Published in Forbes

A recent Glassdoor study suggests that a 1-point increase in Glassdoor company rating is associated with a 1.3-point increase in customer satisfaction. And there are studies that confirm higher customer satisfaction leading to higher company valuations. 

A Harvard Business Review article also indicates that satisfied customers spend up to two times more than unsatisfied customers. These studies show a clear link between employee satisfaction/happiness and customer satisfaction and how it can impact any business. 

The correlation between employee happiness and customer satisfaction significantly varies between industries. It is generally seen that sectors like travel and tourism, food service, bars, retail, etc., where customer contact is higher, have a more direct positive relationship.

But move over to industries such as information technology or manufacturing where customer contact is low, and the correlation is indirect. So, if you are running a customer-centric business with high customer contact, working towards making your employees happy can bring in a host of valuable benefits almost instantly.   

However, this does not mean that tech and manufacturing companies should not invest in employee happiness. 

They, too, can reap great rewards by building a team of satisfied and happier employees as it can boost the overall productivity and efficiency of any organization. A study by Saïd Business School suggests that productivity, work performance, and employee satisfaction are strongly connected.

Moreover, happy customers actually contribute towards building a happier workplace.  

Happy customers tend to:

  • Be more loyal.
  • Show more appreciation towards the business and its representatives.
  • Provide more constructive feedback.
  • Promote your products and services in their network.

Happy customers don’t just impact a business’s bottom line. They also boost employees’ morale and lead to better employee wellbeing. Moreover, employees working in customer-centric companies find their job meaningful and have a sense of purpose. All of this creates a spiralling cycle of great customer and employee experience. 

How to Make Employees Happy?

How can companies build a more employee-focused culture and work towards employee happiness? Here are a few tips that can help-

Understand the Meaning of Happiness for your Employees

Happiness could mean a lot of different things to a lot of people. For instance, one employee could be happier with a bigger paycheck while another would be pleased if you offered remote working flexibility. In order to work towards employee happiness, you should first understand your employees and what motivates them. 

Recommendation: 

Running polls, inviting anonymous suggestions, or even one-on-one meetings with your team can give you some great insights. 

Are they Satisfied with the Current Workplace Scenario?

Try to know more about the current work experience of your employees. Do they understand your business goals? Are there things that can be changed to improve the current workplace situation? Be open to negative feedback as it often paves the path for the biggest changes. 

Recommendation: 

Just as you probably measure the Net Promoter Score  (NPS) of your business, also measure the eNPS or employee Net Promoter Score that defines how likely are you employees willing to refer your organization as a recommended place to work.  

Prioritize Work-life Balance

Key drivers of people have evolved over the years. While it used to be about job security and income centuries or even a few decades ago, today, people are giving due importance to the work culture. Many studies point towards the importance of building a good work culture, especially for attracting and retaining the younger workforce. Moreover, with Hybrid work culture coming to the forefront ever since the pandemic, creating a good work-life balance for employees has become more critical.  

Recommendation: 

Consider adding Employee Wellness Days to your yearly calendars to ensure your team gets the much deserved time off. 

Striking the Right Work Load Balance

Delegate too much work to your team, and you risk inaction and low morale of your team. On the other hand, delegate too little work, and you’ll mostly see your work culture being impacted negatively. Delegating the right amount of work is crucial to ensure the organizational objectives are met while boosting employee engagement. 

Recommendation: 

Don’t just delegate work. Instead, give responsibilities. This creates accountability while also giving your team a sense of ownership of the project. Guide your team by giving them tools and resources and helping them achieve their objectives. 

Make Happiness the Core of Your Company Culture

The lack of a neatly defined culture can make every employee have a different work experience. The variance can then also be witnessed among the customers when they interact with your employees. Work on creating a strong company culture with your employees to ensure that it aligns with company values and their happiness. 

Recommendation: 

Communicating the work culture to all the stakeholders of the business is as important as creating it. 

Happy Workplace Creates Happy Customers

If a regular stream of happy customers is what you’re aiming for, building a happier workplace with happy employees is an important piece of the puzzle. The journey of creating a happier workplace can be beneficial for all the involved parties- employers, employees, and customers. It can greatly benefit any organization and open the gateway to more success and growth.