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.
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.
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.
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.
• 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.)
Employee Satisfaction & Customer Satisfaction (Contd.)
References
• http://www.custominsight.com/employee-engagement-survey/what-is-employee-satisfaction.asp
• https://www.decision-wise.com/job-satisfaction-vs-employee-engagement/
• https://hbr.org/resources/pdfs/comm/achievers/hbr_achievers_report_sep13.pdf
• http://meetingmetrics.com/research_papers/whitepaper_cs_es_relationships.pdf
Thank You