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The Happiness Factor: How Employee Satisfaction Influences Productivity and Retention

Job satisfaction is defined as a positive emotional response experienced when doing your job or when present at work [1]. It is a measure of workers' contentedness with their job, indicating whether they like the job or individual aspects of it [1]. Job satisfaction occurs when employees feel they have a stable job, room for growth in their career, and a good balance between work and personal life [1].


Motivations, Values, and Job Satisfaction

The Impact of Happiness on Productivity

Research has shown that happy employees are more productive [2]. Not only do they work faster, making more calls per hour, but they also achieve 13% higher sales than their unhappy colleagues [2]. Interestingly, the happy employees did not put in more hours than their unhappy colleagues to achieve their superior results. They just used their time more productively [2].


The Role of Colleague Relationships and Manager Understanding

Getting along with colleagues is a significant factor leading to job satisfaction, with 41% of people believing so [3]. Similarly, people who feel understood by their managers also report higher job satisfaction [3].


The Importance of Authenticity and Belonging

People who feel like they can “just be themselves” at work are happier [3]. Similarly, people who feel like they “belong” to the organization are more likely to stay and be satisfied [4]. Organizational identification feeds into job satisfaction, which in turn explains turnover intentions [4].


Company Culture and Values

Company culture and values are important factors to job satisfaction [5]. Some 7% of workers ages 24 to 36 say they dislike their employer’s culture so much that they intend to quit their jobs in the next two years [5]. More young workers are holding employers accountable for their values, insisting that their companies stand for something [5]. Some 32% of millennials say businesses should try to reduce inequality and support better education, but only 16% of the employees say companies are actually doing so [5]. And while 27% of millennials think businesses should protect the environment, only 12% believe they’re doing so [5].


Job Satisfaction and Quality of Care

In the healthcare sector, nurses' perceived person-organization fit is a significant predictor of general job satisfaction and quality of patient care [6].


Factors Influencing Job Satisfaction

Job satisfaction, as a high-order factor, consists of several first-order factors. Among them, personal growth's influence on job satisfaction is the highest, followed by salary and welfare, work itself, interpersonal relationships, and leader behavior [7]. Job competency’s influence on job satisfaction is the smallest [7].


Blue Collar vs. White Collar Workers

People around the world who categorize themselves as a manager, an executive, an official, or a professional worker evaluate the quality of their lives at a little over 6 out of 10, whereas people working in farming, fishing, or forestry evaluate their lives around 4.5 out of 10 on average [8].


References

  1. Dick, R., Christ, O., Stellmacher, J., Wagner, U., Ahlswede, O., Grubba, C., Hauptmeier, M., Höhfeld, C., Moltzen, K., & Tissington, P. (2004). Should I Stay or Should I Go? Explaining Turnover Intentions with Organizational Identification and Job Satisfaction. British Journal of Management, 15, 351 - 360. DOI: 10.1111/j.1467-8551.2004.00424.x

  2. Risman, K. L., Erickson, R. J., Diefendorff, J. M., Carlozzi, A. F., & Triana, M. D. C. (2016). The Impact of Person-Organization Fit on Nurse Job Satisfaction and Patient Care Quality. Applied nursing research : ANR, 31, 121-5. DOI: 10.1016/j.apnr.2016.01.007

  3. SHRM. (2014). 2014 Employee Job Satisfaction and Engagement. Retrieved from https://www.shrm.org/hr-today/trends-and-forecasting/research-and-surveys/pages/2014-employee-job-satisfaction-and-engagement.aspx

  4. What Is Job Satisfaction? Definition, Factors, Importance, Statistics, and Examples. Retrieved from https://www.questionpro.com/blog/job-satisfaction/

  5. Happy employees are more productive, research shows. Retrieved from https://www.weforum.org/agenda/2019/03/happiness-at-work/

  6. The Dangers of Hiring for Cultural Fit. Retrieved from https://www.forbes.com/sites/forbeshumanresourcescouncil/2019/06/28/the-dangers-of-hiring-for-cultural-fit/

  7. The Influence of Job Satisfaction on Turnover Intention of Early-Career Employees. Retrieved from https://www.researchgate.net/publication/341884577_The_Influence_of_Job_Satisfaction_on_Turnover_Intention_of_Early-Career_Employees

  8. Does Work Make You Happy? Evidence from the World Happiness Report. Retrieved from https://worldhappiness.report/ed/2017/does-work-make-you-happy-evidence-from-the-world-happiness-report/

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