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CAN WE CUT COST WITHOUT CUTTING QUALITY


HR Role in Good Customer Service

HR department is the first/top link that drives customer satisfaction and earn corporate revenues  by careful attention to who is hired, how they are trained, how they are coached, and how they are treated on the job.
HR plays a remarkable role in building a customer-friendly culture. Throughout the business world, HR departments are focusing their   efforts on improving customer satisfaction. They’re using HR activities such as hiring, training, coaching, and evaluation programs to provide employees the tools and support they need to develop and nurture positive, lasting relationships with clients.
The HR department is also playing a role in improving service toward its customers. HR is often responsible for conducting training and incentive programs and also excels at providing good customer service for employees. Having customer service training sessions with employees and implement rewarding system for those who excel at making customers happy. The human resources department can become an influential center for customer service excellence throughout the company.

Customer Service really matters. If a customer is complaining on something, really he still  want to be with us.

 A sector like banking which provides services to the people should be very concern about their needs. Bankers always should follow the rule of "Customer is the the King" and should make every effort to create a memorable customer service experience.  

Who can give a better  service to a customer? 

A pertinent question to ask..?

Without having adequate training / learning procedures or personal developments strategies  can an employee be knowledgeable?  Can he identify  the exact requirement of his customer?  Then how he/she is able to deliver a good customer service? Actually they are not providing a better service but following orders from the next superior level.

Through VRS and and due to various dissatisfactions employees  leave  banks. The employee turnover is also in an increasing trend and this is an area that HRM should properly be addressed. If an organization doesn't recruit/replace required work force to work two main issues can be taken place,

1.The workload for the remaining staff may high

2.Where the workload is high the productivity of the staff may low

So what kind of service from such an employee we can expected?

Customer's needs and expectations have wide complexity. Banker must always be well informed to identify each and every customer expectation separately . Proper learning and education, experience gathered over years & the ability of forecast when extending facilities are some common factors that a banker should compulsorily possess.

Lack of budget Customer service is a dynamic area of any company. Failing to properly investing in improving  long term customer service operation excellence is parallel to  the quality of service to decline. Since replacing interns, schools leavers or any outsourced  employees without sufficient exposure for the purpose of cutting cost  to provide service to customers may leads various repercussions. 

Most customer service issues imply a second interaction. Customer was served perfectly during the first one, but  his issue is escalated with the second person, or when he get in touch with another team member during a second interaction.

Why he experiences disappointment ? 

Customer may need to explain the issue a second or third time, or sometimes different answers, different interpretations of the company policy given by agents. This can greatly diminish customer experience.

Since one of HR's greatest responsibility is to develop well informed and knowledgeable work force for the organization for its smooth functioning and better and constant customer care.

Reference

Chimney V. (2020) how does human resource impact customer service.etechgs.com. [online] Available from: https://www.etechgs.com/blog/human-resources-impact-customer-experience/. [Accessed : 02 May 2021] 

Ross G. (2021) the role of HR and other departments in customer experience. allbusiness.com [online] Available from: https://www.allbusiness.com/the-role-of-hr-other-departments-in-customer-experience-16759697-1.html. [Accessed : 02  May 2021] 

Marcy K. (2019) how HR can bring customer experience. forbes.com[online] Available from: https://www.forbes.com/sites/forbeshumanresourcescouncil/2019/12/27/what-employees-want-how-hr-can-bring-the-customer-experience-to-todays-workforce/?sh=74fbd07d3ae5. [Accessed : 02  May 2021]

Richard M. (2021) apply customer experience thinking to HR processes. dummies.com [online] Available from: https://www.dummies.com/business/marketing/branding/apply-customer-experience-thinking-hr-processes-improve-employer-brand/. [Accessed : 02  May 2021] 

 







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21 Comments

  1. In today’s technology-driven world, there is no shortage of opportunities for banks and credit unions to innovate and improve the customer experience, starting with customer service. You see, customer service is a vital component of a quality customer experience because it directly impacts how your customers engage with your organization. Customer service failures, such as an unpleasant interaction with a live service representative or a failure to address a customer’s pressing need, can easily become a black mark on a customer’s impression of your bank, and sour the entire customer experience. To that end, it’s imperative that you not only look for ways to improve customer service in banks, organization HR should also work on their employees satisfaction as well.

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    1. I agree with you.The basement of the success of banking sector is delivering a good service to its customers. Since the quality of service should properly monitored continuously. Thanks Anjula for your intention.

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  2. "No" is the simple answer to your question. If you have cost limitations, quality is definitely reduced. it applicable for all industries. to give better service for customers, the employes must be best. The Best employees are always costly.

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    1. Yes best employees are always costly. I agree with you. Cost limitations have become a part of the operational process in every sectors and industries. But it should be further streamlined. Thanks Thushara for sharing your view.

