Blog Post 12-27-11

Use Employee Satisfaction in Performance Management to Create Long-Term Success

A recent blog from Kenneth Freeman published by Harvard Business Review suggests that to fix any system you have to focus on long-term value. Moreover, the key to long-term value, for American taxpayers or an organization's stockholders, is through employee engagement.

A simple way to help achieve this goal is to evaluate and compensate senior executives, at least partly, on their ability to "create a culture of aligned, engaged employees." In short, employee satisfaction equals customer satisfaction. So using employee satisfaction as a component of performance management can help your organization create long-term value.

In Freeman’s situation, “The attrition rate turned out to be 45%. Engagement with employees was poor; there was little internal communication and no surveys of employee loyalty or efforts to improve it. "Our employees were conducting laboratory tests on which lives depended and yet they, the employees, literally didn't count.” While your organization may not have people’s lives in their hands, in the end poor customer service could still fatally ruin your bottom-line or wasted taxpayer money.

Freeman describes employee satisfaction as treating employees with dignity, respect, and fairness while helping them see how critical they are to the company. His suggestion – incorporating employee satisfaction into performance management – means evaluating and compensating senior executives, at least partly, “on their ability to create a culture of aligned, engaged employees.”

Five steps that can move you closer to this goal include:

  1. Providing job clarity
  2. Defining goals and expectations
  3. Increasing face-to-face interaction
  4. Communicating positive feedback
  5. Offering further training and education
In reality, it is difficult for employees to focus on the customer’s wants and needs, if their own wants and needs are not being met. Helping executives make the connection between employee satisfaction and customer satisfaction is not only an important aspect of performance management, but it is vital to the long-term success of the organization.

That’s where CI International can offer their expertise. With years of experience in training and professional development, CI’s experts can help you lead more effectively and manage more productively. Let us provide you with the tools to create a company culture that embraces employee engagement and customer satisfaction.