The Impact of Employee Motivation on Customer Satisfaction in the Insurance Sector in Botswana

Abstract

The study seeks to measure the impact of employee motivation on customer satisfaction focusing on the insurance sector in Botswana. According to Botswana Business week report (2018) the local insurance sector is in the doldrums with one in 10 licenced operators closing down, profits are diminishing down 23%, and the high marginal decline in gross written premiums. The insurance sector is experiencing a decreasing customer base, high turnover of experienced employees, reduction in profits and low productivity. The study was quantitative in nature and the causal research design was used. The questionnaire was personally-administered to 80 participants which includes employees and customers. The findings of the study clearly acknowledged that employee motivation and customer satisfaction are positively correlated. The regression analysis was employed to test the hypotheses. The empirical examination of the study suggests that employee motivation is vital to boost customer satisfaction, service quality and lowers staff turnover. The study results revealed that employee motivation plays a significant role in enhancing the operational performance of organizations in the service industry. It was recommended that, management should employ motivational factors (innovative promotions, involvement, fringe benefits) to enhance service delivery and customer satisfaction, emphasis on market research through design thinking, as well as, understanding of the customer needs and expectations and designing customer care service policies so that a wide number of customer complaints and areas of interests are considered.

Keywords: Employee motivation, customer satisfaction, service quality