The ultimate guide to employee satisfaction surveys
Are your employees happy? Are they satisfied with remuneration and benefits? Learn how to craft employee satisfaction survey questions to find out.
Employee satisfaction plays a critical role in the success of any organisation. According to the December 2023 CNBC|SurveyMonkey Workforce Survey, 85% of workers report being satisfied with their jobs, but satisfaction alone doesn’t tell the whole story. While most employees feel their work is meaningful, overall workplace morale has slightly declined, with only 71% rating it as excellent or good.
These numbers underscore the importance of regularly measuring employee satisfaction to gain a better understanding of your workforce’s needs and to drive improvements. In this article, we’ll explore the key elements of employee satisfaction, how to measure it effectively and the best practices for creating impactful surveys.
What is employee satisfaction?
Employee satisfaction measures how content employees are with their jobs, workplace and the organisation. It encompasses remuneration, benefits, recognition, work-life balance and company culture. According to a 2022 Frontiers in Psychology study, satisfied employees are more likely to stay with the company and perform well.
Employee satisfaction vs. employee engagement
Although employee satisfaction is crucial, it’s not the same as engagement. Satisfaction focuses on contentment, whereas engagement drives commitment and productivity.
- Employee satisfaction measures how content employees are with their jobs and work environment. It focuses on pay, benefits, work-life balance and job security. Satisfied employees are generally content, but satisfaction alone doesn’t guarantee high performance or commitment. For example, employees might be satisfied with their salary but need to be motivated to go above and beyond for the company.
- Employee engagement reflects someone’s emotional commitment to their job and the organisation. Engagement is deeper and more complex than satisfaction. It includes enthusiasm for work, alignment with the company’s goals and a willingness to put in extra effort. Engaged employees are satisfied, motivated, involved and invested in the company’s success. They are more likely to take initiative, show creativity and drive results.
Although satisfaction is indeed a component of engagement, it only tells part of the story. Employees may be satisfied with their jobs but disengaged, meaning they do the bare minimum and won’t invest in the company’s future. Conversely, engaged employees are typically satisfied, but their satisfaction is rooted in their active participation and connection to the company’s mission.
Job satisfaction also differs from both concepts. It’s more specific, focusing on how employees feel about their job duties rather than their overall experience with the company. For example, employees may be satisfied with their daily tasks but unhappy with the organisation’s culture or leadership.
In summary:
- Satisfaction is about contentment
- Engagement is about commitment
- Job satisfaction is about how employees feel about their specific role
What are the five elements of employee satisfaction?
Employee satisfaction stems from several key factors influencing employees’ feelings about their work and workplace. Over the decades, HR professionals have debated these elements as they are fundamental to creating a satisfied and engaged workforce.
Research in organisational behaviour, human resource management and psychology supports these elements:
- Meaningful work: Employees are more engaged when they consider their work to be meaningful and impactful. According to Hackman and Oldham’s Job Characteristics Model, tasks that allow employees to see the significance of their work increase motivation and satisfaction. For example, it’s likely that a healthcare worker who directly improves patient outcomes will find their role deeply fulfilling, leading to higher job satisfaction.
- Supportive work environment: A positive workplace culture fosters employee collaboration and respect. In Diagnosing and Changing Organisational Culture, Cameron and Quinn highlight that a supportive environment is crucial for employee morale. Implementing regular team check-ins or creating peer support groups can help cultivate this environment, ensuring that employees feel valued and supported.
- Fair remuneration and benefits: Employees must feel that their pay reflects their contributions and market standards. In remuneration in Organisations, Heneman and Judge emphasise that fair remuneration is vital to employee retention and satisfaction. For example, performance-based bonuses or comprehensive health benefits can make employees feel more appreciated and secure in their roles.
- Growth and development opportunities: Employees are more likely to stay with a company that offers clear paths for advancement. Hall’s Protean Career concept underlines the importance of continuous learning and growth. Providing access to training programmes, workshops or mentorship can help employees develop new skills and prepare for future roles within the company.
- Work-life balance: Balancing work demands with personal life is essential for long-term satisfaction. Greenhaus and Beutell’s research on work-life conflict shows that employees with a better work-life balance experience less stress and greater job satisfaction. Offering flexible working hours or remote work options can help employees manage their responsibilities at work and home, reducing burnout and enhancing overall satisfaction.
Strong leadership, job security and effective employee recognition programmes also contribute significantly to overall employee satisfaction. Implementing these research-based strategies can create a more engaged, loyal and productive workforce.
Companies must enhance satisfaction and engagement to build a productive and loyal workforce. This approach leads to higher retention, better performance and overall business success.
Why is employee satisfaction important?
