Employee Satisfaction vs. Employee Engagement vs. Employee NPS

Yaneva, Maya

doi:10.26417/ejes.v10i1.p228-235

European Journal of Economics and Business Studies

Volume 9, Issue 1, 2023 · ISSN 2411-9571 (Print) · ISSN 2411-4073 (Online)

Employee Satisfaction vs. Employee Engagement vs. Employee NPS

Maya Yaneva

Institutional affiliation: VUZF, University of Finance, Business and Entrepreneurship, Sofia, Bulgaria

maya_yaneva@yahoo.com

DOI: 10.26417/ejes.v10i1.p228-235

Abstract

Human Resources are key for the success of business organizations. The science is focusing on Human Resources Management in times when technical resources are rapidly developing and significantly changing the working environment. The requirements toward the human resources are evolving as well. At the same time, the expectations of the candidates toward the employers are getting more demanding in terms of working conditions and appreciation. Employee profiles and change management are key aspects of HR management while the companies are striving to adjust their learning and development programs, working environment and structures in order to retain and develop their associates. Companies start to measure their employees’ satisfaction, than converting to employee engagement and nowadays more and more organizations are focusing on employee NPS (net promoter score), which is not only promoting the products or services of the company they are engaged in, but also the company as an employer. This paper is focusing on employee satisfaction, employee engagement and eNPS (employee net promoter score). It gives guidance what are the global trends with local impact, presenting results from several surveys on the Bulgarian market of global and local companies executed between 2012 and 2017. The primary focus of the research is to outline which channels and ways of communications are the most beneficial in the attempts of the business organizations to address their employees, boost their enjoyment and motivation and make them ambassadors of the product and services they produce, but also promote them as an employer. Presenting the outcome of the surveys is giving guidance on top drivers for employee satisfaction, engagement and loyalty. It is leading to conclusions that are enlightening the associates’ interpretation of those drivers in the different contexts of business environment. The organizations are conducting internal surveys within their global structures, but also participating in researches on the local market in Bulgaria to cross check the findings and the trends. Local cultural differences are influencing the organizational culture and trends of the business. The paper analyses the results related to the Bulgarian market and provides further recommendations as to how to address the findings resulting from the survey.

Keywords: employee satisfaction, employee engagement, employee NPS, net promoter score, communication, human resources, employee retention

1. Introduction

Today's society lives in an extremely dynamic, comprehensive, full of information and opportunities world. This is due to the growing and determining role of digitization in an increasing number of industrial sectors of the world economy. It should be noted the fact that the modern economy, especially in its practical and applied part, is directing its efforts towards introducing new and innovative practices of production process, organization of business, positioning of production and services and their market consumption. In today's global society, these practices are enormous and the rate at which they change and evolve is extremely large. This remarkably dynamic environment in which the world economy develops also has an impact on the tourism industry. It must be said that travel and tourism industry is one of the world’s largest industries with a global economic contribution of over 7.6 trillion U.S. dollars in 2016, which is 10,2% of world GDP. The sector now supports 292 million people in enviroment – that’s 1 of 10 jobs on the planet and it developing is under the strategic impact of modern innovations in all directions of its activities. Due to the broad access of information and the opportunity for global and fast communication, the tourism industry is shaping under conditions of a strong and highly changing competitive environment. These conditions determined the need of implement and use of new and innovative practices and technologies to identify the difference and contribute to success of individual tourism enterprises. It is the extremely complex and highly competitive environment in which modern tourism enterprises develop their activities and it determines the need for creation of a better management and organizational standards, leading for the best management decisions that will be the key to maximizing efficiency. They also lead the introduction of new and innovative practices, which are a direct expression of the contemporary requirements of tourists, regarding used tourist products and services. At this stage, it may be necessary to conclude that modern tourism enterprises are directing their efforts towards for the use of innovative practices that will lead to implementation of better managerial decisions at all stages of management actions.

At a global level, innovation policy is becoming a key factor and a key tool for achieving competitiveness in tourism. Changes in tourism supply as a result of globalization processes lead to new challenges for the tourism business in Bulgaria as well. The short and long-term development policies should be rethought by the market participants, regarding the new conditions.

