importance of employee satisfaction

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What is the Importance of Employee Satisfaction in Organisations?

Did you ever consider the importance of employee satisfaction in organisational success? If not, it’s high time to think about improving employee satisfaction that returns you high profit and assists in company growth. Actually, keeping your team happy makes them confident in delivering high-quality work, increasing business productivity. 


However, studies show that only 20% of employees feel engaged at work, and job satisfaction is one factor behind the employee engagement rate. Besides, if your employees are satisfied with the work, they will remain engaged with your company for a long time. 


But one thing to remember is that employee engagement and employee satisfaction aren’t synonymous; job satisfaction is considered an emotional element. 


This guide will delve into various aspects of the importance of employee satisfaction in the workplace.

What is Employee Satisfaction? 

Employee satisfaction, often called job satisfaction, relates to how happy or content an employee is in their current position and with their employers. It is a combination of psychological, physiological and environmental circumstances.


To sum up, numerous factors affect employee satisfaction in an organisation, such as working conditions, employee benefits, managerial style, company culture, pay scale, career development, etc. 


Employee satisfaction can be either intrinsic or extrinsic. First, intrinsic employee satisfaction relates to how employees feel about their daily tasks. Second, extrinsic employee satisfaction relates to how they think about their work conditions, pay, and work environment.


Employees are satisfied when they feel energised by work, have a sense of purpose, achieve goals, and enjoy a culture of inclusion. 

What is the Importance of Employee Satisfaction?

Every company must understand job satisfaction and its importance to solve its twin problems of employee turnover and employee retention. Furthermore, listed below are a few benefits of job satisfaction.

Better Employee Outcomes

The importance of employee job satisfaction comes into view when you want to improve employee outcomes and boost overall business productivity. Job satisfaction motivates employees to work harder to meet their company’s goals. 

Reduced Turnover

A satisfied employee will be less likely to leave their job. Additionally, the more they feel content at work, the better they engage with your company. Because of this, you must ensure that you address employee concerns efficiently to increase their satisfaction and emotional well-being.

Higher Productivity

The importance of job satisfaction and employee engagement must be considered by businesses when framing strategies for better productivity. A satisfied worker tends to be more productive at work. They acquire a sense of dedication that drives them to work hard and achieve desired company goals. 

Influence Positive Company Culture

89% of highly engaged employees are satisfied due to their company’s positive work culture. Most adults consider a company’s culture before applying for a job. 


Therefore, you can develop a positive company culture by satisfying your employees. It helps your team members stay connected with the job and coworkers. 

Improve Company Reputation

When people are happy about something, they prefer to speak about them. Similarly, if you can satisfy your workers, chances are high they will spread the good word about you, which leads to an improved company reputation. 

Better Customer Service

Satisfied people have a plus point; they can satisfy others. These are happy people, which means they can offer cheerful customer service, thus improving your sales and revenue. 

Increased Profits

Employees become more productive when satisfied by a company, leading to increased sales and profits. You can use this profit to compensate your employees for their hard work by offering a performance bonus or overtime pay. This keeps them motivated and enthusiastic to work more for you.

Effective Management

Satisfied people are less likely to leave the company, leading to internal hiring and promotions. These employees stay attached to your company for the long term helping you to develop a qualified and engaged management team.

Better Hiring Capabilities 

Even though your employees have job satisfaction, they can leave the company at some point due to retirement or a change of careers. During such scenarios, these employees will leave positive reviews about your company that gives a good image of you to candidates looking for jobs. It means you can attract qualified and talented employees for different positions.

How to Measure the Importance of Employee Satisfaction?

It is hard to determine what satisfies employees; for one, it might be a simple job with regular payments, and for others, it can be facing real-life challenges. 


Listed below are a few ways to measure the elements of employee satisfaction.

Set up a One-to-One Conversation

Setting up a one-to-one conversation via a formal or casual meeting to find out how your staff feel about their workplace and share their thoughts and feelings. Ensure that you assure them of confidentiality; otherwise, they might not open up and discuss the problems associated with fellow colleagues, managers, or the office culture.

Conduct Anonymous Surveys

You might know the importance of an employee satisfaction survey for your organisation, but doing it anonymously has an extra point. Consequently, it helps your team speak about their concerns more freely without revealing their identity. Due to this, you can get a better view of what is lacking in your organisation and how satisfied your employees are. 

Read the Room

You need to read your employees to understand how they feel working with you, even when they are not speaking up for themselves. You can notice a few red flags like low productivity, staff reluctance to participate in teamwork, or a lack of feedback.

How to Improve Employee Satisfaction?

Survey says satisfied workers are more motivated, engaged and committed to work that focuses on increasing profits, productivity and sales for the business and decreasing employee absenteeism. 


Here are a few ways of improving employee satisfaction.

  • First, offer your employees a competitive salary
  • Second, ask for their constant feedback and suggestions
  • Third, apply a few innovative employee ideas in the workplace
  • Subsequently, try to be creative with employee benefits
  • Next, put an ear to your employees’ genuine concerns
  • Conversely, celebrate big wins and allow people to share their own achievements
  • Finally, prioritise mental and physical well-being
  • Lastly, invest in employees’ career growth


Also Read : 12 Major Importance of Recruitment and Selection in HRM

How 6 Pence Helps with Business Processes

Job satisfaction is beneficial for both employees and employers. Satisfaction is essential for employees to stay engaged and improve their work quality. 


In contrast, an engaged employee can improve an organisation’s sales and revenue with dedication and hard work. You must understand the importance of employee satisfaction surveys to learn where your business is lacking and ask employees for ideas about how to improve them. Through this blog, we have tried to explain the importance of employee satisfaction in an organisation.


HRs are responsible for maintaining a positive work culture but often have many responsibilities that make it difficult for them to manage. To help your Human Resources department, you can outsource your staffing, recruitment, and payroll responsibilities to us! 


6 Pence is a leading outsourcing company in the GCC. We have almost two decades of experience in helping companies improve their business processes while they concentrate on their core capabilities. By outsourcing your staffing needs to us, you are guaranteed access to top talents, assistance with paperwork and verification, and post-hiring HR and payroll assistance. 


6 Pence is operational in Dubai, Oman, Iraq, and Bahrain.


Contact us for more details!

Frequently Asked Questions

What is employee satisfaction? 

Employee satisfaction is a term HRs use to describe how satisfied or content every employee is with the organisation.

What are the types of employee satisfaction? 

There are two types of employee satisfaction, intrinsic and extrinsic job satisfaction. 

What can improve employee satisfaction?

There are numerous ways of improving employee satisfaction by eliminating micro-management, promoting employees’ good health, providing training, and more.


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