In today’s competitive landscape, it is no longer just about delivering a good product or service, it is also about ensuring that the people behind these offerings are engaged, motivated and satisfied with their work environment. Research by MIT shows that the enterprises with top – quartile employee experience achieve twice the innovation,double the customer satisfaction and 25% higher profits than other organisations with bottom-quartile employee experience.
“Good employees make for good customers. If we want our employees to drive sales, bring in business, or cater to customers effectively, they need to feel happy and valued in the organisation.” Payal Vaidya, chief experience officer, VML-India, said. Digital transformation is crucial for enterprises to serve their customers better. Today, digital transformation is crucial for enterprises to serve their customers better. There’s a direct and indirect correlation between customer experience (CX) and employee experience (EX). In simple terms, when employees are happy, they are more likely to keep customers happy. Thus, a positive EX leads to a positive CX, she added. Furthermore, according to Glassdoor Economic Research, there has been a 122% growth in earnings of the companies that have a higher employee satisfaction ratings.
Employee experience encompasses various factors, including workplace culture, opportunities for growth, and recognition. An article by Forbes stated that employees who feel valued and supported are more likely to provide exceptional service, which in turn enhances the customer experience. Adobe uses listening stations where employees can go either online or to physical locations to hear from customers directly, states VML. The Employee Experience report by VML also states that Southwest Airlines has long been known for its focus on employee satisfaction, which it credits for its superior customer service. It consistently ranks high in customer satisfaction surveys, and this success is attributed to its robust employee engagement programs.
How is it different from HR initiatives?
There is a thin line separating HR (Human Resource) initiatives from employee experience. While HR is indeed focused on improving employee experiences such as onboarding processes, recruitment, and exit strategies, the approach from a CX perspective is different. “For instance, in a project with AFLI, we examined how the digital team, data team, CX team, and marketing managers worked together. The focus is on aligning these teams to ensure they are on the same path and can effectively collaborate on the project.” Vaidya said. Another key difference is our focus on changing mindsets, practices, and rituals. We often find challenges like poor collaboration between teams, gaps, and silos, which occur not out of intent but because individuals are engrossed in their daily tasks. For successful digital transformation, it’s crucial to address these issues by ensuring teams have the right resources, skills, and attitudes. Identifying what’s missing, whether it’s collaboration, mindset, or skills, is essential for overcoming these challenges and supporting the transformation project effectively, she added.
How can leaders enforce this?
“It’s crucial for leaders to first have a clear vision for the organisation and effectively communicate that vision to their teams. Leaders should begin by defining a purpose they genuinely believe in and then work to align their teams with that purpose. This alignment cannot be purely top-down; each organisation has its unique way of operating, so leaders must adapt their approach accordingly,” Vaidya added.
By building effective systems, Leaders can accelerate the process through which employees can adopt and adapt to the practices of the organisation. This involves finding common motivators and fostering positive reinforcement to drive engagement and adherence to these systems. According to Vaidya, Changing mindsets is also essential. Leaders should focus on aligning employees’ mindsets with the organisation’s values and mission. Consistency is key—leaders should act as role models because their behaviour directly influences how their teams perceive and act.
To conclude, engaged and satisfied employees are more likely to provide superior service, leading to higher customer satisfaction and, ultimately, better business outcomes. Yet, this raises a critical question for many organisations: if the link between employee satisfaction and customer satisfaction is so well-documented, why do so many businesses continue to neglect this crucial aspect? As companies strive to thrive in a competitive landscape, they must confront the uncomfortable reality that investing in employee experience isn’t just a strategic choice—it’s an essential commitment that impacts every facet of their success.