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06 June 2005

Employee engagement study

A new study from Northwestern university has confirmed the links between employee engagement and financial performance. You can download the report here.  Key findings from the study include the following:
There is a direct link between employee satisfaction and customer satisfaction, and between customer satisfaction and improved financial performance.  
The key organizational characteristic for explaining employee satisfaction is organizational communication (a measure of  the downward and upward communication in an
organization).
It is an organization’s employees who influence the behavior and attitudes of customers, and it is customers who drive an organization’s profitability through the purchase and use of its products.

Thanks to Neville Hobson for the pointer.

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Blog Power

Thanks Trevor for pointing to this research report. I had heard of this study, but forgot who had sponsored it. I needed the information and am so glad to find it referenced here in your blog.

Thanks - you've helped me stay informed.
Joe

Great study, a long time ago we use to say employee satisfaction drives customer satisfaction which drives revenue, then nobody seemed to wanted to talk about the linkages openly. It is good to see it is coming back on to the agenda.

Do you have a link for the Northwestern Study?

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Trevor Cook

  • Trevor is a doctoral student in politics at the University of Sydney. He also tutors in the area of Australian foreign and defence policy. He has been blogging since November 2003 and over the past decade he has written many articles on politics, public relations and social media for newspapers, magazines and websites (ABC Unleashed, Crikey, New Matilda and Online Opinion).

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