Connection Between Employee Engagement & Customer Satisfaction

Explore the connection between employee engagement and customer satisfaction and how it drives growth, loyalty, and performance.

July 2, 2024
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Employee engagement and customer satisfaction are two critical factors that significantly influence the overall performance of an enterprise. They are as symbiotic as honey bees to a garden, each contributing to the success and development of the other. Central to this relationship is the understanding that a highly satisfied and engaged workforce has a compelling impact on the level of satisfaction customers experience when interacting with a company’s products or services. Essentially, the two are holistic, interwoven components in the matrix of business productivity and growth.

Defining the Concepts

Before diving into the nexus between these concepts, let's define them. Employee engagement entails more than a paycheck. It involves the emotional commitment employees have to the organization and its goals. When employees care—they are engaged, showing up every day with passion, purpose, presence, and energy.

Customer satisfaction, on the other hand, refers to the degree to which a company's products or services meet or surpass customer expectations. An enterprise that consistently fulfills its promises, delivers quality services/products and maintains robust customer relationships is highly likely to have a higher customer satisfaction score.

Understanding the Connection

How are these two concepts linked? The primary link between employee engagement and customer satisfaction lies in the interaction between employees and customers. Given that employees often serve as the primary point of contact for customers, their attitudes, behaviors, and level of commitment are passed on to the customers directly or indirectly.

When employees are highly engaged, they are more focused, productive, and committed to their tasks. They are empowered and inspired to go beyond their call of duty to deliver superior service to clients, resulting in improved customer satisfaction. These employees' intrinsic motivation creates an environment that fosters creativity, innovation, and accountability, all of which resonate positively with customers.

Conversely, disengaged employees are likely to affect customer satisfaction negatively. They tend to exhibit a lack of focus, decreased productivity, and poor service delivery, potentially leading to customer dissatisfaction.

Research Evidence

Numerous studies have supported the link between employee engagement and customer satisfaction. A study by Gallup found that units in the top quartile of employee engagement outperformed bottom quartile units by 10% in customer ratings. Another study by Harvard Business Review highlighted that when employee engagement increased, there was a corresponding increase in customer service levels and, subsequently, customer satisfaction statistics.

Implication for Businesses

The connection between employee engagement and customer satisfaction has profound implications for businesses. It highlights the need to foster a work environment that promotes employee engagement at every level. This can be achieved through various strategies, including appreciating employees’ efforts, fostering a positive work culture, providing room for career growth, and providing learning and development opportunities.

Time and resources invested in enhancing employee engagement are not in vain. The ripple effect trickles down to customers in the form of excellent service delivery, which consequently increases customer satisfaction. A satisfied customer translates to a more robust bottom line and a higher likelihood for sustained business growth.

Linking Employee Engagement and Customer Satisfaction

The connection between employee engagement and customer satisfaction is a critical twist in the tale of company success. It is not just an HR issue but a business strategy that drives growth and profitability. Prioritizing employee engagement partakes in an investment with promising returns: delightful customer satisfaction, increased customer loyalty, enhanced brand reputation, and overall business performance. As Richard Branson, founder of Virgin Group, put it, “Clients do not come first. Employees come first. If you take care of your employees, they will take care of the clients.”

Discover how a deeply engaged workforce drives exceptional customer experiences. Learn how Assembly can transform your workplace culture, fostering connection, recognition, and collaboration among your employees. Book a demo today to start engaging, connecting, and inspiring your team to achieve greatness!


How does employee engagement impact customer satisfaction?

Employee engagement directly impacts customer satisfaction through the behavior and attitudes of the employees who interact with customers. Engaged employees are more committed, motivated, and proactive in providing excellent service, which leads to higher customer satisfaction. When employees care about their work and the company's goals, they are more likely to go above and beyond to meet or exceed customer expectations, creating a positive customer experience.

Can improving employee engagement lead to better customer satisfaction scores?

Yes, improving employee engagement can lead to better customer satisfaction scores. When employees are engaged, they are more likely to go beyond their basic job requirements to ensure customers have a positive experience. This leads to higher customer satisfaction scores, as engaged employees provide better service, are more responsive to customer needs, and contribute to a positive company culture that customers appreciate.

What are some strategies to improve employee engagement in the workplace?

Improving employee engagement can be achieved through various strategies, such as:

  • Recognizing and appreciating employees' efforts regularly.
  • Fostering a positive work culture that promotes collaboration and support.
  • Providing opportunities for career growth and development.
  • Offering continuous learning and development programs.
  • Encouraging open communication and feedback.These strategies help create an environment where employees feel valued and motivated, leading to higher engagement levels.

