Satisfied employees are critical to ensuring satisfied customers

A vital link

Editor’s note: Nancy Cook is a research analyst with SRA Research Group in Jupiter, Fla. 

There is no question that companies that score the highest marks for customer satisfaction are usually the most successful. They work hard to provide prompt and courteous service, assure quality control and timely delivery of products. But companies often overlook one of the most valuable resources in their quest for perfection: their own employees.

Frontline employees are the most immediate link to customers, so they can offer valuable insight from a unique perspective. If problems are brewing, they’re usually the first to recognize them, and often, the best equipped to offer viable solutions. Research has shown that when their opinions are truly valued, employees are almost always more satisfied with their jobs. They display high morale and are invested in the success of their company. All of this translates into improved customer service and a payoff - in real dollars - for companies that conduct systematic and formal employee satisfaction research.

Why formalize employee research?

Staff meetings and feedback forms may be a quick way to gather information on employee satisfaction, but they cannot be relied upon to yield accurate results, especially if the topic is sensitive. Face-to-face meetings do not provide the anonymity necessary for complete honesty, and internal surveys are often worded, distributed and retrieved in such a way that the employee feels unable to express his or her opinion without fear of reprisal.

To obtain the most accurate and reliable employee satisfaction results, a formal method is required. A trained researcher has the ability to conduct research covering any topic, including the most sensitive. The researcher can assure that the information gathered remains absolutely confidential, allowing the employee to feel comfortable giving a completely honest opinion.

Methods of data collection

When anonymity is essential, Web-based or mail surveys are excellent choices for data collection. If employees have access to, and are comfortable using, the Internet, Web-based surveys are the preferred methodology. They provide much faster access to the data and higher, more accurate response rates. With confidentiality in mind, access to Web-based surveys should be secure and password-protected.

Mail surveys can be more costly to administer because of the added expenses of printing and postage. However, if a majority of employees either do not have Internet access or are not adept at using the Internet, a mail survey is the best alternative. To help reduce postage costs, some employers insert the questionnaire as a “paycheck stuffer.”

The utilization of a third-party research provider is imperative. While the employer may personalize a letter or e-mail inviting employees to participate in the research, it should be clearly stated that the questionnaire will be returned to and processed by an independent research provider to ensure that responses remain confidential and results unbiased.

Employees will feel more secure knowing that their responses are confidential and will be analyzed collectively with other respondents. Further, there is a greater likelihood that a questionnaire administered by an outside research provider will elicit honest answers and meaningful suggestions. As important, the questionnaire will be professionally designed and contain unbiased questions.

What should I ask?

The focus of the employee satisfaction survey can be as broad or narrow as desired and should include topic areas that can be tracked over time, such as satisfaction with pay and benefits, working conditions and employer relations. This will give the employer a historical picture of how the organization is progressing and provide measurements that can be compared to customer satisfaction tracking data to observe any correlations. At a minimum, an employee satisfaction questionnaire should be administered annually.

In an open-ended format, the employee should be asked how to improve customer interaction, processes and the work environment. Special topics might include feedback on recent changes that have taken place in the organization such as: changes in work hours; a merger with another operation; or a newly instituted dress code. A professional researcher can uncover if the changes have affected employees positively or negatively. Changes also need to be benchmarked so that future surveys can accurately track satisfaction with regard to the change.

Typically, rating questions work well for many of the assessment categories. Following are some categories that are appropriate to include in an employee satisfaction survey:

Satisfaction with:

• the organization’s leadership and planning;
• communication within the organization;
• opportunities for advancement and career development;
• the working environment;
• pay and benefits.

Perceptions of:

• the corporate culture;
• how the employee fits with the organization, the image the company projects, and how the organization measures up to employee expectations;
• teamwork and cooperation within the organization and work group.

Rating questions can be presented in a statement format, and should ask the employee to rate their level of agreement or disagreement, as in the following example:

For large companies, where sample sizes by department are large enough to ensure the anonymity of respondents, employers should consider having employees not only rate their own department on various attributes, but also provide comparative ratings based on how they perceive and interact with other departments. This gives a broader perspective of how the organization functions and how employees relate to one another cross-functionally.

To gauge level of commitment, the employee may also be asked if they intend to establish a career with the company and if they would recommend the company to family or friends.

Relevant demographic questions for classification and analysis purposes might include: length of time employed with the company; age; department; and gender.

Demographic questions should not be used as a means to identify specific employees. Rather, they serve as a means for looking at company-wide demographic breakdowns and should maintain anonymity. For example, responses from a particular department should not be identified if there are not enough employees within that department to ensure anonymity.

Find ways to improve

Since satisfied employees are more productive, provide better customer service and are more committed to the organization, the primary objective of conducting the research is to find ways to improve employee satisfaction. Action plans can be developed within organizations to improve operations, develop training courses, enhance working conditions or facilitate better working relationships. Research findings can guide initiatives to improve employee satisfaction by pinpointing problem areas and, once the problems are remedied, the organization will also begin to see a positive impact on customer satisfaction.

The results of employee satisfaction research can be shared with management and, where appropriate, all employees. Cross-functional teams of employees can be created to address problem areas and employees can be encouraged to provide input on decisions that affect them.

The results of employee satisfaction surveys can often be used as a public relations tool. What better way to recruit and retain employees than by sharing actual feedback with the press and employment agencies, touting the company as a great place to work? In an industry such as health care, where employee turnover is high, employee satisfaction research can lead to actionable outcomes directly impacting retention and recruitment.

Employee retention is good for the company and good for the customers. Research among financial institutions has shown that customers greatly value personal service. When a customer develops a relationship with an employee at a bank, they are more apt to be loyal to that institution. It can be safely said that retaining the best employees helps build relationships with customers and helps build business. Employee retention = customer retention.

Follow-up research

If research identifies an area of concern but fails to identify the root cause of the problem, additional in-depth research may be required. This may involve conducting another survey with more targeted objectives, conducting one-on-one depth interviews, or holding focus groups among employees who can provide more insight into the issue or problem.

For example, research may identify that employees in the billing department are not provided with adequate equipment to properly do their jobs. A problem area is pinpointed that is department-specific, yet it is not detailed enough to offer concrete solutions. Additional depth interviews with members of the billing department might uncover that there are not enough printers to handle the volume of statements generated at the end of the month. This causes frustration that spills over to customers who interact with the department or receive their bills late. By allocating additional resources to increase the number of printers, satisfaction improves for employees and customers.

Employees as a link to customer satisfaction

Routine employee satisfaction research is a vital component of the most successful customer satisfaction programs. Without it, companies miss an important piece of the customer satisfaction and retention puzzle. Employees are the ambassadors of the company they work for, and are instrumental to its success or failure. They often hold the key to company-customer relationships because, to the customer, the employee is the company. If customer satisfaction is important to an organization, measuring and improving employee satisfaction should be one of its top priorities.