Employee Satisfaction Survey

2009

TABLE OF CONTENTS
Introduction 3 Method... 5 Survey Results.. 6 Improvement Strategies 21 References.. 24 Executive Summary Attached Appendices A: Employee Survey (English).. 25 B: Employee Survey (Spanish). 27

Introduction
Armour-Eckrich is an independent operating company of John Morrell, a subsidiary of Smithfield Foods. They are a manufacturing company of processed meats based out of Junction City, Kansas employing approximately 450 employees. ArmourEckrich must maintain a workforce that is well-trained, competent and consistently satisfied with its work environment on a routine basis. Unhappy and disgruntled employees do not produce quality results. An employee satisfaction survey was administered to each of the Departments with the highest turnover. The survey was designed to measure satisfaction on a broad range of issues considered to be important to the departments employees, including employees perceptions of how well the department is providing a work environment which encourages productivity, personal growth, safety and communication. The results of the survey will serve as the FY 09 baseline data for improvement efforts focused on employee satisfaction. Turnover at the beginning of fiscal year 2009 for Armour-Eckrich Junction City, KS is at 69%. This survey will gather insightful information on a variety of topical categories to ensure positive ongoing communications and employee relations leading to increased engagement. The survey will help in: y y y y y y Establishing a base line to measure location from cycle to cycle Maintaining employee morale to avoid unwanted employee behavior (turnover, absenteeism, propensity to unionize, etc.) Identifying improvement opportunities Providing involvement in matters of importance to employees Enhancing productivity Aligning individual behavior and organizational objectives

The two-page survey included 11 areas with statements that were to be rated on a five-point scale (Appendix A & B). The employees receiving the survey responded based on the following areas: y y y y y y y y y y y Pay Benefit Programs Communication Working Conditions Work Load Work Satisfaction Promotional Opportunity Supervision/Management Job Security Co-worker Relations Policies and Procedures

The results from the survey provide the foundation for initiatives to improve productivity, reduce costs, and develop a workforce constituting both operative and enthusiastic employees. The development and implementation of a survey tool itself is just the beginning of a continuous cycle. The commitment to prioritization of issues and the ensuing plans of action are paramount, as they drive business transformation.

Method
The survey was developed by a team that consists of the HR Manager, HR Coordinator, Plant Manager, Operations Manager, and approved by the Corporate Regional HR Director. Following discussion, the team determined the basic structure, format, questions, and methodology for administering the survey. The purpose of the team was to determine the following: y Determine if the items were clear and understandable to the respondents.

Determine if the employee feels that the items are important to job satisfaction.
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y y

To solicit suggestions for improvement of the instrument. To solicit information on employees willingness to participate in such a survey. To solicit information on ways to encourage employee participation.

The results of the team meeting are used to revise items, improve the instructions, and improve the instrument. The group reviewed the survey and approved revisions. The team selected the two departments with the highest turnover to participate in the employee satisfaction survey. Only production employees participated in the survey at this time. The survey will be in paper/pen format. The survey will be available in both English and Spanish versions. The survey will be distributed at the department shift meetings prior to work. The Supervisor, HR Coordinator, and HR/Safety Coordinator will be present at the meetings to explain how to fill out the survey and help with questions. Employees will complete the survey anonymously and return it to the Human Resources department. The completed surveys were sorted and reviewed for obvious errors by Human Resources and the Continuous Improvement department. They were then entered into an excel spread sheet. A total of 142 surveys were analyzed in this report. The selection for employees that folds up into the percent favorable, unfavorable, and neutral uses these identifiers: Favorable Strongly Agree Agree Unfavorable Strongly Disagree Disagree
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Neutral

Neutral

The first year of the survey will provide benchmark data for the organization. It is recommended that follow up surveys be completed within a 12-18 month cycle. By resurveying the employees we can measure improvements in employee satisfaction.

Survey Results

Pay-Fairness
Unfavorable Neutral 10.00% 21.43% Favorable

The results for pay fairness were 68.57% of employees were satisfied with the current pay. 21.43% of employees were neutral favoring neither side. Communicating to employees the process behind deciding pay

68.57%

grades could improve the perception of payfairness.

