Customer Satisfaction and HR - HR practices.

HR is crucial to improve customer satisfaction-surprising but true.

The adage 'customer is king ', signifies the importance and value of customers. Customers are crucial for a business and a customer friendly culture drives a company's profitability. No longer is the sales team alone expected to determine customer satisfaction. HR too plays a major part in ensuring customer satisfaction by hiring the best talent and training them to serve customers effectively. An analysis on 800 Sears Roebuck stores in 1999 revealed that an increase of 5% in employee attitudes increased customer satisfaction by 1.3%.

The Workforce Optimas Award winner, NCCI Holdings trained its customer service representatives in insurance data software products because a survey conducted by them revealed that its customers wanted assistance to use their products. Consequently, there was a significant increase of 33% in the customer satisfaction rating.

Customer satisfaction and loyalty can take the company ahead even during a downturn. Southwest Airlines boasted of profit in the fourth quarter of 2001 despite the sudden decrease in air traffic due to the September 11 attacks. Kmart on the contrary was declared bankrupt because it could not provide a customer friendly environment like Walmart.

According to Michael DeSanto, a consultant for Walker Information, the cost of acquiring a new customer is equal to 5 times the expenses incurred for serving an existing customer. All these instances reiterate the need to build a strong customer relationship.

HR's Initiative

In order to drive customer satisfaction to an enviable level HR should concentrate on smart hiring practices and employee development.

Hiring the budding star performers

To build a customer friendly culture HR should hire only such employees who are capable to reinforce customer satisfaction. According to Ron Zemke, president of Performance Research Associates, a consulting firm, a successful customer service representative is one who is an optimist, flexible and able to manage stress and criticism. He should be able to strike a balance between his interests and that of the company and the customer.

Scrutinising a potential candidate should begin from the time he appears for the interview. The candidate's body language and attitude before and during the interview might give some cues about his capabilities.

Probing situations the candidate may have encountered during his earlier work experience during the interview helps to identify the candidate's abilities and attitude. Patrick Wright director of the Centre suggested this probing technique for Advanced HR Studies at Cornell University to Whirlpool.

Talent+ Inc, another HR consulting firm helped Ritz-Carlton in restructuring their hiring system. Previously, their customer complaints reached an all time high of 27%. After the new system was introduced, the complaints dropped to an amazing 1% in the year 2000.

According to the company's managing director Lisa French, the new system appraises the prospective candidate's traits. This is done through open-ended questions in the interview and a comparison of their traits with those of well-known personalities in the same field.

Training the budding stars

On being recruited, a candidate should be trained to establish customer relationships. To serve the customer better one needs to understand his needs. For this the employee should be aware of the different personality traits and their behavioural patterns. The Meyers Briggs Type Indicator questionnaire is an effective tool in identifying personality types.

Effective communication skills need to be imparted. Further developing the voice tone of the employee and his body language take the lead here. Research shows that 55% of the total impact of an employee's interaction with the customers is by body language and 38% by his tone. In particular, employees serving customers telephonically need to improve their listening skills, as it is difficult to comprehend the same over the phone. Listening to the customer attentively and restating it concisely shows the kind of attention a customer is given.

The people at Rosenbluth differ here also. They insist that their employees speak in an amicable manner to customers. Words like 'certainly', 'it's been my pleasure' put the customer at ease and display the employee's zeal to serve.

Building customer loyalty through employee loyalty

Employee allegiance is crucial to build customer satisfaction and loyalty, because customer and employee satisfaction run parallel.

According to Michael DeSanto, new employees feel good about their company when they have the opportunity to acquire new skills and move up the corporate ladder. Once an employee stays with the company for about 3 years he gets restless if nothing new is happening.

Similarly, new customers feel thrilled by the attention showered on them by the company. Over the years, regular customers used to attention, however begin to feel neglected and explore new avenues.

An organisation that does not acquire the loyalty of the customer or employees might be left in lurch. The two are interdependent. If the employee is happy then the customer satisfaction is also high.

One touch solutions at Captain D's

Captain D's proves that HR's role is detrimental in the restaurant industry where customer service is crucial.The HR initiatives taken by Captain D's to lower their staff turnover, increase customer service and thereby increase their profitability is commendable. Shoney's Inc, started in 1947, provides family dining at Shoneys' and Captain D's chain of restaurants spread over 20 states with 550 franchises.

According to Matt Gloster, vice president of administration for Captain D's, around 8000 employees are trained in all the aspects of restaurant business every year. An uphill task because employees are spread over 20 states and training them from recipes to business operations is an arduous task. The wide geographical spread made a simple thing like communicating a change in the recipe of a dish a complicated process during training sessions. The problem was that the changes have to be communicated to all the branches and thereby requiring to reproduce the same data a number of times.

