The impact of employee engagement on customer satisfaction
Employee engagement is no longer seen as ‘fluffy HR’ as recent research by the CIPD and industry experts proves that engaging staff and customers better results in better business performance.By Steve Smith, managing director, Scancapture.
And this is not sometimes, not occasionally, not depending on circumstances, engaging people better within your business increases business performance every time.Through our research of over a million surveys over the last 12 years we have discovered that business leaders who take a joined-up view of engagement, engage more effectively with employees and customers and succeed by driving better performance and increase profits.
Our research shows that if you increase engagement by just 2.5% over a year, we’ve seen on average, a 4% increase in revenue the year after.Here are some real examples of engagement working:
- Marks and Spencer’s research shows that over a four year period stores with improving engagement had, on average, delivered £62m more sales to the business every year than stores with declining engagement.
- Sainsbury’s have found a clear link between higher levels of engagement and sales performance, with the level of colleague engagement contributing up to 15 per cent of a store’s year on year growth.
- The annual cost to the UK economy of sickness absence is over £17bn according to the CBI. We’ve found that engaged employees take an average of 2.69 days sick a year; the disengaged take 6.19.