Competitiveness of pay had a favorable

Pay-Competitiveness
Unfavorable Neutral 4.38% Favorable

response of 66.42%. The percent neutral was a bit high at 29.20%. Communicating to employees how the company compares to

29.20%

other manufacturing companies and showing

66.42%

them the results of area comparisons will be beneficial for Armour-Eckrich in this area and reduce the percentage of employees neutral.

Pay-Shift Differential
Unfavorable Neutral 10.22% Favorable

In the pay category-shift differential has the highest unfavorable response with 10.22%. This area will need to be further researched to

24.09%

get more specifics from employees. The percent favorable was 65.69%. The response for neutral was 24.09%

65.69%

Benefit ProgramsVacation
Unfavorable Neutral 14.08% Favorable

Vacation has a favorable response of 64.79%. Employees who were neutral on the topic were 21.13%. The response that was unfavorable was 14.08%. This area would need further research to inquire as to how

21.13% 64.79%

employees would like to improve the current vacation policy.

Benefit ProgramsMedical/Dental
Unfavorable Neutral 12.50% Favorable

Under the benefit programs-medical/dental had an unfavorable response of 12.50%. The neutral response was 25.74%. In January 2009 the medical carrier switched from Blue Cross Blue Shield to Fiserv. Some

25.74% 61.76%

employees have been uneasy about the switch of carriers, even so 61.76% of employees had a favorable response.
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Benefit Programs-Life Insurance

Unfavorable Neutral 7.30% 21.17% Favorable

The Life insurance category had a high favorable response of 71.53%. The neutral response was 21.17% and the unfavorable response was 7.30%. All employees received a 25,000 dollar life insurance policy free to them provided by the company. That

71.53%

benefit has been a favorable one to employees according to the survey results.

Benefit ProgramsDisability Income

Unfavorable Neutral 9.10% Favorable

The disability income category had a 60.60% favorable response. The neutral response was a bit high with 30.30%. Increased communication and understating of this

30.30% 60.60%

benefit could help ensure employees a favorable response. The unfavorable response was 9.10%.

Benefit ProgramsProfit Sharing 401k

Unfavorable Neutral 9.70% Favorable

Profit sharing 401k had a favorable response of 62.69%. Employees neutral were 27.61%. Employees unfavorable accounted for 9.7%.

27.61% 62.69%

Benefit ProgramsBereavement Leave

Unfavorable Neutral 10.69% Favorable

Bereavement leave had a favorable response of 62.59%. Employees neutral were 26.72%. Employees unfavorable accounted for 10.69%, which is slightly higher than the

26.72% 62.59%

other benefit programs. This area would need more research to inquire regarding employees concerns with the current bereavement leave policy.

CommunicationInformed about decisions

Unfavorable Neutral 12.95% 20.14% 66.91% Favorable

In the communication grouping employees had a 66.91% favorable response on being informed about decisions. Employees neutral on the area was 20.14%. There was 12.95% who responded unfavorable, which is the second highest in this grouping.

CommunicationInformed about changes

Unfavorable Neutral 13.77% Favorable

Employees responding favorably to being informed about changes were 66.66%. Neutral employees were 19.57%. Employees who responded unfavorable were 13.77%, which is the highest in the communication

19.57% 66.66%

grouping. This area will need further research and potential inquiry regarding employee concerns.
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Organization publications & bulletins

Unfavorable Neutral 6.07% Favorable

This area had the second highest favorable response in this grouping with a 70.45%. Employees neutral were 23.48%. Employees with an unfavorable response were the lowest in this grouping with 6.07%.

23.48% 70.45%

CommunicationChance to input on decisions

Unfavorable Neutral 8.89% 25.93% 65.18% Favorable

Employees responded with a 65.18% favorability regarding the chance to input on decisions. The neutral response was 25.93%. The unfavorable response accounted for 8.89%, which is the second lowest in this grouping.

This area had the most favorable response in

CommunicationChance to make suggestions

Unfavorable Neutral 10.45% 18.66% Favorable

the communication grouping with 70.89%. The suggestion program was re-vamped in the beginning of 2009 to get the most input from employees. The neutral response was 18.66%. Employees with an unfavorable

70.89%

response were 10.45%.

