The Impact of Employee Engagement on Customer Satisfaction

Daryl Forkell
Two females shopping and exchanging credit card payment

How much do employees affect the customer experience? Quite a bit as it turns out.

A study of employee reviews on Glassdoor and ratings from the American Customer Satisfaction Index found a significant correlation between engaged employees and satisfied customers.

Forbes writes that, “[employee] engagement correlates to decreases in absenteeism, turnover, accidents, and defects, while it also correlates to increased customer service, productivity, sales, and profits.”

So, it stands that employees are key to the customer experience. That means if you’re looking to boost customer satisfaction, start with an evaluation of employee engagement at your organization.

But what is the best way to get employees engaged—and keep them engaged? No matter the industry, these three objectives are the best place to start.

Communicate Company Values

It’s important for employees to understand the “why” behind their position. When it’s easy to see the connection between what they do and what the organization stands for and its goals, employees will feel a greater sense of purpose.

Leaders who effectively communicate the values of an organization will see more engaged employees. Frequent internal communication should “emphasize distinctiveness and value of what the company stands for,” according to Lift PhD.

When a company’s mission and values are clear and thoroughly shared, leaders can then challenge employees to put those ideas into action through their work.

Create a Collaborative Culture

Effective lines of communication, particularly the encouragement of two-way dialogue, is integral to cultivating a positive work environment. In addition, when employees receive clear communication and are able to provide their own insights and feedback the organization is much more likely to thrive and see an uptick in employee engagement.

88% (percent) Icon

Organizations are 88% more likely to perform well financially when employees feel like they belong and are heard.

SOURCE: The Workforce Institute at UKG

It’s also important to consider the relationships employees have with each other, not just management. A SHRM survey found that building close friendships at work can have a significant impact on employee engagement.

STAT 80 percent

80% of employees who have close friends at work say they feel a strong sense of belonging to their organization (vs. only 63% of those who do not have close friends at work).

SOURCE: 2023 Society for Human Resource Management Survey

Knowing this, leaders should encourage meaningful connections on their teams by providing opportunities for coworkers to bond as people not just task-completers.

Provide Feedback and Recognition

Feedback helps employees understand what is expected of them in their roles. Furthermore, positive reinforcement when employees meet or exceed expectations can be particularly effective at spurring consistently high performance.

STAT 92 percent

92% of workers are more likely to repeat a specific action after receiving recognition for it.

SOURCE: Apollo Technical

Recognizing employees for their efforts and commitment can take multiple forms. Nationally established holidays such as Employee Appreciation Day or career-specific occasions like Nurses Week or Hospital Week are great prompts for collectively celebrating your staff. These days, or weeks even, demonstrate an awareness of their professional expertise and appreciation for their commitment to your organization and industry.

Expressing your collective gratitude for staff and their dedication to your organization is great, but don’t overlook the power of individualized kudos. Celebrating individuals for instances of workplace excellence or wishing them well on their birthday can make them feel truly valued. A sincere message of appreciation with a personal note or small corporate gift can create a culture of meaningful recognition and boost employee engagement.

Final Thoughts

Engaged employees drive excellent customer experiences, plain and simple.

Businesses hoping to improve their customer service should start by engaging their employees in their positions. If companies focus on these key areas, they will see higher levels of satisfaction, retention, and engagement with their employees—and their customer base.

GREETING CARDS FOR EMPLOYEES

Image credit: ©BernardaSv