — it has great inspirational force.
Best,
Kate Nasser
What you said is quite correct.