Inventory is good, first-rate production lines are excellent and cash-equivalent assets can make financial statements hum, but it’s the corporation’s staff that’s a company’s most valuable asset. That’s assuming, of course, the staff is a well-oiled, fine-tuned, high-performing and extremely satisfied group of employees. But, job satisfaction? While it’s not exactly easy to come by, things like job security, competitive salaries and benefits go a long way in making sure that employees whistle while they work.
Importance of Job Satisfaction
Companies conduct surveys to collect information about employee job satisfaction, which, according to Penn State’s Brian Redmond, is a positive emotion that results from an employee’s perception of his job. Employee attitudes also reveal financially relevant information such as staff turnover, declining employee productivity, and moribund financial performance. Companies can positively affect job satisfaction, can motivate employees, and cause performance indicators, such as inventory turnover and sales growth, to skyrocket.
Job Security Influences Job Satisfaction
The extent that you’re satisfied with a job is in part determined by job security. In fact, the 2012 Employee Job Satisfaction and Engagement Report published by the Society for Human Resource Management states that job security is the number two contributor to job satisfaction. Job security is the assurance that a worker’s employment will continue in the future, which might be influenced by economic conditions as well as contract terms, a collective-bargaining agreement or legislation.
Job Satisfaction Results From Compensation
According to the Employee Job Satisfaction and Engagement report, six of 10 employees consider their compensation to be one of the top five factors that contributed to job satisfaction. Consequently, companies use compensation packages to compete with other companies for top talent. Companies also link compensation to their corporate strategies. For example, a compensation system might link a salesperson’s pay to sales volume or revenues. The Society of Human Resources Management reports that companies that pay a fair wage are more apt to retain employees, avoid the costs of replacing departing employees, and maintain the trust and commitment of employees. Compensation includes base pay, bonuses, commissions, one-time rewards for ideas and stock options.
Nature of Work Affects Job Satisfaction
Challenging work increases an employee’s engagement and job satisfaction. In the 2012 Employee Job Satisfaction and Engagement report, 52 percent of the survey respondents believed their work was very important to their job satisfaction. Such employees were likely to have post-graduate degrees or were executive and middle-management employees. These findings seem to be confirmed by the Forbes article, “The Foolproof Guide To Finding True Career Fulfillment,” which suggests that perks, such as office location, should not be the deciding factor when deciding on a career. Instead, an employee should do what he think matters to himself or the world at large.
- Penn State University: Job Satisfaction
- The Thriving Small Business: Job Satisfaction and Job Performance
- Society for Human Resource Management: 2012 Employee Job Satisfaction and Engagement: How Employees Are Dealing With Uncertainty
- Business Dictionary: Job Security
- Society for Human Resource Manage: Compensation’s Role in Human Resource Strategy
- Forbes: The Foolproof Guide To Finding True Career Fulfillment
- Digital Vision./Digital Vision/Getty Images