Part I

In Part I we discussed some of the reasons why employees defect and we will continue this discussion in Part II.

THE SERVICE-SATISFACTION LINK

There is definitely a link in the customer service arena between the quality of service the customer receives and their levels of satisfaction. The better the service, the more satisfied the customer. And, when the customer is more satisfied, he or she is usually more loyal to the service provider.

The same is true for employees. The quality of service we provide to employees will determine their level of job satisfaction. The higher that satisfaction level, the greater the probability that they will stay on the job longer. Positive emotions that come from job satisfaction will enable and empower the employee to better withstand many of the current causes of turnover: e.g., burnout, lack of appreciation, better financial opportunities elsewhere.

And, there is a service-satisfaction link between employee retention and higher levels of customer satisfaction. Customers prefer dealing with the same employees over and over again. Employee turnover destroys a customer’s confidence in the company. Just like a customer does not want to have to “train and educate” a new provider, they do not want to do the same for your “revolving door” employees. So, the key is to keep employees so they in turn will help you keep your customers. This link creates a very virtuous cycle where radiology managers will work hard to serve and satisfy employees so that other customers will, in turn, be highly satisfied.

One last point must be made about this link. While there is a definite relationship between satisfaction and loyalty, companies must work overtime to strengthen that loyalty link. If a company wants a loyal employee, the company must first show loyalty to the employee. Great service, respect and trust will help develop that employee loyalty. Show the employee you care about him or her. Don’t undermine their efforts to perform. Focus on their needs first, ahead of the company’s needs. They, in turn, will put the company first. This is the same thing you do for external customers, and now you must do it for your employees (the internal customers).

FROM CUSTOMER RELATIONSHIP MANAGEMENT (CRM) TO EMPLOYEE RELATIONSHIP MANAGEMENT (ERM) and C/ERM

Depending on whom you speak to, or which survey you believe, the number one issue in business today is either how to retain customers or how to keep employees. Although I think they are equally important, companies spend more time working on their customer relations and retention efforts than they do on their employee relationships and retention. I repeat this point here because it is so important to the success of your employee retention efforts.

Employee retention is as important, and possibly even more important, than customer retention when it comes to making a business successful. With turnover rates continuing to accelerate in the industry, and when the cost of recruiting, training and replacing an employee can easily exceed the cost of losing or acquiring a new customer, employee retention truly deserves to be at the top of every manager’s list. (I repeat myself again deliberately to drive home the point that retention is everyone’s job, and that it is a company process, not a program.)

Remember that employees leave their job for three primary reasons: another job (better work environment, including relationships with managers, more responsibility or more money), excessive stress (too much to do in too little time or unrealistic performance expectations), and work/family/life issues (relationships at home or on the job or life balance). It is now imperative for managers to develop ways to help employees balance all the demands of their job with their desires for a life outside of work. This requires companies to take an innovative and individualized approach to employee relationship building and retention.

Since the techniques of this process mirror the activities of customer service and customer relationship management, I call the combined process C/ERM for Customer/Employee Relationship Management. Both activities must be going on simultaneously to create a loyalty link that ensures customer satisfaction and retention through employee service, satisfaction and retention.

7 WAYS TO DEVELOP YOUR C/ERM PROCESS

Recruit with Integrity

The first thing to do is to recruit employees using integrity. Let them know during the interview process exactly what the demands and expectations of the job are. Let them see the other employees at work, under pressure, and being responsive to customers. Never try to sell a job as something it is not. Whatever you promise to the employee, you must deliver on, the same way you do with customers. If you do, you’ll find that your front door swings open and your back door stays closed. If you overpromise about the job and underdeliver, employees may stay a few months, but most of them will start to leave when the reality of the job differs from the painted perception of the job.

When a company markets their products or services to customers, they make a direct or implied promise to deliver something that satisfies a customer’s needs. Then, they must keep that promise or customers will defect to a competitor. The same holds true for recruiting and hiring employees. If you want them to be loyal and stay with you long-term, you must keep your promises. Brand promises to customers are the same as brand promises to employees. They both must be kept.

Create an Employee-Based Culture

Let your employees know that the company and their manager is behind them 1000%. Focus on doing what is best for the employees and they will, in turn, do a great job for the company and the customers. Provide them with the right equipment and working technology, a safe and comfortable working environment, and include them in decisions regarding things that will affect them. Ask their opinions about how to make the company or department a better place to work. Show them you care.

