In today’s highly competitive business landscape, companies are continually looking for ways to improve their customer experience (CX).
One key factor that affects CX is the work culture of an organization. The same work culture which defines employee experience.
Work culture consists of practices and approach that shape the behavior of employees in a company.
32% of full and part-time employees working for organizations are engaged in customer engagement, while 18% are actively disengaged.
In this blog, we will explore the impact of work culture and employee experience on CX and ways to improve it to positively impact CX.
- What is work culture?
- What are the different types of work cultures?
- How does work culture and employee experience impact customer experience (CX)?
- What are some ways to improve work culture to positively impact CX?
- Negative impacts of work culture on CX and how can they be avoided
- Final Thoughts
What is work culture?
Work culture encompasses the values, beliefs, and behaviors that guide how employees interact with each other, with outsiders and stakeholders and how they perform their work.
Work culture can be defined as the personality of an organization, and it influences every aspect of an organization, including employee satisfaction, productivity, and customer experience.
A positive work culture encourages collaboration, innovation, and creativity among employees. It helps to build a sense of community within an organization and fosters a supportive and respectful environment where employees can thrive.
Did you know: Over 50% of customers will switch to a competitor after a single unsatisfactory customer experience.
What are the different types of work cultures?
There are different types of work cultures, and they can be classified into four broad categories: traditional, modern, adaptive, and toxic.
(A) Traditional work culture
This type of work culture is hierarchical, bureaucratic, and rigid. It emphasizes rules, procedures, and protocols over innovation and creativity.
Employees in a traditional work culture are expected to conform to established norms and practices.
(B) Modern work culture
Modern work culture is characterized by flexibility, adaptability, and innovation. It encourages creativity, experimentation, and risk-taking.
Employees in a modern work culture are given more autonomy and are encouraged to think outside the box.
(C) Adaptive work culture
An adaptive work culture is one that is responsive to changes in the market and industry. It is focused on innovation, collaboration, and continuous improvement.
Employees in an adaptive work culture are encouraged to be agile, adaptable, and open to change.
(D) Toxic work culture
A toxic work culture is one that is characterized by bullying, harassment, discrimination, and a lack of support.
It creates an environment that is stressful and demotivating for employees, leading to low morale, low productivity, and high employee turnover.
Read more about importance of work culture here.
How does work culture and employee experience impact customer experience (CX)?
Work culture has a direct impact on CX. A positive work culture creates a positive customer experience, while a negative work culture creates a negative customer experience.
Here are some ways that work culture can impact CX:
(A) Employee engagement
Engaged employees are more likely to provide excellent customer service.
When employees feel valued and supported, they are motivated to go the extra mile to meet the needs of customers.
(B) Company values
The values of a company influence how employees behave towards customers.
For example, if a company values transparency and honesty, employees are more likely to be honest with customers.
(C) Employee behavior
The behavior of employees towards customers is a reflection of the work culture of an organization.
If employees are rude, dismissive, or unhelpful, it reflects a negative work culture, which impacts CX.
(D) Employee turnover
High employee turnover can have a negative impact on CX.
When employees leave an organization frequently, it creates instability and inconsistency, which can lead to poor customer service.
Did you know: 72% of customers will share a positive experience with 6 or more people.
What are some ways to improve work culture to positively impact CX?
Improving work culture and the overall employee experience can have a positive impact on CX.
Here are some ways that companies can improve work culture:
(A) Lead by example
Leaders in an organization should model the behavior they want to see from their employees.
They should demonstrate the values they want to instill in the company culture.
(B) Empower employees
Empowering employees means giving them the autonomy and support they need to do their jobs effectively.
It involves providing them with the tools, resources, and training they need to succeed.
(C) Foster a positive work environment
Companies should create a positive work environment that supports the well-being and development of their employees.
This can be achieved by providing benefits such as flexible schedules, paid time off, and opportunities for career growth.
(D) Encourage feedback and communication
Open and honest communication is essential in creating a positive work culture.
Companies should encourage feedback from employees and take action to address their concerns.
(E) Recognize and reward good performance
Recognizing and rewarding good performance is a powerful way to motivate employees and create a positive work culture.
It can be as simple as saying thank you or offering bonuses or promotions.
(F) Focus on diversity and inclusion
Creating a diverse and inclusive work environment is essential in promoting a positive work culture.
Companies should strive to hire a diverse workforce and create an environment that values and respects differences.
Negative impacts of work culture on CX and how can they be avoided
While a positive work culture can have a significant impact on CX, a negative work culture can have a detrimental effect.
Yes, according to research by Deloitte, 94% of entrepreneurs and 88% of job seekers say that a healthy culture at work is vital for success.
Here are some potential negative impacts of work culture on CX and how to avoid them:
(A) Poor employee morale
A negative work culture can lead to low employee morale, which can impact CX.
Companies should strive to create a positive work environment that supports the well-being and development of their employees.
(B) High employee turnover
High employee turnover can lead to instability and inconsistency, which can have a negative impact on CX.
Companies should focus on creating a positive work environment that encourages employee retention.
(C) Lack of focus on customers
In a negative work culture, employees may be more focused on their own needs rather than the needs of customers.
Companies should encourage a customer-centric mindset among their employees.
(D) Negative attitudes towards customers
In a negative work culture, employees may have a negative attitude towards customers, which can impact CX.
Companies should focus on creating a positive work environment that encourages a positive attitude towards customers.
A positive work culture can lead to engaged employees, a focus on customer needs, and a positive customer experience.
It’s about leadership by example, empowerment, fostering a positive work environment, encouraging feedback and communication, recognizing and rewarding good performance, and focusing on diversity and inclusion.
Companies can create a positive work environment that supports employee well-being, fosters innovation and creativity, and ultimately leads to better customer service by avoiding potential negative impacts of work culture.
The Clueless Company helps brands with a comprehensive CX consulting and strategy to push your brand towards growth.