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Last updated on: May 28, 2021

Stop the Churn: Employee Satisfaction and Retention Rates

by Kate Palmer

Estimated Reading Time : 4 mins

How satisfied are your employees? The answer might matter more than you think.

The satisfaction of your employees is of paramount importance. It determines their level of commitment and by association also their productivity. Employee satisfaction is a measure of their contentment and satisfaction in their roles and at the organization as a whole.

Employee retention, on the other hand, refers to an organization’s ability to retain its employees. An organization’s retention rate often indicates the effort they put into engaging their staff. For example, an 85% employee retention rate is a good indicator that the business is taking active steps to ensure that their employees are happy and content in their role and with the business. On the other hand, if the organization’s retention rate is at 35%, it’d mean the company isn’t prioritizing the happiness and satisfaction of their staff. Therefore, employees aren’t staying very long with the company.

But how do you measure your employees’ satisfaction levels? And why does it affect your retention rate?

In this piece, we’ll explore the link between employee satisfaction surveys and retention rates. We’ll also offer some tips on how you can use this survey to improve your organization’s retention rate.

 

Employee satisfaction surveys

Improving employee satisfaction starts with a clear understanding of what it is. It’s employees believing in the work that they do. It’s the feeling of wanting to go above and beyond to be successful in that role. When your staff are satisfied, they’re no longer thinking of work as work, but instead as an opportunity to contribute to the overall success of the organization. Which means they’re less likely to want to leave the company for competitors.

With the above in mind, it’s no surprise that businesses have made improving employee satisfaction a priority. But to do this, they must recognize the elements that contribute to the satisfaction of their employees. A common misconception is that their satisfaction is only down to financial compensation. While that does contribute to it, it isn’t the only factor. A  diverse workforce will have a variety of priorities. While some might prioritize the financial benefits, others may be looking for flexibility, training, team working, career development, reduced workloads, etc.

So how do you determine what’s a priority to your staff? That’s where surveys come in.

To fully improve your employee experience, you’ll need to go beyond employee satisfaction or engagement. You’ll need to gather information in various forms and at various stages of the employee lifecycle. Many years of practice have shown that surveys are the perfect tool for this. While there’s no one-size-fits-all approach, it has proven effective for identifying the basic needs and concerns of your employees. In terms of benefits to your staff, the survey ensures that they’re getting their voices heard. As well as showing that their opinions are important to the company, it shows that the organization is willing to take feedback into consideration.

 

employee satisfaction survey

 

Employee satisfaction and retention rates

As well as improving productivity and profitability, employee satisfaction plays an important role in boosting retention rates.

A study of employees working in organizations with a high retention rate cited job satisfaction and healthy relationships with their colleagues and managers as the main reasons for those staying at their current job. Another study from 2015 found that it costs businesses between 30% to 50% of an annual salary to replace an entry-level employee. And depending on the position, the figure rises to 400% for senior or highly specialized positions.

Employee satisfaction surveys were introduced to combat the effects of low morale, negative company culture and most of all to increase loyalty to the organization. These surveys help businesses evaluate the happiness and motivation levels of their staff. It also helps to identify areas that are negatively affecting employee morale, productivity or the company culture and contributing to higher turnover.

To achieve the desired outcome, the survey should address the underlying issues faced by most employees, including:

  • Salary
  • Compensation package
  • Training and development
  • Interpersonal relationships with their co-workers
  • Workplace morale support

To ensure a good response rate, it’s important to make this survey accessible to everyone. Tools like  Sogolytics’s employee satisfaction surveys help to ask for and act on candid employee feedback. With this tool, it’s easy to benchmark your employee’s current satisfaction levels and address any areas of concern highlighted through the survey.

 

Conclusion

An employee satisfaction survey is an important tool for gauging your current workplace morale and your employees’ satisfaction level. With it, you can identify and rectify the causes of low retention rates whether it’s the working environment or availability of training resources. But it’s not all bad news! The survey will also show you if you’re doing things right. It’ll show you areas where your staff are happy and content as well as where they’d like to see improvements.

 

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