According to Dora Wang, associate editor of the TINYpulse blog, the value of high employee engagement cannot be overestimated. As a matter of fact, truly engaged employees are more productive and result on lower turnover rates. Additionally, engaged employees increase retention and engagement of clients.

Wang quotes researches from Demand Metric and Harvard Business Schools that demonstrate that those companies that have over 50% engagement rates manage to keep 80% of their clients. Furthermore, these companies have up to 39% higher rate of competitive advantage.

The relationship between employee’s engagement and customer satisfaction is rather straightforward. Wang states that “A 5-point improvement in employee attitudes drove a 1.3-point improvement in customer satisfaction, which in turn drove a 0.5% improvement in revenue”.

Why is this so? Basically, engaged employees truly believe in the company they work for and the services and products it offers to customer. So, they do not need to lie to a customer because they believe in the company’s goals and share with customers their positive perspective on their employer.

Therefore, engaged employees help and promote the company’s brand among customers as well as among the people that are close to them. And customers enjoy the attention of a happy employee who is willing to take care of his/her needs.

Consequently, in order to boost customer service a company needs to boost employees’ engagement. How? By making work matter, establishing clear values, recognizing those values among employees and relieving stress –granting flexible hours, good vacations or areas where employees may relax-.

Source: TINYpulse Blog