What's your definition of employee engagement?

Employee engagement is a hot topic. Engaged employees are more productive and loyal, while disengaged employees can hurt your company's bottom line. And, research shows that employee engagement and customer engagement are highly correlated. 

You won't find much debate about the merits of employee engagement. However, you will see disagreement when it comes to finding a common definition of employee engagement. Which leads to my question:

What is employee engagement?

Here are three different definitions from respected sources:

Gallup

The Gallup Organization may be among the best known of the big consulting and research firms that focus on employee engagement. However, finding their definition takes a little bit of work. The best I could find was this: "Engaged employees are involved in and enthusiastic about their work." (Link to article reference.) There are many great resources on the Employee Engagement section of their website, but I couldn't find a definition.

BlessingWhite

Page 4 of the BlessingWhite 2011 Employee Engagement Report defines employee engagement as the intersection of job satisfaction and job contribution. (Download their free report here.) This seems to be an important distinction from the Gallup model which focuses more on employees' emotional connections to their work. The BlessingWhite model also takes into account employees' contributions to organizational success.

DecisionWise

Tracy Maylett, DecisionWise's CEO, co-authored an article on employee engagement with Julie Nielson, the American Society for Training and Development's (ASTD's) Senior Director of Human Resources and Organizational Learning. The article, titled "There Is No Cookie Cutter Approach to Engagement," appeared in the April 2012 issue of T&D Magazine and argued that employee engagement is the intersection of an employee's job satisfaction, effectiveness, and motivation. Their model seems like a hybrid of the Gallup and BlessingWhite approaches. Maylett and Nielson are hosting a free webinar on April 26 called "Halting the Engagement Exodus" where you can learn more. (Click here to register.)

Why does it matter?

This is by no means an exhaustive list, but there is a potential for confusion when we're all talking about engagement but we mean different things. Here's why I think this is important:

1. No matter what the definition, research has shown that employee engagement is a critical driver of organizational success.
2. If we want to improve something, we should gain agreement on what "it" is.
3. Your definition will affect your strategy for getting better results.

My Definition, and a Resource

I prefer to think of employee engagement as the extent to which an employee is deliberately contributing to organizational success. This would be the "contribution" aspect of the BlessingWhite model or the "effectiveness" component of the DecisionWise model. I don't disagree that job satisfaction, motivation, and an emotional connection to the company are important, but I also view them as drivers of an employee's willingness to help their company succeed. 

When I work with my own clients on employee engagement issues, I will often use a simple alignment assessment to start the conversation. This assessment looks at how well the organization's core "people processes" are aligned with organizational goals. The closer the alignment, the more likely you are to have engaged employees. Try the assessment out for yourself.

What's your definition?

Please comment on this post with your definition of employee engagement. Do you agree with one of the three mentioned above? Or, perhaps you have another twist you can share? Please share links if available!

Are daily deals good or bad for customer service?

Are you thinking of using a daily deal service, like Groupon or LivingSocial, to attract new customers to your business? You may want to think twice if you thrive on repeat customers and use service to different your business from the competition.

In December 2010, Patrick Maguire posted an excellent story on his Server not Servant blog about a restaurant that was overwhelmed by an unexpected walk-in party of 47 guests. Even worse, they were all wielding Groupons good for $35 worth of food and drink for $15 and expected 47 separate checks so each person could receive the discount. (Read about “The Perfect Restaurant Storm” here.) The post naturally generated a lot of conversation about the customer service challenges presented by this situation.

This may be an extreme example, but there is some evidence that suggests daily deal customers may be pickier about customer service. A September 2011 study published by researchers at Boston University and Harvard discovered that when Yelp reviewers mention a daily deal they rate the business an average of 10% lower than other reviewers (read the study here). A negative review can have a double impact on a business since it means the customer likely won’t return and lower average ratings can also warn off other potential customers.

