Employee satisfaction is a major performance measure used at American Inter Connect (AI), a large communications firm. All employees receive some bonus compensation. The lower- level employees receive a bonus that averages 20 percent of their base pay, whereas senior corporate officers receive bonus pay that averages 80 percent of their base salary. Bonus payments for all employees are linked to their immediate work group’s performance on the following criteria: in-come, revenue growth, customer satisfaction, and employee satisfaction. Managers can have these criteria supplemented with additional specific measures including hiring targets and some other specific objective for each manager such as meeting a new product introduction deadline or a market share target.
Employee satisfaction usually has a weight of between 15 and 20 percent in determining most employees’ overall bonus. To measure employee satisfaction, all employees in the group complete a two- page survey each quarter. The survey asks a variety of questions regarding employee satisfaction. One question in particular asks employees to rate how satisfied they are with their job using a seven- point scale (where 7 is very satisfied and 1 is very dissatisfied). The average score on this question for all employees in the group is used to calculate the group’s overall employee satisfaction score.

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