The Social Side of ESG: Why Tenant Experience is important for sustainable Real Estate Investing
In recent years, the concept of Environmental, Social, and Governance (ESG) has become increasingly important to real estate investors, landlords,...
2 min read
Team AktivBo : den 15 augusti 2023 14:10:39 CEST
Most business leaders and managers would agree that there is a strong relationship between customer satisfaction and employee satisfaction. And even the most cut-throated executives cannot overlook all the extensive research and studies that clearly demonstrate this correlation. A successful internal service culture increases customer satisfaction. All employees, especially those working closest to customers, influence the experience and image of the company.
Creating commitment and getting the organization onboard the journey towards more satisfied customers is key to success. If the employees feel that their work tasks are prioritized and that their own skills are valued, then they will also do a better job. More satisfied employees mean more satisfied customers, and vice versa. These good circles create a powerful driving force that makes everyone a winner – customers, employees, and owners alike.
Today it is standard for (at least) midsized to larger companies in all industries to have some form of employee engagement program in place. These often includes employee surveys, employee branding initiatives, benefits, incentives, training etc. However, the most important aspect of raising your organization’s level of commitment and engagement is that employees feel that the company and management believes in them and the work they do. Without this, your other initiatives are likely to fall short.
Looking at this specifically for the Real Estate, Property, and Housing sector, we have historically experienced an innate challenge. Most people employed at any given Real Estate or Housing company are working in operations, facility management, customer service or other service-related and directly customer-oriented roles. The general lack of tenant/customer focus results in a situation where large parts of the organization will thus be responsible for somewhat unprioritized areas. In such a situation, it is difficult to motivate, create a driving force and align the organization towards common goals.
There are huge returns in raising the employee productivity, and if successful the investment will pay off directly. By believing in the work carried out by the organization and emphasizing service and quality, there will be gains in both momentum and engagement. This driving force leads to increased employee satisfaction, higher productivity, and better efficiency. The company will likely also reduce costs in terms of lowered sick days and improved overall health of the organization.
Therefore, when we talk about the importance of employee engagement, it is not only to measure that parallel with customer satisfaction or to drown your coworkers with various kinds of benefits – but to set tough goals, measure performance and tell the organization that their work is crucial! This all starts with leadership (discussed later) and will provide the management with valuable tools for performance and change mechanisms. By treating customer satisfaction as a prioritized KPI, you will experience both soft and hard benefits, including a more motivated organization, a better tenant experience and an improved bottom line.
In recent years, the concept of Environmental, Social, and Governance (ESG) has become increasingly important to real estate investors, landlords,...
It has become standard practice for professional property companies to conduct customer surveys in order to better understand the needs of their...
The cornerstone to many of the values achieved from tenant satisfaction is a successful, structured, and ongoing dialogue with your customers....