I started my career in 2004. Since 2006, I have worked at companies that measure employee satisfaction and engagement, and I have personally managed survey and measurement processes of this kind. That is why I wanted to start a series to share my experience and discuss with you how the "Satisfaction – Engagement – Happiness" triangle has evolved so far, what these concepts are, how they are connected and how they differ, and, more importantly, where this journey is heading. Over the next few weeks, we will explore these topics in depth.
The articles won't be long. I will try to keep them as short as possible and explain, especially at a conceptual level, what this trio means and why it matters. I hope the series as a whole proves useful.
What Is Employee Satisfaction? Or, Who Is a Satisfied Employee?
Back in the early days, we only measured satisfaction, because "engagement" wasn't part of the picture yet. In the 2000s, "engagement" entered the picture too, but it did not push "satisfaction" out. On the contrary, for a long time there were companies that measured satisfaction and engagement together, and there still are. Although the general trend is slowly shifting toward the view that satisfaction is no longer enough and that what really needs to be measured is "engagement," satisfaction is still deeply embedded in the "employee experience" and remains the main driver of many other things. We need to keep this in mind as we move forward.
What Does "Employee Satisfaction" Mean and Why Does It Matter?
In its simplest definition, employee satisfaction can be described as the first picture or first impression an employee forms in their mind about their company. Satisfaction is a broad concept, but at its core it refers to the extent to which an employee is content with their employer, the work environment it provides and their working conditions. In other words, we can say that employees who generally think well of their employer and the company they work for, and who have positive feelings about them, are satisfied.
Based on this definition, the "state of being satisfied" with one's company and/or employer can be seen as linked mainly to physical and material conditions, and that would be quite accurate.
Satisfaction is mostly about the resources, opportunities and conditions the company offers us. If there are difficulties or problems in these areas, or any kind of dissatisfaction, we are unlikely to be satisfied with the company we work for or with our employer. And because we are not satisfied, it is technically impossible for us to move on to the next stages. It isn't realistic to expect a dissatisfied employee to be engaged. In short, if satisfaction isn't there at the foundation, we can't even talk about engagement.
The King Is Still on His Throne
As we have seen, satisfaction still matters, even though many new concepts have emerged since. That's because, first and foremost, all of us work to sustain our lives, earn a living and have access to certain opportunities. Wherever this motivation exists, the concept of "employee satisfaction" carries on without losing its power. Companies and employers create value and move forward to the extent that they meet these needs of their employees.
What Are the Key Factors That Affect Employee Satisfaction?
Think about it from your own perspective. How, and based on what, do you know that you are satisfied with your employer or your company? Which factors determine your level of satisfaction?
The answer is simple: the salary you receive; your bonus, if you have one; the additional benefits offered to you and/or your family (your health insurance, life insurance, private pension and all other fringe benefits); your office environment; all the materials, resources and facilities you use while working there; the lunch you eat in the cafeteria or the meal vouchers you receive; extra days of annual leave on top of the statutory entitlement; the investment your company makes in your professional or personal development; promotion and career opportunities; and, now that we are in the pandemic and our homes have largely become our offices, the extra equipment and support your company provides for your home workspace. For example, during the pandemic some companies sent ergonomic, orthopedic chairs to their employees' homes. These are all the right investments in "employee satisfaction," and they are extremely valuable 😊 On top of that, there is your company's overall image and the effect it has on you, in other words, your honest answer to the question "Overall, how satisfied are you with working at this company?"
All of these are part of the "satisfaction" package and directly affect how satisfied you are with your company. If one or more of them is missing, or even if nothing is missing entirely but the employee feels dissatisfied in some areas, you can expect them to leave the company before long, and you won't be able to make them a "satisfied employee" again without improving these conditions. In fact, sometimes even improving certain things may not be enough to retain the employee ☹
What Should Companies Do?
First of all, companies should stop relying on a once-a-year survey right away. Whether you measure satisfaction, engagement or happiness, or all three, these KPIs are too important to measure only once a year. Conditions and needs now change very quickly, sometimes overnight. Shorter-cycle measurement models must become a priority.
At the same time, frankly, I don't agree with the view "satisfaction no longer matters, let's cover it with a single question; what really matters is engagement, so let's measure that in more detail." As I explained, how can we expect a dissatisfied employee to be engaged, that is, to go above and beyond for their company? So, based on my own experience too, keep measuring satisfaction, which I see as "the core of the matter," and, if possible, support it with a variety of questions across different categories, using a broader measurement and evaluation approach.
On the other hand, if you want your "employee satisfaction" scores to stay high over the long term, there is no magic formula, but here are three things I have seen work, if you'd like some tips:
For high employee satisfaction:
- Have a solid pay policy for your employees that is as fair and equitable as possible.
- Offer them environments and opportunities that "make a difference" and "make them feel valued."
- Involve them in processes as much as possible, listen to them as often as possible, and make all of this sustainable.
We explain how to measure satisfaction in your organization with a survey in our article what is an employee satisfaction survey.
The next article will be about engagement. See you in the "Employee Engagement" article,
With love,
