Front Line Employees Hold the Key to Long Term Growth

The strong correlation between Long Term Growth and Employee Satisfaction

I’d like to start this post by asking three quick questions. They all relate to important issues that affect your business.

  1. When was the last time you were delighted when you did business with a service company?
  2. What role did an employee of that company play in the delightful experience?
  3. Do you think you could make a guess about that employee’s attitudes toward his or her job based on what happened?

Even though great service is a rarity these days, we’ve all had at least one experience with a company that really knows how to take care of its customers. In fact, I distinctly remember a small dry cleaner in an area where I used to work. I was so happy with the service, I’d drive halfway across town to give them my business, passing other dry cleaner’s shops in the process.

Why did I go out of my way to deal with them? The employees went out of their way for me. Once, they even made a special, after hours delivery to my house when I needed something in a hurry. They also welcomed me and called me by name whenever I stopped by. That made me feel like they really appreciated my business.

If you place people first, then good customer service and profitability will follow. 

“Employee behaviors and attitudes , even more than leadership principles and ideals, communicate most directly to customers just what the company stands for.”  Fred Reichheld, Loyalty Rules!

When you get right down to it, employees have the power to start a chain reaction that leads to success. Here’s how it goes in reverse. Customer Loyalty drives long-term growth. Customer delight drives loyalty. Appreciation and interest drive customer delight. And guess who’s in the best position to show your customers that you really care about them? That’s right. Front line employees.

Not everyone understands the connection

Despite the obvious importance of employee satisfaction, the great recession has resulted in many companies not placing nearly enough emphasis on developing and retaining employees. Consider these survey results:

  • 84% of employees feel that their workplace is headed in the wrong direction according to a November 2011 survey by Right Management
  • According to a June 2011 study from Mercer, one in two US employees are either actively looking for work or have mentally ‘checked out’

“Diminished loyalty and widespread apathy can undermine business performance, particularly as companies increasingly look to their workforces to drive productivity gains and spur innovation,” said Mindy Fox, a senior partner at Mercer.

Of course, great leaders have always known that taking care of their employees is important. The companies that have continued to make employee satisfaction a priority will come out of the current economic environment stronger and will ultimately put a lot of  distance between themselves and the competition.

If your employees are happy, customers see that, and they respond by giving you more of their business.

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About Vele Galovski
Vele Galovski has consistently achieved breakthrough results by using his unique approach to innovation engineering. By combining ambitious goal-setting with key driver analysis, disciplined management of metrics, and an inspiring approach to employee engagement and empowerment, Vele has dramatically improved the performance of a high-volume manufacturing operation, a national financial services company, a leading provider of professional outsourcing services, and one of the top home-builders in the country. He is currently working on a book to describe his methodology and help others achieve exceptional results with the same basic process employed by the world’s greatest engineers. You set a daring goal. Then you engineer a way to get there.

4 Responses to Front Line Employees Hold the Key to Long Term Growth

  1. As usual, you are right on the mark. You would think that the connection between having a good relationship with your employees and their having a good relationship with your customers would be obvious. So much for the obvious…

  2. Colleen says:

    I find the points in this article particularly relevant in education; the frontline employees are teachers serving parents directly via clear, consistent, and timely communication and indirectly through the guiding of each child’s development. Leadership in the schools must be focused on taking care of teachers. They are the frontline of their service oriented “company.”

    • Colleen, Thanks for your comment. I have worked in many different industries and have found that all of them can benefit by understanding who their customer is and then enabling the front line to deliver a great experience. The teachers are the front line and they are clearly delivering the service. Who is seen as the customer in education: parent, child, community, other? I know it seems like a crazy question, but I have had fierce debates in companies about who the customer is which resulted in a significant change in direction.

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