There is now hard statistical evidence of a causal relationship between employee satisfaction, client satisfaction and results--in all types of companies. Long-term growth and profitability start with employee satisfaction, loyalty, sense of team unity and productivity. 

Employee satisfaction today equals customer satisfaction tomorrow, equals growth and profitability the day after tomorrow.(1)

Employees' attitudes towards their companies and their jobs lead to positive employee behaviors towards customers.(2)

Productive mutually beneficial behaviors correlate with job satisfaction, perceived fairness, organizational commitment, and leader supportiveness.(3)

Conscientious employees go beyond customer expectations. Altruistic workers help internal and external customers, making suggestions to improve quality and customer satisfaction. Courtesy, civic virtue, sportsmanship, and altruism were positively correlated with financial results and customer satisfaction.(4)

According to a large-scale empirical study, which includes data from more than 300,000 businesses, boosting morale can raise profits 40%.(5)

Let's say, for example, that you have 100 employees. If your company is anything like the 300,000 businesses included in the study, between 50 and 60 of your people are not doing their best work, probably because you haven't found a way to get them excited about your goals or to make them feel that their own needs and contributions are important. On top of that, you have 15 to 20 employees who are disengaged. They're just showing up (or, frequently, not), are just going through the motions, and they might quit at any moment. So in all, 75% to 80% of your people are achieving much less and feeling far less enthusiastic about their work than they could be.

So what does that really mean? 

If all of your employees were fully engaged, meaning playing at the top of their game and happy about it, your customers would be 70% more loyal, your turnover would drop by 70%, and your profits would jump 40%.

The newest research finds that most companies operate as if employees and customers were completely rational. Unfortunately, this is just not so. 

We are first and foremost emotional beings. Our highest-level goals are set by emotion, not reason.  It makes sense then, that if you want charged-up employees and customers who love you, you have to grab them by their heartstrings.   Team motivation and training in emotional intelligence therefore become essential.

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1 Source: Advertising Age, 4/28/2003, Vol. 74 Issue 17, p24, 1p
2 Source: Rucci, Kirn, & Quinn, 1998
3 Source: Organ & Ryan, 1995
4 Source: Walz & Niehoff, 1996
5 Source: FSB: Fortune Small Business, Sep 2002, Vol. 12 Issue 7, p58, 1p

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