All Posts Tagged With: "Sears"
Employee Satisfaction Pays — Big Time
I’ve seen this story several places and it shows a correlation few understand. In the early 1990s, Sears was losing as much as four billion dollars a year on $50+ billion in sales. It used the employee-customer-profit chain to assert that revenue creation starts with employee attitudes and satisfaction, which affects customer satisfaction, which affects revenue and profits. It made this assertion believing the correlation to be true, and then it set out to prove it.
Nearly three-fourths of its workforce was part-time and turnover among this group was high. To understand why, Sears began surveying employees about their attitudes and satisfaction and correlating the results with customer satisfaction results and financial data. They got their proof.
According to the data, a five-point improvement on their employee attitude scale produced a 1.3% improvement in customer satisfaction, which, in turn, boosted revenue by 0.5%. On sales of $50 billion, that’s an increase of $250 million a year!
And the benefits don’t stop there. More satisfied employees work for Sears longer, which reduces turnover and lowers the costs associated with finding, hiring, and training new employees. More satisfied employees also recommend the company to family and friends, which increases sales.
In other words, Sears discovered that…
13Aug2009 | Steve George | 0 comments | Continued
