Company conditions and employee satisfaction

Commitment to quality, innovation and initiative, motivation and commitment to the job, and affiliation and loyalty to the organisation are the highest ranked categories of organisational climate in Slovenian companies. The lowest ranking categories in terms of organisational climate are career development, remuneration and rewards, and internal communication and information. Furthermore, employees in Slovenian companies express high levels of satisfaction with co-workers and with stability of employment, while they are least satisfied with pay and promotion prospects.

A research project to monitor the organisational climate in Slovenian companies, entitled Organizacijska klima v Sloveniji – SiOK (Slovenian organisational climate), has been carried out annually since 2001. Originally initiated by several Slovenian companies, the project is now organised by the Chamber of Commerce and Industry of Slovenia (Gospodarska zbornica Slovenije, GZS), and is carried out with the expert support – in terms of methodology, survey implementation, processing and interpretation of data – of several consulting agencies or partner companies.

Project aims and definitions

The main aim of the project is to monitor organisational climate and employee satisfaction in Slovenian companies in order to increase awareness of the importance of the organisational climate and its connection to human resource (HR) development practices in companies. ‘Organisational climate’ is defined as the perception of the members of the organisation (employees at different organisational levels) about different important elements of the work environment, such as events, procedures, rules and relations. Employee satisfaction is defined as the positive emotion that results from an individual’s assessment of experiences connected to the work and work environment. Thus, organisational climate is an overall picture of the organisational environment of employees, while employee satisfaction is an individual reaction to the work environment.

Organisational climate

Organisational climate is measured by 12 categories and each category comprises a set of questions related to different elements within it. Table 1 presents the average values for the 12 categories (measured on a 5-point scale) for 2003–2005. For all categories, the average values have decreased since the first measurement in 2001. Nevertheless, in 2005, several categories of organisational climate experienced some increase, compared with 2004; however, the average values for all categories still remain slightly lower than in 2003.

Despite slight variations in the average values of organisational climate categories, the order of ranking has remained stable over the years. The highest average value is attributed to commitment to quality, followed by innovation and initiative, motivation and commitment to the job, and affiliation and loyalty to the organisation. On the other hand, organisational climate categories with the lowest average values – according to the employees’ assessment – are: internal communication and information, career development, and remuneration and rewards.

Table 1: Categories of organisational climate in Slovenian companies, 2003–2005 (average values)
Categories of organisational climate in Slovenian companies, 2003–2005 (average values)
.Categories of organisational climate Average values on a scale from 1 (very bad) to 5 (very good)
SiOK 2003 SiOK 2004 SiOK 2005
Commitment to quality 3.80 3.73 3.73
Innovation and initiative 3.65 3.57 3.56
Motivation and commitment to the job 3.51 3.44 3.47
Affiliation and loyalty to organisation 3.50 3.40 3.40
Internal relations 3.34 3.26 3.31
Professional skills and learning 3.33 3.22 3.25
Knowledge of organisation mission, vision and goals 3.32 3.21 3.24
Management 3.29 3.23 3.25
Organisation 3.29 3.19 3.20
Internal communication and information 3.00 2.91 2.96
Career development 2.82 2.73 2.72
Remuneration and rewards 2.82 2.75 2.77

Source: SiOK 2005 Report, p.14, available at: www.rmplus.si/siok

Employee satisfaction

Employee satisfaction is measured by 11 categories (on a 1 to 5 scale). The average values of categories have remained relatively stable for 2003–2005, as presented in Table 2. The overall average value of employee satisfaction (average of all categories) was 3.53 in 2001 and it slightly decreased to 3.45 in 2005.

Employees are most satisfied with co-workers and with stability (permanence) of employment. Also ranking highly are satisfaction with working time, the job itself and the immediate superior. Conversely, the employees are least satisfied with pay and with promotion possibilities. Low values of employee satisfaction with pay and promotion possibilities are consistent with low values of organisational climate in terms of career development and remuneration and rewards; this indicates the main challenges for Slovenian companies in relation to HR issues in the coming years.

Table 2: Categories of employee satisfaction in Slovenian companies, 2003–2005 (average values)
Categories of employee satisfaction in Slovenian companies, 2003–2005 (average values)
Categories of employee satisfaction Satisfaction with: Average values on a scale from 1 (very bad) to 5 (very good)
SiOK 2003 SiOK 2004 SiOK 2005
- co-workers 3.99 4.00 4.00
- stability (permanence) of employment 4.00 3.96 3.99
- working time 3.81 3.81 3.82
- the job itself 3.78 3.76 3.79
- immediate superior 3.66 3.65 3.72
- working conditions (equipment, premises, safety, etc) 3.32 3.25 3.34
- education and training possibilities 3.32 3.29 3.30
- individual status in organisation 3.27 3.25 3.26
- management 3.22 3.17 3.24
- promotion possibilities 2.81 2.81 2.81
- pay 2.68 2.63 2.67

Source: SiOK 2005 Report, p.27, available at: www.rmplus.si/siok

About the project

SiOK functions on the basis of voluntary membership of companies that participate in the survey; the minimum conditions for membership are at least three years of operations and at least 100 employees. A total of 21 companies participated in the survey in 2001, rising to 51 companies in 2002, 62 in 2003, 90 in 2004 and 91 in 2005. In each participating organisation, the representative sample size is about 100 employees, according to the organisational structure of employees, different organisational levels and units.

More information about SiOK, including the reports for 2001 to 2005, is available (in Slovenian).

Martina Trbanc, Organisational and Human Resources Research Centre (OHRC), University of Ljubljana

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