What does employee satisfaction have to do with customer satisfaction? Swedbank Date
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1 What does employee satisfaction have to do with customer satisfaction?
2 How can a higher level of employee satisfaction also improve customer satisfaction and thereby increases a company's profitability. Engagement Motivation Empowerment Management quality - customer satisfaction - profitability. 2
3 Agenda Who am I? How do we as HR make a difference for the business result What does employee satisfaction have to do with customer satisfaction and thereby increases a company's profitability.
4 Who am I? Head of HR for Group Asset Management covering 5 markets BA in the field of HR from Stockholm University Done; Project Manager both HR and business challenges Leadership Training HR Director in EnterCard International. Part of building two cross border organizations where main effort goes to harmonize and develop HR function over 4 countries - Sweden, Estonia, Latvia and Lithuania. 4
5 How does HR make a difference business result Push Strategic workforce planning Talent management Pull Coaching Processes Present Believe in the business, products, brand Create pre-requisites for the manager to succeed Understand what competence is needed in long and short term What language do we use? Speak up!!! First 7 minutes! Take on roles as Chairman and Project Manager What stops you making more money? What competence do we need in 2 years from today? How do we get there? What keeps you awake in the night? 5
6 Reflect in % Push vs Pull? If you would re-start your last week, what would you have done different?
7 How can a higher level of employee satisfaction also improve customer satisfaction and thereby increases a company's profitability.
8 Correlation between working climate and profitability 8
9 "People" companies do outperform Cumulative growth rate of share price (%) People companies outperform the market average in eight out of ten years +109 Companies that made Fortune's "100 Best Companies to Work For" list at least three times in the past ten years S&P percentage pointsven Average growth rate of companies' share prices in percent (weighted by 2001 share prices), dependent on sample composition for each particular year Based Swedbank on end-of-year Date closing prices Source: 2012 BCG/WFPMA proprietary web survey and analysis
10 10
11 11
12 Correlations 12
13 Employee satisfaction is the foundation for building employee engagement The purpose of the Employee Satisfaction Index is to identify and eliminate obstacles for a work climate that promotes efficiency, profitability and engagement By analyzing the relationship between profitability and employee related data, 11 important questions are identified Trust in management stronger employer brand higher likelihood of recommending products & services
14 Providing feedback is essential to strengthen employee performance 2011 FORTUNE World's Most Admired Companies One of the most important levers to increase employee performance is to provide regular feedback. Regular feedback is emphasized, rather than the formal annual performance discussions. 14
15 The Net Promoter Score measures employer attractiveness and employee loyalty pnps: How likely are you to recommend the products and services of your company to a friend or colleague? enps: How likely is it that you would recommend the company to a friend as a place to work? Extremely likely Not at all likely Promoters Detractors Promoters (score 10-9) are loyal enthusiasts who have a great relationship with the company and who actively promote the company as an employer. Passives (score 8-7) are satisfied but unenthusiastic employees, who can be easily wooed by other companies. Detractors (score 6-0) are unhappy employees trapped in a bad relationship. 15
16 Get it done! Identified and eliminated obstacles to efficiency and profitability Evaluated and improved leadership Increased employee engagement Improved employer attractiveness Belive yourself and belive your products before starting negotiation with your customers. Improved internal efficiency Improved customer loyalty Improved growth and profitability
17 Einstein is quoted as having said that if he had only one hour to save the world he would spend fifty-five minutes defining the problem and only five minutes finding the solution. 17
18 Questions
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