Ways to Measure Employee Morale

Ways to Measure Employee Morale
••• XiXinXing/XiXinXing/Getty Images

A company depends upon its employees for everything from production of goods to the accounting of finances. When employees are happy, they perform these jobs more efficiently, which increases the success of your business as well as your profits. However, poor employee morale can have the opposite effect on your business, dropping productivity and increasing turnover rates. When running a business, you should consistently monitor your employee's morale, both for employee health, as well as the health of the company.


An easy way to monitor your employee's morale is through an employee satisfaction survey. These surveys should be anonymous, and should ask very specific questions such as "Are you content and fulfilled in your position?" "Do you feel there is room to grow in your job?" "How likely are you to stay with the company?" The survey should also provide a space for the employee to provide suggestions, or to provide you with information that may not have been specifically asked in the survey.

Periodic Interviews

Performing periodic performance interviews with your employees can also help you gauge the overall employee satisfaction. These interviews provide you with a chance to tell your employee the things he is doing well and the things he needs to work on, as well as give the employee the chance to have input on ways to improve the company to increase employee satisfaction and productivity.


Measuring the overall productivity of your workforce on a monthly basis, and over an extended period of time, gives you a wide range of months to compare how well your employees are performing. Employees who are satisfied at work often perform better, increasing your company's overall productivity. If you begin to see a noticeable drop in your production numbers, this may be a sign that employee morale is low and you need to examine ways to increase overall satisfaction in the workplace.

Turnover Rate

Your employee turnover rate is another good gauge for how satisfied your employees are in the workplace. A relatively low turnover rate can signify that your employees are happy and that you are doing the right things to keep morale high. However, a high turnover rate can be a sign that employee satisfaction is low, forcing many to move on to better paying jobs, or jobs in a better work environment.

Absence Rate

How often your employees are absent from work can also be a sign of poor employee morale. When employees enjoy their job, absence rates go down. However, if an employee does not enjoy her job, she may be more apt to take extra time off or to call into work sick more often, even if she is not sick. Absent workers reduce your productivity, which can cost your business money.