OneTouch solution, an application software that has a video and two way voice and data application was introduced to allow the employees to communicate with the trainer.

The solution can be applied to PC or non- PC environments so Captain D's and Shoneys used it at all places in the restaurant. This ensures that groups or individual employees attend the training sessions. The training programmes introduced the employees to different topics and a quiz ensured that the trainees comprehend the programme.

Top managements know the developments in the restaurants when they access the data stored by Matt Gloster. Moreover, they can easily update the training programmes by downloading them. OneTouch also helped the restaurants to maintain a productive workforce by training the employees to multitask.

Captain D's thus improved its productivity and customer satisfaction and decreased turnover. Glowing over the restaurant's success Matt Gloster recalls the phrase coined by the chairman 30 years ago, ' show and tell '. The approach states ' tell me, and I'll forget. Show me, and I'll try to remember. Do it with me, and I'll always know how '.

The case of Captain D's shows the importance of an effective training programme to improve customer satisfaction. It also establishes the need to hire potential employees, train them and keep them happy.

Reference:The ManageMentor

Strategic HRM

The Virtual Loop

Organisations can create rewarding interpersonal connections in a virtual setup….....

Key learnings:

• Virtual workplace is fraught with staff management challenges
• Organisations can introduce programmes like web conferencing and community events to create a sense of belonging among its virtual employees

Virtual workplace is an answer to the unreasonable demands of time and space. While organisations cannot help but take the load that comes with the pressures of competition, employees find it difficult to accommodate it in the given time span. Hence, to make things easier at both ends, the concept of virtual workplace emerged. However, alongside the benefits, it brings with it sizeable challenges. The challenges are largely embedded in the fabric of staff management and planning. HR leaders have a host of issues to combat before they set the virtual workplace to a rhythm. Of the many issues, the need to stay bonded with a feeling of belongingness for employees who are connected through nothing more than an intricate wiring is the most challenging.

Accenture, the software-solutions giant,that employs more than 170,000, empes an interesting example of how leaders, managers and employees can stay connected despite working in a virtual set up.

Dissecting the virtual wiring

Accenture may be a virtually-run organisation, but it puts in immense effort to maintain the esprit de corps among its employees. According to Jill Smart, chief human resources officer, the company’s virtual model helps keep employees in one loop and enables them to work effectively with the luxury of their own pace.

Like Accenture, there are many organisations that are increasingly opting for virtual workspaces, primarily because good talent is becoming a scarce resource and fuel is becoming an expensive commodity. People have started viewing commuting as a waste of time and therefore are opting for options like flexi-time and telecommuting. But this trend has also led to some serious staff management problems. Virtual organisations really have to work hard to develop a management model that gives a ‘community’ feeling to people working for it. In the absence of such a model the virtual set up can break away. Thus, it is important that organisations make a deliberate attempt to develop the community feeling among its employees.

At Accenture the effort to build an ‘Accenture community’ has been widely evident. The company recruits close to 60,000 people every year, and for it to ensure connectivity among employees scattered around the globe is a task that is at best complex. Nevertheless, the company has instituted a host of initiatives and programmes to create a sense of community among its employees. Of the many initiatives, use of web conferencing tools, quarterly community events, counsellor services and extensive employee orientation programmes are popular.

In addition to these, companies like Accenture also have to battle out the issue of talent drain at the client site. It is a very serious concern of consulting organisations as employees get to spend a significant amount of their work time at the client site. The employee turnover data at Accenture shows that the main reason for turnover is the stability that the client job offers To counter client lure Accenture has made some attractive changes in tts approach to wtaff management

Modus operandi

At Accenture employees work to meet client needs. To do so, they have to work on the client site, and therefore tend to get a little cosy with them. This closeness with the client works well most of the time, but can lead to talent drain if the clients manage to lure consultants with benefits which they think are not available to them. This, experts believe, stems largely from lack of information. Many times consultants had been known to leave Accenture for benefits that were already available to them because they were unaware of the privileges. This led the management team at Accenture to launch a series of initiatives aimed at educating employees about the various career progression opportunities available to them. Most Accenture consultants left the company for the need of stability, hence providing them with options that give them stability was important. The company, therefore, introduced manager training that could help employees access options within the organisation by using web-based tools.

The options include cross-functional shifts within the company with minimal need to shift base. Employees can bank on stability with these new options. For instance, in an HR outsourcing project, consultants work at the client site for periods as long as 10 years. Hence, shifting consultants who have been hopping around to projects like these can give them the stability they need. The company’s efforts seem to be working well. Till May 2008, 30 percent of the open positions were filled internally. Employees at Accenture have begun to look inside for the benefits and comforts they seek with the clients. This is a good trend for Accenture as losing talent can threaten not only growth but also its very survival, especially in times like these.

