Increase business success with incremental increases: Data analysis measures satisfaction

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Business success and employee satisfaction are closely linked. The management, in turn, has various control options to control the satisfaction of its employees. One of the most important factors is the salary.


Here writes for you:


Ronny Skrzeba Ronny SkrzebaRonny Skrzeba is the Managing Director of the Employer Assessment Platform Jobvoting.


Dilemma between short- and long-term company success

The primary goal of any rationally acting management is basically to increase the company's own success. One is faced with the dilemma that, on the one hand, the stakeholders expect the highest possible profits in the short term, if necessary through the reduction of personnel expenses.

On the other hand, results from the research work of the past decades have clearly shown that the success of a company in the medium to long term can sometimes depend significantly on employee satisfaction, which in turn depends on remuneration. The management must therefore decide whether every euro more in the workforce brings this use of funds at least in the same amount in the long term in the cash.

Data analysis via employer ratings

In order to be able to find a satisfactory answer to this question, investigations into the relationship between employee satisfaction and salary can support decision-making. Different measurement methods are available for this. One of these is, for example, the analysis of the data from the reviews anonymously submitted on employer review portals. They collect data on satisfaction with various factors such as salary and spiegeln thus excellently reflects the values ​​required for the measurement in relation to the overall satisfaction.

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For the study carried out, the data material from the German-language employer evaluation portal was used, which has been anonymously recording employee reviews since 2006. The calculation of the correlation coefficient was chosen as a statistical measurement method to check the connection between the overall evaluation and the assessment of the salary factor. If the correlation coefficient is +1, there is a visibly positive relationship, but if it is at -1, there is a clearly negative relationship. A value around 0 would again suggest that there is no connection at all.

Salary influences employee satisfaction

In the calculation of the correlation coefficient between the salary and the overall assessment, a value of 2006 for the period from 2015 to 0,724 was found - which indicates a recognizable relationship. Accordingly, the value estimate for the workplace and employee satisfaction overall can be decisively influenced by the amount of remuneration.

This is confirmed by a direct survey conducted by the users of the evaluation portal in the second quarter of 2015. These indicated that 35% of them can be positively influenced by the salary. Further 32% confirmed that their satisfaction with the workplace is noticeable on the salary. Added to this are 18%, which partly see a link between their workplace satisfaction and the salary level. Only 15% stated that they can be influenced only marginally or not at all by the amount of the wage.

How can company success be managed?

From the findings gained, further questions arise which are necessary for an effective management of the company's success. In follow-up studies, it is now necessary to analyze which salary levels promise the highest satisfaction, and whether, in addition to the salary, other factors have a possibly greater control effect.

In a study published earlier, we had already determined that the management of the supervisor's staff could have an even greater influence. The correlation coefficient between leadership style and overall assessment was 0,847, which is above that of salary. A family or cooperative style of leadership was identified as much more effective than an authoritarian management.

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