Daily Employee Morale and Productivity
Employee Morale vs Production Efficiency
Food manufacturer Dallant has been measuring both on a daily basis since 2012. This is what they found out:
Simplicity… and anonymity
“I like to keep things simple” says Joan Manel, HR Director.
“We have a device where employees press a green or red button at the end of the workday to tell us how they feel.”
“It is by talking business that HR gets into the core of the company”, Joan Manel adds and points at a graph showing how their Mood KPI fluctuates over the year.
”Many times this is not the case”, he continues.
The importance of data in HR
Dallant operates in a volatile and ambiguous business environment:
”We need ongoing insights to our employees to be able to make informed decisions” the HR Director explains.
“When you have hard facts like an Employee Mood KPI, this is the basis of your discussions. It’s not about what you think or feel. This is data!”, he says with a smile. “For me as HR, this is important”.
“Last year we implemented SAP, and as with any organization this had a certain impact on our company morale. And as with all processes that include organizational change management, getting a daily pulse on our employees helps us analyze what is cooking in our organization”.
Mood KPI vs Production Efficiency. What surprised us…
HR at Dallant continuously correlate key data within their organization. They included their Employee Mood KPI and compared with their production efficiency in 2012.
“A few days later I walked over to the production management team to share my findings and get their perspective. I wanted the mood graph to be a catalyst to talk about how we can improve here at Dallant.“
“I regularly keep our colleagues updated with our analytic data such as the Celpax results so it made sense that my findings weren’t such a surprise to them.“
“But what perhaps surprised us all was just how parallel the curves are: it’s amazing how our efficiency index correlates with our Employee Mood KPI.”
Boosting employee morale increases productivity efficiency
Joan Manel points to the graph he brought in to the production meeting:
“It was obvious during our SAP implementation. Knowing our mood levels helped us detect critical incidents so we could come up with the best action plan: how to organize ourselves, more staff, more flexibility, etc.“
“We measured how much our employee engagement dropped when we introduced SAP, as it affected the way people report their flexible work schedule. The rollout clearly created unnecessary stress, as shown in the employee morale data!”
“Some managers were surprised that we could tap into all this knowledge, they were proud to have these numbers.“
“Others were worried about how to faster steer clear of the ‘red’ employee mood. Sitting down together to come up with a better diagnose, means it’s easier for us to improve our production.“
Facts to help people change
When the HR Director left that meeting he felt great as the organization was satisfied to have these numbers. ”When you bring something to your colleagues that you can show – facts – and that helps people change, it’s very rewarding”, Joan Manel says thoughtfully.
“When you do something for a long time and then you can finally show stuff like the link between employee happiness and production efficiency, you appreciate the daily mood insights even more.
After all the complex projects we’ve done with consultants… what we did with this simple tool – it gives so much! We did this comparison ourselves with an Excel sheet, any company can do this!”, the HR Director says with a content grin.
Translating employee morale to money
“Basically it’s about making more money at the end of the year.“
“I’m not talking about philosophy or values here; this is about the annual fiscal results, about how HR can have a face-to-face with the CFO.“
“You can correlate the Mood KPI with any key number in your organization like orders, sales, projects… This way you can do like us and monetize each point your employee mood goes up or down.“
“The Celpax device has made it easy to demonstrate what massive impact ‘soft’ values like mood have on company results”, Joan Manel concludes.
“I could never have imagined that all of this would appear just from pressing a button… Talk about creating value!”
How much money does your company lose for every point of mood KPI you drop? Interested in employee morale and productivity efficiency? Get 1 Celpax for free and improve your workplace!
Hej there! I’m Rebecca, co-owner at Celpax and convinced that a great workplace is everyone’s job. I write about employee morale and productivity efficiency, and how to boost employee morale using data. Follow my rants on twitter?