World tourism trends pose to the state policy in Bulgaria the need to stimulate the development of innovations and the adoption of the relevant regulations, which direct the business towards to implementation of innovation policy. Innovation takes central place at the EU's growth and jobs strategy. A key feature of the economics of knowledge is the creation, conservation, dissemination and use of knowledge as a way to achieve accelerated growth rates and greater competitiveness.¹

It can reasonably be argued that, to a large extent, the management of the tourist enterprise or destination determines and guides the choice of tourists seeking new and fulfilling tourist experiences. The technological provision and the better organizational structure of services, following the introduction of innovative practices and technologies, create positive impressions, comfort and personal satisfaction during the tourist stay and the various tourist activities that accompany it.

2. Method

Based on the information provided and according to the purpose of the present study, to reveal the manifestations and the effects of the better management in tourism as a result of the application of innovative practices, a method of study was chosen. Taking into account the nature of the matter under consideration, the "questionnaire" methodology is applied as a comprehensive and in-depth approach to innovation focusing on consumer experiences and experiences as the basis for choosing solutions. The questionnaire surveys are a very traditional way of conducting research. They are particularly useful for non experimental descriptive designs that seek to describe reality. Likewise, the questionnaire survey approach is frequently used to collect information on attitudes and behavior².

The advantages of questionnaires are as follow: practical; large amounts of information can be collected from a large number of people in a short period of time and in a relatively cost effective way; can be carried out by the researcher or by any number of people with limited affect to its validity and reliability; the results of the questionnaires can usually be quickly and easily quantified by either a researcher or through the use of a software package; can be analyzed more 'scientifically' and objectively than other forms of research; when data has been quantified, it can be used to compare and contrast other research and may be used to measure change and positivists believe that quantitative data can be used to create new theories and / or test existing hypotheses³.

The focus of attention is on studying a specific innovative hotel practice with an innovative character based on the study of the better results achieved by managers of the hotel complexes, to highlight and present the usefulness of introducing innovative technology in the tourism industry.

A basic principle of design as a "way of thinking" is to create a harmony between the function of the product / service and the shape and environment in which it is used so that the user remains with positive impressions⁴

3. Analysis

Creating better management in tourism companies is an extremely complex and dynamic process related to the change and restructuring of business models, activities, processes and competencies in order to better exploit the opportunities created by the implemented innovative technologies, taking into account their strategic and future influence of the enterprise. The development of new management models and activities is a key factor of creating conditions through which tourist preferences will be more flexible, market oriented and innovative, effective and responsive to current and future changes in economic reality and in the minds of today’s and future tourists. The goal of a better management of tourism companies is to create conditions and environment for faster entry of a new and innovative technological solutions, increasing their reliance on the company's activity in order to achieve more efficient, higher quality results, as well as creating services and products that meet the interests and demands of a wider range of real and potential consumers⁵. The best management is the key that enables modern tourists to have more control over their personal experiences and emotions during the tourist experience. Reality shows that a better organization in a tourist enterprise is not related for example, only to a certain type of interface or IT program, or a certain type of new digital product that is offered to tourists. Rather, it expresses how the tourist company operates and how it offers its products and services, allowing tourists to get the most out of any tourist activity during their stay.

Modern innovative technologies, developed specific business models and types of management, revolutionized the process of making and creating the management solutions offered by the tourism industry. Examples of such innovations are the use of personal smart phones such as key card for hotel rooms; hotel accommodation using personal mobile phone; mobile reservations; electronic media in the hotel lobby; electronic luggage stickers carrying their own information platforms; use on-board smart phones; hotel search optimization systems; Internet Protocol Voice Phones that are linked to the hotel's internal system ( in-room telephones, through which visitors can order a room service directly from the touch screen) using system communicates directly with the relevant hotel departments; portable identify guests tablet menus and reservation systems table in restaurants; an electronic device that can track every action of the cook and his team, and the customer can even give him a comment or talk about the recipe; cyber-mirror that allows you to get weather information, read the news, or define a route while looking around, wondering what to wear and many others.

On the basis of the information provided so far, the report will present innovative practice in tourism, aimed to create a better organization in the hotel industry in order to achieve the most efficient management decisions, improve the working process and maximize the satisfaction of the tourists. The essence of this innovative practice is bracelet chip service introduced in the 2014 season in Bulgarian hotel complexes and subsequently distributed in a large number of hotels operating on the Bulgarian Black Sea coast. At present 50 hotels use this device.

