Effects Of Employee'S Competencies On Customer Satisfaction: Study On Private Sector In Eastern Ethiopia

In fiercely competing business world the successes or failures of the organizations depends on the employees competency to attract and retain customers. Competent employees are the key to deliver excellent quality services to attract and retain customers, the main objective of this study is to assess the effects of employees competencies on customer satisfaction in private organizations in eastern Ethiopia. Comprehensive sampling techniques used to select sample of employees and convenience sampling techniques were used for customers. Data for the study were collected through selfadministered questionnaires distributed to 400 customers and 200 Employees for 40 private organizations. The questionnaire for employees was structured around six employees competencies areas such as business understanding, result orientation, customer service, team work, interpersonal communication and personal effectiveness. The questionnaire for customers was designed to collect data supplementary to the data collected from employees and data related to competency of employees that might not be directly answered by them. The inter-correlations among the dimensions of employees competencies and customer satisfactions have demonstrated significantly positively correlated. Multiple regression analysis were carried out to test the relations between the dimensions of employee competencies and customer satisfaction The study shows that there is a significant positive relationship between employees competency and customer satisfaction. The research identifies basic competency deficiencies of Ethiopian employees in handling customers’ and has managerial implication of how to staff the work force with the skills, area of knowledge, attitudes and abilities that distinguish high performer to deliver quality service Key Words: Employees competency, Customers satisfaction , Private organizations