Employee engagement, service quality and customer satisfaction in Kampala metropolitan Uganda :

Abstract

Customer satisfaction is critical for ensuring that organizations meet their objectives and maintain customer loyalty, particularly in service-oriented industries. The purpose of this study was to examine the effects of employee engagement and service quality on customer satisfaction in focusing on UMEME. The specific objectives of the study were to examine the effect of employee engagement on customer satisfaction; assess the influence of service quality on customer satisfaction; establish the effect of employee engagement on service quality; and investigate the mediating role of service quality on the relationship between employee engagement and customer satisfaction. The study was anchored on the SERVQUAL model, which posits that service quality dimensions such as reliability, responsiveness, and empathy play a significant role in shaping customer satisfaction. A cross-sectional research design was adopted, targeting 617 employees from UMEME's main office in Kampala. A representative sample of 234 employees was selected using simple random sampling. Data were collected through structured questionnaires and analyzed using SPSS, employing descriptive statistics, correlation analysis, hierarchical regression, and mediation analysis using Hayes’ PROCESS macro. The findings revealed that employee engagement has a significant positive effect on customer satisfaction. The study findings reveal that service quality positively influences customer satisfaction. The study also established that employee engagement enhances service quality. The study findings further reveal that service partially mediates the relationship between employee engagement and customer satisfaction outcomes. Based on these findings, it is recommended that UMEME invests in employee engagement initiatives to enhance service quality, and consequently, customer satisfaction.