Effectory

With a keen understanding of the worth of a good employee our client wanted to ascertain the causal drivers for these situations through the upcoming employee survey.

The Effectory Linkage Analysis

 

Client and question 

As a large organisation (10,000+ employees) with 14 retail locations, our client (who has requested to remain anonymous) faced the following situation in 2008:

 

  • decrease in customer satisfaction (certain locations)

  • decrease in sales (certain locations)

  • increase in employee turnover for locations with low customer satisfaction and low sales

Survey setup

Step 1

Effectory advised the client to use the X-ray model as a basis for the survey. Containing instrumental themes for employee well being, the model was linked to the key performance indicator ‘Customer Satisfaction’. The employees were categorized by location as were the two KPI’s customer satisfaction and turnover. All HR variables in the X-ray model were correlated to customer satisfaction. Employee engagement showed the highest correlation with customer satisfaction (figure 1).

Linkage figure 1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Step 2

The engagement score (by location) was plotted against customer satisfaction score. This resulted in a classification of 4 types of location: those that show “high engagement and high customer satisfaction”, those with “high engagement but low customer satisfaction”, those with “low engagement but high customer satisfaction” and lastly “low engagement and low customer satisfaction” (figure 2).

Linkage figure 2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Step 3

Knowing the classification for each location we linked the classified locations to turnover by location (figure 3).

Linkage figure 3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Result

For this particular client, engagement showed the greatest correlation with customer satisfaction. We were able to identify the locations with the highest engagement and the highest customer satisfaction, as well as those locations where one or both elements were lacking. Moreover, by linking those classifications to the turnover (by location) our client was able to see the direct effect of engagement and customer satisfaction upon turnover. This insight enabled our client to pinpoint which locations needed improvement.

Step 4

As is typical of our work, we determined the key drivers for engagement within the organisation and by specific location (figure 4). This resulted in a prioritized top 10 list of drivers by location (i.e. their highest correlations with engagement) which gave our client the information to allow them to improve engagement and, therefore, influence customer satisfaction and turnover. With our next survey we will be able to measure the influence of the improvements both on engagement as well as on customer satisfaction and turnover.

Linkage figure 4