HR Mavericks

Eddy’s HR Mavericks Encyclopedia

Satisfaction Rate
Employee satisfaction is an important indicator of how pleased a person is with their job and working conditions. A happy employee is generally more engaged, productive, and dedicated to their job, which can lead to enhanced performance and favorable outcomes for the firm.

What Is an Employee Satisfaction Rate?

Employee satisfaction is closely linked with work satisfaction. If employee contentment is high, they are more likely to be retained, work hard and contribute to a great corporate culture. Employees have a higher chance of leaving a company early if their satisfaction is low, as well as producing lower quality work and potentially adding negative elements to your employee culture.

Why Is Employee Satisfaction Rate Important?

Employee satisfaction is critical because it has a direct influence on the health of your company. Here are just a few of the areas that greatly benefit from high employee satisfaction, as well as areas that can be harmed if employee contentment is low.
  • Retention. Retained employees will always be the bread and butter of every successful venture in your business.. Everything stems from tenured employees, from higher productivity, better in-house hires, greater overall quality, and increased customer satisfaction. The benefits of retained employees outweigh everything else in terms of importance.
  • Productivity. Happier employees produce better results, plain and simple. If your employees’ job satisfaction is high, their productivity will follow.
  • Future leaders. If you desire to naturally groom top talent for executive positions, building upon loyalty that comes from higher job satisfaction is a great place to start. Leaning into your best people to execute on their leadership styles is far easier when they have higher satisfaction at the base.
  • Better in-house hires. Employees who enjoy their jobs will respect their jobs, and when they refer friends or peers to be a part of your business, you’ll be sure that they keep your standards in mind when picking out additional talent. As a result, referral-based hires will be more accurate and more reliable.
  • Increased loyalty. Loyal employees will always stick with your business through thick and thin, overproduce in the hardest of times and overdeliver in the best of times. Loyalty isn’t easily earned and it’s tough to lose when job satisfaction is at a max.

Methods To Increase Employee Satisfaction Rate

Improving employee satisfaction is a must for any organization looking to keep its best people and help them get the most out of their long tenure in your organization. Increasing communication, zeroing in on specific employee rewards, and upgrading your metrics are just part of the process of increasing your employee satisfaction rate.

Method 1: Upgrade Your Communication

The foundation for all other culture enhancements is communication. When we understand how to communicate effectively, things flow more smoothly. This can have an impact on a variety of factors in the workplace, including conflict resolution, productivity levels, and tenure and absenteeism rates. Investing in personality seminars, engagement activities, town hall meetings, and culture assessments are all fantastic strategies to improve employee communication outcomes. The key to enhancing workplace communication is to understand that not everyone communicates the same way, so investing in better communication is always a great idea.

Method 2: Treat Recognition on a Case-by-Case Basis

You'd think that no one likes being recognized, but it's closer to the truth that not everyone enjoys being recognized in the same way. When we go out of our way to congratulate or applaud our staff, we need to keep in mind that not everyone will respond favorably. Public acclaim may be fantastic for some people, while private accolades might have a stronger impact on others. What matters is that we recognize our people, but that we do it in a manner that best communicates you are valuable to each person.

Method 3: Create Metrics to Measure Success

There are several approaches to assess employee happiness, which we'll look at in the following section. However, you should have something to measure metrics with. It will be difficult to figure out what works best for everyone and when and how to implement a new strategy to achieve top satisfaction if you don't have anything to measure success or failure against.

How Do I Calculate Employee Satisfaction Rate?

Employee satisfaction is critical, and it's important to track it on a regular basis. However, measuring employee satisfaction isn't straightforward because it is multi-faceted. It’s best to look at the desired outcomes we want, such as lower turnover and higher productivity, and to measure each of these outcomes on a person-to-person basis while also looking at the workforce as a whole. There are four overall categories you’ll want to look at and measure for this.


The first place to measure satisfaction is in your leadership. What do your employees think of their direct reports? Do they themselves seem stressed and overworked, or are they handling their assigned projects with ease? Your leadership directly affects your retention rate. It’s no secret that most people quit their managers, not the job itself, therefore assessing if turnover is stemming from this issue might be a worthwhile use of your investigation time.


The difference between a great and passable culture is communication. How effectively does your staff interact with other departments? Do personality conflicts cause daily interruptions, or do you observe good coordination among interlocking departments? When friction exists among departments, it's an indication that morale in your business is poor.


Employee compensation and benefits are your company's most straightforward approach to enhancing employee satisfaction. While income may be restricted at times, increasing employee benefits in some capacity is always useful and effective in increasing employee satisfaction. Pet insurance, group legal services, and award programs are becoming increasingly popular, and including them is a guaranteed way to boost satisfaction if it is trending down. If there isn't much effort or enthusiasm behind your benefit program, there's a good chance satisfaction will follow suit.


Flexibility is the newest on the list of factors that increase employee satisfaction because of the additional instances of work from anywhere policies. As a result of this recent workplace shift, employees have grown accustomed to more freedom from their employer in terms of where, how, and when they work. Developing a remote policy, hybrid work policy, and even some viable project completion deadlines will go a long way toward improving morale. Employers often believe that too much slack will result in poorer performance, but this is not true; instead, more slack encourages greater trust and better satisfaction.
Steven Farber

Steven Farber

I spent much of my working life in a whirlwind of uncertainty wondering when I would find a career that would make me happy. After spending 23 years trying to find that 'dream career' I came to a sobering conclusion. I realized that I wasn't looking for a career, but for a purpose and that I would never be happy until I figured out what that purpose was. After a long hard road of trial and error, I concluded that my purpose, the very activity that brought me happiness was when I could bring that happiness to others first. Removing the vast amounts of uncertainty this life can bring for others and replacing it with true peace of mind, gave me my much sought-after peace of mind.
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Frequently asked questions
Other Related Terms
Aging Survey Data
Bell Curve Performance Management
Cost of Labor
Cost per Hire
Employee Experience Metrics
Employee Lifecycle
Employment Cost Index (ECI)
Hiring Quota
Human Capital Metrics
Labor Cost
Midpoint Progression
Offer Acceptance Rate (OAR)
People Analytics
Recruitment KPIs
Revenue per Employee
Source of Hire
Standard Deviation
Time to Fill
Time to Productivity
Training Efficiency
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