How job satisfaction results in higher business performance

Irena Dragičević
Irena Dragičević
Apr 06, 20226 minute read

It’s a fact: job satisfaction results in higher business performance and company success! And no one can deny it.

Job satisfaction is a major factor in the success of an organization. Everyone would love to work for a company where relationships between employees at all levels are friendly and healthy, where their hard work is appreciated, stress and pressure are not an everyday part of their work environment, and where they have the opportunity to progress, learn, and share knowledge.

In such a business environment, employees feel happy and satisfied; and when employees are satisfied with their jobs, they are motivated and tend to perform better at work as well as be more loyal. The results are easily visible in your company’s revenue, employee productivity, and turnover rate.

two happy people talking

3 main ways how job satisfaction results in higher business performance

Being happy and satisfied at work means enjoying what you do, where you work, how you work, and with whom. And when employees are satisfied with all this, that means they are motivated and the results are:

1. Higher productivity

It’s not a secret. Employees who are highly satisfied with their jobs tend to perform better and achieve higher productivity - irrespective of pay grade and job title. When workers are happy and satisfied in their workplace, they are more focused on their tasks and results. They are responsible and accountable. Such employees are committed to the company and ready to give more to their organization.

Best of all, satisfied employees can have a positive impact and influence on other team members and colleagues. In the end, all this leads to higher productivity and organizational success.

2. Lower turnover rate

Employee turnover is extremely expensive for every company – whether it is a big or small company. Not only do you have to find new employees, but also you need to train them, introduce them to the job and make them a member of a team. All that is time-consuming and requires additional costs and resources. That is why reducing turnovers and retaining workers is an important ingredient in the formula of business success.

All that is time-consuming and requires additional costs and resources. That is why reducing turnovers and retaining workers is an important ingredient in the formula of business success.

The rule that job satisfaction results in higher business performance and reduces turnovers applies to any industry. However, job satisfaction is more than a high salary. It’s a feeling of freedom, autonomy, success, and purpose in the company. Also, it means working in a healthy workplace and not being under constant pressure and stress because of the work.

There are many different motivators for different employees, so it’s important to find the best combination that makes your employees satisfied and happy - and satisfied employees are:

  • More loyal to the company and it’s much less likely they’ll leave
  • Motivated, and they’ll motivate and influence their colleagues
  • Happy to work in your company so they are your best recommendation

3. Better communication and collaboration

Job satisfaction is better when communication with the management is open and transparent, and vice versa. If employees are satisfied at work, they will communicate openly and be encouraged in information and knowledge sharing.

Happy employees are more likely to be team players and more collaborative in working toward common goals. Also, they are more likely to spread goodwill, help others and commit to developing themselves and others within the organization.

So, having in mind the importance of proper information and knowledge sharing and improved internal communication, it’s clear why employees’ happiness should be a top priority. So if you’re unhappy with communication in your company, you should think about how satisfied your employees are and how you can improve that. Below we will give you some tips on how you can achieve this.

Proven ways to boost employee satisfaction

Now that you know that job satisfaction results in higher business performance, it’s important to know how you can increase employees’ satisfaction and happiness in your company. Although there are many factors that affect employees’ satisfaction, three factors have proven to be universal for all workers:

  • Career growth and development
  • Achievement and recognitions
  • Autonomy and flexibility

So let’s explain a bit how they affect employees and what can you do about it:

Career growth and development

Career development is important for both employees and employers. When you encourage and invest in the development and career growth of your employees you invest in your company’s success. Helping your employees develop their skills and grow their careers is critical to sustaining your business.

When employees learn and progress at work, it boosts their morale, motivation, productivity and there is no doubt that they will be happy and satisfied.

Knowledge sharing culture plays a big role here – it’s a corporate culture that allows and encourages employees to share their knowledge and experience with others.

Lorino is a perfect tool for knowledge sharing, where your employees can quickly share or find any relevant information. The most important benefits of using Lorino for knowledge sharing are that:

  • regular daily communication channels and chats are not overwhelmed
  • all information is easy to access and find for anyone
  • increases information and knowledge sharing in the workplace
  • company knowledge base is safely stored
  • everyone has access to important things anytime and anywhere

Acknowledgement and recognitions

Employee recognition is a powerful tool to boost satisfaction and engagement in the workplace. Although it is often an overlooked strategy, it does not mean it’s ineffective. Contrary, openly acknowledging and appreciating employees’ work will have a positive impact on their morale, productivity, satisfaction, and confidence.

This way, you show that you notice and appreciate your employees’ hard work and their achievements. And they will feel happy and valued because their hard work is recognized.

There are different ways of recognition – public recognition, private praise, promotions, monetary awards... But even simple words like “Good job”, which are not so hard to say, will give you much more in return.

Autonomy and flexibility

Autonomy and flexibility can be interpreted differently from company to company, but in essence, they are always defined the same:

  • Autonomy means how much freedom and independence employees have in their work
  • Flexibility means that employees can have a flexible working schedule, as it suits them, without compromising their position or pay

Employees with more autonomy at work are happier and more engaged with their work and company. That’s why micromanagement is not considered a best business practice. When someone tries to monitor and control everything and does not give employees enough freedom to make their own choices, it can negatively affect employees’ satisfaction.

Keep in mind that giving more autonomy to your employees doesn’t mean you’re not present and involved in processes, it just means that you trust your employees and you’re not babysitting them.

Workplace flexibility can mean different things: flexibility with working hours, the option to work remotely or hybrid, the possibility of schedule adjustment, etc. Flexibility can be beneficial for a company also because it means that employees work at their own most productive hours. But flexibility alone is not enough for full job satisfaction, so it needs to be combined with other motivators that we mentioned.

Job satisfaction is important for employees’ engagement and motivation, which are important for a company’s success. Just stick to these tips above and witness how job satisfaction results in higher business performance in your company.

Find out how to make your employees happier with Lorino.

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