HR Management, Talent Management

Want to Increase Sales by 5%? Just Improve Your Employee Engagement

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Rounding out a weeks’ worth of posts on employee engagement is a brief look at the impact of employee engagement on customer service and – consequently – your bottom line.

HR Magazine (the UK version) recently reported:

“As the UK readies to serve the world at the London Olympics, research reveals a pressing lack of engagement among UK frontline service staff.

“Consumers complain of bored and disinteresting staff working in high street shops and utilities companies, according to the study among 2,000 consumers by the Institute of Customer Service.

“But UK businesses may be missing an opportunity to maximise revenues, as one in four consumers are willing to pay more for their goods and services – on average 5 percent more – for better service.”

How poor service limits revenue

Is anyone really surprised by this finding? I’ve certainly walked out of stores where I experienced poor service.

U.S. retailer Nordstrom’s is an excellent example of the importance of customer service. Nordstrom’s is known for its high-level of customer service. Indeed news about its entry into the highly competitive Manhattan retail market refers to Nordstrom this way: “envied by rivals for its top-notch customer service.”

An equities analyst is on record commenting that Nordstrom’s move into Manhattan will force long time stalwarts like Macy’s, Saks Fifth Avenue, and Bloomingdales to “up their game, particularly in customer service.”

How much revenue are you leaving on the table due to poor customer service that’s a result of disengaged employees? What would an additional 5 percent revenue to your bottom line be?

You can find more from Derek Irvine on his Recognize This! blog.

The VP of Client Strategy and Consulting at Globoforce (, Derek Irvine is one of the world’s foremost experts on employee recognition and engagement, helping business leaders set a higher vision and ambition for their organizations. As a renowned speaker and co-author of Winning with a Culture of Recognition, he teaches companies how to use recognition to proactively manage company culture. Contact him at