Quantifying the link between employee engagement, and customer satisfaction and retention in the car rental industry

Abstract In the retail service industry, employee engagement may play an important role in customer satisfaction and retention, as employees often interact directly with customers. This paper investigates empirical link between retention by analyzing a unique data set from large car rental company. Our analysis makes use of retirement-induced turnover exclusion restriction that is plausibly induced age, thereby allowing for variation partially exogenous to common underlying factors also impact retention. We show there positive effect on Further moderating effects highlight potential limits engagement, disruptions form downgrades can dampen engagement. However, despite dampened its overall remains indicating be key factor building resilience unforeseen disruptions.