Wellbeing at Work Wins: The Customer Experience Crisis

So far in this blog series we have seen both the individual and the organizational costs of the employee wellbeing crisis. However, the ripple effect does not stop here. The wellbeing of employees in customer-facing roles in particular can make waves far beyond just internal company operations. 

We already know that if an employee is struggling with their wellbeing they are more likely to be dissatisfied with their workplace and disengaged from their work. There is a final stage in this trickle down effect: the deterioration of employee performance. In a similar way that work and life cannot be separated, headspace and performance are closely connected. Therefore, when dissatisfaction and disengagement run high there can be severe repercussions for the customer experience.

How can poor employee wellbeing spiral into a customer experience crisis?

Happy employees create happy customers and vice versa, it’s as simple as that. Poor employee wellbeing directly impacts the customer experience in two major ways: the continuity of service and the quality of service.

1. The Cost to Continuity of Service

   1. As we have already seen, burnout can lead to higher absenteeism and turnover rates. In the midst of high turnover, essential customer knowledge is lost and employee faces change. Customers value familiarity and consistency, both of which are compromised when turnover is high (McKinsey & Company, 2021). 

2. The Cost to Quality of Service

   1. Poor well-being can impair an employee's ability to build rapport with customers and address customer needs effectively due to stress and lapses in emotional empathy. Customers are more likely to be dissatisfied with service quality when employees lack empathy and responsiveness in relation to their concerns (Journal of Service Research, 2017).

   2. Burnout and poor wellbeing lead to low energy levels, motivation and disengagement - customers can sense this. Customers prefer to interact with highly engaged employees who are willing to go the extra mile for them (Harvard Business Review, 2020). In fact, the Institute of Customer Service identified employee engagement as one of the top three factors influencing customer service (ICS, 2014).

Consistently poor customer service leads to a downward spiral from low client satisfaction to loss of trust and finally to customer attrition. The financial implications coupled with reputational damage are the aftermath. 

The financial implications can be relatively immediate. Thirty-two percent of customers would stop doing business with a brand they love after just one bad experience (PwC, 2021). Having lost a customer the next logical step is acquiring a new one but word of mouth discouragements can go a long way in blocking this step. Eighty-one percent of consumers need to trust a brand before buying from them (The Edelman Trust Barometer, 2022). In essence, what may seem like a singular poor customer interaction actually escalates into a myriad of financial and reputational damages.

How can we keep everyone happy?

“Our belief is that a company’s culture and a company’s brand are just two sides of the same coin. The brand is just a lagging indicator of the culture.” – Tony Hsieh, Former CEO of Zappos

When the connection between the employee experience of work and the customer's experience of service is so interconnected it is clear that employers must act. There is hope for restoring customer confidence and mitigating the impact of poor wellbeing on customer experience. 

1. Foster a Customer-Centric but Employee-Friendly Culture: While pleasing the customer is critical for business success, it should not come at the expense of employee wellbeing. Consider the following strategies: 

   1. Promote a sense of purpose: Ensure that employees feel connected to the objectives behind customer service in order to boost employee engagement through connection.

   2. Avoid a “customer is always right” mentality: Create a balanced culture that values customer satisfaction while avoiding any detriment to employee wellbeing. 

   3. Encourage Open Feedback: Develop clear lines of communication where employees feel comfortable to voice concerns about customer interactions that contribute to stress and dissatisfaction.

2. Tailor Support for Employees in Customer-Facing Roles: Due to the high-pressured nature of many customer-facing roles employees need to be well supported during and after customer interactions. Consider the following strategies:

   1. Ongoing Resilience Training: Regularly offer training programs that help employees to build resilience and patience. One example is crisis and stress management training.

   2. Offer Mental Health Resources: Make sure that resources are available to employees who deal with high emotional demands 24/7. This can range from in person support to online resources.

   3. Design a Structured Break System: Ensure that employees in customer-facing roles have regular, scheduled breaks to rest and recharge before the following customer interactions.

3. Ensure Adequate Staffing Levels: Understaffing is a major contributor to burnout in customer service roles. Plan ahead so that employees are able to handle customer demands without significant overload. Consider the following strategies:

   1. Hire Adequately for Peak Periods: Forecast customer demand, taking into account holidays, promotions and seasonal changes, to ensure that sufficient staff are hired to handle the elevated customer demand.

   2. Cross-Train Employees: Provide customer-facing training across various roles so that employees can support the customer service functions during busy times. 

   3. Invest in Customer Service Technology: Implementing AI-powered chatbots for basic queries and self-service options for general account management can help to lighten the load on customer-facing employees.

As we close out this blog series I hope that it is clear that employee wellbeing and burnout can have tremendous and far-reaching effects. Employee wellbeing at work truly does win - for the individual, for the organization and for the customer. As employers and employees alike try to navigate this “Great Gloom” we need to be conscious in our approach and work together to find a balanced solution.