Happy Employees Make Happy Customers


 

Happy employees ensure happy customers. And happy customers ensure happy shareholders—in that order." - Simon Sineke


In today’s complex business environment, Happy Employees are treated as most critical success factor. Happy employees are not just creating a pleasant working culture, also they are face of the organization to the external world and they are pillars of productivity, customer satisfaction, and ultimately, business profitability. Let's dig into the details how these elements are inter-connect.





1. Happy Employees Improve High Productivity

In Maslow’s Hierarchy of Needs (1943) emphasis that employees are more productive when their basic, psychological, and self-fulfillment needs are met. With that improvement, their engagement level to their work is high. Happy employees create a positive work environment where employees feel valued and higher level of job satisfaction. They are willing to put extra efforts on their duties and maintain an exceptional quality in their works. These factors

Wright, T. A., & Cropanzano, R. (2000). "Psychological Well-being and Job Satisfaction as Predictors of Job Performance." Journal of Occupational Health Psychology, 5(1), 84-94.

 

2. High Productivity Enhances Customer Service

High productive employees are geared up to fulfill customer needs effectively by fostering an extra-ordinary customer journey from start to end. When employees are attending to customer’s requirements more efficiently, they dedicate more care & attention to listening to customer’s expectation provide suitable solutions and feedback.

This level of customer service originates a strong bonding between customer and organization which will positively enhancing the reputation of the company. In Herzberg’s Two-Factor Theory (1959), motivators such as achievements, recognitions are linked with employee productivity which directly impacts the quality of customer service

Harter, J. K., Schmidt, F. L., & Hayes, T. L. (2002). "Business-Unit-Level Relationship Between Employee Satisfaction, Employee Engagement, and Business Outcomes: A Meta-Analysis." Journal of Applied Psychology, 87(2), 268-279

3. Better Customer Service Leads to Customer Satisfaction

Customer satisfaction is an amplifying factor to sustain the profitability in long -run of any organization. A productive workforce will always generate an exceptional customer service consistently where customers feel valued and appreciated. This positive approach will create customer retention by inclining repeat purchases towards the organization. 

Bowen, D. E., & Schneider, B. (1985). "Boundary-Spanning-Role Employees and the Service Industry: Some Guidelines for Management and Research." In Service Management Effectiveness: Balancing Strategy, Organization, and Human Resources (pp. 7-35). Jossey-Bass.

 

4. Customer Satisfaction Generates Customer Retention & Loyalty

Customer satisfaction is the origin of customer retention and loyalty. When the customers are highly satisfied with the exceptional products and services they produce a loyalty towards the organization. Loyal customers are valuable asset for any organization as Retaining existing customers is often more cost-effective than acquiring new. This loyalty is crucial in long run. 

Oliver, R. L. (1999). "Whence Consumer Loyalty?" Journal of Marketing, 63(4_suppl1), 33-44

5. Customer Retention & Loyalty Drive Increased Profits

Profitability is the final link in the chain. customer retention and repeat purchases not only attract the profitability into organization. Loyal customers will always be spreading the goodwill of organization with others will drive the expansion of organization with more incoming businesses. Companies with high customer retention lean towards healthy profitability over time. 

Anderson, E. W., Fornell, C., & Lehmann, D. R. (1994). "Customer Satisfaction, Market Share, and Profitability: Findings from Sweden." Journal of Marketing, 58(3), 53-66.,

Conclusion

Based on demonstrated theories & examples, it is evident that employee happiness is directly linked to customer satisfaction. When organizations harness in well-being of employees and applying these theories in real-world scenarios, organizations can create a positive impact that fosters long-term business success. Happy employees, without a doubt are the cornerstone of a sustainable and profitable business

References

  • Maslow, A. H. (1943). "A Theory of Human Motivation." Psychological Review, 50(4), 370-396.
  • Herzberg, F., Mausner, B., & Snyderman, B. B. (1959). The Motivation to Work. John Wiley & Sons.
  • Heskett, J. L., Jones, T. O., Loveman, G. W., Sasser, W. E., & Schlesinger, L. A. (1994). "Putting the Service-Profit Chain to Work." Harvard Business Review, 72(2), 164-174.
  • Oliver, R. L. (1980). "A Cognitive Model of the Antecedents and Consequences of Satisfaction Decisions." Journal of Marketing Research, 17(4), 460-469.
  • Reichheld, F. F. (1996). The Loyalty Effect: The Hidden Force Behind Growth, Profits, and Lasting Value. Harvard Business School Press.

Comments

  1. The numerous components that lead to an organisation's success are connected in a clear and logical manner by this article. A strong argument that fits in nicely with accepted ideas and studies is the line that leads from contented workers to greater profitability.Meeting the basic, psychological, and self-fulfilment requirements of employees results in increased productivity, as demonstrated by the reference to Maslow's Hierarchy of requirements. Employee engagement and motivation have a positive relationship with their sense of worth and job satisfaction, is true. Their willingness to go above and beyond is directly impacted by this, which raises production levels overall.I appreciated the detailed analysis of happy employees makes happy customers.

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    Replies
    1. I am grateful for your input! I am glad that words resonated with you and able to relate to the article and get the connection between employee satisfaction and organizational success. In truth, Maslow´s Hierarchy of Needs indeed explains an approach where one can understand how the fulfillment of basic needs increase output and commitment on behalf of employees. The extended investigation into how happy employees affect customer satisfaction has been acknowledged by this reviewer. Your comments have also reminded me about the significance of cultivating an affirmative workplace in order to achieve success on a grand scale. On another note, thank you once more for sharing your feelings with us!

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  2. This blog provides clear explanation about how employee happiness could help to the organization success. Furthermore, through the high employee satisfaction customer satisfaction can be achieved in many ways.

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    Replies
    1. Thank you and much appreciated your insightful perspectives

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  3. This article is an excellent example on why there is so much focus on employee happiness currently. As employee happiness has a domino effect on higher productivity, better customer service and thereby happier customers leading to better profits.

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  4. This blog article effectively illustrates the crucial connection between customer pleasure and employee contentment. It makes perfect sense that contented workers are more likely to deliver great customer service and enhance the overall experience for clients. It is evident that making investments in the well-being of employees benefits both the workforce and the general consumer experience. The useful advice on encouraging a positive work atmosphere and appreciating employees' achievements is quite helpful. I appreciate you bringing this crucial link to light; it serves as a wonderful reminder of how crucial employee satisfaction is to the success of any organization.

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  5. Totally agree with this blog content. Because as a person who directly works with customers, I have personal experience in this case. If an employee is not in a good mood no matter how she/he tries to treat the customer well their facial expressions say it all. Some companies keep service satisfaction devices on the top of customer service counters to rate for the service that they received from each staff member. But they do not try to track employee level of satisfaction in the same way.
    I think this combines well and impact directly to organizational performance and success rate.

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  6. Simon Sinek’s declaration, "Happy employees ensure happy customers. And glad customers make certain glad shareholders—in that order," perfectly encapsulates the interconnectedness of employee nicely-being, consumer satisfaction, and business profitability.

    In today’s complex commercial enterprise landscape, happy personnel are an increasing number of diagnosed as a critical fulfillment component. They are not handiest important for cultivating a nice place of business way of life but additionally function the public face of the organisation, riding productiveness, client pride, and in the end, profitability.

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