The Influence of Employee Engagement on Customer Satisfaction: A Case Review of Elgiganten A/S

Martin Ohrt Christensen & Michael Andersen

Student thesis: Master thesis

Abstract

As with many markets, the retail market has undergone serious changes in the last decades and only continues to change. Tougher competition and new competitive parameters spring forth leading to an increasing focus on customer satisfaction and loyalty. One particular resource employed to boost customer satisfaction is the employees. In both online and physical stores, the interaction between employees and customers have only become more important in recent times. Relatedly, the field of human resources is becoming an increasingly important topic for companies, including the retail business. In particular, a focus on motivating and engaging employees has gained hold due to the many perceived benefits, where one of them is more satisfied customers. With these interesting notions in mind, this paper has been testing the link between employee engagement among the sales staff and customer satisfaction among customers visiting the physical stores. The case used for this test is the prominent Danish electronics retailer called Elgiganten A/S. Furthermore, the paper has investigated possible antecedents to employee engagement to support the inquiry and give ground for practical application. In regard to antecedents, the paper could not conclude that pay-for-performance had an impact on employee engagement among the sales staff. Conversely, there was uncovered evidence, which supported that a variety of parameters were indeed linked to employee engagement. These were autonomy, feedback, vocational interest, meaningfulness in work, relations with superiors and customers and human resource development. On the inquiry on the link between employee engagement and customer satisfaction, however, it could not be concluded that there did exist a link between the two. So, while several parameters were uncovered, which could be used to improve employee engagement among the sales staff, it is likely that customer satisfaction in the retail market depend on other factors than employee engagement among the sales staff.

EducationsMSc in Human Resource Management, (Graduate Programme) Final ThesisMSc in Economics and Marketing, (Graduate Programme) Final Thesis
LanguageDanish
Publication date2019
Number of pages94
SupervisorsPer Ƙstergaard Jacobsen