How to Improve Employee Satisfaction

An organization with high employee satisfaction rating creates an environment conducive to productivity. While the actions of a dissatisfied employee slows it down.

 
 
A 91 RON unleaded gasoline (the one I use) now cost US $1.05 (Php 53.00) per liter and maybe will be increasing again on 2020 when the last tranche of TRAIN law will be implemented. The movement of fuel prices plus the US-China trade war and recent natural disasters will likely affect inflation rate and raise cost of living.
 
With these, employees naturally will demand higher wages.
 
Corporations on the other hand, will identify cost centers to find ways to reduce if not eliminate unnecessary cost.
 
At the minimum, operations is expected to breakeven. But a business is meant to generate income. The battle cry is to reduce operating cost but increase productivity. But how do we do it?
 
Fixed assets are easier to manage, but to task human assets to increase productivity is challenging. Thus, the need for interventions to achieve the satisfaction level where productivity can be expected.
 
 
What is Employee Satisfaction?
 
It is a tool being used to measure an employees’ happiness with their job and employer.
 
 
Why Measure Employee Satisfaction?
 
Employees (as human resource), can be an asset or liability to a company. Good people program will result to high level of employee happiness. And high employee satisfaction will lead to productivity and net profit.
 
On the other hand, bad managers are the reason for high turn-over rate (normally of the good ones). While those left behind are dissatisfied employees who can cause operational lapses, bad corporate image because of customer complaints, defective products, and high operational expense due to error, machine malfunction or facilities that are not properly maintained
 
 
How to Increase Employee Satisfaction?
 
Contrary to the belief, a high salary is not only the driver for employee satisfaction. Managing people is about meeting their human needs, yes money is one motivation. But there are other needs that are of equal importance. Investing on employee program for business continuity, community engagements, safety and security, and career development is for the good of the company.
 
While I am not advocating for unreasonably high budget allocation for manpower, it should not be viewed as cost, rather an investment. Because a satisfied, skilled and loyal employee is cheaper compared with the cost of hiring and training for a new one.
 
Areas to Work-on to Achieve a Good Level of Employee Satisfaction
 
The Society for Human Resource Management (SHRM), in a survey commissioned on 2009, suggested 24 factors that usually affect employee satisfaction.
 
What Matters To Employees (TOP 10)
 
1. Job security
2. Benefits (especially health care) with the importance of retirement benefits rising with the age of the employee
3. Compensation
4. Opportunities to use skills and abilities
5. Feeling safe in the work environment
6. The employee’s relationship with his or her immediate supervisor
7. Management recognition of employee job performance
8. Communication between employees and senior management
9. The work itself
10. Autonomy and independence in their job
 
Factors that HR Professionals Believe will Increase Employee Satisfaction (TOP 10)
 
1. Job security
2. Relationship with their immediate supervisor
3. Benefits
4. Communication between employees and senior management
5. Opportunities to use skills and abilities
6. Management recognition of employee job performance
7. Job-specific training
8. Feeling safe in the work environment
9. Compensation
10. Overall corporate culture
 
 
The survey result is 10 years old. So what I did, is ran a mock survey at Philippine HR group, one of the online communities of HR Practitioners in PH, to gauge if the result will be the same. Respondents are roughly 5-10 % of the active online users (5,000) that were reached from Dec. 17-29, 2019.
 
Below is the PH HR Group result:
 
1. Corporate culture
2. Compensation
3. Benefits
4. Career Development Opportunities
5. Management recognition
6. Relationship with their immediate supervisor
7. Job Security
8. Opportunities to use skills and abilities
9. Feeling safe in the work environment
10. Communication between employees and senior management
 
Below is the comparative results of the survey.
 

If you will recommend an employee program to your top management, what would that be, and why?