Category Archives: Customer Satisfaction

Why Build Employee Engagement: The Importance of Engagement in the Workplace

Employee engagement has been all over the HR radar for the past several years, turning the measurement of engagement into a multi-million dollar industry.   But what exactly is employee engagement?  Why is building engagement so important?  How can engaging employees improve your business?

Defining Employee Engagement

Engaged employees share a strong desire to be part of the value that an organization creates.  These employees feel a strong emotional bond to the organization that employs them and choose to exert discretionary effort to provide better outcomes for the customer and the organization.  Engaged employees are committed to improving and have a desire to own and improve their personal engagement.

Levels of Engagement in the WorkplaceLevels of Employee Engagement in the Workplace

At Avatar Solutions, we believe there are three levels of employee engagement: Actively Engaged, Ambivalent, and Actively Disengaged.  Actively Engaged employees always go above and beyond in the work they do and are highly committed to the mission, vision, and values of the organization.  Ambivalent employees tend to work just as hard as they need to get by, and are not likely to volunteer for extra assignments or have strong spirit or enthusiasm.  Actively Disengaged employees bring a negative energy to the workplace, do not focus on creating positive outcomes, and can be a drain on their organization.  According to Avatar Solutions’ National Normative Database, comprised of 3.3 million employees from 2,400 organizations, only 29 percent of employees are Actively Engaged, while 59 percent fall into the Ambivalent category and 12 percent can be categorized as Actively Disengaged.

Engagement’s Impact on Customer Satisfaction

Employee engagement has a significant impact on customer satisfaction.   Engaged employees are motivated by an environment that always focuses on creating a positive customer experience, and are 3.5 times more likely to believe employees at their organization genuinely care about the customer.  In fact, there is a correlation between customer satisfaction and employee engagement to the .85 coefficient.  This correlation does not suggest causation, but instead shows that as employee engagement improves, customer satisfaction tends to improve as well, and vice versa.

Employee Engagement and Quality of Work

Engaged employees also tend to work harder and produce higher quality work than disengaged employees.  Avatar Solutions’ research has found that engagement is also positively correlated with performance ratings, meaning that engaged employees tend to receive a higher performance rating.  These high performing employees make up the backbone of any organization they work for.

Improve Employee Retention through Engagement

Turnover is a huge drain on employers and the economy, with the U.S. Bureau of Labor Statistics reporting that 1.5 to 2 million employees voluntarily chose to leave their jobs each month. Each employee who resigns tends to cost between 16 to 20 percent of his or her annual salary to replace. By focusing on engagement, organizations are much more likely to retain their top employees and therefore save money.[1]  Engaged employees are 3.5 times more likely to stay with their employer and are four times more satisfied with their jobs.

Building Engagement in Your Organization

Now that we know how important building employee engagement is, how can you build it at your organization?  We will be launching a new blog series on how to increase employee engagement.  Check back soon for tips, best practices, and a focus on the individual key drivers of engagement.

[1] Lucas, Suzanne.  “How much does it cost companies to replace employees?” http://www.cbsnews.com/8301-505125_162-57552899/how-much-does-it-cost-companies-to-lose-employees/ (accessed April 11, 2013).

#1 Fan!

The chill in the air, the packed streets and highways, and the influx of people wearing logoed t-shirts and sweatshirts make it obvious: football season has arrived.  Whether you’re a hardcore enthusiast or simply enjoy the overall atmosphere, most everyone is affected in one way or another by the football games (even if it’s just your favorite Monday-night primetime television show being delayed due to overtime).

While seemingly unrelated to the workplace, football can actually teach a valuable lesson about employees’ relationships with their jobs.  Managers should encourage their employees to act as number one fans for their organization.      

Every football team has a fan base of some sort.  The most committed supporters show up to every game because they want to provide support.  I’ve even known some devotees who think that if they miss a game, they will jinx the players and cause them to lose.  While it is likely not the case that fans directly affect the outcome of a game (at least not in a cause and effect way), these individuals are so supportive of their players that they do everything in their power to attend each weekend. 

