Have you ever stormed out of a store because of poor customer service? Or felt frustrated and angry because the company representative at the other end of the phone didn't seem to care? Or seemed unwilling to help you? Perhaps after enduring a bad experience at a particular establishment, you said: “never again”?
Customers react first and foremost to the employee that they're dealing with, the one they're facing, whether the transaction is financially significant or not. To the customer, that employee “is” your company, and these buy or not-buy decision-makers will consider the treatment they receive a reflection of your entire company, for good or ill.
Business Impact Vs. Pay Level
Now consider that the person who may have just caused you to take your business elsewhere is likely one of the lowest paid employees in that organization. Does that reward/business impact relationship make sense to you? It would seem that the organization doesn't value the impact that their employees can have on customer relations.
Does your employer acknowledge the value and impact that these employees can have when dealing with customers? Or is this skill set (interface with customers) a compensable factor at all?
Many companies have long ignored the importance of the customer-facing job (non-direct sales) in determining a position’s value to their organization. They consider education (what you know), experience (how long you have been doing something) and competitive survey data (what others are paid for a certain set of skills) in setting their pay scales. The fact that the position also has the power of gaining or losing customers is often lost on them.
Some job evaluation systems may give a nod for those who face customers on a regular basis, but such recognition is not often viewed as a critical factor – nor does it help determine where in the salary range the incumbent is paid.
Oftentimes it's the lower paid employee or the position with the least amount of “cachet” that presents the jobholder with the opportunity to influence customer action and reaction. As an example, the employees most commonly approached by guests at Walt Disney World are the Custodial Workers.
Is it not surprising then that these lower-level employees can have as great an impact on customer goodwill and retention as some of your executives? Studies have also shown that having a pleasant experience when dealing with a company often outweighs price considerations and marketing glitz.
Paying Attention
That doesn't mean that you have to pay more to these employees than the marketplace suggests, but it's definitely in your best interest to ensure that they're fairly treated:
- Ensure that actual pay centers on the middle of the range or higher. Avoid risking minimum pay scale workers interacting with your customers. Even fast food employees could send customers to the competition, or simply to a different store.
- Hire into the salary range. This is not a time to be cheap. That dollar you saved today could cause you to lose a great deal more later on. It costs a great deal more to gain a new customer than to retain an existing one.
- Modify your performance appraisal process to recognize the customer facing role; attitude is just as critical here as know-how and experience. Your customers place great value on the smile and pleasant demeanor they receive from your staff.
- Avoid structuring these as “dead end” jobs. Offer upward opportunities for higher performing employees.
- Listen to them; they are talking to your customers and their suggestions for process improvements – even new products and services - should be considered.
How can you monitor whether your company is vulnerable? 1) Ensure that these positions are regularly surveyed for competitive pay practices, and then 2) Create a report segmenting the actual pay of your customer-facing employees to determine the average compa-ratio and spotlight the presence of low paid workers. Then you'll know how well you're paying those closest to your customers.
We should have a final word about direct sales, which is perhaps the ultimate customer-facing job. Be careful that your training and recognition programs acknowledge the importance of the customer-facing relationship – beyond an immediate financial impact. Rewards should not be only for short-term results. An unhappy customer (post sales) can decide to; 1) not place another order, 2) limit their order and split their requirements with another vendor, and/or 3) spread a negative comment to their professional associates that reflects poorly on your company.
Each unfortunate scenario reinforces the financial and long-term impact of the individual employee.
Such would be a hard lesson indeed.
Chuck Csizmar CCP is founder and Principal of CMC Compensation Group, providing global compensation consulting services to a wide variety of industries and non-profit organizations. He is also associated with several HR Consulting firms as a contributing consultant. Chuck is a broad based subject matter expert with a specialty in international and expatriate compensation. He lives in Central Florida (near The Mouse) and enjoys growing fruit and managing (?) a clowder of cats.
Creative Commons image, "Oops," by Paul McRae
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