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Estimation of employee satisfaction as the factor of customers satisfaction and company profitability

Student: Melikhova Kseniya

Supervisor: Elena Panteleeva

Faculty: Faculty of Management

Educational Programme: Master

Year of Graduation: 2014

<p>The paper regards satisfaction of personnel as the factor, which allows to increase customers&rsquo; satisfaction and company profitability.</p><p>The objective of the work was to identify relations between satisfaction of Renault dealerships contact personnel, customers&rsquo; satisfaction and sales volumes, and to develop recommendations for increasing personnel satisfaction.</p><p>The paper gives the answers to the following questions: What factors do influence on personnel satisfaction? What level of satisfaction do contact employees of dealerships have? What are the strong and weak points in work with personnel? How is it possible to influence personnel satisfaction in Renault dealerships? Is there any relation between personnel satisfaction and customers&rsquo; satisfaction? And is there any relation between personnel satisfaction and company profitability?</p><p>It was necessary to check two hypotheses.</p><p><em>Hypothesis 1</em>: Personnel satisfaction and customers satisfaction indicators correlate significantly.</p><p><em>Hypothesis 2</em>: Personnel satisfaction and sales volumes indicators correlate significantly.</p><p>In order to achieve objective and answer the questions, the data on three indicators was collected: personnel satisfaction, customers&rsquo; satisfaction and sales volumes. Data on customers&rsquo; satisfaction was taken from monthly researches of new Renault owners, done by Renault. Data on sales volumes is available in internal sales database. And in order to get data on personnel satisfaction, a research of Renault dealerships was performed.</p><p>Sales managers and Car delivery managers from 47 dealerships in regions Moscow, Center and North participated in research. Overall 243 respondents have sent their answers to the questionnaire. In order to prepare the questionnaire there was performed a meta-analysis of existing literature, which allowed us to define the methods for measuring personnel satisfaction and factors, which influence it. As the result, there was developed a short questionnaire in Google Forms, which is very simple to complete, but at the same time it provides all the necessary information to measure personnel satisfaction and develop recommendations for its improvement.</p><p>The data was analyzed with Spearmen correlation method. Analysis showed that personnel satisfaction and customers&rsquo; satisfaction indicators correlate significantly, which means that dealers should pay attention to the satisfaction of their employees in order to better satisfy final customers&rsquo; needs. However, significant correlation between personnel satisfaction and sales volumes indicators was not revealed. It can be explained by complexity of sales volume indicator, which is influenced by many different factors. And personnel satisfaction is not among the most significant ones.</p><p>Needs and Gaps analysis allowed us to define main factors on which dealers should work to improve their personnel satisfaction. They are: Salary, Fringe benefits and Promotion possibilities.</p><p>Subsequently, the collected data on employees&rsquo; satisfaction can be used to analyze the situation in each particular dealership and to establish activities to improve it. Also, the developed method of personnel satisfaction measurement can be used by both Renault and dealerships to monitor regularly the employees&rsquo; satisfaction and to do corrections in the work with personnel on time.</p>

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