How Does Job Satisfaction Affect Employee Performance?

Are you taking enough steps to support employee wellbeing?

If not, it may be costing you more than you think.

Job satisfaction is how fulfilled an employee feels while working at your company. It’s a result of various factors ranging from good relationships at work to personal development for the employee.

As an employer, job satisfaction should be high on your list of priorities for business development as it directly relates to the overall success of the company. 

“29% of people intentionally left their job over the previous year or are planning to next year - 61% due to poor mental health. Organisations simply cannot afford to ignore the colleague experience/sentiment/satisfaction. We are not interfaces on machines and will not be treated as such; attrition bares all.” shares Ryan Hopkins, Future of Wellbeing Lead at Deloitte.

“Organisations have a choice, transactional or transformational. Organisations that get this right, providing workplaces where people can work with flexibility, autonomy and the space to prioritise wellbeing daily will win the so-called ‘war for talent’. And those that don’t, well...”

Still aren’t convinced? Take a look at the top five benefits high job satisfaction has for your business, backed by research. 

5 Ways Job Satisfaction Affects Employee Performance

1. Increased productivity

It’s a well-known fact that employees with high job satisfaction are motivated to put more effort into their work. If you enjoy what you do and where you are, you’ll naturally feel inclined to give it your all.

And this is backed by evidence too - a study conducted by the University of Oxford found that happy employees are 13% more productive than unhappy employees.

2. Stronger relationships with colleagues

Relationships with colleagues is one of the leading factors in determining an employee’s job satisfaction. 

Not only does a workplace culture that fosters good relationships across the business (not just within the employee’s team) improve job satisfaction, but it sets the foundation for strong collaboration. 

And every business relies on teamwork in one form or another.

3. Better business performance

Research conducted by LSE Business Review and Gallup found a firm correlation between employees rating 95% on job satisfaction and the impact on customer loyalty and company profitability.

Prioritising job satisfaction doesn’t just benefit your people, but it directly benefits your business performance too.

4. Greater company loyalty

Employees with high job satisfaction will not only be loyal to the company in terms of retention, but they’ll also act as brand ambassadors for your business.

They may talk about the highlights of your company with friends, family and other professionals, giving you greater brand awareness.

If your employees are particularly happy about their place at work (e.g. satisfied with the pay, benefits and type of work they’re doing), they may even offer a referral for current vacancies. 

And referral hires are 70% more likely to stay within the company than job-board hires, so that’s a huge win.

5. Improved retention

Did you know that 52% of new hires are actively looking for a new job within the first 6 months of employment?

That’s more than likely to do with new hires not feeling satisfied with their new job.

Employees with high job satisfaction won’t feel the need to look for opportunities that fill in the gaps they’re currently missing. And hiring costs aren’t cheap either, so improving employee retention will help save some pennies too.

WANT TO BUILD A BUSINESS WITH EXCEPTIONAL TALENT?

Job satisfaction is hugely important to the overall success and growth of a business, and the first step is hiring the right talent that will thrive within your company.