Dive Brief:
- A strong link exists between satisfied customers and a satisfied workforce, and that link can bolster a company's rating, a new Glassdoor study found. Study results suggest that the benefits of investing in employee satisfaction and improving workplace culture may go beyond the advantages of talent attraction and retention alone, said Glassdoor, which polled 293 large employers.
- In key findings in the study, every 1-star improvement in Glassdoor's 5-star rating scale equaled a 1.3-point increase in customer satisfaction on a 0- to 100 scale. This increase is more than twice as large for companies in industries with high-customer contact, such as retail, tourism, food services, healthcare and financial services. Every 1-star increase in Glassdoor's company ratings also generated between 7.8% and 18.9% higher stock-market valuations due to improved customer satisfaction.
- A handful of employers studied excelled in both customer and employee satisfaction, including Southwest, Trader Joe's and Hilton where employees routinely interact with customers will have greater opportunities to impact customer experiences — good or bad — based on Glassdoor ratings.
Dive Insight:
The Glassdoor study raises a critical point in a tough talent market: employees expect an experience that would compare to that often reserved for customers. A previous Ceridian report noted that employee experience is one of the top priorities for business leaders in 2019. Those that invest in employee experience are more often on innovative company and best place to work lists — including Glassdoor's own.
Additionally, the tight labor market makes it easier for employees to find another job that may offer more of what they want, including more money, better benefits, meaningful work, flexibility, career growth and a positive work culture. Ignoring the issue could come with a heavy price tag for employers; turnover has hit an all-time high, a 2018 Salary.com report noted, and the costs of re-hiring add up.
The study also reinforces the crucial importance of a company's rating in attracting and retaining talent. Only 1 in 5 jobseekers would apply to a company with a negative reputation.
The link between customer satisfaction and the employee experience is also heightened in a tight labor market. Front-line workers, those who interact the most with customers, are likely to perform their best when their wellbeing is a priority and the culture is positive.
