Research Studies

""Linking Organizational Characteristics to Employee Attitudes and Behavior"

Dr. James L. Oakley
Northwestern University Forum for People Management & Measurement, February 2005.

According to this study from Northwestern University’s Forum for People Management & Measurement, there is a direct correlation between employee satisfaction and customer satisfaction, and customer satisfaction and financial performance. The study examines the attitudes of employees who do not have face-to-face interaction with customers but impact the consumer’s experience. As such it draws on a larger pool of workers than previous studies that have examined employee satisfaction, customer satisfaction and bottom-line outcomes.

Among the key findings:

• Effective communication between employees and management is the key factor impacting employee satisfaction.
• Employee satisfaction is an important precursor to employee engagement.
• A workplace culture that encourages teamwork but allows workers to “provide a voice for the customer within the organization” is another significant driver of employee engagement.
• Companies with engaged employees have more repeat customers with higher levels of satisfaction.
• Satisfied customers are less expensive to serve, use the product more and are, therefore, more profitable.

The study sampled 5,568 employees at 90 organizations in the U.S. media industry and 37, 036 customers.

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