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Working ConditionsSafety
Unfavorable Neutral 5.18% 13.33% Favorable

Safety is an important issue which can cost companies thousands of dollars. Employees had a high favorable response on safety of 81.49%. Employees neutral were 13.33%. The unfavorable response was the lowest in this grouping with 5.18%

81.49%

A certain temperature must be maintained on

Working ConditionsTemperature
Unfavorable Neutral 10.71% Favorable

the production floor due to food safety, but employees can take measures to feel more comfortable. The favorable response on this area was 68.58%. Neutral employees were

20.71%

20.71%. Employees who had an unfavorable response were 10.71%, which was the second highest in this grouping.

68.58%

Noise under working conditions had a 63.38%

Working ConditionsNoise
Unfavorable Neutral 9.86% Favorable

favorable response. The neutral response was 26.76%. Unfavorable response was 9.86%. All employees are provided an option

26.76% 63.38%

of two types of ear plugs and replacements during their employment. This area would need further research to see why the neutral response was so high.
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Working ConditionsHours of work

Unfavorable Neutral Favorable 20.87%

Hours of work have been a concern at times for some employees. The unfavorable response was 20.87%, which is the highest in this grouping. The neutral response was 18.71%. Employees with a favorable

60.42%

18.71%

response were 60.42%.

Working ConditionsCleanliness
Unfavorable Neutral 8.27% 14.29% Favorable

Due to food safety regulations cleanliness is one of the most important categories. Cleanliness of working conditions had the highest favorable response in this grouping of 77.44%. The neutral response was 14.29%. Employees who had an unfavorable response

77.44%

were 8.27%.

Working ConditionsGeneral work enviornment

Unfavorable Neutral 8.89% 14.07% Favorable

Overall employees had a high response for favoring their general work conditions. Employees favorable were 77.04%. The neutral response was 14.07%. Employees who had an unfavorable response were 8.89%, which is the 3rd lowest in this

77.04%

grouping.

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Work load-Level of pressure/stress

Unfavorable Neutral 13.97% Favorable

Employees who had a favorable response of level of pressure/stress were 52.94%, which is the lowest in this grouping. The neutral response was a bit high with 33.09%. Employees unfavorable accounted for

52.94% 33.09%

13.97%.

Work loadDistribution of work

Unfavorable Neutral Favorable 21.97%

Employees had the highest favorable response on distribution of work with 58.33%. The neutral response was 19.70%. Employees with an unfavorable response accounted for 21.97%. This area needs more

58.33%

19.70%

research to get detailed information on what the employees are dissatisfied with.

Work load-Overtime distribution

Unfavorable Neutral Favorable 23.02%

Employees had the highest unfavorable response of 23.02% regarding overtime distribution. This area will need further research into how overtime is distributed and what employees would be satisfied with. The

56.12% 20.86%

neutral response was 20.86%. Employees with a favorable response accounted for 56.12%.
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Work SatisfactionInteresting Jobs

Unfavorable Neutral 7.36% 25.00% Favorable

Employees responded favorably with 67.64%. The neutral response was 25.0%. Employees with unfavorable responses were 7.36%, which is the second highest in this grouping.

67.64%

Work SatisfactionVariety of job assignments

Unfavorable Neutral 5.84% Favorable

Employees with a favorable response on variety of job assignments were 70.07%. The neutral response was 24.09%. Employees unfavorable accounted for 5.84%, which is the second lowest in this grouping.

24.09% 70.07%

Work SatisfactionFeeling job is important

Unfavorable Neutral 5.11% 18.98% Favorable

Employees with a favorable response on feeling their job is important was 75.91%, which was the highest in this grouping. The neutral response was 18.98%. Employee with an unfavorable response accounted for 5.11%.

75.91%

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Work SatisfactionWork respected

Unfavorable Neutral 7.85% 19.29% Favorable

Employees had a favorable response of 72.86% on feeling their work is respected. The neutral response was 19.29%. Employees with an unfavorable response accounted for 7.85%, which was the highest in this grouping.

