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4 Benefits of Employee Sentiment Analysis in 2024

Successful employees lead to successful businesses. It is therefore crucial that employees are satisfied with their job and workplace. However, a recent study shows that 41% of employees plan to leave their current job next year. Companies can lose their employees without even realizing what led them to change jobs. Therefore, understanding employee sentiment regarding the company is vital for both parties. There are several sources that you can analyze employees’ sentiment such as their reviews, social media posts, e-mails, surveys, and their feedback.

This article will explore how employee sentiment analysis can help businesses and HR departments in improving employee experience.

1. Ensure that your employees are happy with the company and the working conditions

When you do not understand your employees’ needs and desires, you risk losing your best employees to other opportunities. Using sentiment analysis methods that classify emotional tones in the in-company text can give you insights into their concerns and reveal improvement opportunities.  

2. Provide better feedback regarding performance

Providing feedback regarding employees’ performance can be stressful, especially if the performance falls short of expectations. However, through sentiment analysis, you can understand the underlying reasons for underperformance. 

When an employee receives a negative performance review from their manager, HR professionals can compare that employee’s sentiment report with their performance review to see the trends and they can be provided feedback accordingly. This way, you can plan ways to improve their performance together and minimize any miscommunication.

3. Build a positive company culture

Figure 1. Why do remote workers feel unappreciated by their employers?

Source: Promoleaf

Employees who feel valued at the workplace by their employer and colleagues build a strong connection with their company. A strong affinity towards the company makes employees 75 times more likely to engage than those with a poor connection with the company. So, by analyzing employee sentiments, you can see if your employees feel valued at the workplace and improve employee experience accordingly.

4. Improve retention

Figure 2. How to calculate employee retention rate?

Source: HubSpot

Reducing turnover and keeping employees at the company is as crucial as recruiting them. There are various reasons that employees consider other opportunities, but understanding employee sentiment can help businesses to increase their retention rate. You can learn what makes them uncomfortable, then work on these areas. For instance, if your employees have negative feelings about their work-life balance, you can communicate and understand what they need.

Understanding how employees feel about your company helps you plan strategies for addressing their concerns and providing them with a better workplace. Feel free to read more about the benefits of sentiment analysis.

You can also check our data-driven list of sentiment analysis services.

If you have any questions related to sentiment analysis, do not hesitate to reach us:

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Access Cem's 2 decades of B2B tech experience as a tech consultant, enterprise leader, startup entrepreneur & industry analyst. Leverage insights informing top Fortune 500 every month.
Cem Dilmegani
Principal Analyst
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Cem Dilmegani
Principal Analyst

Cem has been the principal analyst at AIMultiple since 2017. AIMultiple informs hundreds of thousands of businesses (as per similarWeb) including 60% of Fortune 500 every month.

Cem's work has been cited by leading global publications including Business Insider, Forbes, Washington Post, global firms like Deloitte, HPE, NGOs like World Economic Forum and supranational organizations like European Commission. You can see more reputable companies and media that referenced AIMultiple.

Throughout his career, Cem served as a tech consultant, tech buyer and tech entrepreneur. He advised businesses on their enterprise software, automation, cloud, AI / ML and other technology related decisions at McKinsey & Company and Altman Solon for more than a decade. He also published a McKinsey report on digitalization.

He led technology strategy and procurement of a telco while reporting to the CEO. He has also led commercial growth of deep tech company Hypatos that reached a 7 digit annual recurring revenue and a 9 digit valuation from 0 within 2 years. Cem's work in Hypatos was covered by leading technology publications like TechCrunch and Business Insider.

Cem regularly speaks at international technology conferences. He graduated from Bogazici University as a computer engineer and holds an MBA from Columbia Business School.

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