Abstract
This paper reports evidence of a direct relationship between employee satisfaction and customer satisfaction as they are linked in the balanced scorecard. The objective was to propose a framework that shows the linkage between employee satisfaction and customer satisfaction and to undertake some preliminary testing of this framework. An empirical study was undertaken in an airline business which investigated these relationships between employee and customer satisfaction and the correlations between these performance measures. The relationship between the key drivers of employee satisfaction and the key drivers of customer satisfaction was also investigated. The study provides empirical evidence supporting several linkages.
Highlights
Collecting data from both employees and customers to measure performance in service businesses is not a new strategy
The results of the study suggest that the working conditions factor (t-value = 3.940) is the factor which best relates to employee satisfaction
Correlation is significant at r > 0.80 Significant at *p
Summary
Collecting data from both employees and customers to measure performance in service businesses is not a new strategy. Despite consistent calls for more research to incorporate both types of factor, the number of studies that link customer satisfaction with employee satisfaction is still limited (Baker & Fesenmaier, 1997; Zeithaml, 2000). Personal interaction between customers and employees, in relation to service businesses, is receiving increasing attention (Bettencourt & Gwinner, 1996). The activities of employees within a service business connect the business with its customers (Gronroos, 1990). These activities are critical factors in developing effective working relationships with customers (Gwinner, Gremler & Bitner, 1998). Management of customer and employee interactions in service businesses and the manner in which customers evaluate individual service businesses play an important role (Bitner, 1990). Customers who are satisfied with the service they receive are likely to remain loyal to the business
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