Measuring employee assets – The Nordic Employee Index^TM

Based on a review of the literature within the field of job satisfaction and organizational commitment this paper proposes a generic model for measuring employee perceptions. The model consists of seven latent constructs operationalised through 29 manifest indicators. This model is subsequently tested on data from a questionnaire survey to which approximately 9,600 employees from the Nordic countries responded. The statistical technique applied for this analysis is partial least squares (PLS), which is well suited for structural equation modelling when the focus is on prediction. The results support the structure of the suggested generic model but reveals differences between the Nordic countries with regard to strength of the relationships as well as the average case value of the seven latent constructs.