The Impact of Employee Engagement on Customer Satisfaction and financial Performance in Services Oriented Enterprises

Abstract

Background: Using a service-profit-chain framework as the theoretical basis, this paper aims to investigate the relationship between employee happiness and customer satisfaction as well as their effects on the financial performance of a hotel.
Introduction: This paper investigates four main correlations: (1) the direct relationship between customer satisfaction and financial performance; (2) the direct relationship between employee satisfaction and financial performance; (3) the direct relationship between customer satisfaction and employee satisfaction; and (4) the indirect relationship between employee satisfaction and financial performance.
Materials & Methods: Moreover, this paper investigates the mediating function of customer happiness on the indirect link between staff satisfaction and financial success. Data for this study came from three- and four-star hotel management, staff members, and consumers. The hypothesised hypotheses and the correlations between the constructs were empirically tested using a two-stage structural equation modelling (SEM).
Results: Results imply that although employee satisfaction has no direct major influence on financial performance, customer satisfaction has positive considerable influence. Rather, consumer satisfaction moderates an indirect link between employee satisfaction and financial performance.
Conclusion: In the direct relationship, customer satisfaction has significant effect on financial performance. While in indirect relationship, financial performance has significant effect on employee happiness.