In Opinion Survey

Some excellent statistics from Marketing Innovators (MI) on the effects of employee satisfaction on company financial performance:

 It may already be obvious to you, but more and more evidence shows a strong correlation between employee satisfaction and financial performance, which can influence other business functions such as building profits effectively, business planning and development, employee rewards and recognition, and the measurement of ROI.

 According to David Sirota et al, companies considered as having ‘high morale’ outperformed their competitors by about 20%, whereas those having ‘moderate’ or ‘low morale’ performed about 5% lower than their industry counterparts. (The Enthusiastic Employee: How Companies Profit by Giving Workers What They Want)

 James Oakley of Purdue University asserts “There is a direct link between employee satisfaction and customer satisfaction, and subsequently between customer satisfaction and improved financial performance.” (Workforce Management magazine)

 T-Mobile USA is an example of a success story who used data from surveys to improve employee engagement, reduce employee attrition, and customer satisfaction. The cold hard facts? Employee attrition reduced by 15%, employee staisfaction up by 10% – and their reward and recognition program ranking highest in JD Power and Associates’ “Wireless Customer Care Performance study” three years in a row.

So what does MI say is one of the 10 most common characteristics of companies that ‘get it’? One that we agree with wholeheartedly – measurement, measurement, measurement! According to MI, those who know the importance of the employee-to-customer-to-profitability chain measure everythingall the time, whether it be customer satisfaction, employee satisfaction… what you can measure in this chain is endless. What better way to identify what is working well, what needs improvement, and the best ways to be able to make changes where necessary?

Related Articles:
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