Happy Employees=Happy Customers

According to Glassdoor’s Andrew Chamberlain and Daniel Zhao, the key to happy customers is happy employees. Linking with data from the American Customer Satisfaction Index (ACSI), Chamberlain and Zhao found a strong correlation between companies rated highly on Glassdoor by employees, and top performing companies on the ACSI.

Why does this matter? Because research intuitively shows that high customer satisfaction has a positive impact on the bottom line. The authors cite that a 1-star improvement in Glassdoor employee satisfaction ratings for a company translates to a 7.8–18.9 percent higher stock market valuation.

In related research by Glassdoor, the workplace factor that most drives employee satisfaction is not compensation and benefits, but culture and values. The data from millions of employee reviews of companies concludes that, “culture and values of organizations, the quality of senior leadership teams and career opportunities matter far more than pay or work-life balance for the long-term satisfaction of employees.” 

What is organizational culture, and how do you build one that is strong and positive? SHRM’s toolkit for “Understanding and Developing Organizational Culture,” offers a definition of culture as “the collection of words, actions and behaviors that clarify and reinforce what is truly valued inside an organization.” Organizations that focus on culture typically engage in conversations among leaders and employees to identify values that have evolved based on customs, traditions and behavioral norms. To develop culture, organizations must consider how hiring practices and performance management reflect and support the culture the company wants. Employee communications, assessments, and programs help to measure and sustain a deeply shared, rewarding organizational culture.

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