In Business Performance

Employee Wellbeing and Customer Satisfaction

Employee wellbeing and customer satisfaction are very closely linked. Understanding the relationship is of utmost importance during a crisis. After all, businesses and employees need all the help they can get.

Coronavirus has brought its fair share of hardships. Businesses have had to readjust their entire strategies in order to stay afloat. So where does that leave employees?

Anxiety levels high due to the waves of uncertainty. Businesses have had to innovate to support the health of their employees.

By choosing their teams and investing in employee wellbeing, they’re actually investing in their customers, too. Understanding the connection between employee wellbeing and customer satisfaction has never been more important. 

Happy Employees = Happy Customers = More Revenue

Prioritizing employee health is commendable. It’s also a proven factor of improved CSAT (customer satisfaction). A study from Glassdoor in 2019 found a strong statistical link between customer satisfaction and reported employee wellbeing.

Here is a quote from the study write-up in the Harvard Business Review:

“To study this employee and customer satisfaction connection, we joined together two data sources: Glassdoor employee reviews and ratings from the American Customer Satisfaction Index (ACSI), which records the opinions of 300,000 U.S. customers on products and services.

We found that each one-star improvement in a company’s Glassdoor rating corresponds to a 1.3-point out of 100 improvement in customer satisfaction scores — a statistically significant impact, which was more than twice as large in industries where employees interact closely and frequently with customers.”

The Journal of the Academy of Marketing Science also found that for industries with high customer-employee interaction — like restaurants, retail or customer representatives — employee satisfaction strongly impacts the customer satisfaction levels. Their 2019 study also showed that employee satisfaction influences the customer’s intent to purchase again. Therefore, you are creating the foundation for loyal customers.

The Connection between Employee Wellbeing and Customer Satisfaction

Both of the studies discussed above show a clear connection between happy employees and optimal customer experience. Knowing that, take a look at the infographic from Chattermill below to see how 10 businesses prioritized their employees’ wellbeing, gave back to their communities, and optimized their customers’ experiences.

You’ll also read tips on how to continue supporting employees who are working from home during this pandemic, including: 

  • Implementing company-wide mindfulness sessions
  • Having weekly Zoom chats to supplement water cooler chats
  • Allowing for more flexible schedules

Business owners should do their best to implement such strategies and emulate these inspirational brands that went above and beyond. Doing so, they will not only see a return on their customer satisfaction, but can set an example and be an industry leader during these times of crisis. Check out the visual guide below:

Lessons from 10 Businesses that Improved Their CSAT and Employee Wellbeing

About the Author

Dylan is a Southern California native whose passion is helping businesses grow their online presence and performance with competitive CEO and content creation. 

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