How to Improve Customer Experience with Better Employee Experience

Customer is king.

It’s a mantra that echoes across industries, and for good reason. In such competitive markets, providing exceptional customer experiences (CX)  is essential for survival and growth. That’s why companies pour plenty of resources into delivering fast, secure, and personalized CX and going the extra mile to understand customer needs, preferences, and pain points. It fosters loyalty and drives sales — which is, of course, the ultimate goal for any business. 

But the true key to better customer experience might lie closer to home: your employees.

The Driving Force Behind Exceptional CX

Happy employees create happy customers. This may sound simple, but the link between employee experience (EX) and CX is so often underestimated. According to a poll by Gallup, businesses with highly engaged employees experience a remarkable 10% higher customer ratings.

But let’s delve more into it: Engaged and motivated team members bring an infectious energy and dedication to their work, directly impacting how they interact with your clientele. How exactly?

1. Motivation Fuels Better Service

Engaged employees are more driven to excel. They’re not simply clocking in and out; they’re genuinely invested in their work and the company’s success. This intrinsic motivation translates into a proactive approach to customer service. They anticipate potential issues, actively seek ways to improve processes, and go above and beyond to meet customer needs.

2. Positive Energy is Contagious

Enthusiasm and passion are infectious, and create a welcoming and enjoyable atmosphere for customers. Even minor setbacks are easier to overcome in a positive environment where customers feel cared for and supported.

3. Empowerment Drives Problem-Solving

Employees who feel valued are more likely to take ownership of customer problems, viewing them as opportunities to showcase their skills and commitment. They don’t shy away from challenges but embrace them with confidence. They think creatively to find solutions that go beyond the standard script and can turn negative experiences into positive ones. 

Put simply, if you come to work happy or when your work environment is happy, you’re more likely to do good work and be productive.

The Cost of Employee Disengagement

While the link between happy employees and happy customers seems intuitive, the reality is that many companies are struggling to foster a truly engaged workforce. Studies show that only one-third of employees are actively engaged at work. Even more alarming, 16% are actively disengaged, meaning they’re not just unhappy but potentially spreading negativity.

This disengagement has a ripple effect throughout your organization: 

1. Your Customer Experience Suffers… Frustrated or burnt-out employees struggle to deliver quality service. They may be less patient, less helpful, and less likely to build rapport with customers. This leads to negative interactions, lost sales, and a damaged reputation.
2. Productivity Plummets… Low morale translates to decreased productivity. Disengaged employees are less motivated and less likely to go the extra mile, impacting overall output and efficiency.
3. Absenteeism and Turnover Rise.. Unhappy employees are more likely to miss work or leave the company altogether. High turnover creates a constant drain on resources, as you’re forced to spend time and money on recruiting and training new hires.
4. Toxic Work Environment… Negativity breeds negativity. Disengaged employees can create a toxic atmosphere that affects the entire team. 

But also, quite literally, it negatively impacts your bottom line. Gallup estimates that in 2024 alone, low employee engagement cost the global economy a staggering US$8.9 trillion, or 9% of global GDP.

Happier, More Profitable

If employee disengagement has its cost, having engaged employees also affects your profitability. Research shows that companies with the highest levels of employee engagement are a remarkable 22% more profitable. 

Another research by PwC shows that companies that invest in and deliver superior experiences to both consumers and employees can charge a premium of as much as 16% for their products and services. 

This isn’t really surprising and it’s not rocket science either. 

Better EX = More Engaged Employees = Better Customer Service = Higher CSATs = More Sales = Increased Profitability = Business Growth

Now the question simply begs to be asked: if investing in employee experience (EX) has such a profound impact on customer experience (CX) and overall business success…

Why aren’t more companies making EX a top priority?

There are a few common reasons for this disconnect:

1. Short-Term Focus: In the relentless pursuit of immediate results and quarterly profits, companies often overlook the long-term benefits of investing in their workforce. 
2. Lack of Measurable Metrics: While the financial impact of disengagement is significant, it can be challenging to directly quantify the ROI of EX initiatives. This can make it difficult to secure budget and resources for such programs.
3. Misguided Priorities: Some organizations still view employees as expendable resources rather than valuable assets. This outdated mindset leads to a focus on cost-cutting and efficiency rather than fostering a positive and supportive work environment.

Thankfully, the tide is turning. As more and more companies recognize the undeniable link between customer experience and employee engagement, employee experience (EX) is moving to the forefront of business strategy. By 2028, a great 78% of companies globally are expected to prioritize employee engagement as their top HR metric, a significant jump from 60% in 2021. 

Industry giants like Google and Salesforce have long recognized the importance of EX, investing heavily in employee well-being and development programs. Their success stories serve as a powerful reminder that a happy and engaged workforce isn’t just a feel-good initiative, but a strategic advantage.

So, how can you turn the tide within your own organization and create a workforce that’s truly engaged and passionate about their work? Aside from free snacks and ping pong tables (though those don’t hurt!), here are some practical tips you can do to improve Employee Experience:

1. Provide Growth Opportunities

Stagnation is a surefire way to kill employee enthusiasm. People want to feel like they’re progressing, learning, and expanding their skillset. Providing clear paths for professional development shows your employees that you’re invested in their future and value their contributions. Here’s what you can do:

• Training and development programs: Invest in workshops, seminars, or online courses to help your employees upskill and stay ahead of the curve.
• Mentorship opportunities: Pair experienced employees with newer ones to foster knowledge-sharing and create a supportive learning environment.
• Career advancement pathways: Clearly outline the steps employees can take to move up within the company, and provide support and encouragement along the way.
• Stretch assignments and projects: Give employees the chance to take on new challenges and responsibilities that push them outside their comfort zone and allow them to grow.

