Keep Your Employees Happy And Watch Your Profits Grow!
By Bigg Success Staff
Bigg On Small Business
Here’s a concept that’s been around for over a decade now, but is still relatively unknown to many business owners. It was developed at Harvard Business School. There’s a great book on it by Harvard professors James L. Heskett, W. Earl Sasser, and Leonard A. Schlesinger.
It’s called The Service Profit Chain. Here’s what it says in a nutshell:
Employee satisfaction leads to customer satisfaction. Satisfied customers create revenue growth. Revenue growth leads to profit growth. Reinvest a portion of those profits into things that will make your employees even more satisfied, and the chain never breaks.
Seek first to satisfy your employees
So if you want to increase your profits, find out what will make your employees happy!
Happy employees stick around longer. They know what they’re doing. They know your customers.
Bottom line – they’re golden!
They’re golden because it’s expensive to find and train new people. New people cost you money until they get through the learning curve.
They cost you money because your established employees have to help train them, so they aren’t as productive as they would be if they weren’t faced with that burden.
They’re golden because they know your customers’ likes and dislikes. They also know your customers personally. They have relationships with them, too. And we all do business with people we like.
So seek first to satisfy your employees.
3 things satisfied customers do
Satisfied employees lead to satisfied customers. They do three things:
- They buy more
- They buy more often
- They tell others
Now look at that list again – isn’t that a great way to increase sales?
You don’t have to spend a boat-load of money chasing new customers. You just have to focus on making your employees happy so they make your customers happy. If you do that, your sales will grow. If you just keep your costs under control, your profits will grow.
It can’t get much simpler than that!
Hear today's lesson and laugh on The Bigg Success Show.
(Image by Ella's Dad, CC 2.0)