Frontline employees and performance: optimizing the frontline, maximizing the bottom line

Abstract

In this paper, we link front line employees (FLE) to sales performance and second, develop a general model for optimizing FLE investment to maximize bottom line. In the first part, we investigate three person-environment antecedents to FLEs’ self-efficacy and its impact on objective sales performance directly and indirectly through FLE’s creativity and efforts. While the fit between FLEs’ personal values and the organizational culture is the stronger driver of self-efficacy, self-efficacy is positively correlated with creativity, effort and sales performance. Contrary to our thinking, creativity is negatively correlated with sales performance. Building on the knowledge from the first part, we develop in the second part a mathematical model to optimize investments aimed at improving FLE congruence perceptions. Of relevance to service managers is that such a model can be optimized in terms of financial performance. In particular, our model allows decision-makers to answer key FLE-investment questions such as (i) optimal FLE-investment level; (ii) optimal FLE-investment allocation; (iii) rate of return; and (iv) investment risk. For any service manager and specifically in countries with strong labor laws, analyzing the outcome of various FLE investments prior to actual decision is vital to stay competitive.