Why Must Businesses Know About the Importance of Job Satisfaction for Employees?

importance of job satisfaction for employees

In the current job market, the power lies with the employees, who choose if they want the job you offered or not! If hiring is difficult, then imagine how challenging it is to retain these talents whom your competitors often headhunt.  


You know the best way to keep employees in your company: provide them with a nurturing, positive, and egalitarian work environment.  If your employees aren’t satisfied with what they do, there’s no way of retaining them in the company. On the other hand, job satisfaction drives the productivity of employees and their efficiency, leading to better business outcomes. 


In this blog, let us look at the importance of job satisfaction for employees and how, as an employer, you can foster that in your company.

Importance of Employee Job Satisfaction: What it Means

The importance of job satisfaction for employees differs from person to person. For some people, it motivates them to keep working and follow their passion. Meanwhile, for others, it allows them to maintain an excellent work-life balance. Therefore, job satisfaction as a whole refers to how content your employees are in the role they play in your organisation.


The new-age employees believe that job satisfaction is more important than money. This is, to an extent, true because money can’t buy you happiness, but job satisfaction can. When you are satisfied with your role and responsibilities, you can take care of your physical and mental health. In a survey by Statista, almost 45% of respondents chose impactful work as a crucial organisational attribute in 2023. This is brought about mainly by career advancement opportunities, employer ethics, and compensation. 


Now, there are different types of job satisfaction. For example, a worker might be satisfied by doing simple jobs and getting regular paychecks. On the other hand, someone might find satisfaction in meeting professional challenges. 


However, the critical ingredients of job satisfaction for employees include job security, positive working conditions, fair pay and benefits, clear communications, recognition, and career development. 

What are the Business Outcomes of Job Satisfaction of Employees?

Do you think customer satisfaction is more important than ever today? Obviously, it is, but for companies to achieve that, you first need to focus on employee job satisfaction. 


For example, Starbucks introduced health insurance for all employees despite their excessive costs. The main mantra behind that was if the management looks out for their employees, the employees will look out for their customers. 


Let us now discuss job satisfaction and why it is essential in business.

Improved Employee Retention

Is your company suffering from high employee turnover? If so, it’s time to work on your employee job satisfaction factors. A satisfied worker is more likely to stay in your business. It, in turn, saves your time and money in recruiting staff every time an employee leaves.

Better Talent Attraction

In today’s candidate-driven job market, companies need to focus on their employee relationships. A happy employee will leave positive reviews on social media platforms like LinkedIn or on company review websites. This further helps you attract other top talents, who often consider employee satisfaction important before joining.

Boost Employee Engagement and Company Productivity

Whenever you are fostering job satisfaction for employees in a company, you tend to build an engaged workforce. Though job satisfaction and employee engagement are two different terms, they have a connection in between. 


Engaged employees are a sign of better job satisfaction; a satisfied employee may or may not be engaged. Engaged employees often go the extra mile to deliver on the work.


Satisfied employees usually have more focus and take pride in their work compared to unhappy workers. If you can multiply the number of satisfied workers in your company, you can be a highly efficient team. 


Together, they put additional effort into achieving your organisational goals, enhancing productivity, and boosting work quality. Additionally, employees who are satisfied with their positions build solid internal relationships, leading to better collaboration. They share thoughts and information and contribute to boosting overall performance and efficiency.


Thus, you must focus on the importance of job satisfaction for employees to meet organisational goals better. 

Creating a Positive Workplace Culture 

If your employees aren’t satisfied with their work, they might become toxic over time, leading to chaos and business disruptions. On the other hand, happy employees tend to give out positive vibes, making your company a better place to work. 


They can motivate other workers, improve overall work quality, satisfy customers, and boost business productivity. Furthermore, a positive workplace culture has a better potential for attracting, hiring, and retaining top talents in a company

Customer Satisfaction

Customer satisfaction is important, especially in a competitive marketing place and for service-based companies. But who is directly connected with your clients? Your company employees. 


So, if you aren’t promoting strategies to improve employee satisfaction in their job, they lose interest in working for you. This, in return, may affect your bond with customers, and, in the worst cases, you may lose them forever. 


On the other hand, a satisfied worker will put extra effort into customer satisfaction and ensure the boost of your loyal base. 

Reduce Operational Costs

From the brim of a glass, you may not find how job satisfaction reduces operational costs. But when you go down the glass, you can see job satisfaction in retaining top talents in the company. 


This ensures they don’t leave you any time soon, leading to spending time and money on finding new people. Additionally, you need to invest in training new people before starting work. On the other hand, it can disrupt your entire business, causing unseen losses.

How does 6 Pence Help

There are numerous ways to improve job satisfaction in a company. For example, asking for regular employee feedback and making changes in the company accordingly, or implementing rewards and recognition to motivate talents, etc. 


The significance of the study of job satisfaction of employees will help you plan multiple strategies to retain talents and improve work culture. We hope this article has been able to shed some light on the importance of job satisfaction for employees and employers alike. 


Are you looking for a staff outsourcing company in UAE, Oman, Iraq, and Bahrain? We can help you with end-to-end recruitment and temporary and permanent staffing solutions and can find you the best-fit candidates.


Also Read: 7-Step Guide To Improve Recruitment Process in Organisations

Frequently Asked Questions

What is the importance of job satisfaction? 

The importance of job satisfaction for employees is huge as it describes how content they are in fulfilling their current role. A happy employee has a better balance between work and life, improved work quality, and a motivation to improve. 

Why is job satisfaction is important than a big salary? 

We know money is essential for survival, but it cannot always bring you happiness. On the other hand, job satisfaction can make you a happy person who works because they love to do it and not because of their financial needs. However, compensation plays a good part in offering job satisfaction to employees. 

What are the levels of job satisfaction?

There are mainly two levels of job satisfaction: effective job satisfaction and cognitive job satisfaction. 

The first one refers to the holistic emotional reaction of individuals about their jobs, and the latter defines how fulfilled a worker is with their employment.

What is the Importance of Employee Satisfaction in Organisations?

importance of employee satisfaction

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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