We’ve talked a lot about the “inside” of my Inside-Out Framework approach to developing a strong positive company culture, focusing on the first-line customers, the employees. Zack Oates, CEO and founder of Ovation, brings a broader benefit to this way of thinking. Zack writes, “I’ve read some interesting things about how allowing employees to improve the guest experience improves the culture of the employees! Giving them the tools and ability to make people happy makes them happy. Have you seen that? Is it true?” Heck yeah, it’s true Zack! Thank you for this great point and for asking for verification. We’ll dive into why it is indeed true and the positive ramifications of happiness in the workplace.
We cannot ignore the external part of the Inside-Out Framework, the end-customers, without whom we would also have no business. We need both our great, happy employees who deliver great experiences to our customers and our guests, thus EX2CX. Zack goes on to ask, “How do you see culture affecting the guest experience?” I see these two questions directly linked to one another. Thanks, Zack, for highlighting the important connection with your questions for this month’s article.
I’ve stated many times that what really lights me up about the work I and others do highlighting focus on your people asset, is that when we have a great human interaction, as a customer or employee delivering that service, we feel better at a cellular level. It’s been proven. My basic premise is that if we have multiple of these experiences throughout the day, every day, think of what a happier, more peaceful, and fulfilling world we’d all live in! And I know you’d want more of that, so let’s look at how to accomplish making the world a happier place by looking at both the employees’ personal benefits and, as a result, how the business benefits.
The “inside-out” concept applies internally as well. If the people you hire to be a part of your work family are happy, they will also provide the management and owners with benefits. When I use the term “benefits,” please remember that I mean not only financial but also personal gains.
First let’s understand what happens to every human being when we give to others, when we serve, or perform acts of kindness. These activities activate what’s known as a “reward center” in our brain. Neuroscience research using fMRI scans has shown that acts of generosity activate the mesolimbic reward pathway in the brain, releasing feel-good neurotransmitters like oxytocin and serotonin. How exciting that we not only feel good when we are given to and taken care of, but also when we are the givers! It’s why my mom’s lifelong advice to me, whenever I feel down, is to volunteer.
Another benefit is that, as social beings, we feel a stronger bond and sense of connection to others. This contributes to the positive cycle of happiness of the giver to the receiver. Here are some additional concrete benefits:
- Increased personal happiness: Studies show that performing acts of kindness can significantly increase one’s own happiness. According to research by Sonja Lyubomirsky, acts of kindness boost well-being by enhancing social connection, self-perception, and mood. Studies show that our mood is physically impacted in our bodies. There is a chemical shift that occurs.
- Lower stress levels: Engaging in altruistic behaviors can lead to reduced stress levels. Helping others triggers the release of endorphins, often called the “helper’s high,” and can decrease the production of the stress hormone cortisol. When we work from a place of calm, we are more creative and productive in solving any issues that arise compared to when we work from a place of stress.
- Improved physical health: People who regularly help others tend to have lower blood pressure and stronger immune systems. A study by the University of British Columbia found that participants who engaged in kind acts had reduced levels of inflammation. Inflammation is the trigger for most diseases.
- Greater life satisfaction: Regularly making others happy can lead to greater life satisfaction and a stronger sense of purpose. The Journal of Happiness Studies reported that people who frequently help others feel a higher sense of fulfillment. And we all know that if one does not feel fulfilled at work, they will seek it elsewhere!
Next, let’s talk about how empowerment is a catalyst for a positive culture, thus benefiting the restaurant. One of the main lessons business leaders learned from the pandemic is that their people, especially the younger generations in the workforce, highly value purpose. They must gain a sense of meaning from the work and work environment to stay at a company. If they don’t feel empowered by their leadership, they won’t skip a beat to be out the door and on to your competitor, who will (hopefully) treat them better.
We already established that helping others creates a sense of happiness, purpose and meaning. So why not grant that to your staff? In doing so, you are, in fact, doing the very thing you want in them. You are leading through example. Not just “do as I say,” but “do as I do,” and do it consistently. Wouldn’t that be a unique twist in the business model from the top down? You’re being kind and caring and showing them they matter. They will reciprocate by behaving the way you treated them to your end-customers. And so it goes.
Studies show that happy employees are more productive. Something to avoid in creating a fulfilled work experience is micromanaging. Micromanaging sends a message of distrust. No one wants to feel they are incompetent by having a manager over their shoulder. Once you’ve educated your staff on who you are and what you expect, engaged with them to give them the skills, then entrust them to innovate and problem-solve independently. Engagement leads to empowerment through trust. According to the National Restaurant Association, the turnover rate in the restaurant industry is around 75%. However, companies with high employee engagement report 43% less turnover. When challenged and allowed to prove ourselves, we grow in capabilities and pride. Happiness is a by-product of pride. All of this leads to reduced turnover and increased commitment and loyalty.