72.86%

Promotional Opportunity-Chances available

Unfavorable Neutral 9.03% 25.56% 65.41% Favorable

Having chances available for promotional opportunities had a favorable response of 65.41%, which is the second lowest in this grouping. Employees with a neutral response were 25.56%. The unfavorable response accounted for 9.03%.

Employees had a favorable response of

Promotional OpportunityDecisions fair

Unfavorable Neutral 11.54% 26.92% 61.54% Favorable

61.54%. The neutral response was 26.92%. Employees had an unfavorable response of 11.54%, which was the highest in this grouping. Increased employee communication on the selection process will help alleviate the unfavorable and neutral responses.
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Decisions Communicated
Unfavorable Neutral 6.29% 22.83% Favorable

Decisions communicated to employees regarding promotional opportunities had a favorable response of 70.88%. The favorable response was the second highest in this grouping. The neutral response was 22.83%.

70.88%

The unfavorable response was 6.29%.

Opportunities Published
Unfavorable Neutral 4.96% 14.88% Favorable

Opportunities published for promotional advancements received the highest favorable response with 80.16%. The unfavorable response was 4.96%, which was the lowest in this grouping. The neutral response was 14.88%.

80.16%

Supervision/ ManagementCares for employees

Unfavorable Neutral 12.03% Favorable

Employees who responded favorably to Management caring for their employees accounted for 63.91%. The neutral response was 24.06%. Employees that responded unfavorably were 12.03%, which was the

24.06% 63.91%

second lowest in this grouping.

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Consistent treatment of employees

Unfavorable Neutral 13.53% Favorable

Favorable responses from employees who felt there was consistent treatment of employees were 64.67%, which was the second highest for this category. The neutral response was 21.80%. Unfavorable responses accounted for 13.53%.

21.80% 64.67%

Fair treatment of employees

Unfavorable Neutral Favorable 17.56%

Fair treatment of employees had the highest unfavorable response with 17.56%. This area will need further research to get more in depth information. The neutral response was 20.61%. The favorable response accounted

61.83%

20.61%

for 61.83%.

Level of guidance & leadership

Unfavorable Neutral 7.63% 23.66% Favorable

Employees had the most favorable response in regards to level of guidance & leadership with 68.71% favorability. The neutral response was 23.66%. The unfavorable responses accounted for 7.63%, which was the lowest in this grouping.

68.71%

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Job Security-Transfer procedure

Unfavorable Neutral 3.76% 21.05% Favorable

The favorable response for the transfer procedures were 75.19%. The neutral response was 21.05%. The unfavorable response was 3.76%, which was the lowest in this grouping.

75.19%

Job Security-General sense of security

Unfavorable Neutral 8.15% 17.04% Favorable

The unfavorable response was 8.15%, which was the highest in this grouping. ArmourEckrich had locations were closed during this year. That could affect employees sense of security. The neutral response was 17.04%.

74.81%

The favorable response accounted for 74.81%.

Co-worker relationsFeelings of unity/team

Unfavorable Neutral 13.08% Favorable

The responses on feelings of being a unity/team had a low favorable response of 59.23%, which was the lowest in this grouping. The neutral response was a bit high with 27.69%. The unfavorable response

59.23%

27.69%

accounted for 13.08%.

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Identification with work group

Unfavorable Neutral 8.46% 22.31% Favorable

Employees who responded favorably on identifying with their work group were 69.23%. The neutral response was 22.31%. The unfavorable responses accounted for 8.46%, which was the second highest in this grouping.

69.23%

Feelings of belonging
Unfavorable Neutral 3.88% 24.03% Favorable

Employees responding unfavorable with feelings of belonging were 3.88%, which was the lowest in this grouping. The neutral response was 24.03%. Employees who responded favorably accounted for 72.09%.

72.09%

Policies & Procedures-Fair as written

Unfavorable Neutral 3.91% 21.88% Favorable

Concerning policies & procedures employees responded favorably with 74.21% with the opinion that policies & procedures were fair as written. The unfavorable response was 3.91%, which was the second lowest in this grouping. The neutral response was 21.88%.

74.21%

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Policies & ProceduresAvailability to read

Unfavorable Neutral 2.29% Favorable 21.37%

Employees responded favorably on policies & procedures being available to read with 76.34%. The unfavorable response was 2.29%, which was the lowest in this category. The neutral response accounted for 21.37%.

