What is job satisfaction?
Feelings and emotions matter. This is what job satisfaction is about. It measures how employees feel in the organisation they work for, in their team, with their leader and within their role. Job satisfaction often allows employees to feel part of a bigger picture and to have purpose. There are several components that will influence job satisfaction levels. Having a career path and feeling valued will have a positive sway, whereas long hours or lack of recognition will have the opposite effect. There are a lot more factors that influence job satisfaction. As it touches emotions, job satisfaction is a subjective term that will see its meaning vary depending on the individual’s perception. Job satisfaction can be defined as employee happiness, pleasure to work and motivation. The parameters to measure it will depend on the industry and the roles that individuals are in.
Why is job satisfaction important?
Employees who feel happy at work perform above average. Employee satisfaction is a critical component for business success. An organisation with a high job satisfaction rate will have employees that work better, may stay longer and will be more invested in their role; all contributing to increased productivity. Below are some examples of why employee satisfaction matters.
Happier customers
Whether we realise it or not, our emotions affect others. If employees are not satisfied and happy, your customers will feel it. This is particularly the case for call centres where there should be no room for unhappy employees. Although the impact on customers will be less direct, non-customer facing positions are not to be put aside. Low satisfaction can cause lower product quality which, in the long term, will have an effect on customer satisfaction. Customer-centric companies should make their employees’ satisfaction a central part of their people’s strategy.
Reduced turnover
Companies with high turnover are less stable both internally and with their client relationships. Although turnover is not always a bad thing, it should be well balanced to ensure that customers are not affected by frequent changes of staff that require training when they join the business. This training is costly and may slow the business. Having a high turnover also means the loss of talent and experts that are critical to the business and that are going to serve the competition. A high employee satisfaction rate typically reduces turnover.
Increased chances of referral
Recruiting is not an easy task and is often costly. Employee referrals are often in place in organisations to ease the recruitment process. It is an efficient way to source talent; but it can only happen when existing employees enjoy working for the business and are happy to recommend it to their network.
Boosted productivity
Employee engagement plays a big part in productivity. Having a business with highly motivated staff creates a positive environment where motivation is high and delivery flows at fast pace. Employee satisfaction may also have an indirect effect on productivity. Organisations with high satisfaction care for their people, their wellness and their work-life balance. As such, their employees are healthy, rested and not put under unnecessary pressure, which ultimately results in improved business performance.
Condensed human resources and recruitment costs
As previously touched on, recruiting has a cost for businesses. So does the ongoing human resource management associated to that process, which is much heavier in businesses that have high levels of dissatisfaction. This means that HR resources have more work and need more resources as they need to manage more complaints, launch surveys, train the leadership team and much more. All these components impact the business margins.
There are many more reasons why job satisfaction is important for businesses. We highly recommend that all companies regularly measure it and take appropriate actions to address it when and where needed.
Factors that influence job satisfaction
Job quality and job satisfaction are relative terms. Influencing it may seem like a difficult task. In the below section, we highlight different ways that an organisation can power job satisfaction. The level of action applied will vary depending on the business and the current level of satisfaction which needs to be judged through an initial survey.
Care for people
Caring for employees is key and is often stated as the responsibility of the business. Actions that are implemented to care for people should be widely communicated. These communications can take different forms such as publications on the company’s intranet, newsletters or through the use of other communication channels. More than the communication itself, giving recognition through financial incentives is also a way to demonstrate that the business cares for its people.
Care for employees should be cascaded down at all levels and leaders should be trained to adopt the appropriate behaviour.
People development
Most people look for growth, personally and in their career. An organisation should have clear people development strategies that lay a path to its employees for career progression. There should be a healthy amount of time between promotions and the path should be clear with achievable milestones. When promotions are not on the table, other ways to develop people should be put in place. Cross-functional training or lateral moves can boost people development and result in employee satisfaction.
Job security
For a lot of individuals, the unknown is daunting. Not knowing if their job is safe has a psychological impact that can create scars in the long term. Employees should not be kept in the dark when it comes to job security as it directly impacts their life. Businesses that show loyalty to their employees and retain them, even when the market is unstable, instate trust with their staff. This confidence in the business creates a sense of loyalty that impacts employee retention and overall employee satisfaction.
Employee voice
Employees should be able to express themselves to share how they feel about certain tasks or processes. Employee voice is about listening to workers and learning from them. Employees who feel heard will have more trust in the business they work for. They feel a sense of belonging and are likely to be more engaged.
Culture of respect
Having a healthy culture, one that leaves no room for disrespect, is crucial. The workplace often evaluates people, their performance and their behaviour. Through these formal or informal evaluations or even on a daily basis, there should be no room for disrespectful attitudes. Addressing these promptly sets the scene for what is permitted and what isn’t, thus building a culture of trust. Check our article on what is a toxic workplace and how to avoid it.
Two-way feedback
Forget sandwich feedback; implementing two-way feedback is often a better way to achieve employee satisfaction. It leads to open dialogue and shared opinions. Feedback should be constructive to ensure that there is a way forward for the person receiving it. Check our article on this topic here.
Healthy work-life balance
Work-life balance is a big topic. Finding the appropriate equilibrium between performance at work and wellbeing will serve the business in the long term. This can be achieved through mechanisms such as shorter working days on Fridays, work from home days or flexible working. This balance will drive employee satisfaction.
Leadership style
Employees often tend to behave like their leaders. Ensuring that leaders instate a culture of collaboration and a reliable environment is critical for the workforce to feel they can trust the business. When it comes to joining a team, individuals put a lot of importance in the leadership that is associated with the role. Similarly, leaders with their style, expectations and how they deal with various situations will greatly sway employee satisfaction.
Diversity and inclusion policies
Nowadays, a lot of businesses have dedicated roles for diversity and inclusion, thus demonstrating the importance of this factor. D&I is a big part of the company culture; it ensures fairness for all. All employees, regardless of their background, gender, sexual orientation or disability, should be given the same opportunities and experience the same level of wellbeing.
Management
Micromanagement may be necessary in specific situations but should overall be avoided. This management style does not leave room for innovation, creativity or other ways of working. Adopting a macromanagement style, one that leaves room for creativity, has a positive impact on workforce motivation.
Compensation package
Having the relevant compensation package is critical for job satisfaction. Employees often know what the competition offers and may be disheartened if they are not in the same bracket. Having a fair salary and the appropriate incentive and bonus scheme will increase employee satisfaction.
Performance recognition
Recognising employees who put in extra effort influences job satisfaction. Individuals who are recognised feel the appreciation of their effort and maintain their motivation levels. Recognition can be verbal or may take the form of perks or even bonuses.
Employee satisfaction is critical to business success in the short and long term. There are several ways in which a business can measure its employee satisfaction. Employee satisfaction surveys, employee net promoter score or even one-to-one meetings are all tools that businesses should use to measure and influence their employees’ satisfaction. Check our article that gives more details on the employee satisfaction surveys here.