Repeat customers are essential to making a daily deal promotion work. Businesses typically split the revenue with a daily deal provider, so a restaurant offering $35 worth of food and drink for $15 might receive only $7.50. If all goes well, customers have a great experience and return again paying full price. If not, then perhaps the customer posts a negative review on Yelp and visits the next restaurant offering a terrific bargain.

The two major daily deal sites counter with some impressive stats of their own. According to Groupon’s website, 90% of Groupon customers spend more than the face value of the promotion. LivingSocial’s website cites a study which found that 85% of customers are satisfied and plan to return to the business.

An article in the April 2012 edition of Fast Company provided a good overview of some of the emerging trends in daily deals, including three examples of promotions that worked with varying degrees of success (see “Are Daily Deals Done?"). The most successful example had a clear strategy for not only bringing in new customers, but selling them on other products and services that would make the offer pay off.

Perhaps that’s the best conclusion for businesses thinking about going the daily deal route. Be careful in how you construct the promotion and approach it with the bigger picture in mind. If not, you might just find yourself with a room full of impatient customers who can’t wait to write a scathing online review about your business.

How processes can hurt customer-focus

I’m picky when it comes to ordering breakfast at a restaurant, so I almost always order a la carte. And, almost always, my meal arrives on several plates. It’s a minor annoyance, though it's become expected. 

Combining my a la carte items onto one plate seems like such an obvious move, but there’s a simple explanation as to way it infrequently happens. The culprit is process.

Why is process to blame?

Processes get drilled into employees’ heads. That’s how they learn and it’s often how they’re managed. It’s also how work flows in many service environments. As a result, it's what employees often focus on.

Take my a la carte order for example. It’s not a specific meal on the menu, so the server has to ring it in as individual items to generate a price and get the order into the kitchen. Plating my entire meal on one dish requires the server to think outside the normal process and consider my needs as a customer. Again, it seems obvious, but here process usually causes the server to lose customer-focus.

Why is customer-focus so important? 

The rare server who puts all my breakfast items on one plate really stands out. My colleague, Liz, recently wrote to tell me about a similar experience she and her husband had where the focus was on her and not the process:

“We frequently stop for a sandwich at Great Harvest Bread Company in Temecula. Their sandwiches are enormous, so we only eat half, and save the other half for the next day’s lunch. Apparently their staff has noticed, because the last time we visited, they served up half the sandwich in the basket, and half in a to-go bag. It was a very pleasant surprise, and you can be sure we will remain loyal customers.”

In another example, a client of mine recently asked me to develop some sales scripts for his call center employees. After a spirited discussion, he agreed to let me develop guidelines that would help reps steer the conversation towards a sale while using their own brains and personalities to adapt to each customer’s unique needs. My client initially feared that his reps would be inconsistent without a strict script to adhere to, but thankfully he relented. Customers aren't the same, so why should we approach each on the same way? The results have already started paying off in the form of increased sales. (See a previous rant about scripts here.)

How can you achieve customer focus?

A good place to start is by designing customer-focused processes, such as using broad guidelines rather than scripts.

Training can help too. For example, cashiers often give change by scooping coins out of their till, grabbing the bills, and then flipping the whole thing into the palm of the customer's hand. The result is the loose coins end up on top, making it more difficult for the customer to put their money away. A customer-focused way to do it is take the extra half-second necessary to place the coins in the customer's hand first. Last week, I received an email from Jesse who reminded me how this little move can make a big impact:

"I had a cashier who was aware of this very small thing and just by consciously giving me my coins in a manner that let me put away bills in my wallet first, I felt like it was the best customer service I had gotten all week! And all I got was a small juice at a coffee stand.  Also because she gave me change first it was easier and quicker for me to tip her with a bill."

Would you lose a customer over 50 cents?

Would your business be willing to risk losing a customer over 50 cents? I know one that is.

I received a surprise when I reviewed the latest bank statement for one of my business accounts. My bank had imposed a mysterious 50 cent fee for something called "Currency Straps Ordered." It wasn't a lot of money, but I didn't want my bank to get in the habit of charging random fees, so I decided to give them a call.