For example, businesses with happy employees see up to a 13% increase in productivity. This is because satisfied employees are more motivated and engaged, leading to better customer service and higher sales. (NRA)
Engage your employees. Ask them for their ideas, thoughts, and feedback. They are your eyes & ears to your end-customers experiences and feelings. Get their feedback. “Employees who feel their voice is heard are 4.6 times more likely to feel empowered to perform their best work,” according to Forbes.
Here are some real-world examples of how these successful companies became icons in their respective industries by embracing this employee empowerment philosophy and making it synonymous with their cultures.
The Ritz-Carlton: The Ritz-Carlton is renowned for its exceptional guest service, which is largely attributed to its empowered employees. This respect for their employees is evidenced in their famous expression of their staff: “We are Ladies and Gentlemen serving Ladies and Gentlemen.” In addition, staff members are authorized to spend up to $2,000 per guest to resolve issues and enhance their stay without needing managerial approval. This trust and autonomy resolve guest issues swiftly and make employees feel valued and trusted. They are empowered!
Southwest Airlines: If you’ve ever flown Southwest Airlines, you will have likely experienced the fun and quirky otherwise standard boring delivery of safety information as you buckle up. This is another great example where employee empowerment and culture go hand-in-hand. The company encourages its employees to use their creativity and personality to create fun and memorable experiences for passengers. This approach not only enhances the guest experience, but also fosters a positive and engaging workplace culture. I love it and welcome the individual human element.
Zappos: And of course, we must mention Zappos, which places a high emphasis on company culture and employee happiness thanks to its founder, Tony Hsieh. Their customer service representatives have the freedom to spend time on calls with customers without any constraints and are encouraged to use their judgment to make decisions that delight customers. (No micromanaging here!) This empowerment results in high levels of customer satisfaction and loyalty.
Lastly, let’s discuss the evident effect of making others happy and why this key ingredient in a company’s culture does, in fact, influence the guest experience. When the employees are happy and feel empowered, that great positive spirit is passed along to guest experiences. The outcome of this pairing is more repeat business, referrals, and five-star reviews.
Sometimes statistics speak for themselves, so I’ll share two powerful ones with you:
- Who wants increased repeat business? Research from Harvard Business School showed that increasing customer retention rates by just 5% can increase profits by 25% to 95%. In the restaurant industry, this often stems from positive interactions with happy staff.
- Who wants more positive organic marketing? A Journal of Service Research study found that positive employee attitudes significantly influence customers’ word-of-mouth intentions. Happy employees were more likely to generate positive reviews and recommendations.
Ultimately, a symbiotic relationship exists between a positive company culture of happy employees and the guest experience. When a restaurant hires people who are aligned with their values, they set the tone for how the guests will be treated and how they will feel as a result. You will have happy employees if your values are inclusivity, mutual support, respect, and trust. And happy employees lead to happy customers. A strong organizational culture ensures consistency of experiences. This reliability builds trust and encourages repeat business. Fundamentally, the well-being and happiness of your employees are a direct reflection of the company’s culture. Businesses that are human-centric, ones that prioritize employees as the whole person, create a happy, cohesive, and collaborative team environment. Happy and well-cared-for employees are more likely to extend that positivity to guests, enhancing their overall experience.
The National Institute of Health (NIH) states that studies found pleasure centers in the brain are activated by doing kind behaviors for others, which also make those people happy. The great news is this often leads to reciprocal kindness and goodwill, thus the concept of “paying it forward.” Studies have shown that acts of kindness often inspire recipients to perform kind acts for others, creating a positive ripple effect. In my signature talk, I say, “Some things are not worth spreading, but happiness is not one of them.” Go out and spread kindness and create happiness today! Besides, it will come right back to you.
Our guests feel this human-centered reciprocity. When they feel it from your staff, your culture, they will reciprocate with their wallets, social media, and reviews, and word-of-mouth referrals. This explains why my business tagline is “Turning Employees Into Advocates and Customer Magnets.”
If you enjoyed and gained something from this article and have your own culture questions or concerns, email me: [email protected]. Have your question answered and highlighted in the next Ask Jill! Develop Your Company Culture article.
Email me your questions and send your thoughts for a strong company culture to [email protected]
AUTHOR BIO
Jill Raff is the globally recognized EX2CX Advisor, working with executive leaders who recognize the paradigm shift: the non-negotiable creation of a more humanized culture prioritizing their people. She helps organizations that recognize their people are their greatest asset but need help creating new systems and procedures to develop the culture resulting in higher retention and greater productivity. Companies experience employee and customer lifetime value using her methodology connecting the employee experience (EX) to the customer experience (CX) — EX2CX.
Jill grew up working with her parents, owner/operators of McDonald's franchises, starting with store No. 150. Her customer service philosophy of Transforming Transactions Into Interactions starting with the employee originated from observing her parent's work and their interactions with legendary founder Ray Kroc. EX and CX is in Jill’s DNA. Based on her diverse background working in multiple industries — and living in 7 countries — Jill developed her Inside-Out Framework based on her “3+1 Recipe” to build a culture creating attraction and retention, often described as “where McDonald’s & Michelin meet.” Contact her at [email protected].
