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 find a satisfactory answer to this question, studies on the relationship between employee satisfaction and salary can support decision-making. Different measuring methods can be used for this purpose. One of these is, for example, the evaluation of the data material of the evaluations made anonymously on employer rating portals. They record data on satisfaction with various factors such as, among other things, the salary, and thus ideally reflect the values required for the measurement in relation to overall satisfaction.
For the investigation carried out, the data of the German employer rating portal Jobvoting.de was used, which since 2006 anonymously records the assessments of employees. The calculation of the correlation coefficient was chosen as the statistical measurement methodology to test the relationship between the overall assessment and the salary factor. If the correlation coefficient is + 1, there is a visibly positive relationship, but if it affects -1, there is a clearly negative correlation. A value around 0 in turn argues 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.
Offline download: Download this text as PDF - Read usage rights, Because we do not automatically submit the title of this text for privacy reasons: When buying in "interests" the title register if support is needed. After buying text exclusively Download at this URL (please save).
Listen to Podcast & Download MP3: You can listen to this text for free, as member even without annoying popup, or download the MP3 for a fee - Read usage rights, After the purchase page refresh, then you will find the download link here. Because we do not automatically submit the title of this podcast for privacy reasons: When buying in "interests" the title register if support is needed.
Your eCourse on Demand: Choose your personal eCourse on this or another desired topic, As a PDF download. Up to 30 lessons with each 4 learning task + final lesson. Please enter the title under "interests". Alternatively, we are happy to put together your course for you or offer you a personal regular eMailCourse including supervision and certificate - all further information!
Consultant packages: You want to increase your reach or address applicants as an employer? For these and other topics we offer special Consultant packages (overview) - For example, a personal phone call (price is per hour).