How Customer Satisfaction Affects Employee Satisfaction and Retention in a Professional Services Context

Abstract

While retention of highly qualified employees is vital for professional services firms, prior research has largely neglected the role of customers as a driver of employee satisfaction and retention. Drawing on an experimental study and a dyadic field study, this article shows that client satisfaction is an important determinant of employee satisfaction, which in turn increases employee retention. Thus, for professional services firms, the common logic in relationship marketing that employee satisfaction affects client satisfaction can also be reversed. First, in line with balance theory, an attitudinal transfer occurs from the client to the employee which is stronger when both share the same opinion about their collaboration. Second, in line with Herzberg’s motivational theory, client satisfaction indirectly affects employee satisfaction by affecting the perceived appreciation the employee receives from the customer. These findings have three major managerial implications: First, investments into client satisfaction might pay off double by enhancing revenues and profit on one hand, and enhancing employee satisfaction and retention, on the other hand. Second, positive client feedback has positive effects on employee satisfaction and recognition. Third, these results suggest that marketing and human resource issues are intertwined in professional services firms. Thus, service firms should encourage ample communication and collaboration between these functions.

Employees’ use of mobile devices and their perceived outcomes in the workplace: A case of luxury hotel

“…Finally, as proven in the studies by Christen et al (2006) and Frey et al (2013), this study supported H4 and H5, as hypothesized. Perceived job performance was positively associated with job satisfaction (H4: ␤ = 0.26, t = 2.36), and job satisfaction was positively associated with employee retention (H5: ␤ = 0.60, t = 5.50), which indicated that perceived job performance had a positive effect on job satisfaction, such enhanced job satisfaction, leading to employee retention.…”

“…In turn, job satisfaction is considered to be a key antecedent of employee retention or turnover intention (Kumar et al, 2014). Frey et al (2013) purported that employee retention was determined by employee job satisfaction, which, in turn, could be affected by customers' satisfaction with the service received. Thus, this study hypothesized that if employees were satisfied with their job and exhibited improved job performance by using mobile devices, they tended to stay with the current organization longer.…”

“…Each measurement construct in the model, developed previously and validated to ensure validity and reliability, is adopted from prior research with some minor wording changes to accommodate the study's context of mobile devices. All measurement items have been adopted from previous research, for example, ten items of self-efficacy (Compeau and Higgins, 1995), seven items of job relevance (Hartwick and Barki, 1994), three items of facilitating conditions (Thompson et al, 1991), six items of perceived job performance (Compeau and Higgins, 1995), five items of job satisfaction (Childers et al, 1980) and five items of employee retention (Frey et al, 2013). Before conducting the online survey with the hotel employees, a pilot test with students majoring in hospitality and tourism management at a northeastern university in the U.S. and expert reviews with three hospitality researchers and two industry practitioners were conducted, after which the measurement items were revised.…”

“…Based on the theoretical structure of employees' self-efficacy with respect to using mobile devices and their perceived job performance, this study expands the aforementioned conceptual model, incorporating three independent or moderating factors: employees' self-capability (self-efficacy) (Compeau and Higgins, 1995), task-relevant factor (job relevance) (Venkatesh and Davis, 2000), and external support (facilitating conditions) (Lewis et al, 2003;Thompson et al, 1991), and three endogenous variables: perceived job performance (Compeau and Higgins, 1995), job satisfaction (Childers et al, 1980), and employee retention (Frey et al, 2013) to scrutinize employees' psychological acceptance of mobile devices in the workplace.…”

Interactive Effects of Service Attributes on Customer Satisfaction

“…Achieving customer satisfaction through superior service is a strategy that service providers such as retail banks strive to pursue (Frey et al 2013 ). Prior literature showed that the intangible nature of services is critical determinants in creating customer satisfaction (Dagger et al 2013 ).…”