Linking employee recognition programmes to customer satisfaction

What customers expect from the essential services companies that serve them is constantly changing. In the water sector, for example, customers have recently been exposed to an increasing amount of negative reporting of the sector and infrastructure challenges that have unsurprisingly impacted their satisfaction. Earlier in the year, the UK customer satisfaction index, from the Institute of Customer Service, highlighted customer satisfaction score with the water sector was down 3.5 percentage points compared to last year.

Whilst this downward trend is visible across all industry sectors, including the broader mix of utilities, it is still concerning for water companies. But where should water providers look to improve their service offerings?

Of course, top of the list is to increase the amount of support they offer directly to customers and ensure they are in regular contact. But how many providers have taken the time to reflect on the impact that internal recognition programmes have on customer satisfaction? A happy employee can directly impact the happiness of a customer.

All water companies will rightly have employee recognition programmes to encourage internal development and job satisfaction. But as customer satisfaction dips, the link between these employee recognition programmes and customer satisfaction should not be underestimated.

The value of customer insight

It is important to take various factors into consideration to improve existing programmes and increase customer satisfaction. One of the most notable of these is customer preferences and expectations during the customer service journey.

The aspects of customer service that are most important to customers should be woven through internal recognition programmes. Questioning customers on what they value most from a customer service experience is common practice and a regular occurrence for water providers, but using the results to directly inform employee recognition plans may not always be considered.

By analysing customer feedback, recognition programmes can be tailored to individual employees or teams based on their performance and the aspects most valued by customers. This makes recognition more meaningful and impactful when it's delivered. But it’s not just areas of improvement that are highlighted through customer surveys, positive feedback can also inform programmes. Telling employees about good feedback helps them to see the direct impact their efforts are having on customer satisfaction. This is a powerful motivational tool for team members to keep striving for high-quality service.

Continuous improvement and innovation

Every workplace should foster improvement and innovation, and customer facing operations such as contact centres should be no different. Employees who feel empowered and valued are more likely to suggest changes that can improve the wider team’s performance - consequently driving up the quality of service provided to customers.

This should be encouraged through employee recognition schemes.

Employees should be regularly asked what they would like to see within their workplace - whether that’s operational changes, events or activities. It is important to support those on the front line to raise ideas that can improve processes for greater customer satisfaction, and recognise them for doing so. After all, they are the people with the first-hand experience.

Beyond increasing satisfaction, acting on feedback also sends a very clear message that employees’ feelings and opinions are respected and that they too have a stake in the future of the business.

A team-first approach

A traditional recognition process encourages employees and their managers to nominate those doing good work for a reward. This system of peer-to-peer nomination can lead to improved collaboration and knowledge sharing amongst teams.

But it's not just an individual-specific approach. A holistic programme should recognise both individual and team performance. A customer’s journey may touch various teams and people in the contact centre and beyond, and the whole journey counts. This means making sure recognition programmes motivate the entire team to strive for greater satisfaction.

Recognition needs to be accessible to all. This means giving both front-line and back-office teams an equal opportunity to be recognised. Whilst the work they may do is different, it all contributes to the customer journey, so it’s important that recognition programmes are inclusive to multiple roles in both the office and the field as they are designed. Nobody should feel that they don’t have a stake in the business’ mission to provide a high-quality service.

In addition, any reward scheme needs to be clearly designed so it's easy for people to participate. If a programme is too complex and requires too much effort, momentum will be lost, and any progress will be halted.

Driving engagement and career opportunities

Customer service is still too often considered by some to be a ‘low-skilled’ role or an ‘entry-level’ job, but this is far from the truth. contact centre agents rely on a varied mix of skills, knowledge, and experience every time they interact with a customer, so businesses do well to encourage those who are keen to learn and progress.

Creating structured career pathways to help people identify their future goals is essential to driving engagement and overall customer satisfaction. Retaining highly trained and skilled talent will always be valuable to a business. But beyond that, agents should be encouraged to learn new skills, even for roles outside the contact centre, to enhance the service offering available to customers.

Giving people a career that is valuable to them, where they want to make meaningful changes can revolutionise the business and its customer satisfaction.

Final thoughts

It’s true that a little appreciation goes a long way. We mustn’t forget just how much internal recognition can improve customer service offerings and in turn boost customer satisfaction.

Agents who feel supported and motivated are better equipped to provide the standard of service that customers expect, especially when many are facing financial strain. As customer priorities evolve and change, employee recognition programmes need to be adapted to reflect them. Over time, acts of recognition and reward will translate into a happier and more driven workforce, which can produce and support a more satisfied customer base.

Hannah.