Like these loyal fans, engaged individuals come to work ready and willing to “cheer” their workplace on to success.  They put forth the effort needed to succeed by often coming in early and staying late in order to get their necessary tasks accomplished.  They have lower absentee rates than disengaged workers, because they recognize that missing work will ultimately be harmful to their coworkers and business.     

True football addicts also tend to take ownership of their teams.  In a way, they accept responsibility for the wins and losses, with phrases such as “we won,” “we lost,” or “we’ll do better next year.”   Many followers even internalize the team as part of their identity (“I’m a Packer’s fan,” “I’m a Wolverine,” etc.).  Similarly, engaged employees take ownership of their projects, mistakes, and personal engagement.  They operate as a group, taking joint responsibility for successes and failures.  They treat every organizational win as a personal accomplishment, and work hard to achieve victory.    

Finally, loyal fans also tend to gush about the players, coaches, stadium, etc.   Even when the squad is doing poorly, supporters will attempt to put a positive spin on the losses (“Well, this week wasn’t so good, but we’re going to practice hard and next weekend our opponent will see what we’re really made of!”).  Followers will try to convert others to join their cause by showcasing the positive traits of their team compared to others.  Fans are true brand advocates for their teams.    

Likewise, engaged employees spread the word, providing positive reviews to their peers and speaking positively about the organization in general.  These are the people who believe their place of business is a great place to work, and this belief is reflected in their actions.  Their recommendations and attitude toward customers attract new customers, leading to more business success.

Some of the most fruitful football teams in history are known for their large fan bases, indicating that supporters truly do make a difference when it comes to winning and losing.  The same can be said in the workplace.  When employees are engaged and loyal enthusiasts, business will boom.  Encourage your workers to be dedicated devotees for your organization, and you will win the business game.

Speaking of winning, I really need to figure out tickets for next weekend’s game.  Otherwise, my team might lose!

Using Social Media for Good

Most organizations have strict social media policies, either severely restricting how and when employees can post or banning the use of social media altogether.  Many organizations are not keen on loosening their grip on their presence on the web, and worry that allowing their employees to discuss their organization online will deteriorate their image and reputation.  I, however, am against this common viewpoint and think the use of social media on the job can and should be allowed (gasp!).  Letting employees use social media for work purposes can have very positive outcomes both for employees and customers/patients.

One of the main benefits of social media use is that it allows individuals to communicate directly with an organization.  While many organizations have a corporate Facebook or Twitter account to interact with their customers or patients, few allow individual employees to create professional accounts.  Imagine how powerful a direct connection with employees could be.  An individual planning on shopping at an electronics store could reach out online for a personalized recommendation.  A nurse discharging a patient could check in the next day to make sure medication was taken or if there were any issues.  This direct connection could dramatically improve both customer and patient satisfaction.

In addition, social media usage can have a major impact on customer service issues.  Let me use an example that has been quite popular over the last few years (including in this blog): The “United Breaks Guitars” YouTube video.  This video had millions of hits and thousands of comments.  However, none of these comments were actually from employees of United addressing the complaints in the video.  Imagine how this negative situation could have been turned around if hundreds of United employees had commented on the video, discussing the improvements they’ve made based on the video, how much they like United, and what customers should expect when they choose to fly with United.  On a smaller scale, a customer posting a negative experience about an organization could receive an immediate direct message from an employee of that organization offering his or her apologies and a coupon code for a discount on future purchases.

By allowing employees to communicate directly with consumers, organizations not only improve customer service, but can also improve employee engagement.  Employees want to see that they are making a difference and that their organization treats customers well.  By directly interacting with customers and hearing about positive outcomes, an employee’s pride in the organization can improve dramatically, which in turn raises his or her engagement level.

Some may worry that employees will get their organization in trouble by releasing unauthorized statements or making inappropriate comments.  To counter this, let employees know the expectations of creating and using a professional social media account, including what topics are appropriate and how to best interact with clients.  In addition, when telling employees about developments within the organization, make sure to let them know whether or not news is private or can be shared privately.

When it comes to the internet, the more hits, likes, posts, follows, and tweets, the better.  Enlisting employees to help spread positive messaging about your organization can only help to improve your organization’s online presence, as well as reputation, customer and patient satisfaction, and employee engagement.