In addition, Accenture also provides training on how counsellors can be more sensitive to issues pertaining to a virtual workplace, particularly differences arising out of different time zones and cultures. Every employee goes through an employee joiner programme which is basically an orientation programme that educates employees about the ‘Accenture way’. The company then trains the new employees on its standardised delivery methods. All this is done under the supervision of counsellors assigned to employee. These counsellors are senior managers responsible for creating a sense of belonging among the scattered Accenture staff.

Accenture’s attempt to develop a sense of community among its staff is paying off well. Organisations working on a similar model need to learn a thing or two from the consulting giant. For those, who are still contemplating about adopting the virtual staff management model, the advice is that they should first weigh the challenges of a virtual model, and only if they have the resources to counter these challenges should they consider implementing it.

Ref: TheManageMentor

HR Practices- Paper-less To Technology-full!

Converting offices into paperless zones.....

The concept of paperless offices eludes us but the initiative to create one still exists. Thankful as environmentalists are to businesses for pursuing the vision of a paperless office, this dream can only be fulfilled if there is an organisation- wide revolution. Strong the use of the word 'revolution' is, but organisations must realise that nothing short of revolution is what they need to convert all their activities to a virtual medium. Also, since half-hearted employee participation derails most initiatives, the need to excite employees about a paperless office should become the focal point of the 'paperless' drive.

In short, ensuring a smooth and complete transformation to a paperless office would require employees to be excited about using paperless or online alternatives. This week's mailer suggests a few approaches to eliminating the use of paper.

Failed efforts

Committed to converting his office into a paperless retreat, the director of a mortgage unit installed the latest scanners to discourage documents being printed, photocopied and sent to clients. He also invested in state of the art systems to speed up online communication. Soon after the scanners and systems were commissioned he made an announcement in the cafeteria declaring the office as 'paper free from tomorrow'. In addition to the protests that followed his announcement, what came as a blow was when some employees threatened to quit. The lesson learnt was to be careful in introducing technology to employees.

A recent study confirms that 70 percent of IT initiatives have failed. New systems end up untouched or under-used because employees find either the hardware or the applications too confusing and even difficult to use. As a result, the old paper-centric ways remain popular. Also, as Moez Limayem, an IT professor says, "IT projects fail not because of the technology but because human beings resist change and uncertainty." Therefore, in introducing the concept of a paperless office, the first step should be to excite employees about it to ensure high buy-in. Here are a few initiatives to create the hype.

Working towards the top

Clichéd as it sounds, nothing gains momentum without top management buy-in. But investing in technology based on top management inputs can be a big mistake. With employees as end-users, it is prudent to involve them in deciding on technologies to invest in.

While employees will 'in principle' agree to use what the management suggests `in principle', on-the-job usage is typically poor. As a technical executive says, "Many users will nod their heads happily as the technology gets deployed. But within days, they have figured out ways around it so they can do their job the way they always did, which results in a big waste of time and money all around." Therefore, it is a bad idea to introduce applications and systems without warming employee up to the idea of using them. The first step to this warm-up would be to conduct a survey to find out their choice. Next:

• Advertise the findings of the survey to convey the requirement of technology
• Highlight how new technology will enhance on-the-job productivity
• Share encouraging case studies and other success stories
  

This warming-up initiative should create a welcoming atmosphere for new technology. The next step of course is to make employees comfortable and conversant technologically.

Training

Seventy percent of fear of technology stems from unfamiliarity and only training helps de-demonise technology! Most companies put their employees through a short course on how to use a new application or system but such training has proved unhelpful in making those conversions. The better approach to training is to over-expose employees to new technology. The more training they receive the more comfortable they get.

Another approach to training is to get a handful of tech-savvy employees to master a particular application and make them subject matter experts. Other employees can then upgrade their knowledge gradually and use the technology under the tutelage of the experts. This informal approach to training has a better success rate.

Motivators

While it is the employee who gains the maximum from the use of technology, organisations still have to motivate them to use it. What works best are monetary incentives. A sales organisation encouraged the use of technology by tying commissions to sales generated by use of technology. A salesperson with maximum online clients and interactions took home the largest bonus. As the use of technologically- intensive processes continues to remain low, monetary incentives work well.

Converting an organisation or office into a paper-free place is not an overnight effort. But since paperless offices are the need of the hour, organisations must expedite their efforts towards it. The above- mentioned suggestions should help in that pursuit.

Reference:TheManageMentor