Key Performance Indicators (KPI)

58

Employee satisfaction index

Strategic perspective

Employee perspective

Key performance question this indicator helps to answer

To what extent are our employees happy in their jobs?

Why is this indicator important?

Along with customer satisfaction (see KPI on page 97), employee satisfaction is perhaps the oldest and most established of all non-financial indicators. Put simply, employee satisfaction is the terminology used to describe whether employees are happy and contented and fulfilling their desires and needs at work.

Few organisations do not measure employee satisfaction in some form, although an increasing number prefer the more sophisticated measure of employee engagement (see KPI on page 269). It has long been understood, and ...