Measuring Employee Satisfaction: Key Metrics for Retention Success

Hello CEOs, MDs & HR Pros

Welcome to this month’s edition in our talent attraction and retention series. Let’s talk about something that’s often discussed, but not always measured well: employee satisfaction. If you’re wondering whether it’s really worth the effort, the answer is yes—measuring satisfaction is one of the most practical ways to keep your best people.

Why Employee Satisfaction Should Be on Your Radar

It’s easy to assume your team is content if you don’t hear complaints. But the numbers tell a different story. The CIPD’s Good Work Index found that only 60% of UK employees feel satisfied with their jobs. That leaves a significant portion of the workforce at risk of disengagement or, worse, heading for the exit. In fact, disengaged employees cost UK businesses billions in lost productivity each year.

The Metrics That Matter Most 📏

Let’s get down to brass tacks and break it down from the, often confusing, HR speak of various metrics, rates and ways of capturing how happy (or not) your people really are. What should you actually be measuring?

1. Employee Net Promoter Score (eNPS) 💬

You’ve’ probably seen this on trip advisor scores, or other service provider platform ratings, did you know your people can rate your business in the same way? This is a straightforward question: “How likely are you to recommend our organisation as a place to work?” Scores above 30 are considered good. According to Culture Amp, companies with an eNPS above 40 have noticeably higher retention rates—sometimes more than double. It’s a simple measure, but it gives you a quick sense of the mood in the room. If your score is below 30, then this is a starting point to look at why, is it every area of the business or certain functions, what could be improved upon to increase the score.

2. Engagement Survey Results 📋

You don’t need to wait for the annual survey. Quarterly pulse checks are increasingly common, and for good reason. Gallup’s research shows that organisations running regular pulse surveys spot issues earlier and see higher participation—up to 30% more responses. Look for patterns in areas like recognition, workload, and relationships with managers. Many organisations fear survey overload or analysis paralysis, however, if you are actually doing something with results and showing that you are acting on what your employees are saying, then they will be willing to participate and feedback more frequently. So don’t just collect the information and the pretty graphs and pie charts, do something with it, involve your employees in this e.g. focus groups and forums, then tell them what you have done to act on their concerns and suggestions.

3. Turnover and Retention Rates 🔄

Here’s a hard fact: the average staff turnover rate in the UK is about 15%, according to the CIPD. If your numbers are creeping above that, it’s time to ask why. High turnover is rarely just about pay; it’s often about how people feel at work. Ever heard the saying people don’t leave bad jobs, they leave bad managers? Well, this can very often be true, along with lack of progression opportunities, lack of development and training, company culture, poor behaviour of employees/bullying environment, poor communication and the list goes on. Start to use the data you have to understand where your hotspots are for turnover, your average tenure rates, percentage loss in first 3/6/9/12 months. This starts to build a picture of where you can improve in your recruitment and onboarding, training, etc.

4. Absence and Sickness Rates 🤒

Frequent absences can indicate more than just a bad cold going round. The Office for National Statistics reported that UK sickness absence rates reached their highest level in a decade last year. With stress and/or anxiety and other mental health related absence overtaking musculoskeletal reasons for absence. If you notice a spike, it could be a sign of low morale or burnout.

5. Exit Interview Insights 🚪

Don’t let departing employees leave without sharing their experiences. Forbes reports that organisations who act on exit interview feedback see retention improve by up to 20%. These conversations can be uncomfortable, but they’re often the most honest feedback you’ll get.

6. Stay Interviews

Don’t wait until it’s too late and someone is already half way out the door, maybe even mentally already fully gone, implement Stay Interviews and find out why your employees stay with you, if they were considering leaving what would be the reason and what would make things even better for them in the team, department or wider business. Act on the feedback, don’t just listen, and show your  employees  that you have listened and taken their words onboard (where reasonably practicable, we’re not going to be installing a swimming pool in the reception waiting area or anything like that!). See my article on stay interviews…

Turning Data Into Action 🎯

Let’s be honest—collecting data is the easy part. The real challenge is what you do next. The HR Priority Report 2024 points out that employees who see their feedback lead to real change are four times more likely to stay. So, don’t just file the survey results away. Share them. Discuss them. And most importantly, act on them.

Let’s Make It Real

If you’re still reading, you probably care about getting this right. And if you’re not sure where to start, that’s exactly what I’m here for. I can help you set up meaningful satisfaction metrics, interpret the results, and turn them into a practical retention strategy that works for your business.

Ready to Take Action?

Let’s have a conversation about how you can measure—and improve—employee satisfaction in your organisation. Book a free 30-minute consultation with me, and let’s make sure your people feel heard, valued, and motivated to stay. 📅

Keep shining

Karen

HR Maven & Menopause Coach

Email: karen.leigh@peopling.co.uk

Tel: 07850 034595

Web: www.peopling.co.uk