People at the Heart Of Business

While 50% of employers claim that employee satisfaction is important to them, it is clear from the research by Investors in People UK that this is not the case. Only 6%, less than one in ten owner managers considered that employee satisfaction was a major business objective.

Significantly, a massive 45% of the UK’s bosses put customer satisfaction as their most important business aim.

Employers are missing a trick, as one in four employees stated that when they were happy they were more productive. A further 13% also claimed that they felt that their happiness had a direct effect on customer satisfaction.

Successful companies focus on people issues

A wide variety of different research studies* have proven the link that the more satisfied employees are with their jobs, the better the company is likely to perform in terms of productivity and profitability. Concern for employee welfare is hence today acknowledged as a significant predictor of company performance.

(*Individual Commitment to Learning: Motivation and Rewards DfEE Research Brief No. 11; Impact of People Management Practices on Business Performance commissioned by the Chartered Institute of Personnel & Development 1997)

According to new research from Investors in People UK, it seems the new age of communications is yet to be grasped by UK employers, with male bosses even further behind the times than their female counterparts. The nationwide study, carried out by NOP Business, proves that too many bosses have little idea about their employees needs or points of view, and as a result, their profits may be diminishing.

UK employers are not only out of touch with their employees, but are missing an opportunity in terms of business performance. Whilst a high percentage of employers see customer satisfaction as a major business objective, they fail to realise the link between employee and customer well-being.

However, female managers seem more switched on to the need for employee satisfaction than their male equals. Twice as many women managers than men cited employee satisfaction as an important business objective, whilst male bosses put profit at the top of the list.

"Happy employees = happy customers is a well known indicator of business performance and profitability, but employers are turning a blind eye, said Ruth Spellman, Chief Executive of Investors in People UK, in response to the findings.

She continued, "Perhaps even more surprising is that employers still fail to understand what seems to be the most obvious of facts - that retention of staff is grounded in the level of pay. Whilst employees are leaving for better pay elsewhere, bosses are living in a dream world where they seem to believe their self-perceived ‘cuddly’ qualities could keep staff on board."

Interestingly however, employees from Investors in People companies instead rated training as the single biggest factor that improves the quality of their work life. It would seem that if UK bosses came down from their ivory towers and communicated with their staff, they could receive some valuable pointers for boosting their finances.