Generally speaking, the paper "Employee Loyalty Effect on Consumer Loyalty and Company Performance" is a good example of marketing coursework. The main objective of any business enterprise is to ensure there are employees who have the ability to deliver quality services and products to the customers. It is, however, important to note that the quality of services or products that are delivered to employees is highly dependent of the degree of employee satisfaction in their areas of specialization it is important to note that employee satisfaction is enhanced by among other things the employment packages such as training, wages, and work-life balance that a company provides to its employees (Durkin, 2005).
A satisfied employee is considered to be loyal to the ideals of the company and such loyalty is essential because it will be a determinant factor in the delivery of services to customers. Proper service delivery infers customer loyalty and this will not only increase the market share of an organization but also increase its sales in terms of the organization’ s profitability (Reichheld, 2001). The main purpose of this report is to provide an understanding of the link between employee loyalty, its effects on customer loyalty and the performance of a company. Factors that help increase employee loyalty Compensation It is the objective of a company to retain its best employees to ensure it delivers on its values and mandate.
One of the most significant ways through which a company can ensure the retention of cu employees is thorough the provision of just wage (Durkin, 2005). The ability to compensate an employee with financial resource equitable to the work that they have executed is considered as an essential motivating factor in the execution of their responsibilities in accordance to their job description (Reichheld & Teal, 2001).
It is important to note that the ability of the said company to remunerate whenever employees are engaged in extra work or overtime, it considered a guarantee that the company is concerned of the employees’ wellbeing (Reichheld, 2001). Through such initiatives, a company ensures that employees are dedicated to the delivery of services as this also protects employees from the desired of the company’ s competitors (Reichheld, 2001). Compensation can also be provided through the delivery of additional packages that are considered motivational to employees.
These include the provision of a proper work-life balance, which is considered essential because employees are able to satisfy their job requirements and their family requirements (Durkin, 2005). A company such as Google in an attempt to compensate its employees fro the time dedicate in the execution of their responsibilities provides its employees, especially female employees with children, with childcare centers that are financed by the company. This helps in the reduction of responsibilities and costs incurred in employing additional childcare services (Reichheld & Teal, 2001). Benefits These are material and non- material incentives that a company offers to its employees as a way of committing them to the company and ensuring their loyalty.
Fringe benefits, for instance, are those incentives that a company provides to its employees in addition to their salaries and wages. These can be benefits that are provided during active job duty or during the retirement years (Durkin, 2005). These include the obvious benefits, foregone and hidden benefits. Obvious benefits are often considered as the most popular form of benefits and most companies offer it to their employees (Reichheld & Teal, 2001).
These include social security and retirement insurance among other benefits. Forgone benefits are often considered as the time employees spend away from work on their companies’ permission. They include personal days, parental leave, paid maternity and bereavement time among others (Reichheld, 2001). Hidden benefits are often considered as extra forms of benefits that help employees in executing their responsibilities better. It is important to note that hidden benefiter not stable form of benefits and they are varied across companies.
In addition, this form of benefits can be tailored in accordance with the objectives and policies of a company (Reichheld, 2001).
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