Which of the following is a performance indicator?

Employee Satisfaction serves as a key performance indicator because it directly reflects the overall engagement, morale, and well-being of the workforce within an organization. High employee satisfaction is often linked to increased productivity, lower turnover rates, and a better organizational culture, all of which contribute to enhanced business performance. Tracking this indicator allows companies to gauge how well they support their employees and identify areas for improvement, which can ultimately lead to improved outcomes.

The other choices, while important for business operations, do not function as performance indicators in the same way. Raw materials pertain to the inputs required for production processes but do not measure organizational performance directly. Skills refer more to the capabilities and competencies of employees rather than a quantifiable metric of performance. Cash flow, while crucial for financial health, primarily focuses on the monetary aspects rather than employee-centric performance measures.