Measuring Employee Satisfaction in the Workplace Costs and Benefits

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Measuring Employee Satisfaction in the
WorkplaceCosts and Benefits

• Valerie L. Robinson
• Ernesto Garcia
• MGMT 610
• February 3, 2003

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OUTLINE

• Why is measuring Employee Satisfaction Important?
• Methods to Determine Employee Satisfaction
• Surveys
• Questionnaires
• Interviews/Focus Groups
• Quality Improvement Process
• Change Measurements
• Evaluate the costs
• How Does This Fit In to the Human Resource
  System Design?
• Final Remarks

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Measuring Employee Satisfaction

• "Measurement" encompasses the assessment of
  performance and results achieved by individual
  employees, groups of employees or teams, and
  entire organizations.
• Measuring employee satisfaction demonstrates an
  "I care" attitude on behalf of management to the
  employees. This, in turn, improves employee
  loyalty all by itself.

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Company Benefits

• Employee satisfaction drives customer
  satisfaction, indirectly creating profit for an
  organization. Research on the service-profit
  chain shows that satisfied employees are far
  better than unsatisfied ones at delivering
  excellent customer service and hence enhancing
  customer satisfaction with the organization's
  products and services.

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Methods to Measure Employee Satisfaction

• Surveys
• Questionnaires
• Interviews/Focus Groups

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Things to Remember

• Gaining high levels of participation in the
  survey requires your employees to trust that
  their responses will be confidential and of
  value.
• Letting employees know how the survey will be
  designed and used, and how they will be protected
  from any potential of retribution is critical.

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A PROCESS MAP FOR IDENTIFYING EMPLOYEE
SATISFACTION
HR Creates Measuring Method
Mgmt Approves Method
Employees Complete Survey
HR collects Completed surveys
Evaluation Is Conducted
Improvements Are Discussed
Improvement Methods are Implemented
Bi-annual or Annual Evaluation Process Implemente
d
Mgmt seeks Continuous Improvements
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Change Measurements

• The feedback information needs to lead to
  improvements.
• Making the employees aware of the findings and
  establishing action plans to continue the
  learning and application of the survey results is
  critical.
• Implement methods to increase employee
  satisfaction.

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Measurement Costs

• The costs associated with conducting the survey
  are the following
• Number of employees involved in the survey
  Hourly / salary
• Hours/minutes Amount of time to work on the
  project
• Fringes included
• Overhead costs and supplies and material
• Formula
• Salary Fringes X hours worked overhead
  supplies Costs to conduct survey

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How Does This Fit In to the Human Resource
System Design?
Labor markets
Business Strategy
Organizational Design/Work Processes
Behavioral/role requirements
HRM systems
HR Employee Satisfaction Measurement
Technology
Legal environment
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Pixelaris

• Company meetings
• Listen to concerns
• Evaluate Ideas
• Implement Change

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Final Remarks

• Employees are valuable assets to every
  organization
• Conducting surveys is a useful tool for
  management to retain the workforce and improve
  the quality and quantity of its work performance
• Utilize the tools we have mentioned to measure
  employee satisfaction