What happens *after* a service failure is resolved? This paper introduces a novel concept: “internal service recovery,” defined as organizational efforts to support front-line employees after they have successfully recovered external customers from service failures. The research emphasizes the importance of making these employees feel less frustrated and more confident in their ability to handle dissatisfied customers in the future. Findings from an exploratory study of staff and managers in four branches of a UK bank indicate that, while external service recovery is well understood, internal recovery is often overlooked. The authors suggest that the traditional components of external recovery (response, information, action, and compensation) may be applicable to internal customers. The research also highlights the need to address passive, alienated employee behavior associated with “learned helplessness” through targeted interventions. The study encourages researchers and managers to investigate the impact of internal service recovery on external service recovery, as well as on employee and customer satisfaction. This research has implications for organizational behavior, employee engagement, and service quality improvement.
This paper, published in the International Journal of Service Industry Management, aligns with the journal’s emphasis on service recovery and customer satisfaction. It introduces the novel concept of “internal service recovery," expanding the scope of service management research. By focusing on employee support after service failures, the paper contributes to discussions on improving overall service quality.