Employee-driven growth (EDG) is a

business philosophy The philosophy of business considers the fundamental principles that underlie the formation and operation of a business enterprise; the nature and purpose of a business, and the moral obligations that pertain to it. See also * Business ethics ...

that centers an organization's growth on employee support, engagement, and development. It uses employee recognition, engagement, and rewards as strategies for business growth and

customer satisfaction Customer satisfaction is a term frequently used in marketing to evaluate customer experience. It is a measure of how products and services supplied by a company meet or surpass customer expectation. Customer satisfaction is defined as "the number ...

Key principles

Development EDG uses feedback loops and incentive structures to improve job performance and satisfaction, which result in enhanced customer experiences. Employee development includes additional classes, certifications, and training that keep employees engaged with their jobs. Recognition and rewards EDG emphasizes recognizing and rewarding employees for exceptional service, positive online reviews, and contributions to business success. This recognition often takes the form of financial

incentive In general, incentives are anything that persuade a person or organization to alter their behavior to produce the desired outcome. The laws of economists and of behavior state that higher incentives amount to greater levels of effort and therefo ...

s, but could also include non-cash rewards and other more intrinsic motivators.

Impact

Employee-driven company practices have been shown in studies to increase customer satisfaction by as much as 30 percent. Research has also suggested that the use of recognition and rewards results in increased employee satisfaction, retention, and

productivity Productivity is the efficiency of production of goods or services expressed by some measure. Measurements of productivity are often expressed as a ratio of an aggregate output to a single input or an aggregate input used in a production proce ...

. Positive employee experience metrics have also been correlated with a 50% increase in revenue growth. In both franchise businesses and larger corporations, EDG principles such as reward and recognition systems are used to increase hiring and retention rates.

References

{{reflist Business ethics Employee relations Workplace Human resource management Organizational behavior Organizational culture