EMPLOYEES AS CUSTOMERS What HR needs to Learn from Marketing
Below is a MRR and PLR article in category Business -> subcategory Marketing.
Employees as Customers: What HR Can Learn from Marketing
During the early stages of my career, I was fortunate to work for a large corporation with a management development program for aspiring managers. This program combined formal management courses with on-the-job training through assignments across various company divisions. The goals were to acquire new skills and understand how different parts of the organization contribute to its overall success.
My education in environmental studies, focusing on ecology, taught me that ecosystems consist of interdependent elements. This systems-thinking approach has influenced my decision-making in both business and personal life. The management training program allowed me to see firsthand how each part of an organization is interconnected.
Once the program concluded, I became the manager of marketing planning during a time when the company aimed to expand its market share in the energy sector. I managed a team of 35 and a $3 million budget for market research. Learning on the job, I gained insights from both my team and consultants. Additionally, I attended intensive executive marketing programs at Columbia and Wharton, which fueled my growth and success.
My career continued to flourish until I established Entec Corporation nine years ago, focusing on measuring employee engagement. Although marketing was fulfilling, I returned to my passion for creating environments where employees can thrive.
Over the years, I observed a lack of research discipline in HR departments when conducting employee surveys. Inspired by Sudipta Dev's article, "Is Job Happiness a Myth?" which emphasized the importance of surveys and focus groups, I realized the commonality of this practice. However, following surveys with focus groups seemed counterproductive.
Conducting an employee survey is a form of research. My marketing background taught me that surveys should be the final step, not the first. Surveys are meant to quantify and prioritize findings. Focus groups should precede them to identify potential issues. This structured approach creates a framework for surveys and ensures clear actionable results without the need for follow-up focus groups.
Marketing and market research are sophisticated processes that yield effective results. For example, automobile manufacturers use focus groups to understand customer motivators, then develop surveys to quantify this information, guiding marketing strategies.
Understanding the "root causes" of employee behavior is crucial in today's knowledge-based economy. Success depends on employees' mental performance, and HR departments can add value by adopting marketing's research discipline to understand employee needs. Viewing employees as customers can unlock their creative and innovative potential.
Nine years ago, Entec Corporation began by researching the key factors of the employee experience. We conducted focus groups across various sectors to develop an "employee experience model," which informed the development of precise survey questions directly leading to actionable insights. This process linked survey outcomes to financial performance, proving that higher employee engagement correlates with higher profitability.
Today, we focus on employee engagement rather than merely measuring the employee experience. Our sophisticated models eliminate the need for post-survey focus groups, directly linking results to financial performance. As a client from Gap Inc. Canada noted, our surveys have improved business results and employee commitment. Interestingly, in 2004, Gap's Canadian brands were among the most profitable globally with 175,000 employees.
To harness this potential, companies and HR departments must view employees as customers, applying comprehensive marketing strategies to meet their needs. This includes disciplined research, communication, relationship-building, and providing tailored services based on survey results. Possible improvements could involve enhanced workplace practices, participation in decision-making, flexible benefits, and addressing work/life balance, trust, fairness, and respect.
A classic example is the company gym. While physical fitness is beneficial, merely having a gym doesn't change behavior for most employees. Without measuring conversion rates?"how many employees start exercising because of the gym?"we lack insight into whether it's a worthwhile investment. Similar assessments could determine if funds should be allocated to meditation rooms, daycare centers, or other initiatives.
The Gallup Organization has spotlighted employee engagement, but their work misses a key element: the dual role of both employee and employer in fostering engagement. By developing a model considering emotional well-being, department practices, leadership behaviors, corporate practices, and vision and values, organizations can better understand engagement drivers.
Employee engagement is a partnership. It relies on creating conditions that motivate employees, recognizing their diverse psychological makeups. Engagement requires input from both sides. While organizations must foster a supportive environment, employees also play a role in shaping their careers.
Ultimately, effective partnership in employee engagement hinges on having accurate, research-based information. Through disciplined market research, organizations can create environments where both business objectives and personal aspirations are realized.
You can find the original non-AI version of this article here: EMPLOYEES AS CUSTOMERS What HR needs to Learn from Marketing.
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