Most entrepreneurs recognize the importance of great customer service and the importance of rewarding employees for great performance. Put these two things together, and it makes sense for companies to tie the size of their employees paychecks to the ratings they receive on customer satisfaction surveys.
More than 90 percent of US companies have shifted a greater percentage of their payroll to variable pay to increase engagement and retain talent, according to Aon Hewitt. Pay-for-performance plans are becoming common for customer-facing roles because frontline employees can directly shape the customer experience, and how people perceive the brand. A full 43 percent of companies base some portion of frontline pay on customer feedback ratings, according to a 2017 Accenture-Medallia survey.
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