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 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. 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.

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.

Employee Satisfaction & Customer Satisfaction (Contd.) 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.)

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_relationshi ps.pdf

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