Many companies operate under the guideline that the customer comes first, and while customer satisfaction is vitally important to the success of any company, it’s actually essential to put your employees first. Here’s why:
To ensure excellent customer service.
When employees are happy, they make customers happy. A Gallup report found that employees who are engaged and satisfied with their work are more likely to improve customer relationships, resulting in a 20% increase in sales for their companies. Maybe we should rethink the phrase, “the customer is always right.”
When employees are happy, they are 12% more productive. This leads to greater output and the ability for your company to do more whether by taking the extra time to test a new product or work with additional clients.
New ideas and innovation.
In order to gain new ideas an innovation from your employees, trust has to be built. In fact, 61% of employees cite trust between them and their senior management is very important to job satisfaction- and happiness.
To reduce turnover.
According to a Work Institute study, it can cost 33% of an employee’s annual salary to hire a replacement. For mid-level employees, the percentage rises to 150% of their annual salary.
Along with the cost of training, a high employee turnover rate means your company is constantly losing talent and your teams are frequently trying to re-build themselves.
In order to increase loyalty and happiness, show your employees how what they’re doing makes a difference, and how your company influences customers in a positive way. According to a 2017 study of millenials, these feelings lead to greater loyalty.
Hungry for more? Read 5 Ways to Maintain a Killer Company Culture.
Meg is a dreamer, entrepreneur, and homesteader based in the White Mountains of New Hampshire. She loves her cats, feasting, and road trips in her green VW Bug.