Employees in Services - The Most Valuable Asset?

Before going on to discuss the employees role inservices organization. Customer-contact service
services, we feel it is important to differentiateemployees are very important because:o They are
between products and services. Services in mostthe serviceo They are the organization in the
simple terms are deeds, processes and performances.customer's eyeso They are the brando They are
Services may also be defined as any activity ormarketers [4]
benefit that one party offer to another that isIn many cases, in a service, there is just the employee
essentially intangible and does not result in theand nothing else i.e. employee is the service e.g. hair
ownership of anything [1]. These simple definitions givecutting, physical trainers, legal services etc. This means
us good idea about what services are. We can givethat the service being offered by the business is the
examples of a barber, a tailor, or a restaurant asemployee. Thus, investing in the employee is same as
services. Products on the other hand are offerings thatinvesting in the manufacture of a product.
are tangible in nature like for example a car.A customer-contact service employee may reflect the
In today's world, services are becoming more andimage of the service organization even if he or she is
more significant in any country's economy. As Louis V.not directly providing the required service. If you enter
Gerstner said in 2001 "Services are going to move ina hospital, every employee that you encounter from
this decade to being the front edge of the industry".the receptionist to the clerk might influence your opinion
This quote comes from the former CEO of aabout that organization. Thus, employees sometimes
company which claims to be the world's largestdo become the organization in customer's eyes.
service business in the world, IBM. The importance ofEmployees also become the brand for a service. A
services in today's world can be further emphasizedvery good example can be of a university which is
by the fact that services comprised of almost 80% ofwell reputed amongst students. The quality of most
United States of America's Gross Domestic Product inuniversities is judged by the caliber of the teachers
2003 [2].that are teaching there. When a student interacts with
If we talk in Pakistani context we can see that thea professor, he has positive emotions about the
structure of the Pakistani economy has changed fromuniversity only when he feels that the teacher is
a mainly agricultural base to a strong service base.knowledgeable and understanding and has complete
Agriculture now only accounts for roughly 20% of thecontrol over his subject. We can say that one reason,
GDP, while the service sector accounts for 53% ofamong others, LUMS is thought to be better than other
the GDP with wholesale and retail trade forming 30%universities is due to the perception that its faculty
of this sector [3]. This fact also demands that morecontains more PhDs than anybody else, hence having
work should be done on services marketing for properbetter educational quality than others. Thus, an
growth of the sector.employee also becomes the brand for a service.
Now that we know about the difference andBecause contact employees represent the
importance of services, we would like to shed someorganization and can directly influence customer
light on the difference between marketing of productssatisfaction, they perform the role of marketers. They
and marketing of services. Marketing for services isphysically embody the service and are walking
thought to be different from that of a product by a lotbillboards from a promotional point of view [4] If we
of experienced marketers. This was found out byare on the road and we see a person sitting on a
Gary Knisely, a principal of the consulting firm Johnsonmotorcycle, going to deliver a free delivery, or to
Smith and Knisely, in 1979 when he interviewed severaldeliver letters or documents, you can tell from their
high-ranking marketing executives who had all gone toappearance, clothing or even kind of vehicle that which
work in consumer services industry after extensiveorganization they belong to. So, even when the service
experience in the consumer packaged goods industry.employees are just doing their duty, they are acting as
There are generally 4 Ps considered in packagedmarketers for their organization.
goods marketing namely Product, Price, Place andHere we would like to refer to Mr. Dennis Harting who
Promotion. But when we talk about services, it issays "What is the most valuable asset that a
believed that there are three additional P's that shouldcompany has? Is it the name, customers, goodwill,
be considered for services marketing namely People,physical resources, or product line? The answer is that
Process and Physical evidence [4].it is none of these. A company's most valuable
The fifth P i.e. People include both employees andresource is its' employees. Any organization will go only
customers as customers also play an important role inas far as the people who are driving it. In fact, a
the service delivery process. But we are going tocompany is really just a group of people who interact
focus on employees as far as this article is concerned.for a common purpose. They are the ones who make
From the above discussion it is obvious thatup the organization." [5].
employees play an important role in the servicesHe also states that "It is important that managers and
marketing because of the vary reason thatowners begin to realize that the employees are the
employees are involved in the process of delivery ofmost valuable asset any organization can have. Those
any service e.g. a waiter in a restaurant is actually thewho accept this new business model will structure their
conductor of all the process related to the customers.compensation and bonus program to reflect this belief."
So it is of great importance that he gives the rightAbove discussion only points to one thing, generally for
image to the customer otherwise the customer mightevery business, and particularly for any services
never return. So those employees that are a part ofbusiness, employees are definitely the most valuable
service delivery, we can call them customer-contactassets. We personally feel that in Pakistan employees
service employees, play an absolutely crucial role inare still not given the right place and importance. One
building a repute for any service.feels that more and more attention should be paid to
The importance of customer-contact servicerole of employees in services and investments should
employees can be understood because of thebe made to improve the most valuable asset of
following statements, which will also show that whyservices.
employees may be the most valuable asset of a