A Casual Relationship between Employee Happiness and Profitability

The importance and pivotal role of employees in creating customer satisfaction through service quality cannot be overstated. Employee happiness is especially useful in creating satisfied customers. In turn, long-term customer relationships that go beyond the mental and physical capability of the employee are established.

As an example, successful companies in the service industry all recognize the importance of their employees through Service Leadership. The leadership philosophy of successful companies is not about issuing commands from a giant book, but rather about the consistent demonstration of values.

Service Leadership invests so much in the employees because:

The employees are the service
In many cases, contact with the employee constitutes the entire service. The company offering is the employee. Any investment aimed at improving the employee is a direct investment in the service provided as well.

The employees are the organization from the customer’s point-of-view
The employees of a firm are its representatives and personifications. The behaviors and attitudes of the employees all help shape the perception of the company from the consumer’s eyes, even if the employee is in the periphery or off-duty.

The employees are the brand
The image of a company that a consumer forms is primarily based on the interactions he or she has had with the employees of said company. Companies, such as Zappos, understand the importance of the employees in shaping the brand, and only hire potential employees based on their passion for the brand.

The employees are the marketers
The employee has direct influence over the perception of the consumer and general satisfaction. Many employees, such as bank tellers, serve cross-selling functionality by selling credit cards and loans in addition to a teller’s primary services.

The way an employee feels at the workplace is reflected onto the consumer. Due the inherent intimate nature of the service industry, this effect is amplified. A happy employee creates a satisfied customer, leading to higher profits through employee retention, employee productivity, and customer loyalty.

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