The Formula for a Winning Company Culture

There is a growing body of research and evidence showing that a company with more engaged employees achieves more successful business outcomes. But what drives employee engagement? What can companies do to keep their employees content and committed?

The Employee Engagement Study

Between 2015 and 2016, PayScale surveyed 501,796 employees, asking them to provide their salary info and respond to a number of statements about their employer on a scale from “strongly disagree” to “strongly agree.”

We also asked whether the respondents planned on actively
seeking employment outside of their current company in the next six months.

The Statements were:

Communication: There is frequent two-way communication between management and myself.

Development: My employer provides me with sufficient opportunities for learning and development.

Company Outlook: I am confident my employer has a bright future.

Relationship with Manager: I have a great relationship with my direct manager.

Appreciation: I feel appreciated at work.

Pay Process: How pay is determined at my company is a fair and transparent process.

Pay vs. Market: This is how the employee’s pay compares to the market rate for similar jobs.

Employee Satisfaction: I am extremely satisfied working for my employer.

Intent To Leave: In the next 6 months, I plan on actively seeking new jobs outside of my current company.

Intent To Leave

What we learned is that when it comes to employee satisfaction and intent to leave, all of the factors we measured matter. For every variable, as employee scores increased, satisfaction also increased and intent to leave decreased.

But some factors matter more than others. Much more. In fact, the most impactful factor had nearly 11 times more effect on employee engagement than the least important.

So, what matters most?

Major Lessons About Employee Engagement

One interesting finding from our research: How much employees are paid relative to the market for their position matters relatively little in terms of employee satisfaction. What does matter is how they feel about how they’re paid, which has 5.4 times as much impact.

See how these variables compare — and which matter most — by reading the full report here.

How Should I

When you get compensation right, you attract and retain the best talent.

What Am I

What your skills are worth in the job market is constantly changing.