Improve employee engagement
Engaged employees are committed to their work and the organisation, driving higher productivity and innovation. A study by Harter, Schmidt and Hayes (2002) found a strong link between employee satisfaction and engagement, showing that satisfied employees are more likely to invest their energy into their work.
For example, companies such as Google, LinkedIn and Airbnb are known to prioritise employee satisfaction, offering perks and flexible work environments, which has led to high levels of engagement and creativity among their teams.
Boost customer satisfaction
Satisfied employees provide better customer service, leading to higher customer satisfaction. Research from the Harvard Business Review shows that companies with high employee satisfaction often see increased customer loyalty.
For example, Southwest Airlines, which is known for its employee-centric culture, consistently ranks highly in terms of customer satisfaction. Their employees feel valued and satisfied and are more likely to go the extra mile (pun intended) to ensure a positive customer experience.
Increase retention and reduce employee churn
High employee satisfaction reduces turnover and helps retain top talent. According to a study by the Society for Human Resource Management (SHRM), satisfied employees are more likely to stay with their employer, reducing the costs associated with hiring and training new employees.
For example, Costco’s commitment to fair wages and generous benefits has resulted in one of the lowest turnover rates in the retail industry, proving that satisfied employees are more likely to stay long-term.
Improve employee productivity
A meta-analysis by Judge, Thoresen, Bono and Patton (2001) found a significant relationship between job satisfaction and performance. Employees who are happy with their work environment are more motivated to perform to their best ability.
For example, a Deloitte study found that the U.S. company Zappos, which is known for its strong emphasis on employee satisfaction, enjoys high productivity levels and a thriving business.
How to measure employee satisfaction
Measuring employee satisfaction is crucial for understanding how your workforce feels and identifying areas for improvement. Here’s how to gauge employee satisfaction effectively using qualitative and quantitative research methods.
Surveys and questionnaires
Surveys are one of the most effective ways to measure employee satisfaction. They allow you to collect quantitative data, such as ratings and scores, and qualitative feedback, by asking open-ended questions.
Repeating surveys over time lets you track changes and see the impact of any improvements you make.
- The employee satisfaction survey directly assesses how content employees are with their jobs, workplace environment and overall experience. Questions cover aspects such as job fulfilment, workplace culture and benefits.
- Pulse surveys are short, frequent surveys that are designed to capture employee sentiment on specific topics. These surveys help track satisfaction over time and can quickly identify emerging issues.
- Employee Net Promoter® Score (eNPS®) surveys ask employees how likely they are to recommend the company as a place to work. A high eNPS suggests high employee satisfaction, whereas a low score indicates areas needing attention.
One-to-one interviews
Conducting one-to-one interviews provides deeper insights into employee satisfaction. These conversations allow employees to express their thoughts in more detail. You can also use interviews to explore survey results further, gaining context behind the numbers.
For example, after an employee satisfaction survey reveals low satisfaction with work-life balance, interviews can uncover specific reasons, such as excessive overtime or lack of flexible scheduling.
Performance reviews
Integrating employee satisfaction into your performance reviews helps link job performance with satisfaction levels. One effective method is the 360-degree review survey, which gathers feedback from an employee’s peers, subordinates and supervisors.
A 360-degree review survey offers a comprehensive view of an employee’s work environment, including how they perceive their role and relationships within the team.
For example, if a 360-degree review reveals that employees feel unsupported by management, this could indicate lower satisfaction, prompting leadership to take action.
Exit interviews
Exit interviews are essential for understanding why employees leave and can reveal dissatisfaction points that may not surface during regular surveys. For example, if multiple exit interview surveys cite a lack of career growth as a reason for leaving, this signals a need to enhance development opportunities.
KPIs for measuring employee satisfaction
Tracking key performance indicators (KPIs) helps quantify employee satisfaction and its impact on the organisation.
- Turnover rate: A high turnover often indicates low satisfaction. Monitoring this rate helps you identify trends and address underlying issues.
- Employee absenteeism rate: Frequent absenteeism can signal disengagement and dissatisfaction. A rising absenteeism rate may point to broader workplace issues affecting morale.
- The Employee Satisfaction Index (ESI) provides an overall satisfaction score that is calculated using responses to three key questions about job satisfaction, expectations and ideal job alignment.
The ESI formula is:
ESI = (((question mean value/3) - 1)/9) x 100
A higher ESI score indicates greater employee satisfaction.
Using these methods and tools, you can comprehensively understand employee satisfaction, enabling you to make informed decisions that improve the overall work experience.
What are employee satisfaction surveys?
Employee satisfaction surveys are tools used by organisations to gauge how content employees are with their jobs and workplaces. These surveys collect direct employee feedback, allowing companies to identify issues, monitor satisfaction levels and track trends over time.
