Customer service improvement through engagement : a study of the semi-skilled, frontline workforce in the retail industry in South Africa

• Author: Gavin Price,Daniella Lynch,Karl Hofmeyr
• DOI: 10.25159/2520-3223/4556
• Published date: 01 November 2018
• Date: 01 November 2018
• Pages: 1-34

Article

African Journal of Employee Relations

https://doi.org/10.25159/2520-32 23/4556

https://upjournals.co.za/index.php/AJER

ISSN 2520-3223 (Online)

Volume 42 | 2018 | #4556 | 34 pages

© Unisa Press 2019

Customer Service Improvement through Engagement:

A Study of the Semi-skilled, Frontline Workforce in the

Retail Industry in South Africa

Daniella Lynch

https://orcid.org/0000-0002-4260-0632

University of Preto ria, Gordon Institute of

Business Science

daniella.lynch1@gmail.com

Karl Hofmeyr

https://orcid.org/0000-0003-3251-1676

University of Preto ria, Gordon Institute of

Business Science

hofmeyrk@gibs.co.za

Gavin Price

https://orcid.org/0000-0001-6038-047X

University of Preto ria, Gordon Institute of

Business Science

priceg@gibs.co.za

Abstract

In economically challenging times, business needs to focus on all elements of

operation to improve profitability. Engagement has been identified as an

emerging theme that is successful in increasing profitability by creating a

workforce that is more dedicated and actively present. Within the service and

retail industries, engagement levers can be used as a mechanism for enhancing

levels of customer service, their primary communication channel with

customers. The question of how to maximise engagement within this core

frontline, often semi-skilled, workforce is therefore crucial, and it cannot

necessarily be approached in the same way as a white-collar, highly educated

workforce. A qualitative, inductive and exploratory approach was taken to

understand what impacted on and influenced engagement in this setting.

Nominal group interviews were held within a South African retail environment,

and the responses of 54 participants were captured. Qualitative and quantitative

metrics were extrapolated and analysed to add to the understanding of the topic.

The key findings revealed that the role the customer played in generating staff

engagement was a key lever in a frontline environment, a link not made by

existing literature on engagement. The study proposes a Frontline Service

Engagement model that provides insight into the complexities of engagement in

an African context, and, compared to an international context, helps understand

the difference in approach required. Through understanding the complexity of

the influences that contribute to this new lever, a strategy to address engagement

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can be improved to equip managers to increase profitability even in difficult

economic times.

Keywords: engagement; customer; semi-skilled; frontline; retail

Introduction

The creation of employee engagement is seen by many as a key determinant of

organisational success. The concept of engagement first emerged in 1990 from Kahn’s

seminal work in which he defined engagement as “being psychologically present in

particular moments” (1990, p. 693). This concept is something that is seen to help build

a workforce that is more committed, positive and involved (Anitha, 2014; Bakker &

Schaufeli, 2004; Maslach, Schaufeli, & Leiter, 2001). Although the literature has

contributed significantly to the challenge of measuring engagement, a deeper

understanding of its use as a tool for business effectiveness across different situations is

required by both academia and business (Anitha, 2014; Bakker, Albrecht, Leiter, &

Michael, 2011; Menguc, Auh, Yeniaras, & Katsikeas, 2017; Soane, Truss, Alfes,

Shantz, Gatenby, & Rees, 2012).

Understanding how semi-skilled, customer-facing (frontline) employees think and are

motivated, was the key focus of this study. The added complexity of studying the topic

in a South African context (a developing country with a weak economy), created a need

for a contextual study that led to recommended actions to increase profitability without

significant financial investment. Frontline employees in South Africa constitute a

significant part of the working population, with semi-skilled workers having increased

by 66 per cent since 2004, and service workers representing 16 per cent of the employed

population (Statistics South Africa, 2014, 2016). These employees fulfil monotonous

roles, and they are used by business because of their low cost and the perception that

they have limited career aspirations, partly due to their limited education. Currently,

seven per cent of South African service industry employees are engaged in work, which

is a concern for those who rely on these same frontline staff to be the primary interface

that customers have with their brand (Gallup Consulting, 2013). Within the retail

environment, employees’ ability to listen to customers, and their product knowledge

and problem-solving capabilities are key to business success, especially with the recent

advent of social media and revolutionary technology changes (Albrecht, Walsh, Brach,

Gremler, & Van Herpen, 2016; Jacobs, Renard, & Snelgar, 2014; Karatepe, 2013;

Ostrom, Parasuraman, Bowen, Patrício, & Voss, 2015; Potter, 2014; So, King, Sparks,

& Wang, 2016).

As the research into engagement increases, a link between engagement and customer

service is being established, and the effect of engagement on customer service is being

explored (Gallup Consulting, 2013; Gupta & Sharma, 2016; Heskett, Jones, Loveman,

Sasser, & Schlesinger, 2008; Karatepe, 2013; May, Gilson, & Harter, 2004; Menguc,

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Auh, Fisher, & Haddad, 2013; Menguc et al., 2017; Salanova, Agut, & Peiró, 2005;

Zablah, Franke, Brown, & Bartholomew, 2012). Research has established the validity

of the levers required for engagement; however, there have been limited

recommendations on how to influence these within an employee subset that has limited

scope for role change or innovation. It is likely that individuals occupying different roles

in a business hierarchy have different levers of personal engagement (Louw, Sutherland,

& Hofmeyr, 2012). If those making decisions on how to enable staff do not perceive

their needs correctly, a misalignment in terms of focus and policy can occur, which is

shown through staff productivity, which in turn directly affects profitability (Anitha,

2014; Harter, Schmidt, & Hayes, 2002; Heskett et al., 2008; Saks, 2006).

A clear link has been established between engagement and increased organisational

performance (Anitha, 2014; Kahn, 1990; Maslach et al., 2001; Saks, 2006; Soane et al.,

2012). This organisational performance in retail- and service-focused sectors is

governed increasingly by frontline employees and their level of service to customers

(Albrecht et al., 2016; Menguc et al., 2013; Salanova et al., 2005). The advents of social

media, increased competition and reduced consumer spending power have caused

companies to look at alternative ways of improving their proposition to the market

beyond simply reducing prices and pulling marketing and operational efficiency levers

(Heskett et al., 2008).

Attributes of the level of roles identified by this study are similar (e.g. these roles are

monotonous and have limited task significance). Roles that are high in these

characteristics are generally low in engagement, and staff turnover and absenteeism are

expected to be high (Grandey, Dickter, & Sin, 2004; Saks, 2006). With onerous South

African labour laws making firing staff expensive and time consuming, changing the

employee is not a solution, despite the perception that it is cheaper than changing the

organisation (Maslach et al., 2001). Increasing engagement is a more sustainable and

pervasive solution.

This study addressed the issue of how a large South African corporate retailer with a

large workforce of semi-skilled frontline individuals could promote engagement.

Literature Review

Employee Engagement

The construct of engagement has, since the seminal work of Kahn (1990), attracted

attention from a variety of angles, although there is limited clarity on a universal

meaning or attributes of engagement (Christian, Garza, & Slaughter, 2011; Gupta &

Sharma, 2016; Truss, Shantz, Soane, Alfes, & Delbridge, 2013; Viljevac, Cooper-

Thomas, & Saks, 2012).