Employee Satisfaction as an Antecedent for Customer Satisfaction - Dissertation Example

The second stream of literature discusses the current state of SME retailers in Ireland. The third stream of literature then discusses the concept of competitive advantage while the fourth stream of literature focuses on competitive advantage through people. New employment relationships are discussed in this section as also the different strategies that organizations implement to achieve competitive advantage through people.
The Irish economy has shown little signs of recovery despite the IMF and the EU providing substantial financial support. The nation has the highest budget deficit in the Eurozone as house prices continue to fall amidst declining incomes and rising levels of unemployment (Euro monitor International, 2012). Consumer confidence has been further hit due to job losses, higher levels of taxes, and reductions in welfare payments. The Irish economy is not likely to recover over the short- and medium-term.
The Irish economy has suffered one of the worst recessions resulting in a phenomenal rise in levels of unemployment (Russell and McGinnity, 2010). Recession impacts not only those that have lost their jobs but also the survivors that remain in employment. During one of the worst recessions in 2009, the GNP in Ireland contracted by 2.8 percent in 2008 and by 10 percent in 2009 (Russell and McGinnity, 2010). This resulted in a drastic reduction in public spending including cuts in public sector pay. Recession in Ireland led to recruitment freezes, job losses, rising unemployment, and insecurity for those still in employment. These were the different forms in which work pressure was experienced as a consequence of the economic recession in Ireland. Insecurity among the workers can undermine working conditions. At the same time, organizational changes, reduction in the number of staff, budget cuts all bring changes in the conditions of employment and the well-being of workers.
The Irish retail sector is a significant contributor to the economy but the Irish Small & Medium Enterprises Association (ISME) describes the retail sector as wretched as thousands of jobs continue to be at risk unless the Government intervenes to address issues such as rising costs of operation (Carey, 2012). Retailers find it hard to make ends meet amidst a negative trading environment. Unrealistic rents, uncompetitive labor costs, and transport fuel increases continue to pose challenges for the sector. Lack of consumer confidence is clearly crippling the sector even though the retail industry is trying to adjust its cost base under the changed economic environment.
Consumer confidence has fallen as is evident from consumer spending cut back on books, fuel, and furniture (Irish Times, 2012). The retail sector has been struggling ever since consumers reduced personal expenditure. The sector also has rogue traders who are responsible for the black economy which the small retailers are trying to fight back. Illicit trade results in fewer footfalls, loss of sales, and reduced margins, which threaten the very existence of the retailers.