Growth opportunities don’t have to be expensive or complicated. Even small gestures, like offering to pay for a relevant online course or providing time for employees to attend industry conferences, can make a big difference in their engagement and motivation.

2. Recognize and Reward Achievements

A simple “thank you” can go a long way, but regular recognition and rewards truly show your employees how much you appreciate them. Celebrate those wins, no matter how big or small! And remember, it doesn’t always have to be about money.

Think outside the box with your rewards. Maybe it’s a shout-out in the company newsletter, a chance to lead a new project, or even just some extra time off. Get to know your team and tailor those rewards to what they truly value. Some folks might love a gift card, while others might be thrilled with the chance to learn something new.

The bottom line is to make recognition and rewards a regular part of your company culture.

3. Foster Open Communication

Open communication fosters engagement and productivity. Create this by: 

• Holding regular team huddles for updates and brainstorming to keep everyone in the loop and foster teamwork
• Scheduling one-on-one chats for private discussions to discuss goals, concerns, and anything else that’s on their mind
• Implementing an open-door policy for accessibility, whether it’s a literal open door or a virtual one
• Providing anonymous feedback channels  to get honest feedback on everything from company culture to leadership
• Practicing transparent leadership by sharing company updates, goals, and even challenges with your employees. 
• Addressing issues head-on to demonstrate that you value employee feedback and are committed to making things better

In a work environment where information flows freely and employees feel comfortable sharing their ideas and concerns, engagement and productivity naturally flourish.

4. Prioritize Employee Wellness

Wellness programs are an investment in your most valuable asset: your people. Investing in wellness programs shows your commitment to their overall health, leading to a happier, more productive workforce. It’s a win-win situation! Research shows that 89% of employees working for companies with wellness programs report being engaged and happy with their jobs.

Here are a few initiatives to get you started:

• Offer gym memberships or on-site fitness classes.
• Prioritize mental health with counseling or stress management workshops.
• Embrace flexibility with remote work options or flexible hours.
• Provide healthy snacks to boost energy and well-being.
• Offer confidential support through Employee Assistance Programs (EAPs).

Remember, a healthy workforce is a happy and productive one. 

5. Invest in Personal Development

Happy employees aren’t just skilled; they’re also self-aware, emotionally intelligent, and equipped to navigate workplace challenges with poise. Personal development goes beyond job-specific training; it’s about nurturing well-rounded individuals who bring their best selves to work every day.

An employee who is confident in their communication skills and equipped to manage stress is more likely to remain calm and collected even when faced with a difficult customer. They’ll be better able to listen actively, empathize with concerns, and find solutions that leave everyone satisfied. This translates to better customer service, improved CSAT scores, increased loyalty, and a stronger brand reputation.

So, yes! Invest in workshops on communication and leadership, provide emotional intelligence training, and do more team-building activities. 

6. Stay Consistent and Avoid Employee Entitlement

The good news is, you don’t have to tick every box or overhaul your entire company overnight. Even small steps in the right direction can make a big difference. Start by identifying one or two areas where you can make immediate improvements and build from there. The key is consistency. Regularly assess your employee experience strategies, gather feedback from your team, and make adjustments as needed. 

Now, here’s the catch: while it’s essential to create a supportive and engaging work environment, it’s equally important to strike a balance and cultivate a culture of professionalism and mutual respect. Showering employees with endless perks and benefits without setting clear expectations and boundaries can backfire. It’s sad, but it’s true. 

Instead of fostering a motivated and productive workforce, you might inadvertently create a sense of entitlement and complacency. Employees may start to view perks as rights rather than privileges, and their focus may shift from contributing to the company’s success to maximizing their personal gains.

• Set clear expectations from the start.
• Maintain transparent communication about company goals and challenges.
• Tie rewards and recognition to performance.
• Provide constructive feedback to address performance issues promptly.
• Lead by example, demonstrating professionalism and accountability.

Make the Change and Invest in Your Employees

It’s a little daunting to throw in the word invest in this context, especially when the ROI isn’t immediately tangible. But the truth is: the best investment you can make is an investment in your people. It’s time to reframe your thinking. Your employees aren’t just cogs in a machine; they’re the face of your company, the heart of your operations, they’re the architects and foremen of exceptional customer experiences. 

Your employees interact with your customers daily, shaping their perceptions and influencing their loyalty. When they are engaged and enthusiastic, that positivity shines through in every interaction, creating a ripple effect of satisfaction that extends far beyond the walls of your business. It’s not just common sense to ensure they’re happy, motivated, and committed to your shared success – it’s crucial for your company’s long-term health and prosperity.

So, take that first step today. Start small, be consistent, and watch as your investment in employee experience transforms not only your workforce but also your customer relationships and your bottom line. Because at the end of the day, happy employees aren’t just a feel-good story; they’re the actual driving force behind a successful and sustainable business.