6 Ways to measure Employee Satisfaction

Employee Satisfaction is the level of hapyness and well-being that workers experience with their work environment. Factors that influence satisfaction include company culture, working conditions, compensation, development opportunities, and relationships between colleagues and supervisors, among others. If you are looking to assess this aspect of your organization, there are at least six key indicators to measure employee satisfaction that will clear up your doubts about how your workforce is doing.

If you are interested in knowing what they are, then stay and read on!

How to measure Employee Satisfaction?

Employee Satisfaction is measured through various tools and methods designed to obtain both qualitative and quantitative information about employees’ experiences in their daily work.

A common method is the use of employee satisfaction surveys, which include questions about satisfaction with the environment, leadership, salary, and benefits. These surveys allow companies to gather data from a large number of employees and obtain an overview of the level of satisfaction.

However, if you prefer precision and getting straight to the point, there are specific metrics.

The Employee Net Promoter Score ( eNPS ) is a metric that measures workers’ willingness to recommend the company as a good place to work. The Employee Satisfaction Index (ESI), on the other hand, is a measure that is based on specific questions about the work environment, recognition and professional development. And the Employee Happiness Scale assesses emotional well-being and general happiness.

Indicators of employee satisfaction can also be measured by looking at retention and turnover rates: high loyalty and engagement are usually synonymous with team members being comfortable in your company, while high turnover suggests problems that cause employees to be dissatisfied.

And, living in an interconnected world like the current one, we cannot forget the comments left by users (your collaborators) on specialized Social Networks, such as LinkedIn or Glassdoor.

Too summarized?

Don’t worry, because now we will see each of these strategies in detail.

What are the indicators of Employee Satisfaction?

As we have already told you, to measure the level of employee satisfaction there are several key indicators that you can use to evaluate the well-being and happiness of your employees.

These metrics provide information about how your people feel in their workplace and are essential for identifying strengths and areas for improvement. This way, you can guarantee an excellent employee experience for your team with which to motivate them to give their best every day.

Do you want to know what these satisfaction indicators are? Here we leave you six of them, the most useful and easiest to measure.

1. eNPS 

The Employee Net Promoter Score ( eNPS ) is an indicator that measures the level of commitment and willingness to recommend the company as a good place to work.

It is obtained by asking employees on a scale of 0 to 10 how likely they are to recommend their workplace to others.

Then, respondents are classified as promoters, passives or detractors:

  • Promoters: They are those who recommend the company without hesitation, so their level of satisfaction is high.
  • Passives: They neither recommend it nor don’t recommending it. These employees are generally satisfied, but believe there is still room for improvement.
  • Detractors: These are employees who do not recommend the organization, which implies that their level of satisfaction is very low. In addition, they are likely to speak badly of the company, seriously damaging the brand image.

Once the scores are established, the eNPS is calculated by subtracting the percentage of detractors from the percentage of promoters.

eNPS = (Promoters – Detractors) ÷ Total employees

A high score indicates a high level of satisfaction and commitment, while a low score suggests issues that need to be addressed.

2. ESI

The Employee Satisfaction Index (ESI) is an indicator that measures the general satisfaction of employees based on their expectations.

To obtain this index, we ask employees three very specific questions that they have to answer with a score from 1 to 10. These questions are:

  • What is your degree of satisfaction with your current job?
  • To what extent does your current job meet your expectations?
  • How close is your current job to your ideal job?

Then, once you have obtained the scores for each question, you apply the following formula:

ESI = (Average question value ÷ 3) x 100.

As for the results, they are presented in the form of an index, allowing companies to compare their results with industry standards and with results from previous years.

A high ESI generally indicates a good work environment and a high degree of satisfaction.

3. Happiness Scale

The Employee Happiness Scale is a measure that assesses the emotional well-being and general happiness of workers.

To measure it, team members must respond on a scale of 1 to 10, “ How satisfied are you with your workplace?” or “How are you feeling today?”

However, you can also do a more elaborate questionnaire with questions about work-life balance or work stress.

