EMPLOYEE SATISFACTION REVIEW

Studies show that businesses that excel in employee satisfaction issues reduce
turnover by 50% from the norm, increase customer satisfaction to an average of
95%, lower labor cost by 12% and lift pretax margins by an average of 4%
(Carpitella, 2003). Studies completed in 1999 by the Hay Group for Fortune magazine
have shown
that even the most admired companies – Intel, Coca-Cola, and GE to name a few – each 9
embrace the same basic company cultural values: teamwork, customer focus, innovation,
and fair treatment of employees (Clark, 2001).
Most contractors feel that employee turnover and employee satisfaction are
closely related. The more satisfied an employee is, the less turnover and absenteeism
occurs (“The High-Performing Contractor”, 2004; Maloney & McFillen, 1986).

An employee satisfaction study conducted by Big Builder in 2003 reported that

the “responses in the study point to a clear need for giving employees a greater role in
business decisions.” There needs to be a culture of participation in the organization,
which in turn creates higher retention (Leibowitz, 2003). When employees do participate
in the organization they feel more valuable, especially when they see the “results
stemming from their actions” (Calder & Douglas, 1999). When management creates
opportunities for employees to add value to the organization in ways other than those that
fit the job description, it is unclear how to measure all the positive results that will occur.