Mental Health

Why Vulnerable Employees Struggle With 'The Customer is Always Right' Policy

By Dynne C. | Update Date: Feb 08, 2024 10:36 PM EST

A recent study challenged the traditional notion that "the customer is always right" in the hospitality industry. 

In the study, the researchers discovered that discourteous customers, coupled with company policies that empower them, negatively impacted the mental well-being of employees and hindered their ability to serve other customers effectively. They also found that employees facing their mental health struggles were more susceptible to aggressive and impolite behavior from customers.

The findings were based on a survey of 183 front-line workers across various hospitality sectors in the United States. Participants were presented with scenarios involving civil or uncivil customers and policies either centered on customer satisfaction or employee support.

Associate professor and chair of the Department of Hospitality and Tourism Management Melissa Baker highlighted a significant cultural shift in the industry, where companies increasingly prioritized the psychological health of their employees, especially in light of the rise in post-COVID customer incivility and higher turnover rates. She emphasized the importance of supporting employees when faced with uncivil customer behavior, citing initiatives such as counseling, mental health training for supervisors, and public messages promoting kindness toward workers.

Dysfunctional customer behavior

The findings are supported by a similar study in 2022, where researchers looked into the issue of dysfunctional customer behavior within service settings, particularly focusing on its impact on frontline banking service employees. 

The team found a significant positive relationship between dysfunctional customer behavior and negative emotions experienced by bank service employees, subsequently influencing their prosocial service behavior. The study also highlighted the mediating role of negative emotions in this relationship and investigated the moderating effect of perceived supervisor support. 

Both studies indicated the need for hospitality companies to strike a balance between customer satisfaction and employee well-being. Baker explained that while customer care remains crucial, it is equally important to support employees when they encounter disrespectful or aggressive behavior from customers. By implementing policies that prioritize employee welfare, companies can foster a healthier work environment and retain top talent.

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