Calculating this metric is very simple. As with the eNPS , you just have to add the high scores (those ranging from 9 to 10) and divide that result by the total of the responses.

Happiness Scale = (High scores ÷ Total responses) x 100.

Taking the pulse of this metric will help you understand the emotional state of your employees and take steps to continually improve.

4. Employee Satisfaction Surveys

Leaving aside specific KPIs, employee satisfaction surveys are another fundamental tool to measure job satisfaction.

These surveys collect data on various aspects of the work environment, such as leadership, growth opportunities, compensation, benefits, recognition, or communication. And the best thing: if you use them frequently, you will be able to measure satisfaction in real time and take action proactively.

You can create a employee satisfaction survey that covers all these points at once or, as we recommend at Team Insights, create a survey for each topic, because it will be much easier for you to evaluate each area. But as always, everything will depend on your goals.

Either way, the results provide you with quantitative and qualitative information to identify problem areas and design strategies to improve employee satisfaction.

But, What to ask in these employee satisfaction surveys? In this article you have a compilation of the most powerful questions.

5. Employee Turnover

Employee turnover is an indicator that Human Resources managers monitor closely, and it is critical to measuring employee satisfaction.

If the number of employees leaving the organization is too high, it means that they are dissatisfied with some aspect of the job that leads them to seek opportunities in other companies.

This is the formula to calculate the turnover rate:

Employee Turnover Rate = ( Total number of employees who have resigned of their own free will ÷ Total number of employees at the beginning of the period) x 100.

Of course, it should be noted that this metric, unlike the previous ones, has a reactive nature. That is, it serves to evaluate employee satisfaction once the company’s management strategies have already begun to negatively affect workers, and not before.

To avoid situations that endanger the health of the organization, it is best to measure employee satisfaction continuously through the eNPS , the ESI or the Happiness Scale. Or doing pulse surveys periodically.

6. Feedback in RRSS

Finally, the comments that current and former employees share on platforms like LinkedIn, Glassdoor, and other professionally focused social networks are another good indicator of satisfaction level.

A positive review usually reflects a high level of satisfaction, while negative reviews are red flags that you need to address, especially if you are looking to attract talent.

So, by monitoring public feedback you will get an updated view of your team’s perception of the work environment and whether they are satisfied or not.

What are the levels of Employee Satisfaction?

You have already calculated the level of satisfaction of your employees. And now what?

Before making any decisions, pay attention to what the numbers are telling you. In this sense, employee satisfaction can be described in terms of levels, which reflect the degree of contentment and well-being.

These levels will allow you to understand how your workers feel and identify the steps to follow.

Very High Level

At this level, employees are highly satisfied with their work environment. They have a high level of commitment, enthusiasm for their tasks and a positive attitude towards the company.

Employees at this level are the champions of the organization and are willing to stay for the long term, strive for organizational goals, and serve as an inspiration to others.

High level

These people are satisfied with most aspects of their jobs, such as pay, working conditions, and relationships with colleagues and supervisors. Although they may have some minor areas of concern, they are generally happy with their work and feel valued.

Therefore, although there is room for improvement, it is not worrying.

Medium level

Here are employees with mixed feelings. They are not completely dissatisfied, but they might have concerns about certain aspects such as lack of career growth or workload.

At this level, the room for improvement should begin to be a priority for the company.

Low level

At this level, satisfaction is seriously affected and correlates with higher turnover and lower productivity.

To find out exactly what problem is harming your team’s morale, review the responses to your Satisfaction Survey, as they are the key to what is happening in your organization.

Very Low Level

At this level, employees are deeply dissatisfied with their workplace. They may feel a lack of support, poor working conditions, or very ineffective leadership.

Employees at this level are at high risk of leaving the company and expressing their dissatisfaction in public, which will negatively affect your brand image.

As before, review your surveys to find where the disconnect is and act accordingly.

 

Do you want to measure the satisfaction of your employees? In Team Insights you will find the best questions to create satisfaction surveys, since our tool has been created by HR People for HR People. Request a demo and discover everything that Team Insights can do for you.

 

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