Transcript
Page 1: Effect of Employee Satisfaction on Organisational Performance

Effect of Employee Satisfaction on

Organisational Performance

Page 2: Effect of Employee Satisfaction on Organisational Performance

What is Employee Satisfaction?

• Employee satisfaction or job satisfaction is, quite simply, how content or satisfied employees are with their jobs.

• Employee satisfaction is typically measured using an employee satisfaction survey.

• These surveys address topics such as compensation, workload, perceptions of management, flexibility, teamwork, resources, etc.

• Employee satisfaction is the foundation upon which employee engagement can grow and thrive.

Page 3: Effect of Employee Satisfaction on Organisational Performance

Employee Satisfaction versus Employee Engagement

• Employee Satisfaction:

• Employee satisfaction is the extent to which employees are happy or content with their jobs and work environment.

• An employee can be satisfied with a job without being engaged in the job.

• That contentedness is merely job satisfaction, and though satisfaction is generally enough to retain employees, it’s not enough to ensure productivity.

• Employee Engagement:

• Employee engagement is the extent to which employees feel passionate about their jobs, are committed to the organization, and put discretionary effort into their work.

• An engaged employee is an employee who is deeply involved and invested in their work.

• Organizations with genuinely engaged employees have higher retention, productivity, customer satisfaction, innovation, and quality.

Page 4: Effect of Employee Satisfaction on Organisational Performance

Interesting Facts• 71% of respondents rank employee engagement as very

important to achieving overall organizational success.

• 72%of respondents rank recognition given for high performers as having a significant impact on employee engagement.

• 24% of respondents say employees in their organization are highly engaged.

• Employee satisfaction is the minimum entry fee that needs to be met in order for an employee to be fully engaged.

Page 5: Effect of Employee Satisfaction on Organisational Performance
Page 6: Effect of Employee Satisfaction on Organisational Performance
Page 7: Effect of Employee Satisfaction on Organisational Performance
Page 8: Effect of Employee Satisfaction on Organisational Performance

Employee Satisfaction & Customer Satisfaction

• Employees that interact with customers are in a position to develop awareness of and respond to customer goals and needs.

• Satisfied employees are motivated employees; that is, they have the motivational resources to deliver adequate effort and care.

• Satisfied employees are empowered employees; in other words, they have the resources, training, and responsibilities to understand and serve customer needs and demands.

• Satisfied employees have high energy and willingness to give good service: at a very minimum, they can deliver a more positive perception of the service/product provided.

Page 9: Effect of Employee Satisfaction on Organisational Performance

• Satisfied employees can provide customers with interpersonal sensibility and social account (i.e., adequate explanations for undesirable outcomes).

• It has been suggested that these components of interactional justice (i.e., quality of interpersonal treatment provided in a negotiation/exchange) have a significant impact on customer satisfaction.

• According to this view, because satisfied employees experience interactional justice, they can deliver it; that is, satisfied employees have enough emotional resources to show empathy, understanding, respect, and concern.

Employee Satisfaction & Customer Satisfaction (Contd.)

Page 10: Effect of Employee Satisfaction on Organisational Performance

Employee Satisfaction & Customer Satisfaction (Contd.)

Page 12: Effect of Employee Satisfaction on Organisational Performance

Thank You


Top Related