76.34%

Consistency of application
Unfavorable Neutral 6.76% 15.79% Favorable

Employees who responded favorably on consistency of application were 77.45%. The unfavorable response was 6.76%, which was the highest in this grouping. The neutral response was 15.79%.

77.45%

Policies & ProceduresUnderstood

Unfavorable Neutral 4.62% Favorable 15.38%

Employees responded favorably on policies & procedures being understood with 80.0%, which is the highest in this grouping. The neutral response was 15.38%. The unfavorable response accounted for 4.62%.

80.00%

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Improvement Strategies
Surveys such as this one are valuable tools to help managers determine areas on which to focus improvement activities. The current survey was intended to establish baseline data from which the company could develop improvement strategies and action plans. The data should provide an aid for identifying real improvement opportunities. There are also areas the survey has shown that the company has done satisfactory on. The top five areas that had over 70% approval response were: y y y y y Safety Opportunities Published Policies & procedures being understood Consistency of applying policies Cleanliness 81.49% 80.16% 80.00% 77.45% 77.44%

Employee perceptions of the organizational environment are related to their job involvement, effort, and performance (Brown & Leigh, 1996). The top five areas that had an unfavorable response were: y y y y y Overtime Distribution Distribution of work Hours Fair treatment of employees Pressure/Stress 23.02% 21.97% 20.87% 17.56% 13.97%

These areas will need further research to get more in depth information on what employees are not satisfied with. The policy states that overtime distribution will be granted by terms of seniority. Due to the high unfavorable responses this policy needs to be assessed and if it is not being adhered to an action plan needs put in place to get it on track. Distribution of work will require the management team to evaluate how the positions are allocated and gather information on what areas are distributed unevenly.

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Hours worked are not controlled onsite; instead, they are evaluated at a corporate level. It is recommended the survey results be sent to the corporate office and reviewed to determine if the hours are subject to adjustment. The Human Resources department needs to inquire further into the unsatisfactory responses on the fair treatment of employees. If the findings are unsatisfactory then the management team will need additional training on applying policies consistently and fairly to all employees. The level of pressure/stress on employees also requires further research. An applicable proposal should be implemented that specifically targets the alleviation of work related stress. The neutral responses in the survey are employees who are not decided one way or the other. These outcomes will be determined by the companys course of resolution. The top five areas in neutral responses were: y y y y y Pressure/Stress Disability Income Pay-Competitiveness Feelings of unity/team 401 (k) 33.09% 30.30% 29.50% 27.69% 27.61%

Research shows that stress is a known contributor to colds and flu, digestive difficulties, headaches, insomnia, stroke, and other physiological problems and including impaired psychological well-being (e.g., anxiety, depression, burnout) and counterproductive behaviors such as absenteeism and drug abuse (Cooper, Dewe, & ODriscoll, 2001; Krantz & McCeney, 2002). It is imperative that Armour-Eckrich try to alleviate as much pressure/stress from employees as feasible. There are two benefit areas, disability income & 401 (k) that had high neutral responses. It is essential the benefits offered are communicated more frequently to employees. During their
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orientation process, employees are verbally informed of the companys offered benefits; after a 90 day work period, this process is repeated in a mandatory benefits meeting. Upon commencement, employees can absorb an excessive amount of information, which could potentially prove frustrating. Recommendations are to provide a semiannual benefit informational meeting in both english and spanish to answer any questions employees may have and provide any additional explanation needed on benefits employees are confused about. Competitiveness of pay was another area employees had a high neutral response in. Annually the pay structure is evaluated based on the areas and other manufacturing industries. Armour-Eckrichs pay scale is competitive with similar companies. This information needs communicated to employees so they understand the process and know the company is competitive when compared to surrounding areas. Highly interconnected teams are characterized by stability, pride in the team, and feelings of unity and satisfaction that hold the team together (Goodman, P.S., Ravlin, E., & Schminke, M. 1987). The high responses in the neutral area for employees feelings of unity/team need further research by management and a plan of action put into place on providing a thorough process for a reformed team environment. This will help ensure employees are satisfied and feel they are part of the team. The survey results indicate numerous opportunities for the development of improvement strategies. Analysis of low levels of satisfaction expressed through this survey can be useful in quality improvement efforts. Armour-Eckrich is encouraged to investigate problem areas and develop additional strategies for improvement.

