Unit 20 Assignment on employee Relations - copy

Unit 20 Assignment employee Relations

Unit 20 Assignment on employee Relations - copy


Diploma in Business 

Unit Number and Title

Unit 20 Assignment on employee Relations - copy

QFC Level

Level 5


According to Unit 20 Assignment employee Relations, employee and the customer of the company are the key element for the success of the business. Identifying and satisfaction of the need of the customer helps the company to grow in the long run. Employee of the company plays a key role for the company in attaining customer satisfaction. In the current business scenario the management of the company should use various methods to motivate the employees of the company. For the success of the business the management needs to understand the relationship between employee motivation and customer satisfaction. The study will help in understanding the relationship between employee motivation and customer retention.

Research Questions and Objective

The research questions are-

  • The strategy followed by the company for customer retention ?
  • The effect which the employees of the company is making on the customer ?
  • Measures to motivate the employee of the company of the purpose of retaining the Customer Satisfaction ?
  • Measures taken by the company to retain its customer ?
  • Meet customer expectation by the use of skilled workforce ?

The objective of the study are-

  • To understand the relationship between employee of the company with the customers.
  • To understand the method used by the company to motivate its employee.
  • To study the effect of employee motivation in the company.

Unit 20 Assignment employee Relations

Literature Review

Relation between employee motivation and customer retention

It is clear from the study that the employee motivation is the key to retain the customers. The employee of the company has the direct interaction with the customer and they highly influence the customer satisfaction level. For the success of the business there should be positive relationship between employee motivation and customer retention. The employees who are motivated find ease in retaining the customer for the company. The organization should follow monetary as well as non- monetary techniques to motivate the employee which will help the organization in attaining its goals. It is done to increase the employee’s involvement towards the work (Frey, Bayón & Totzek, 2013). Motivation also helps in improving the quality of outcome and increase in production for the company. The success of the company very much depends on its employees. Service industry is very much dependent on its employee to satisfy the need of the customer. So they should concentrate more on attaining employee motivation. Company should make special effort to retain its employee by using various motivational techniques. The efforts of employees provide competitive advantage to the company.  The workplace environment also places a key role in motivating the employee.  The workplace environment should be as such which creates the interest of employees toward work. Effective communication also helps in motivating the employee. If the management properly handles the problem which employee are facing its help in building the trust of employees (Yang, Wan & Fu, 2012). Employee motivation is one of the most difficult areas faced by the management. If the employee is not properly motivated they put their least effort in satisfying the needs of the customer.

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The key points to be kept in mind for employee motivation and customer retention are-

The employee should be provided with adequate training which helps in understanding the product, process and procedure followed by the company and helps them keeping motivated. The training helps in increasing efficiency of the employees which facilitate in fulfilling customer needs 
The workplace of the organization should be as such which motivates the employee. It will help in retaining the employee in the long run. Career development opportunity also helps in motivating employee. The company with an ample of career opportunity helps in motivating the employee to work hard for the better opportunity. The company should measure the performance of the employee and based on it should provide promotions, increment and rewards to employee. The company should make its compensation and pay structure as such which motivates the employee to work for the company. The employee whose performance is outstanding should be recognized and attractive compensation and incentive should be given to them. The employee should be given rewards based on their performance from time to time to keep them motivated. The organization should effectively handle the problem which the employee is facing while working to keep them motivated. The customer of the company should be provided with superior quality and speedy services. The complete information related to product should be providing to the customer. The company should provide effective after sales development service to retain the customer (Michel, Kavanagh & Tracey, 2013). The company should effectively handle all the customer queries. The company should receive the feedback on product and service before and after the sell. The company should bring special offer for the customer on occasions or during festival. The company should build loyalty with the customer with the help of its employees.


Based on the above study it can be recommended that for attaining organizational goals and opportunity there should be proper understanding of employee motivation and customer retention. The management should use various measures such as pay and benefits, reward and recognition, proper work environment, training, career opportunity etc, to keep employee motivated and increase their efforts towards working. There should be huge concentration on motivating the employee of the company for attaining customer satisfaction. The company should also provide quick and quality service, meeting customer expectations, quick handling of complain etc, to retain the customer for the business. For this the company requires the efforts of their employees.


So, it can be concluded that for the success of the business there should be effective link between employee motivation and customer satisfaction. The employee which is motivated will do their work with lot of efficiency and will help in improving the quality of the output of the product. The factors such as business environment, career opportunity, effective training, job security, good compensation and incentive help in improving the performance of the employs. This will help the company in retaining its customer in the long run. For this the company should build effective link between its employee motivation and customer retention. 


Anjali Ganesh, 2013, "Understanding the Relationship between Employee Motivation and Customer Retention", St. Joseph Engineering College. 102-112
Frey, R., Bayón, T. & Totzek, D. 2013, "How Customer Satisfaction Affects Employee Satisfaction and Retention in a Professional Services Context", Journal of Service Research, vol. 16, no. 4, pp. 503-517.
Michel, J.W., Kavanagh, M.J. & Tracey, J.B. 2013;2012;, "Got Support? The Impact of Supportive Work Practices on the Perceptions, Motivation, and Behavior of Customer-Contact Employees", Cornell Hospitality Quarterly, vol. 54, no. 2, pp. 161-173.
Moon, T.C., Beck, S. & Laudicina, R.J. 2014, "Retaining Experts: Administrators' Views on Retention Incentives and Older Employees", Clinical Laboratory Science, vol. 27, no. 3, pp. 162.
Yang, J., Wan, C. & Fu, Y. 2012, "Qualitative examination of employee turnover and retention strategies in international tourist hotels in Taiwan", International Journal of Hospitality Management, vol. 31, no. 3, pp. 837.