Workers are feeling increasing disengagement from their employers, leading to a decline in commitment.
New data from Gallup shows this phenomenon, known as the “Great Detachment,” is eroding employees’ connection to their organization’s mission and purpose.
The research showed:
- Only 28% of employees strongly agree that they are extremely proud of their organization’s products and services, matching a record low since Gallup began tracking in 2008.
- This disengagement negatively affects productivity and customer satisfaction, creating ripple effects throughout businesses.
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Industries Struggling with Employee Pride
Pride in product and service quality has dropped significantly since pre-pandemic levels, with some industries hit harder than others:
- Transportation and warehouse: Down 14 percentage points.
- Technology and information systems: Down 10 percentage points.
- Government and public policy: Down 9 percentage points.
- Community and social services: The only industry to see an increase, up 10 percentage points.
These declines place many businesses at higher risk of lost productivity and weakened customer satisfaction.
The Contradiction: Rising Customer Satisfaction
Despite declining employee engagement, customer satisfaction remains strong.
The American Consumer Satisfaction Index (ACSI) held steady at 77.9 in Q2 and Q3 of 2024, near its all-time high. This rise in satisfaction likely stems from improved product availability and post-pandemic recovery.
However, organizations with widespread employee disengagement may struggle to sustain high customer satisfaction. Even small gaps in service quality can create significant competitive disadvantages.
Strategies to Rebuild Employee and Customer Connections
Organizations that prioritize customer-centric strategies can counteract the effects of employee detachment. Key approaches include:
Act on Customer Feedback
Engaged employees drive better customer experiences. Companies that emphasize customer feedback see measurable improvements:
- Employees in organizations that regularly discuss customer service improvements are twice as likely to report better product and service quality.
- Workers who strongly agree that their team focuses on customer needs are 3.2 times more likely to feel their job is meaningful and 4.5 times more likely to take pride in their company’s products and services.
Encouraging open discussions about customer experiences and implementing feedback loops can reengage employees and enhance product quality.
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Use AI to Improve Customer Interactions
Artificial intelligence is playing a growing role in customer interactions:
- 24% of US employees say their company uses AI to assist customers.
- 68% of employees who personally use AI for customer interactions report a positive impact.
- However, 34% of employees in organizations that have not adopted AI believe it would negatively affect service quality.
Businesses that integrate AI effectively—by providing training, clear guidance, and demonstrating its benefits—can improve customer interactions while fostering employee confidence in technology.
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Strengthening the Connection Between Employees and Customers
High-performing organizations recognize that engaged employees create satisfied customers. To combat the Great Detachment, companies must:
- Assess employee engagement regularly.
- Facilitate discussions on improving customer experiences.
- Implement robust customer feedback systems.
- Explore AI-driven solutions to enhance service quality.
By making customer-centricity a priority, businesses can reinvigorate employees, strengthen customer loyalty, and ensure long-term success.
