The Role of Measuring Organizational Trajectory in Driving Employee Satisfaction

By: Adam R. Johnson

Employee satisfaction is a critical element of a healthy organization. When employees are unsatisfied or unengaged, it can adversely impact the entire organization. A recent Forbes study found that disengaged employees can cost U.S. companies as much as $550 billion annually. In contrast, highly engaged business teams contribute to a 23% higher profitability compared to their disengaged counterparts. Additionally, satisfied employees are more likely to stay with their employers. In organizations with high turnover rates, highly engaged business units demonstrate an 18% reduction in turnover. The impact is even more pronounced in low-turnover organizations, where highly engaged business units achieve an impressive 43% reduction in turnover.

Despite the many benefits associated with employee satisfaction, many organizations struggle to know how to foster a healthy environment for employees. While there are many components involved in creating satisfaction among employees, this white paper specifically explores the importance of measuring a company’s trajectory to drive employee satisfaction.

Mission Driven Organizations

In today’s climate, people want to be part of companies that are experiencing growth, that are mission-driven, and that are creating an impact. This was reflected in a recent Glassdoor survey that found 79% of adults consider a company’s mission and purpose before applying for a job. Both job seekers and existing employees want to understand the company’s trajectories.

However, discerning a company’s trajectory can be challenging. In most cases, people are left to guess based on what they hear from their colleagues or read online. That is unless the company actively communicates its progress. For a company to communicate its progress it must have a system in place to measure growth and mission fulfillment.

Companies that implement such systems experience numerous positive outcomes, ranging from increased employee retention to enhanced productivity.

Types of measurement

While there are many things a company can and should measure, there are a few things that are critical to increasing employee satisfaction, namely growth, mission, and impact.

• Growth of the Company: Assessing the growth of a company can involve tracking various indicators, such as revenue, profit, and number of employees. Employing financial analysis tools, market research, and performance metrics allows businesses to understand their organization’s health. Tracking these metrics and communicating them to employees within the company can lead to increased employee satisfaction. Employees often feel secure in a growing organization and feel energized to continue to contribute to the growth of the company.
• Fulfilling the Company’s Mission: Evaluating how well a company’s actions and initiatives align with its mission is integral to employee satisfaction. Establishing clear and measurable mission statements provides a foundation for assessment. Regularly measuring the company’s activities against these objectives, through tools like surveys, employee feedback, and customer reviews, enables a thorough understanding of the internal and external perception of the company’s mission. This ongoing evaluation not only ensures that the company’s operations are in sync with its intended purpose and values but also facilitates adjustments to strategies and practices to better fulfill its mission. Employees who feel a strong alignment between their work and the company’s mission are likely to experience higher job satisfaction. Employees who do not feel like their work aligns with their company’s mission can experience feelings of betrayal and discontent.
• External Impact: Measuring the external impact of a company involves evaluating its influence on the broader community, environment, and society. Areas such as corporate social responsibility (CSR), environmental sustainability, and community engagement play a pivotal role. Tracking metrics related to social and environmental initiatives, community partnerships, and stakeholder feedback provides a comprehensive view of the company’s external impact. Regular reporting on these aspects not only highlights the positive contributions but also serves as a foundation for identifying areas that may require improvement or adjustment. By actively engaging with the external environment, a company can contribute positively to society. This commitment to social responsibility often resonates positively with employees, fostering a sense of pride and fulfillment in their workplace, ultimately contributing to higher overall employee satisfaction.

Conclusion

In summary, measuring and communicating a company’s trajectory and progress can improve employee satisfaction, yielding various positive outcomes such as heightened revenue, improved employee productivity, and increased customer retention.