Regularly conducting these surveys helps organisations pinpoint areas for improvement, such as remuneration, work environment and management performance. By analysing the data, companies can take targeted actions to enhance employee satisfaction, reduce turnover and improve overall morale.
Key benefits of employee satisfaction surveys include:
- Identifying issues: Uncover common problems that may be affecting employee morale.
- Boosting retention: Address concerns before they lead to turnover.
- Encouraging communication: Give employees a voice to express their opinions and concerns.
- Justifying improvements: Use quantified feedback to support changes and investments in the workplace.
- Tracking trends: Monitor changes in satisfaction over time to measure the impact of improvements.
Employee satisfaction surveys are essential for understanding and improving the employee experience. They provide actionable insights that help create a more positive and productive workplace.
Why should you use employee satisfaction surveys?
Employee satisfaction surveys offer direct insights into how your employees feel about their jobs and the workplace. Here’s why they’re essential:
Identify issues early
These surveys help you uncover common problems affecting morale and productivity. Whether it’s dissatisfaction with management, remuneration or work conditions, surveys reveal issues before they escalate.
Boost retention
By addressing the concerns highlighted in surveys, you can increase retention rates. Satisfied employees are less likely to leave, reducing turnover costs and helping you retain top talent.
Encourage open communication
Surveys provide a platform for employees to voice their opinions. This open line of communication can improve trust and transparency, making employees feel heard and valued.
Justify improvements
Quantified survey feedback can support the need for policy changes, benefits or workplace conditions. This data-driven approach makes it easier to justify investments that enhance employee satisfaction.
Track trends over time
Regular surveys allow you to monitor satisfaction levels and trends, measure the effectiveness of any changes you implement and adjust your strategies accordingly.
Predict and prevent turnover
Surveys can also help you anticipate turnover by identifying dissatisfied employees. Early intervention based on survey results can prevent valuable team members from leaving.
The regular use of employee satisfaction surveys gives you a clear, actionable understanding of your workforce’s needs and concerns to create a more engaged, loyal and productive team.
How to create an employee satisfaction survey
Determine the scope and goal of your survey
Step 1: Define your goals
- What do you hope to accomplish? Determine the primary purpose of your survey. Are you looking to improve job satisfaction, uncover specific issues or track engagement over time?
- What data do you want to gather? Identify the information you need in order to meet your goals, such as feedback on the work environment, management or benefits.
Step 2: Identify Key Performance Indicators (KPIs)
- Which KPIs do you want to track? Choose metrics that align with your goals, such as employee retention rates, absenteeism or overall satisfaction scores.
- Are you already tracking any KPIs? Review existing data to ensure consistency and identify areas needing further insight.
Step 3: Determine your target audience
- Who will you send the survey to? Decide whether the survey will go to all employees or a specific group only, such as a department or team.
- Who needs to provide input? Ensure that you include the right people to gain a comprehensive understanding of the organisation’s ‘satisfaction pulse’.
Step 4: Plan the survey timeline
- When will you send the survey? Set a survey distribution schedule, considering factors such as workload and company events to ensure good participation.
- How often will you send it? Decide on the frequency – quarterly, annually, or more often for pulse surveys – to monitor trends and changes over time.
Step 5: Involve key stakeholders
- Who are the appropriate stakeholders? Engage managers, HR teams and relevant department heads in planning to ensure that the survey covers all necessary areas.
- What input do they need to provide? Collect feedback on survey content, goals and implementation to align with organisational needs.
Step 6: Choose your delivery method
- How will you send the survey? Select the best platform for distribution –online forms, email or internal platforms (Slack, Teams, etc.) – to make the survey accessible and easy to complete.
- Is it user-friendly? Ensure that the survey is simple to navigate because this will encourage higher response rates and accurate data collection.
Decide which questions to ask
Asking the right questions is crucial if you want to gain meaningful insights from your employee satisfaction survey. Focus on a mix of open-ended and Likert scale questions to gather detailed feedback and measurable data.
Open-ended questions allow employees to express their thoughts in their own words. These questions can reveal deeper insights and uncover issues you might not have anticipated. These questions help you understand your employees’ specific needs and concerns, providing context that numbers alone can’t offer.
Likert scale questions ask employees to rate their agreement with a statement on a scale, usually from 1 to 5 or 1 to 7. These questions make it easier to quantify satisfaction and compare results over time. Likert scales measure employees’ feelings about various aspects of their jobs, allowing you to track trends and identify areas requiring attention.