If you are like most businesses today, you will be promoting a culture of customer relationship management. This will be your driving force. Your employees will be expected to learn as much about customers as possible, serve and relate to customers at each point of contact, and do whatever it takes to retain those customers.

Similarly, you must promote a culture of employee relationship management. The employees are your driving force and it is they who will make you CRM program work. You need to have a pro-employee culture in your organization to ensure long-term customer and employee loyalty. You may even want to consider making your culture one where the employee comes first and the customer comes second.

Individualize Reward and Recognition Programs

Although one size doesn’t fit all, too many businesses are involved in standardized “corporate rewards” programs. Someone, somewhere, designed these programs and it was supposed to motivate and incentivize all employees to perform well. Unfortunately, cookie-cutter reward and recognition programs only work for a few people some of the time, and the only reason they work is because they are exactly what those people want. The reason these programs don’t work for others is because the rewards and recognitions are so far removed from what they truly want. The lesson here is to ask employees what they want in the way of rewards and recognition. You may be surprised to receive answers other than money; things like childcare, sick care, wellness days off, dinner certificates, movie tickets, spa days, gold stars, smiley faces, thank you notes, and literal pats on the back.

Businesses put a great deal of time into their customer loyalty and frequency marketing programs. They focus on how to track customer purchases and what rewards should be associated with each level of contribution. Unfortunately, they do not put the same amount of effort into their employee reward and recognition programs. If they would just do that, they will find that the employees are more productive, more service oriented, more satisfied, and more loyal. They will also stay with you longer.

Professional Development and Career Paths

All CRM/call center employees are as professional as management employees. No job in a company today is beneath any other job. Years ago, customer service personnel were relegated to the bottom rung on the ladder. Yet, they were the ones with the most customer contact and who knew the most about the customers. They are the ones who can literally make or break the business. Companies today are finally realizing that. The point is, if a company wants to create employee loyalty, and if companies are going to “pontificate” about the importance of each job’s contribution to the success of the business, then they must treat all with the respect they deserve. By creating opportunities for professional development (holding in-house training classes or sending people to outside programs), establishing career paths and succession plans (such as moving from a staff position to team leader or to supervisor), and by publicly acknowledging the contribution of each employee to the company’s success, management will be going a long way to reducing employee turnover and increasing retention.

Remember, though, that this approach will only work for those employees who want to progress in their careers. It is not a retention tool for everyone, but if it is a process employees can follow, then they will most likely stay with your company.

Compensation and Benefits

Every employee is concerned about their income and their benefits. If a company talks about how important the employee’s job is, but pays poorly and has a minimal benefits package (like occurs in many call center/CRM situations), then this incongruity will be met with turnover. If you truly believe that each employee is vital to the company’s success, then you must pay them accordingly and provide them with a benefits package that is both fair and comprehensive. Fairness, justice and trust motivate employees to stay with their employer longer.

This is no different than the way a company treats its best customers. The best customers, those who make the greatest contribution to a company’s profit picture, receive preferential treatment from the company. They are given better value for their purchases and they have a different relationship with the company than “regular” customers have. The company also works harder to retain these customers than others in the customer hierarchy. Companies must do the same thing for employees. Again, you must remember that when financial needs are satisfied for employees, other things will determine whether they stay or leave. It is not always about the money.

Longevity and Loyalty

Here’s a radical suggestion, and it comes from my work developing performance improvement and performance management programs for companies. Instead of trying to constantly recruit new employees, find out what makes your loyal and long-term employees stay. Then, give them more of what they want so they will stay as loyal employees longer. Also, start to give other employees similar things so they will stay with you. Recognize and reward longevity and loyalty for employees the same way you would for customers. In fact, treat employees as the primary customers they truly are. Your appreciation of them will be returned by increases in employee satisfaction, productivity and retention. This will be followed by similar increases on the customer side.

Richard F. Gerson, Ph.D. is the President of Gerson Goodson, Inc., a Clearwater-based marketing consulting firm specializing in customer relationship management, sales performance improvement and employee development and retention. The company works with clients to develop relationship marketing programs that increase sales while simultaneously retaining profitable customers through the creation of a powerful CRM strategy. Company: Gerson Goodson Inc.