You may already know what a Currency Strap is, but I had to do some digging to find out. It is a bundle of cash that has a paper "strap" around it to keep the bills together. Banks give them to businesses who work with cash. I've also seen them in quite a few action movies and spy thrillers when someone has a dufflebag full of cash.

My consulting business doesn't use currency straps, but I was still charged 50 cents for one. How?

I had visited my bank branch to deposit some checks into my account. At the end of the transaction, the teller had asked if there was anything else she could help me with. I realized I needed to get some tip money for an upcoming trip, so I asked her to give me change for a $20. Little did I know that this was considered a "currency strap" in the banking world. Gotcha!

The teller didn't advise me of the 50 cent charge, or I certainly would have gotten change elsewhere. It may be in the fine print of my banking agreement, but I don't remember seeing it. This fee was an unpleasant surprise.

It took 15 minutes on the phone with a customer service representative and then a branch manager to get to the bottom of this unexpected charge. To her credit, the branch manager quickly reversed the charge and was empathetic, but she also explained this was their corporate policy.

I'm now thinking of moving my accounts to another bank. It's not just the 50 cents, but all of the fees I've had to worry about avoiding lately. This bank clearly wants to make their money on fees, not service. 

Customer Service Tips

• The only surprises your customers should ever receive are pleasant ones. 
• Nobody likes fees. 
• It's probably not worth Chase-ing a customer away for a lousy 50 cents.

The 3 Ways to Wow in 3 Quick Stories

I know of only three ways to create an outstanding customer service experience. 

• Build Relationships
• Exceed Expectations
• Solve Problems

Here is a quick example of each one.

Build Relationships
I'm not the least bit handy, so when the spice rack in my kitchen got stuck and wouldn't open, I knew it would be futile to try to fix it myself. My first instinct was to call Don Teemsma at Ideal Plumbing, Heating, Air & Electrical. I knew that Ideal also remodels kitchens and bathrooms (they remodelled two of our bathrooms), so I figured he'd know someone who was a cabinet expert. Don was confident that one of his employees, Joe, could handle it. An hour later, Joe was at my house and not long after that the spice rack was unstuck and as good as new.

Without knowing someone like Don, I realize I would have to spend time blindly searching for someone to do the repair, schedule an appointment for the obligatory four hour window, and then hope everything turned out okay. Don helps customers like me avoid these hassles by making sure help is just a phone call away.

Go the Extra Mile
I overheard an interesting exchange while my wife, Sally, and I were enjoying a wonderful meal at Fleming's Steakhouse last Saturday. A guest at a nearby table asked his server if there was an ATM nearby because he didn't have any cash to tip the valet parking attendant. They server pointed out an ATM machine about a block away, but then suggested the guest simply add the valet's tip to his dinner bill. The server explained he'd be happy to take care of the valet's tip for the guest so he wouldn't have to worry about tracking down the ATM machine.

Simple gestures like this that save a customer some time and money (ATM fees - yikes!) make a lasting impression. It didn't require a lot of extra effort from the server, but taking the initiative to be extra helpful made a wonderful impression on the guest. And, since I'm writing about someone else receiving great service, this simple gesture clearly had a ripple effect.

Solve Problems
I made an appointment for my dog, Melrose, to spend a day last week at Furry Tales Doggy Day Care. The dogs have a lot of fun playing with each other in their open environment and Melrose always comes home tired after a great day. As I made the appointment, I learned they didn't have a record of Melrose's latest vaccinations, even though I had given them copies several months earlier. Melissa, the friendly employee taking the reservation, told me she would contact Melrose's vetenarian and have his office fax over her records so I wouldn't have to worry about giving them another copy.

Problems can and will occur. The speed and manner in which they get resolved is ultimately the difference between outstanding and poor service. Tracking down my dog's vaccination records might be been a hassle, but Melissa found a way to solve the problem without requiring any extra effort from me.

3 Ways to Wow
I mentioned I only know of three ways to deliver outstanding service. Is there another path I neglected? Please feel free to leave a comment and enlighten me or simply leave your own tale of outstanding service.