Job satisfaction matters
TINA L. SCOTT
Employees want jobs they find satisfying, but employee job satisfaction is important for employers, too. Why should companies care? The bottom line is that highly satisfied employees affect the company’s bottom line.
Employees who are satisfied with their jobs contribute directly to:
• Decreased turnover – Satisfied employees are less likely to leave, and employee turnover costs companies a lot. The time and expense associated with recruiting employees and training new employees, and lower productivity of new employees until they are fully trained, is costly. Retaining fully trained employees saves companies unnecessary expense. And let’s not forget how the stress of being understaffed negatively impacts other company employees which creates a cyclical effect on their job satisfaction, so decreasing turnover and maintaining a stable workforce is critical at all levels.
• Increased productivity – Highly satisfied, engaged employees are more productive than their dissatisfied counterparts. Increased productivity equals higher profits.
• Fewer workplace accidents and injuries – Dissatisfied employee tend to be less careful and less attentive than engaged, satisfied employees. That can lead to on-the-job accidents that can result in anything from short production interruptions to all-out company shutdowns as accidents are investigated. In addition, the company loses the contributions of injured employees if they are off work or on work restrictions as a result.
• Increased effectiveness – Businesses exist to serve a purpose, whether that is sales, service to their clients, manufacturing, or furthering the mission of a non-profit. Highly satisfied employees are more committed to helping fulfill the company’s mission.
• Positive PR – From a public relations perspective, happy, satisfied employees cannot be underestimated. They are loyal and speak positively about their employer to their friends, family, and out in the community. On the contrary, unhappy employees can inflict damage to an employer’s image which, in addition to reflecting negatively on the company overall, can make it more difficult to recruit new employees.
• Fewer absences – There’s no doubt employee absences affect the company’s productivity and the ability to achieve their mission. Happy, engaged employees with a healthy work-life balance take fewer sick days and often have fewer health issues resulting in longer-term absences.
• Increased profitability – All of the aforementioned factors cost the company money, and that decreases profits. So increasing employee satisfaction increases company profitability.
Companies that value employee satisfaction and work to ensure their employees are highly satisfied create a company culture that draws more high-quality employees to their organization. They create a positive cyclical effect where their employees recommend other good employees for hire and the organization grows and thrives.