Focus on Employee Satisfaction
"The three most important things you need to measure in business are customersatisfaction, employee satisfaction, and cash flow." Jack Welch - Lessons for Success, 1993
THE COSTS
Most managers know that turnover is expensive, but two-thirds of 1,290 managers were unable to quantify the cost of turnover when asked in a recent poll. The cost of hiring and training a new employee can vary greatly - from only a few thousand dollars for hourly employees to between $75,000 and $100,000 for top executives. Estimates of turnover costs may range from 25 percent to almost 200 percent of annual compensation. Costs that are more difficult to estimate include customer service disruption, emotional costs, loss of morale, burnout/absenteeism among remaining employees, loss of experience, continuity, and "corporate memory." - F. Leigh Branham, Vice President and Director of Professional Services, Right Management Consultants (one of the worlds' leading firms in human resources consulting.)
THE BENEFITS
"Between 40 and 80 percent of customer satisfaction and loyalty is determined by the customer-employee relationship, depending upon the industry and market segment. At Sears, employee satisfaction accounts for 60 to 80 percent of customer satisfaction." (Anthony Rucci, Steven Kim, Richard Quinn "Employee Customer Profit Chain at Sears" Harvard Business Review Jan.-Feb. 1998)
"When companies put employees and customers first, their employees are satisfied, their customers are loyal, their profits increase, and their continued success is sustained...
