Job Satisfaction - Definition, Importance, Factors & Example

Published in Human Resources Terms by MBA Skool Team

What is Job Satisfaction?

Job satisfaction is defined as the extent to which an employee feels self-motivated, content & satisfied with his/her job. Job satisfaction happens when an employee feels that he/she is having job stability, career growth and a comfortable work life balance. This implies that the employee is having satisfaction at job as the work meets the expectations of the individual. Job satisfaction may not only be about compensation, perks or assets an employee might get but also is about the environment, culture and quality of work which a company can offer to employee. It may or may not be quantified though research methodology can be used to relatively check the satisfaction levels of employees in the same company or a sector on common parameters or questions.

There are a lot of factors which go together to ensure high job satisfaction rates in a company. To begin with hygiene factors like good pay, work life balance, perks, leaves etc. play a very important role in making sure that the employee is content in the job. Job satisfaction can be a relative term as it may depend on an individual's perception but overall job satisfaction can be judged through various indirect parameters like productivity, attrition rate, employee feedback etc. It may also differ from industry to industry. The measurement or perception of job satisfaction may be different from IT sector when compared to manufacturing sector. Job satisfaction may also depend upon the factor whether the person stays in the same company or sector for a long period of time. If the growth within the same company gets stagnant then the job satisfaction may drop significantly as compared to an employee who would be switching careers regularly. On the other hand, for some people, job satisfaction may not be high if they keep switching companies again and again. Job Satisfaction can be a a very important parameter but sometimes difficult to measure or perceive. 


Importance of Job Satisfaction

A satisfied employee is always important for an organization as he/she aims to deliver the best of their capability. Every employee wants a strong career growth and work life balance at workplace. If an employee feels happy with their company & work, they look to give back to the company with all their efforts.

Importance of job satisfaction can be seen from two perspectives:

For Employees

Job satisfaction from an employee perspective is to earn a good gross salary, have job stability, have a steady career growth, get rewards & recognition and constantly have new opportunities.

For Employers

For an employer, job satisfaction for an employee is an important aspect to get the best out of them.

A satisfied employee always contributes more to the company, helps control attrition & helps the company grow. Employers needs to ensure a good job description to attract employees and constantly give opportunities to individuals to learn and grow.

The positive effects of job satisfaction include:

1. More efficiency of employees of workplace if they are satisfied with their job.

2. Higher employee loyalty leading to more commitment.

3. Job satisfaction of employees eventually results in higher profits for companies.

4. High employee retention is possible if employees are happy.

Job Satisfaction Factors

Job satisfaction is related to the psychology of an employee. A happy & content employee at a job is always motivated to contribute more. On the other hand, a dissatisfied employee is lethargic, makes mistakes & becomes a burden to the company. The elements & factors which contribute to job satisfaction are:

1. Compensation & Working conditions

One of the biggest factors of job satisfaction are the compensation and benefits given to an employee. An employee with a good salary, incentives, bonuses, healthcare options etc. is happier with their job as compared to someone who doesn’t have the same. A healthy workplace environment also adds value to an employee.

2. Work life balance

Every individual wants to have a good workplace which allow them time to spend with their family & friends.

Job satisfaction for employees is often due a good work life balance policy, which ensures that an employee spends quality time with their family along with doing their work. This improves the employee's quality of work life. 

3. Respect & Recognition

Any individual appreciates and feels motivated if they are respected at their workplace. Also, if they are awarded for their hard work, it further motivates employees.

Hence recognition is one of the job satisfaction factors.

4. Job security

If an employee is assured that the company would retain them even if the market is turbulent, it gives them immense confidence. Job security is one of the main reasons for job satisfaction for employees.

5. Challenges

Monotonous work activities can lead to dissatisfied employees. Hence, things like job rotation, job enrichment etc can help in job satisfaction of employees as well.

6. Career Growth

Employees always keep their career growth part as a high priority in their life. Hence, if a company helps groom employees and gives them newer job roles, it enhances the job satisfaction as they know they would get a boost in their career.

Job Satisfaction Factors

There are several theories given which help in evaluating & measuring job satisfaction of employees at workplace. Some of them are:

- Hierarchy of Needs by Maslow

- Hygiene Theory by Herzberg

These help in understanding the parameters or factors which influence job satisfaction of employees at workplace.


Measuring Job Satisfaction

It is critical for any company to measure job satisfaction as the efficiency, productivity and loyalty of an employee depends on it. Companies can conduct surveys with questionnaires asking the employees about their feedback and understand if they are satisfied or dissatisfied with their job. Companies can ask the following questions to measure job satisfaction and can give multiple options like Satisfied, somewhat satisfied, neutral, somewhat dissatisfied, dissatisfied:

1. Are you happy with your salary/incentives?

2. Is your contribution to the company recognized with awards?

3. Do you find your workplace conditions good, hygienic, competitive?

4. Do you have a good work life balance?

5. Are you happy with company policies for your career growth & training and development?

Apart from the above questions, specific open-ended questions about job satisfaction can also help in understanding employee pain-points and how the company can improve to ensure a happy employee.


Job Satisfaction Examples

There can be several examples of job satisfaction as it is related to the psychology of an individual. A particular job can be satisfying for one employee based on the salary, location, workplace, responsibilities, job level etc. and the same be lead to dissatisfaction to some another employee. Consider an employee who has joined an organization 1 year back and has been awarded for his good work with bonuses and incentives.

Also, the company has chosen him for an exclusive training program which would help in boosting his career. Also, the employee is entitled for a sabbatical leave as well to pursue his own dream. Hence, all these factors and HR policies would lead to job satisfaction.

Hence, this concludes the definition of Job Satisfaction along with its overview.

This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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