July 2, 2015
This is the first installment of our regular Talent Talk column penned by Glen Esnard of 20-20 Foresight.
Jack Welsh, when asked for the three most important metrics for an organization, cited free cash flow, customer satisfaction and employee satisfaction.
Free cash flow makes sense. It is the fuel that propels survival and growth. Customer satisfaction is logical. Happy customers come back. Often lost in the mix and easily taken for granted in healthy times, is employee satisfaction. Yet it may be the most critical.
A study by the University of Missouri found employee satisfaction had a significant impact on recruitment and retention as well as customer satisfaction.
Recruitment and retention drive both operating performance and operating expense. The loss of great talent can be devastating.
More important, however, is the impact of employee satisfaction on customer satisfaction.
The University of Missouri report noted, “…customer satisfaction and customer loyalty is almost twice as strong when you have high employee satisfaction compared to when they are not satisfied with their jobs.”
Customer satisfaction and loyalty is twice as strong? Ponder for a minute the impact if employee satisfaction increased by 30%? How would this impact your customer satisfaction, retention and engagement? What would be the ripple effect throughout your organization?
As leaders, consider the relative priority you are placing on customer satisfaction as contrasted with employee satisfaction. Which do you prioritize? Which should you? Are you measuring employee satisfaction with the same rigor with which you measure customer satisfaction?
Glen Esnard, is a Senior Director with 20-20 Foresight, a national executive search firm that specializes in real estate, financial services and service industries. Glen serves his clients with a deep understanding of talent and organizational performance. He served over twenty years in executive leadership roles with some of the largest firms in the real estate services industry. He has a Master of Science degree in
Learning & Organizational Change from Northwestern University and a Bachelor of Science degree in Business from the University of Southern California. Glen is also a partner in Esnard Advisors, a management consulting and executive coaching firm.