Stop Obsessing About the Job Satisfaction and Customer Loyalty—Focus on Performance

I have noticed an increased interest in the desire of call centers to improve their job satisfaction level. Now before I say anything else, I want to be very clear: Job satisfaction in a call center is important, but it is an acutely complex issue and must be considered in context with many other organizational objectives. I think some of the recent interest is due to the bad economy. Managers feel that their call center operators are depressed and they need to do everything they can to make the operators happy. Furthermore, it is assumed that if the call center operators are happy (high job satisfaction), they will be more productive and nicer to customers, which in turn leads to increased levels of customer loyalty. Not so! There is nothing in legitimate research that suggests there is a correlation between high job satisfaction and increased productivity and customer loyalty.

The search for this relationship has been kind of like the quest to find the Holy Grail. There are some studies that indicate that job satisfaction and turnover and absenteeism are related, but overall, the relationship between job satisfaction, performance, customer satisfaction and loyalty has been elusive and not proven.

Some of this recent interest in job satisfaction of call center managers emanates from a well-intended but misdirected search for a silver bullet or a magic pill. “If I could just find out what makes my call center operators unhappy and fix it, then I will have job satisfaction.” No, no, no! That clearly is not true. Frederick Herzberg, a professor at the University of Utah, addressed this issue 50 years ago. He reported that people are made dissatisfied by a bad work environment, but they are seldom made satisfied by a good environment.

Herzberg explained that all jobs are comprised of “hygiene” factors such as working conditions, pay, supervision, policies, physical environment, etc., which must be maintained in order to create an atmosphere where employee motivation (job satisfaction) can occur. But solving “hygiene” problems will not make workers motivated and certainly will not lead to job satisfaction. For example, suppose there are immense parking problems at your call center. Not an uncommon occurrence, by the way. Do you think if you make parking close by and easy for all operators to access you will create a higher level of job satisfaction, or a higher level of productivity or motivation? Of course not! All you do is make them not unhappy with parking.

Pay is a big “hygiene” factor. Increasing wages will not solve job satisfaction problems. In fact, if you overpay people, it will lead to a higher level of dissatisfaction than before. I will talk more about this in a future column.

Now don’t despair, there is hope and strategies you can embrace that will lead to higher job satisfaction and customer loyalty. This involves an intense focus on employee performance. I maintain that if people are performing adequately and at a fair level, they are more likely to have a high level of satisfaction. This is one of the conclusions of Professor Ben Schneider at the University of Maryland, who was the recipient of the 2009 Michael R. Lacey $50,000 Human Resource Research Award. Loyaltymyths.com, writing about Dr. Schneider’s research, states, “It is not how happy your employees are that helps satisfy customers and improve business results. What really matters is how well equipped your employees are at accomplishing their duties. Schneider created the concept of a service climate: an atmosphere and conditions that enhance employees’ ability to properly carry out their responsibilities.” What this means to me is that good performance leads to job satisfaction and customer satisfaction and loyalty.

The nice thing about this approach is that performance is much easier to observe, measure and reward than is job satisfaction. You can’t observe job satisfaction. It can only be measured via a survey. There is some value to conducting a survey to measure job satisfaction. A survey can show leaks in the boat or the “hygiene” factors that need attention.

Stated another way, job satisfaction, customer service and customer loyalty are not problems; rather they are symptoms of the real problem: inadequate performance! It’s equivalent to taking an aspirin to alleviate a headache. The pain will temporarily disappear, but will return unless the cause of the headache is treated.

So, anything your call center can do to fairly increase and maintain performance will do more for job satisfaction and customer loyalty than any other methodology I am aware of. How about clear and fair work expectations, or constant and consistent recognition?

Please understand that nothing I am saying should be interpreted as a license to treat employees unfairly or abuse the fundamentals of good employee relations. A total focus on performance without consideration to the need of any employee to work in a positive environment will only lead to long range problems of turnover, absenteeism, internal strife, and filed complaints. But it is unrealistic to assume that efforts to increase job satisfaction will lead to high-performance, customer satisfaction, and customer loyalty. I know it sounds trite, but busy hands are happy hands.

Report Abuse   jp.seabury 11/08/2009 8:14:02 PM EST Why do you have to STOP obsessing about Job Satisfaction and Customer Loyalty when you focus on Performance? Doesn't it make more sense to spend a reasonable and balanced amount of management attention on all three? Replies (0) Post a reply Sign in or Sign up to post a comment

Report Abuse   bsdalton 11/04/2009 3:11:55 PM EST Just a brief comment. I respectfully suggest that 1. your point of view is outdated and 2. the analysis misses the point. Referring to CSR/contact center agents as ''call center operators" is evidence of #1. As for #2, "happy" is a subjective term. I don't think many people are lamenting over making their agents more "happy". However there is clear, undeniable evidence that companies that put employees first (even over customers) and empower them have the highest levels of customer satisfaction. There is a direct correlation. Examples include Zappos, Southwest, Ritz Carlton. Heck, its in Wegman's mission statement. All exemplary performers consistently on customer loyalty. Finally, I'm not seeing the cause and effect between performance and customer satisfaction. Performance is subjective, base on the metrics used to measure. If the performance KPI is CSat, then sure. But if its calls per hour, probably not. "Schneider created the concept of a service climate: an atmosphere and conditions that enhance employees’ ability to properly carry out their responsibilities" Doesn't this translated to empowerment? Thanks for the post! Replies (0) Post a reply Sign in or Sign up to post a comment

Report Abuse   bernielubran 11/04/2009 1:56:34 PM EST Dr. Mitchell: I have a comment regarding your statement that "there is nothing in legitimate research that suggests there is high correlation in job satisfaction and customer loyalty." Customer loyalty is not necessarily the best metric for organizations to use to measure success. Rather they should focus on customer satisfaction, where there has been a lot of research conducted at the University of Michigan and reported out in HBR and scholarly, peer-reviewed journals that demonstrates a direct and strong linkage between employee satisfaction, customer satisfaction and business results. The American Customer Satisfaction Index is a methodology developed at the University of Michigan based on the research referred to above that call centers are using as a success metric. Bernie Lubran Replies (0) Post a reply Sign in or Sign up to post a comment