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References Brown, S., & Leigh, T. (1996). A new look at Psychological Climate and its relationship to job involvement, effort and performance. Journal of Applied Psychology, 81 (4), 358-368. Cooper, C.L., Dewe, P.J., & ODriscoll, M.P. (2001). Organizational stress: A review and critique of theory, research, and applications. Thousand Oaks, CA: Sage. Goodman, P.S., Ravlin, E., & Schminke, M. (1987). Understanding groups in organizations. Research in Organizational Behavior, 9, 121-173. Krantz, D.S. & McCeney, M.K. (2002). Effects of psychological and social factors on organic disease: A critical reassessment of research on coronary heart disease. Annual Review of Psychology, 53, 341-369.

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Appendix A

EMPLOYEE SATISFACTION SURVEY

To help us identify possible improvement opportunities, please complete this survey and return it to Tara Greskoviak in Human Resources.

Area

Greatly Satisfied

Satisfied

Neutral

Dissatisfied

Greatly Dissatisfied

Pay Fairness Competitiveness Shift Differential Benefit Programs Vacation Medical/Dental Insurance Life Insurance Disability Income Profit Sharing 401 (k) Bereavement Leave Communication Informed about decisions Informed about changes Organization publications and bulletins Chance to input on decisions Chance to make suggestions Working Conditions Safety Temperature Noise Hours of work Cleanliness General work environment Work Load Level of pressure or stress Distribution of work Overtime distribution Work Satisfaction Interesting jobs 25

Variety of job assignments Feeling job is important Work Respected Promotional Opportunity Chances available Decisions fair Decisions communicated Opportunities published Supervision/Management Cares for employees Consistent treatment of employees Fair treatment of employees Level of guidance and leadership Job Security General sense of security Transfer procedure Co-Worker Relations Feelings of unity or team Identification with work group Feelings of belonging Policies and Procedures: Fair as written Availability to read Consistency of application Understood
Additional Comments:

Thank you for taking the time to complete the survey!

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Appendix B
ENCUESTA SOBRE LA SATISFACCION DEL EMPLEADO

Para ayudarnos identificar oportunidades para mejora, por favor termine esta encuesta y vulvala a Tara Greskoviak en oficina de Recursos Humanos.

rea

Mucha Satisfacci n

Satisfecho

Neutral

Descontento

Muy Descontento

Paga Imparcialidad Competitividad Paga diferencial de turno Programas de beneficios Vacaciones Seguro dental y de medico Seguro de vida Seguro de inhabilidad Programa de retiro 401 (k) Licencia de la perdida Comunicacin Informado sobre decisiones Informado sobre cambios Publicaciones y bolentines de la organizacion Ocasin de entrar en decisiones Ocasin de hacer sugerencias Condiciones del trabajo Seguridad

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Temperatura Ruido Horas del trabajo Limpieza El ambiente general Cantidad de Trabajo Nivel de la presin o de la tensin Distribucin del trabajo Distribucin del overtime Satisfaccin de trabajo Trabajos interesantes Variedad de asignaciones del trabajo Su trabajo el da sentido de importancia
rea
Mucha Satisfaccin

Satisfecho

Neutral

Descontento

Muy Desconten

Oportunidad Promocional Chances disponible Decisiones justas Las decisiones se comunican Oportunidades se publican Supervisin/gerencia Cuidado por los empleados Tratamiento constant de empleados Tratamiento justo de empleados El nivel de direccin y el tipo de direccin

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Seguridad del trabajo El sentido general de seguridad El procedimiento de ser transferido Relaciones con sus companeros del trabajo Hay sentido de unidad y equipo Te sientes parte de su grupo Sientes que perteneces Politicas y procedimientos: Justos segn estn escritos Disponible para leer Consistencia en su uso Entendimiento de Politicas y procedimientos
Comentarios adicionales:

Gracias por tomar la encuesta!

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