In: Operations Management
Recognize the effect that employee turnover has on customer satisfaction.
Employee turnover is one of the biggest problems an organization faces. It directly affects the satisfaction level of the customers. Employees are the human capital of an organization. They know how to treat customers, provide them value-added products and services, take care of their queries and concerns, and make them loyal to the company. When these employees leave, they are replaced by new employees who are not as much skilled, knowledgable, and experienced as the old ones were and it affects the satisfaction level of the customers. It takes time for the customers to accept the services from a new employee and when they become used to these employees, they are replaced by new employees because of employee turnover. It leads to a decrease in the satisfaction level of the customers. It also results in losing customers in severe cases. The competitors usually take undue advantages of such a situation by hiring those employes and by attracting the unsatisfied customers.