Definition and importance of employee satisfaction

Employee satisfaction is not just a buzzword in modern companies; it is a central pillar for the success of any organisation. But what exactly do we mean by employee satisfaction? It is the extent to which employees are satisfied with their work and their working environment. This satisfaction has a far-reaching impact on the entire organisation, as it is directly linked to motivation, productivity and ultimately profitability.

Direct vs. indirect measurement of employee satisfaction

Employee satisfaction is often measured directly using questionnaires, such as the monthly Pulse Check. Stay interviews also aim to obtain honest feedback on working conditions, relationships with colleagues and superiors as well as the general mood in the company. Indirect measurements, on the other hand, monitor productivity trends, absence rates and staff turnover in order to draw conclusions about employee satisfaction.

Avoiding incorrect interpretations

It is crucial to interpret the data obtained correctly. Incorrect interpretations can lead to measures that do not have the desired effects. An open communication culture and a willingness to take honest feedback seriously are essential to avoid such mistakes.

The five main factors provide a comprehensive picture of the influences on employee satisfaction. Development prospects, identification with the company and job, attractive framework conditions, collegial cohesion and a supportive management culture characterise employees' sense of belonging. Everyday working life and processes also play a role, with topics such as work equipment, workload and clear processes being decisive for well-being. The combination of these factors promotes a positive attitude among employees and strengthens their loyalty to the company.

In order to effectively support managers and improve employee satisfaction and thus also employee retention, HR needs to use various levers. A high level of employee satisfaction makes a significant contribution to reducing staff turnover and promoting long-term loyalty.

Here are the five key obstacles for managers and the corresponding measures that HR can take:

1. No incentivesTraditional performance metrics do not take retention metrics into account. This is where HR can create transparency around retention metrics and include them in goals or OKRs to emphasise the importance of retention.
2. No supportManagers often have no support to actively tackle people issues. HR can establish the role of a "trusted irritator" who serves as a competent and confidential point of contact for managers.
3. No awarenessLimited awareness among managers of their impact on retention. Regular awareness raising and the use of shared leadership can increase awareness of the importance of retention.
4. No timeManagers often don't have time to deal with retention in their day-to-day business. HR can provide clarity on the expected time commitment and relieve managers with support staff.
5. No skillsManagers often lack the necessary skills to promote employee retention. Retention training and continuous role modelling by HR can teach and reinforce these skills.

Through these targeted measures, HR can strengthen managers and thus effectively improve employee retention.

You can also read our article on this topic: Putting more emphasis on employee retention - a smart way to bridge the talent gap?

Employee satisfaction is a dynamic state that requires constant attention and adaptation. Through regular assessments, honest feedback and a willingness to change, a culture of satisfaction and motivation can be created that benefits both employees and the company.

If employee satisfaction is anchored as a central point in the corporate strategy, companies can move from reactive action to proactive design. HR often takes on the driving role, but many managers are not yet fully aware of their responsibility. Increased communication measures, empowerment and continuous support are required from HR.

Until now, employee satisfaction has often been measured using lagging indicators such as the staff turnover rate. However, there is a trend towards leading indicators such as the Employee Net Promoter Score (eNPS). However, this alone is not enough; it is necessary to view and analyse several KPIs simultaneously in a dashboard. The use of artificial intelligence can also be useful in order to better predict risks and take targeted countermeasures if sufficient data is available. It is important to place the human factor at the centre and take their needs seriously.