Using data driven approach to increase employee satisfaction and engagement


Employee satisfaction and engagement surveys can provide valuable insights into a workforce’s true sentiments. Despite the growing awareness of the importance of employee engagement, many companies still struggle to prioritize it effectively. However, with the right tool, these negatives can be turned into positives. Benefits of conducting employee satisfaction surveys include identifying and addressing issues proactively, fostering open communication, enhancing organizational culture, and boosting employee engagement.


They say that data is the “oil of the 21st century” and with the recent advancement in the AI field, it’s true more than ever.

But how can the HR department use this new 21st century oil to its benefit?

Imagine this: you’ve just received the resignation letter of your star employee. The news comes as a shock because you believed he/she was satisfied and thriving in their role. Nothing was pointing to this outcome; the last time you talked to him/her 1 on 1 they didn’t mention anything.
Unfortunately, you’re not alone. A recent study by Gallup found that only 36% of employees feel engaged at work, leaving a significant 64% feeling disconnected and disengaged. This disengagement not only impacts productivity but also contributes to high turnover rates, which can be incredibly costly for businesses. What if there was a way to foresee and prevent such departures? Enter the employee satisfaction and engagement survey—a tool that can provide invaluable insights into your workforce’s true sentiments and help you build a stronger, more committed team.

Current state

Despite the growing awareness of the importance of employee engagement, many companies still struggle to prioritize it effectively. For example, a Gallup study found that companies with engaged employees have 41% lower absenteeism and 17% higher productivity. Furthermore, according to Quantum Workplace, companies that track engagement see a 20% improvement in productivity and profitability over time.

The reality is that many employees feel disconnected from their workplace, often perceiving a lack of recognition, growth opportunities, or alignment with the company's mission. These feelings of undervaluation can have a ripple effect, not just on individual performance but also on team dynamics and overall organizational health.

However, with the right tool these negatives can be turned into positives. 

Benefits of conducting employee satisfaction and engagement surveys

If we have to narrow down the benefits of employee satisfaction surveys to 5 most important ones, we would choose these ones:

Identify and address issues proactively

  • Employee satisfaction surveys provide a structured way to gather feedback from your workforce. This feedback is invaluable for identifying areas of concern, such as workplace environment, management practices, or job roles. By understanding these issues, HR managers can take proactive steps to address them before they lead to significant dissatisfaction and turnover.

Measure and track progress

  • Regular surveys allow HR managers to measure employee satisfaction over time. By tracking progress, companies can see the impact of changes and initiatives designed to improve the workplace. This data-driven approach helps in making informed decisions and adjustments to policies and practices, ensuring continuous improvement in employee satisfaction.

Foster open communication

  • Conducting surveys encourages a culture of open communication. It shows employees that their opinions are valued and that the company is willing to listen. This can lead to a more transparent and trusting relationship between employees and management, reducing misunderstandings and fostering a sense of belonging and community within the organization.

Enhance organizational culture

  • Understanding the pulse of the organization through surveys helps in shaping a positive organizational culture. By addressing common concerns and promoting positive aspects highlighted in the surveys, companies can cultivate a culture that aligns with their values and goals. A strong organizational culture can attract and retain top talent, as well as improve overall employee morale and satisfaction.

Boost employee engagement

  • Surveys help uncover the drivers of engagement, such as recognition, growth opportunities, and a sense of purpose. By acting on survey results, companies can foster a more engaged workforce, which is more productive, innovative, and loyal. Engaged employees are not only more likely to stay with the company but also more motivated to perform well and contribute to the company’s goals, leading to better business outcomes.

Now that you know all about employee satisfaction surveys benefits, it’s important to look at a hidden cost of not conducting employee satisfaction surveys - employee turnover.

Employee turnover cost?

According to recent studies, the average cost of replacing an employee can range from 50% to 200% of their annual salary, depending on various factors such as industry and job level. This expense encompasses not only direct costs like recruitment and hiring fees but also indirect costs that impact productivity and team dynamics.

For instance, research indicates that the process of recruiting and training a new employee can consume up to 20% of their annual salary. 

So, it’s no wonder that it is in the best interest of a company to keep their employee turnover to a minimum.

We can categorize the cost of employee turnover in 2 categories: direct and indirect costs with an additional third category: hidden costs.

Direct Costs

Recruitment expenses

Advertising job vacancies:

Posting job openings on various platforms incurs costs. This includes fees for job boards, social media advertising, and sometimes recruitment agencies.

Interview process: 

Conducting interviews requires time and resources. Managers and HR professionals spend hours screening candidates, conducting interviews, and making final decisions.

Onboarding and training expenses

Training programs:

New employees often need to undergo training to understand their roles and responsibilities fully. This can involve formal training sessions, workshops, and online courses.

Mentorship and supervision:

Time spent by senior employees and managers in mentoring and supervising new hires also translates into costs. This includes both formal mentorship programs and informal on-the-job training.

Indirect costs

Lost productivity

Vacancy period: 

There is an inevitable gap in productivity between the time an employee leaves and when a new hire is fully onboarded and productive. This period can significantly impact team output and efficiency.

Ramp-up time:

Even after hiring, new employees typically take time to reach the productivity levels of their predecessors. This ramp-up period can vary based on the complexity of the role and the new hire's experience.

Impact on team morale

Increased workload:

Remaining employees often have to pick up the slack, leading to increased workloads and potential burnout. This can decrease overall morale and productivity.

Disruption of team dynamics:

The departure of an employee can disrupt established workflows and team cohesion, affecting collaboration and efficiency.

Loss of institutional knowledge

Experience and expertise:

When experienced employees leave, they take with them valuable knowledge about the company's processes, clients, and internal systems. Replacing this expertise can be difficult and time-consuming.

Client relationships: 

Departing employees may have built strong relationships with clients, and their exit can disrupt these connections, potentially leading to lost business or decreased client satisfaction.

Hidden costs

Errors and mistakes: New hires are more likely to make mistakes as they learn their roles, leading to potential quality issues or rework.
Decreased engagement: High turnover can lead to a decrease in overall employee engagement, as the constant change creates a sense of instability and uncertainty within the team.


While intuition and gut feelings have their place in decision-making, relying solely on them to understand employee sentiment can lead to misinterpretation and costly consequences. Employee satisfaction surveys offer a data-driven approach to uncovering employee perceptions and needs, enabling organizations to make informed decisions that positively impact morale, productivity, and retention.

The benefits of conducting these surveys are clear. They provide a structured platform for addressing issues proactively, tracking progress over time, fostering open communication, enhancing organizational culture, and boosting employee engagement. These benefits are not just theoretical; they are backed by research showing significant improvements in absenteeism, productivity, and profitability for companies that prioritize employee satisfaction.

Continue reading our blogs in order to learn more about employee engagement and concrete tools that provide you with help in employee retention.