Example employee satisfaction questions include:
- “How meaningful is your work?” (Open-ended)
- “What changes would improve your experience at work?” (Open-ended)
- “Describe a recent challenge you faced and how it was resolved.” (Open-ended)
- “What aspects of your job do you find most rewarding?” (Open-ended)
- “How can management better support your professional growth?” (Open-ended)
- “What do you think could be improved in our workplace culture?” (Open-ended)
- “How challenging is your work?” (Likert scale rating from 1 to 5)
- “How well are you paid for the work you do?” (Likert scale rating from 1 to 7)
- “How often do you feel stressed at work?” (Likert scale rating from 1 to 5)
- “How much do your opinions about work matter to your colleagues?” (Likert scale rating from 1 to 5)
- “How often do tasks assigned by your supervisor help you grow professionally?” (Likert scale rating from 1 to 7)
- “How likely are you to recommend this company as a great place to work?” (Likert scale rating from 1 to 10)
Gathering a mix of open-ended and Likert scale questions allows you to collect detailed insights while also capturing measurable data. This balanced approach ensures that your survey provides actionable information that can guide meaningful improvements in employee satisfaction.
Determine the length of your survey
When designing an employee satisfaction survey, keep it concise but thorough. There’s no perfect number of questions, but the goal is to gather meaningful data without overwhelming respondents.
Start with a comprehensive survey (ideally around 20–25 questions) to cover all critical areas such as job satisfaction, work environment and management. However, avoid making it so long that employees lose interest or abandon it halfway through.
Only ask the most relevant questions in order to maintain engagement and prevent survey fatigue. A survey that is too long can result in incomplete responses or lower participation rates. Focus on quality rather than quantity.
Use shorter pulse surveys with 5–10 targeted questions for ongoing assessments. You can send these more frequently throughout the year to track trends and address issues without burdening employees with lengthy surveys.
Customise your survey or build it from a template
Creating a survey from scratch can be time-consuming, but you don’t have to start with a blank slate. SurveyMonkey offers expert-certified templates, such as our employee satisfaction survey template, which you can customise to suit your needs.
Using a template saves time and ensures that you are asking the right questions. SurveyMonkey templates allow you to assess critical areas such as employee burnout, loyalty and workplace climate. You can easily tailor the questions to address specific concerns within your organisation.
SurveyMonkey also provides powerful tools to enhance your survey experience. You can customise the design to match your company’s branding, distribute the survey via multiple channels such as email or SMS and analyse the results with built-in tools.
Using a platform like SurveyMonkey helps you launch effective surveys quickly, gather actionable insights and make data-driven decisions to improve employee satisfaction.
Employee engagement survey best practices
Be specific and avoid jargon
Use clear and straightforward language in your survey questions. Avoid jargon or technical terms that might confuse respondents. Straightforward questions lead to clear answers, making your data more actionable. For example, instead of asking “How do you feel about our organisational culture?”, ask “How supported do you feel by your team and manager?”.
Ensure anonymity
Guarantee anonymity to encourage honest feedback. Employees are more likely to share their thoughts if management can’t trace their responses. Make it clear in the survey instructions that all responses are anonymous and confidential.
Make questions optional
Allow employees to skip questions if they don’t feel comfortable answering. This approach reduces survey fatigue and ensures that you only collect data from respondents who are willing to provide it, leading to more accurate and thoughtful responses.
Test your survey
Before rolling out your survey to the entire company, test it out on a smaller group to catch any confusing questions, technical issues or areas where the survey may be too long. Adjust your survey based on their feedback to improve its effectiveness.
Review and analyse your survey results
After collecting responses, thoroughly review and analyse the data. Look for patterns and key insights that can inform your next steps. SurveyMonkey offers analysis features to filter and cross-tabulate data, making it easier to identify trends and areas needing attention.
Create (and execute) an action plan
Don’t stop after gathering data. Use the insights to create a targeted action plan. Prioritise initiatives that will have the most significant impact on employee satisfaction. Involve key stakeholders in executing the programme and communicate your actions to all employees.
Continuously improve your survey
After implementing your action plan, revisit your survey, updating questions to reflect new goals or feedback from previous surveys. Continuous improvement ensures that your surveys remain relevant and provide valuable insights over time.
Enhance employee satisfaction with SurveyMonkey
Employee satisfaction is crucial for retaining top talent and driving business success. Regular surveys help you understand your workforce’s needs and pinpoint areas for improvement.
Learn how SurveyMonkey can help you improve employee satisfaction and engagement. Sign up for free to get started with our customisable employee satisfaction survey templates.
Discover more resources
Human Resources Leader
HR leaders can use this toolkit to help drive exceptional employee experiences.
What is salary sacrifice?
Salary sacrifice means exchanging employee salaries for non-cash benefits, which can reduce end-of-year tax payouts. Learn how with our guide.
Employee Self-Evaluation Form Template
Encourage self-reflection and accountability with our employee self-evaluation form template. Start now to improve your performance review process!
Get the employee information you need with online employment forms
Hire top talent, speed up the onboarding process and manage your workforce with a custom employment form. Start creating forms today with our employment form builder and templates.