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  4. My Answer is YES, Why NOT.
    Cost cutting decision make from Bank owns or board of bank. HR department must have to follow that order, in that case HR managers under crisis budget pressure must drive functional efficiency while managing the risks associated with cost initiatives. HR leaders must act to identify and capture short-term efficiency gains, including immediate spend reduction, while managing the risks associated with those cost decisions. In the case of HR, that primarily means protecting employee experience and productivity.
    Cost-saving libraries to select the most promising and realistic ways to cut HR costs immediately. But make sure to assess the likely impact and potentially negative impact of all cost-cutting measures in scope — and be careful about identifying unintentional and potentially hidden associated costs (Ex: unnecessary OT etc.) and new “change the business” projects, additional capabilities or services/products can often present the easier-to-cut option.
    Customer service and Customer satisfaction related with how bank employees treat them it’s related with employee soft skills. (It is a part of HRM employee hiring process)
    That’s why in my articles I’m talking about Innovative HRM Practices, I think Sri Lankan HRM must change their traditional ways to global HRM practices.

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    1. Totally agreed with your comment. Shareholders in the bank seek maximum monetary returns on their investments and the management of the bank has to perform for it. So cutting the cost is a strategy that banks implement to increase their profit. But like you said it is necessary to be more cautious when identifying unintentional and potentially hidden associated costs.

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  5. Quality of the service is depend on the culture inculcate in the particular business units & also of the mindset of service provider at the time of the delivering the service. Hense duty of the HR is to cultivate good culture, equal opportunities & good working environment.
    In Sri Lanka cost structure is mainly depend on the decisions of Director board & very little involvements in HR Dept. Sometimes only to provide required details requested by the Board.
    So cost structure has some impact on the satisfaction of existing employees than the new recruits. But if a good culture of work ethics is maintained cost structure will have an impact only during negotiation periods

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    1. Really a practical approach to the topic. Nowadays the management of the organization is deciding most part of the costing rather than the HR. Totally agree with you. Thanks Tharanga for your contribution.

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  6. Banks are service sector organizations which should mainly focus on providing a reliable customer service and to achieve that objective HR should provide expertise to employees equally and without any discrimination. Why I say so is that when the basics are communicated, people can act adhering to the basics while using their skills and personal traits.
    According to my opinion costs should not be cut but managed effectively, by changing the delivery channels incorporating modern technology ( E learning, E library, E Circulars) and the follow up should be done by HR to make sure that all employees are updated with the latest.

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    1. Modern Technology can be easily used as cost reduction strategy of banks in so many ways. Hence much attention should be given to that aspect for better performance and cost savings. Thanks Hasini for sharing your view.

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  8. Banks are always depend on the trust & customer relationship. To maintain a good customer relationship, banks need to provide an excellence service with a thorough knowledge about the bank products & services.

    As you said by replacing non experienced temporary appointed or outsourced employees, it may directly effect to the quality of the service. Without having required knowledge how can they provide better & attractive services? Not only just fulfill the customer requirements on time but customer satisfaction also should grow up by the employees. It can be performed only by experienced employees rather than a temporary assigned ones.

    Hence, as a cost cutting by assigning non-experienced tempory employees to the front line by removing the well experienced staff is not a good decision in case of the reputation and the stability of bank and HR Team should take correct decisions in suitable manner

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    1. Yes Kavinda, you are correct. In modern competitive banking environment many things have changed. But we have to streamline and continue what has implemented wisely.

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  9. In all the service industries, HR plays a major role in terms of improving good customer service. Efficient and skilled manpower can manage the financial risks and customer service at the banks need to take on regular basis. The Human Resource department is responsible for finding such talented manpower and placing them in right positions in the banks. As per my personal experience, HR departments in the banks should implement more L&D programs in terms of developing employee’s soft skills in order to improve customer service at banks.

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    1. Provide proper learning and education to staff is much essential in every industry, specially in banking since it is much regulated and always updating. Since HR is to provide learning and development materials to its employees timely. I agree with you Savindi Thanks.

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  10. yes, we can Cut Costs Without Compromising Quality. Save Money With Second Hand Equipment, Cut Office Rental Costs, Reduce Utility Bills, Cut Periodic Expenses are some examples to reduce cut without quality.

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    2. Thanks Kavishka you are correct. There are several costs that we can reduce wisely.

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  11. Yes according to my point of view we can Cut Costs Without reducing Quality. Of the business by saving stionery Cut Office un nessesry rental Costs, Reduce Utility Bills, by outsourcing identified departments.some examples to reduce cut without quality.

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    1. Maintaining quality is fundamental requirement of banking. But there are certain cost type that we can eleminate without harming the quality. Thanks Prasitha for your view.

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