Examining the influence of strategic profit emphases on employee engagement and service climate

Purpose – Research suggests that employee engagement favorably influences the provision of customer service, that high levels of service employee engagement are rare, and that firms' strategic profit emphases affect engagement and service climate. This study responds to calls for research that identifies drivers of employee engagement and foundational issues that promote effective service climates within service organizations. Design/methodology/approach – A survey method is utilized to assess data from 502 key informant service employees from multiple service industries. Findings – The findings indicate that service organizations' revenue enhancement and cost containment strategic profit emphases differentially influence employee engagement, and that organizational and job engagement differentially influence service climate. Research limitations/implications – Data comprised of individual service employees' perceptions of their firms' strategic profit emphases and service climates are utilized. Although it is conceivable that some respondents' perceptions of these variables may be misguided, the study findings are based on a large sample of experienced service employees from multiple service industries. Practical implications – The findings suggest that the most effective approach for promoting effective service climate is to hire service employees with a track record of job engagement and then focus on encouraging organizational engagement by creating working environments that support, value, and reward service quality. Originality/value – Managers increasingly realize that how firms treat service employees critically affects customer service quality. However, relatively few studies examine service employees' perceptions of their own engagement and their organizations' working environments. This research incorporates social exchange theory and concepts from the fields of strategy and organizational behavior to assess service employees' perceptions of their organizations' strategic profit emphasis and its influence on engagement and service climate.