Why is the connection between employee engagement and customer satisfaction crucial for business success?

The connection between employee engagement and customer satisfaction is crucial for business success because it affects overall performance, growth, and profitability. Engaged employees deliver superior service, leading to satisfied customers who are more likely to become loyal and advocate for the brand. This positive cycle enhances the company's reputation, drives customer loyalty, and ultimately contributes to sustained business growth and a robust bottom line. Investing in employee engagement is, therefore, a strategic move that yields significant returns in terms of customer satisfaction and business success.

Browse our Free Employee Recognition Guide

Get the foundational knowledge on creating an employee recognition program that boosts employee engagement and helps them feel valued.

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Frequently Asked Questions

Is Assembly SOC 2 compliant?

Yes, at Assembly, security is a top priority. Each quarter, we have ongoing security work that is everyone’s responsibility. While we maintain a strong security posture, it was important for us to prove to our customers that we do everything we claim to do. This led us to pursue a SOC 2 Type II report that would provide evidence of our compliance with industry gold-standard security practice.

What's the ROI for employee recognition?

There is study after study showing that employee recognition leads to increased engagement. This in return creates an environment where employees are happier and more motivated which increase productivity and reduces voluntary turnover significantly. In order to filled critical roles, companies tend to spend nearly twice the value of an annual salary. Assembly is an investment in your employees that supports your bottom line.

Does Assembly offer longer-term contracts?

Yes, we will offer contracts for companies with longer-term agreements to help larger customers have more certainty around future costs.

The minimum agreement term is a 12-month subscription.

Does Assembly offer onboarding support?

We do and for FREE! Any new customer needing further support to get started with Assembly to ensure you're set up for success can request custom onboarding support. Improving your employee experience is about much more than just using our amazing software; it’s about transforming your business to create a workplace that people love. That’s much easier to do with the personal support and advice from our passionate people experts.

Is there a free version of Assembly?

Yes. We offer a completely free plan for up to 50 team members. This plan is intended for teams or organizations that are looking to get started with an employee engagement tool. Keep in mind, this plan is limited in features.

All customers can open an Assembly account for free and get started without a credit card. Then you can change plans as necessary.

How much do rewards cost?

At the time of redemption (when your employees exchange their points for a paid reward) you'll pay face value. If a reward is a $10 Amazon gift card, your cost will be $10. All paid rewards are billed for on a monthly basis.

The good news is that you don't have to pay for rewards upfront because we only charge you when points are redeemed, not when they're earned.

Does Assembly offer discounts?

We offer discounts or educational or charitable organizations. In order to secure a discount, you'll first need to book a demo with a customer support specialist.

For all other organizations, we are willing to consider longer-term agreements in exchange for discounts. To set up annual plans or longer, you will need to book a demo with a customer support specialist.

How do I cancel my plan if needed?

If you're on a month to month plan, you can go here and cancel anytime. If you're having concerns or need help setting up your account for success, you can always book a demo with a customer support specialist.

If you're on a longer-term custom plan, you'll need to reach out to your customer support specialist to cancel your account or email us at

What customizations are available?

Great question! You can customize your core values to match your organization's to boost and track alignment. You can change your currency from the 🏆 emoji (our default) to any emoji of your choice. You can swap our logo for your own. You can also set up company culture rewards such as, "Lunch with the CEO," "Buy a book on us," and so much more!

Who can give or receive recognition?

While we recommend a peer to peer set up where anyone in your organization can give or receive recognition, you can set up Assembly however you want. If you need to limit the people who can give or receive recognition, that's perfectly fine and can be done from your Admin, here.

What integrations are available?

Assembly connects to the tools your employees use every day to offer an easy, seamless experience with minimal change management.  

Assembly has integrations with HCM/HRIS systems like ADP, Google, Office 365, and Slack. We also integrate with communication tools like Slack and Teams so you and your employees can access Assembly wherever they work now.

What's your average adoption rate?

That depends on the company's permissions set up. That said, over 90% of the employees on Assembly's platform are recognized on a monthly basis. That means nearly every employee across all of our customers are receiving regular recognition from their peers, managers, or leadership. We're extremely proud of this.

Must rewards be set up to use Assembly?

They are not required. You can use Assembly without having rewards set up. However, we don't recommend it if you intend to have a high adoption and usage rate. You can always keep the costs down by offering internal culture rewards that are fulfilled by you internally.

Are points required to use Assembly?

No, you can remove allowances from anyone or everyone. It's up to you but we do recommend using points whether they're worth a real dollar value or not. Companies that use points have a much higher engagement rate even if those points don't exchange for real dollars.

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Please schedule time with an expert and we will help you to get all your questions answered