Engaged employees = customer satisfaction in local authorities

6 July 2010

In May 2010, our statistics team carried out an analysis on data from two large local authority surveys to investigate the correlation between employee opinion and resident satisfaction. The analysis identified significant links between employee opinion and measures of resident satisfaction with their local council performance and their perception of value for money.

The research was conducted following previous linkage work in this area completed in 2008 on local authority BVPI data, the conclusion from which emphasised the importance of effective leadership in ensuring high levels of customer satisfaction.  Strong leaders are those who communicate the council’s goals clearly, demonstrate a commitment to customer satisfaction and engender a culture of fairness and respect.  These leaders are more likely to have proud employees who deliver high levels of customer satisfaction.

The aim of the 2010 research was to conduct a follow-up analysis on recent data to determine whether the associations identified could be confirmed.

2008/9 local authority employee survey data from within ORC International’s perspectives database was compared to survey data from the 2008/9 Place survey, published on the Communities and Local Government website (www.communities.gov.uk). Information from 32 councils across England and Wales was included in the analysis.

The analysis identified significant correlations between:

1. Employee opinions and measures of resident satisfaction with local council performance

A correlation of 0.7 (highly significant) was found between the statement “I have the opportunity to contribute my views before changes are made which affect my job” from the Perspectives Survey, and overall resident satisfaction, measured in Places.

There was a further highly significant correlation (0.69) between “In my opinion, this company is committed to customer satisfaction” and overall resident satisfaction with the council.

2. Employee opinions and residents’ perception of value for money from local councils

A significant correlation was found (0.51) between employees’ perceptions of understanding how they contribute to their organisation and residents’ perceptions of getting value for money for councils services.

A further significant correlation was found (0.49) between employees’ perceptions of their organisation’s commitment to customer satisfaction and residents’ perception of getting value for money for council services.

Staff commitment needs to be embedded in how councils work

The results have built on and confirmed the initial BVPI analysis in this area, which first highlighted the relevance of these links. 

With the significant challenge councils are facing, and as part of the effort to “do more with less”, councils need to make sure the idea of staff commitment is embedded in how they work. The limits on public spending in the years to come, and the inevitability of service cuts, are going to put a strain on the relationship between residents and councils. Employees who are innovative, creative and committed to their council can help to ease these tensions.

It would be well worth looking at the skills, expertise and knowledge that make up the council, and asking, “Are we making the most of what we have?”