Measuring Employee Satisfaction and Why It's Important

Are you keeping a finger on the pulse of satisfaction within your organisation?

Measuring Employee Satisfaction and Why It's Important

The general statistics for employee satisfaction are surprising, and not in a good way. According to a report by Gallup, 64% of employees are disengaged, or physiologically unattached, and unhappy in the workplace.

Hays reports that only 12% of employees are very satisfied, and 81% would make the jump to a new job. They further found that nearly 50% of job hunters left their job because of the workplace culture.

High levels of staff satisfaction lead to many benefits for companies. One of these benefits is improving your company’s profitability by more than 20%. This is just one incentive for measuring employee satisfaction levels in companies.

What Is Job Satisfaction?

Measuring employee or job satisfaction reveals how content your employees are with their role and overall workplace experience. The measurement also reflects their attitude towards their job and the company.

Knowing and measuring employee satisfaction helps companies identify where they can help their workers progress in their careers. As a result, the business grows as there are many benefits to reap (but more on this later).

What Factors Influence Employee Satisfaction?

The factors that affect how satisfied your employees are include:

Work Environment

Employee Satisfaction

An employee’s work environment should support the kind of work they do, as well as their professional development. Clean, climate-controlled, and quiet workplaces increase productivity, whereas messy, unregulated, and noisy surroundings do the opposite.

Relationships With Colleagues and Superiors

Nearly 80% of people who resign do so because of their boss, not because of their job. As such, managers can easily make or break job satisfaction.

Supervisors should create an inclusive climate, give recognition and feedback, have an open-door policy, encourage a work-life balance, and communicate well. Trade Press Services report that 85% of employees are more engaged when internal communication is effective.

Challenges, Responsibilities, and Flexibility

Challenging tasks are viewed in terms of capability and ability. If more demanding jobs and responsibilities are assigned to an employee, their job satisfaction rates naturally increase because they feel valued and trusted. That is, of course, provided that employees are properly equipped to handle the role and it doesn’t just pile on the stress.

The same can be said when flexibility is given. More flexibility in how and when an employee can complete a task shows them what is expected of them. It also increases trust, which builds engagement and boosts their productivity.

Pay and Promotion

What Makes For A Great Workplace

In the eyes of an employee, their paycheck reflects how much they contribute towards the organisation. Underpaid employees are not nearly as productive and engaged as well-paid ones. Benefits are a significant contributor to employee satisfaction, but it isn’t as influential as career development and advancement opportunities.

Fair Work Practices, Policies, and Procedures

A workplace that is perceived as discriminatory, unjust, and unfair leads to demotivated and dissatisfied employees. In contrast, if staff feels that promotion opportunities are fair and just, they will likely experience more job satisfaction.

Appreciation, Belonging, Safety, and Security

While monetary incentives are good motivation, other motivators can also ensure better work performance, engagement, and productivity.

A study reported that nearly 40% of employees feel encouraged when they receive recognition. Another study found that almost 85% appreciate recognition when they’ve gone the extra mile.


Officevibe reports that 43% of dedicated employees receive feedback at least weekly. Regularly receiving feedback can be very encouraging as it lets employees know how they are faring and where improvement is possible and expected. However, it's also critical to understand what kind of feedback to give and how to give it.

What Factors Decrease Staff Satisfaction?

Unsatisfied Workforce

There are many aspects of a company and an employee’s job that can lead to low satisfaction, but these are the most common causes:

  • No recognition, appreciation, feedback, or direction from superiors
  • Poor work-life balance and work conditions
  • Ineffective onboarding
  • Low salary
  • Few or non-existing promotion opportunities and career development
  • Lack of internal communication
  • No connection to company culture, values, and mission

Why Should We Pay Attention to Measuring Employee Satisfaction?

HR teams and companies as a whole should be cognizant of job satisfaction levels. If they can ensure their employees are happy in their jobs and the workplace, they can improve employee engagement, which increases productivity.

The other benefits companies stand to gain by improving the happiness of their workforce are:

Decreased Staff Turnover

If employees feel satisfied and valued, they are more likely to stay.

Improved Productivity

Unhappy team members who don't feel motivated to work will instead of waste time on other non-work-related tasks.

It is estimated that at least two hours of the average workday per employee is spent on non-work activities. That may not sound like a lot. If you have 20 employees, this amounts to 200 hours per week. Imagine this number for 100 employees?

Improve Productivity In Workplace

Receive Feedback From Your Employees

Getting feedback reveals areas where the company can grow. Working on improving these areas can boost employee engagement and productivity.

Better Company Culture

High levels of workplace engagement ensure good employee morale and boosts your company culture.

Keep A Finger On The Pulse Of Your Workforce

Ready to start measuring employee satisfaction levels? Then check out &Team’s Pulse, where you can measure and visualise your workforce’s happiness. Contact us for a demo today!