Satisfaction breeds success. Restaurants that satisfy their patrons are almost always full (or were before COVID-19). Marriages in which both partners are happy tend to last. Employers who are satisfied with their employees continue to pay them, and by the same token, satisfied employees promote success for the organizations at which they work. 

Job Satisfaction Factors

Several factors contribute to employee satisfaction. While you might be hitting it out of the park in one or two areas, if you fall short in any of the others, you may risk creating a dissatisfied workforce and encountering all of the problems that come with it.

Working Conditions

You might think that any well-compensated employee is a satisfied one, but that isn't necessarily the case. Don Rheem, CEO of E3 Solutions, says, "Money… has minimal impact on daily behavior. Far more impactful are things that money can't buy." 

Among those impactful things are workplace safety (physical and emotional) and a clean, healthy environment. Work should be a place where people look forward to coming every day. If they don't, their job satisfaction will be low, and worse; they'll eventually leave. They can earn the same paycheck elsewhere.

Employee Benefits

Good pay is essential, make no mistake. But how are you doing with your paid time off (PTO) policy? And what about health and wellness perks and benefits? And your rewards and incentives programs? 

Much of your employees' job satisfaction is measured by how well you take care of them in areas other than their wallets.

Managerial Style

In a 2018 survey of HR professionals, kununu discovered that the top 10 reasons why good employees leave their jobs are: 

  1. Lack of trust and autonomy
  2. Lack of appreciation/recognition
  3. Lack of respect
  4. Lack of growth opportunities
  5. Feeling underutilized
  6. Bad managers
  7. Poor management
  8. Poor communication
  9. Feeling overworked
  10. Lack of support

Note that you could make a case for every one of those turnover catalysts being a result of management decisions and styles. The managerial style has an enormous impact on job satisfaction.

Job Description and Responsibilities

Last but not least, on the list of factors that affect employee satisfaction is the fulfillment that people derive from the job itself. 

  • Is the job challenging and interesting? 
  • Does it utilize their skills and education? 
  • Do people feel trusted and respected for their work? 
  • Do people see a clear upward path for continued growth and success? 

Nobody wants to be bored at work or feel underutilized. Feeling underutilized was the #5 reasons why good people voluntarily leave employment in search of greener pastures. 

Measuring Employee Satisfaction

So, how do you measure employee satisfaction? The best practice is to measure it through multiple means, both formal and informal:


Surveys are a great way to get formal responses from your employees about their job satisfaction and engagement. We recommend you take them regularly, keep them short, and ask open-ended questions requiring thoughtful responses. Ensure those survey responses are anonymous, as this encourages everyone to be honest in their answers.

Informal Observation

Another way of measuring job satisfaction is through informal but careful observation. Your own eyes and ears can tell you a lot about how satisfied your employees are at work.

  • Do people miss work frequently? 
  • What's the camaraderie like in the office? 
  • Is your turnover rate high or low? 
  • What would you say is the level of workplace drama? 

Performance Review and Appraisal

Performance review (or performance appraisal) is a method of evaluating the performance of employees in the current run of your organization. Often, these reviews are part of the individual career and organization's internal record. Many organizations prefer an annual or six-month performance review for employees, though some use monthly or even weekly reviews to track performance. The primary purpose of these reviews in organizations is to have uniformity for pay raise and promotional structure between employees in shorter terms.

Performance reviews aren't just a time for you to tell your employees how they're doing. These reviews are the perfect opportunity for you to ask people how they're doing and how well they think you're doing. Foster the kind of relationships with your people that engender trust and honesty, and then take advantage of your one-on-one meetings with them to measure their job satisfaction.

Importance and Benefits of Employee Satisfaction

Satisfied employees are an enormous asset to your organization for many reasons:

Reduced Turnover

Happy employees stay put. High turnover can be a nightmare for employers due to the time and money investment involved in re-hiring and re-training qualified talent. You can't expect zero turnovers, but you can certainly mitigate the risk by making employee satisfaction a top priority.

Higher Productivity

According to Villanova University, studies show that "employees who report high job satisfaction tend to achieve higher productivity." 

It makes sense that satisfied employees would feel more invested in a company's success and therefore work harder to help achieve it.

Brand Ambassadors

When people are happy about something, they talk about it. For instance, if you get terrific customer service at any establishment, the odds are that you'll tell people about it and recommend going there. Happy employees will do the same for you, promoting your brand and making you an employer of choice.

Better Customer Service

Satisfied employees are happier people in general, which means they're more apt to give cheerful customer service. They readily represent your company with pride, leading to gratified consumers.

Unlock your team's potential with Simplilearn's Comprehensive Upskilling programs. Explore Now!

Improve Employee Satisfaction with Corporate Training

Simplilearn's corporate training in emerging technologies is transforming our economy. Our Blended Learning approach drives learner engagement and the industry's highest completion rates.

Did you know that hands-on, interactive learning is five to seven times more effective than merely reading or watching course material? For this reason, our corporate training curriculum includes the following:

  • Live online classes
  • Mentoring
  • Labs
  • Projects
  • Self-paced videos
  • And, more

Simplilearn implementation consultants will work with you to design the best training program for your company. Unlock your team's potential today!

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