Chip bracelet is an innovative and modern solution designed to improve the overall tourist experience during rest, recreation or entertainment. The hotel complexes in Bulgaria, which have implemented it in their business, aim to offer complex service, using the chip bracelet such as a room key or a multipurpose payment device. With it help, guests do not wear a wallet or room key because the intelligent bracelet allows the opening of the personal room or the payment of different purchases to be done with just one touch of the bracelet to the specific touchscreen.

Figure 1. Example of an all-inclusive access control bracelet with non-contact tag

Source:https://www.tripadvisor.com.au/LocationPhotoDirectLink-g8766716-d8762779-i280667790-Melia_Braco_Village-Rio_Bueno_Trelawny_Parish_Jamaica.html

In technical terms, the chip bracelet consists of two parts (Figure 1). One part is a colored strap with a buckle that allows adjustment of the width when placing the hand of the tourist. It is made of water-resistant, impact-resistant, sun-resistant materials, allowing it to be used in various conditions without disturbing its integrity. The shape and color combinations of the bracelet are tailored to the feeling of wear and tear. The second part consists of a chip a non-contact PVC tag attached to the bracelet. The tag allows multiple use with rewriting and reading. It is a major component of the so-called “Chip Bracelet” because it brings all the information about the tourist who uses it. It can reasonably said that is collection of an electronic identity card with tourist data and an electronic debit card that holds some of its financial resources.

The conceptual innovation in chip bracelet service is related to the ability to improve and optimize the organization of work, service and by the statistics from bracelet data to take the best management decisions for the overall functioning of a hotel complex. Every tourist can charge their bracelet chip electronically on each of the receptions or areas designated for this activity, with a sum determined by him / her, and then dispose and pay with his / her means at each of the commercial premises designated by the hotel complex. On this way, a tourist without physical money can use a variety of services. On the other hand, the chip bracelet promptly informs the holder for any financial transaction, the type of purchased products or services and the available financial amount at its disposal at any point of its stay.

Whether the hotel guest is in the pool, sports or collects sun rays, the bracelet chip allows secure, fast and easy access to any service or product offered in the complex. It frees it from the necessity of wearing cash currency, from worrying about its security, while enabling him / her to quickly and easily make a payment, with just one hand movement and touching the bracelet chip to a corresponding sensor device.

Such smart devices are used by chains like "Four Seasons", "Hilton", "Hyatt", "Marriott", "Holiday Inn", etc. Here is the place to note the example of "Palladium Hotel Group" 2014 presents the VIB (Very Important Bracelet) smart bracelet so that guests can do everything from one device. With it help, the guests do not wear a wallet, telephone or room key, as everything is available from the smart bracelet: they can open their rooms, enter various venues around the hotel, pay for each product using a code combination, and receive exclusive discounts. (Figure 2).

Figure 2. Example of a bracelet used in Paradisus Palma Real Golf & Spa Resort

Source:https://www.tripadvisor.com.au/LocationPhotoDirectLink-g147293-d583034-i72425847-Paradisus_Palma_Real_Golf_Spa_Resort-Punta_Cana_La_Altagracia_Province_Dom.html

4. Results and Discussion

In this report, a survey conducted in 2017 was carried out among twenty managers who have implemented the above mentioned innovative technological device in the activities of the hotel complexes they manage. Hotel complexes incorporating the device are represented by different categories, the four stars being the most numerous - twelve, followed by five of the three stars and three of the five stars hotels. The managers receive a system of questions aimed at acquiring information on the usefulness of the device used and the information that is acquired by it in the process of taking the best possible management decisions. The aim of the study is to identify and compare the perceptions of individual managers about the role, importance and effectiveness of using chip bracelets during a real business environment. The research aims to acquire, analyze and synthesize information related to managers' attitude towards the innovative system of service and organization offered to hotel complexes managed by them. The current study consists of a questionnaire survey with formulated questions. The survey was conducted among 20 managers of hotel complexes located on the Bulgarian Black Sea coast. They manage hotels with different sizes, mode of operation and type of the offered tourist products and services. All of that implies differences and specifics in the choice of answers determined by the essence of their activity, way of work and management capabilities.

A system of questions has been set up for managers in the following form:

1. What is your nationality?

Bulgarian other ...........................................

2. What is your age?

26- 35 years 36 - 45 years

46-55 years over 55 years old

3 Are you support the implementation of innovative practices to optimize the activities of hotel complexes?

yes no I have no opinion

4. Do you think that the service in the complex is much faster using a bracelet chip?