How Does Job Satisfaction Affect Employee Performance?

There have been years of research on employee satisfaction and its links to a healthy workplace environment. It can directly affect employee retention, motivation, and overall well-being. Moreover, even the type of job can correlate with satisfied employees. So, whether you work at a mfg staffing agency or a hospital, it could affect your performance.

However, there have been specific studies to correlate satisfaction rates with performance. Employees who feel heard can also tend to work harder. Moreover, they are more likely to be happy in their jobs and want to succeed in their careers. It can provide them with the necessary drive to do better at their workplace.

How Do Companies Measure Job Satisfaction?

If you are looking for a short answer, then employee satisfaction affects the performance of individuals. But it isn’t that simple to measure. Each company works differently and uses different measures for satisfaction. Moreover, some jobs can be more engaging for employees than others. Here are some tools that companies generally use:


Employee satisfaction surveys can be the easiest way to get in touch with your employees. You can send out periodic surveys about the work environment, facilities, stress levels, etc. Most employees can prefer filling out online forms as they offer anonymity options. So, it can be easier to note down the indicators for a dissatisfied workforce. Survey questions can bring you qualitative and quantitative data to help understand how employees perceive the company.

Employee Satisfaction Index

The ESI is a common tool that many companies use for surveys. It is a short form that asks employees to rate three different categories from one to ten on a scale. The questions usually surround these topics:

  • How satisfied you are at your current employment
  • Does the employer meet your set requirements and expectations
  • How close do you think you are to your ideal workplace

There is a science that backs up the results from an ESI. And if you want crisp results and graphs, this might be the best option for you.

Employee Net Promoter Score

The eNPS might be the simplest option that can tell you more about how happy your employees are. It has only one question. It asks them the likeliness of them recommending their workplace to an acquaintance. They then have to rate it on a scale from one to ten. It can help you break up your employee count into promoters, passives, and detractors. If there are more detractors on the list, the chances are that your employees are unhappy.

How Is It Important?

Employee satisfaction can be important to bring overall sales up. It can be a direct indicator for better company growth and increased revenue. Here is how it can help:

  • No matter what the job title or pay scale is, if an employee is satisfied, they could be more productive.
  • Satisfied employees can also translate to a lower employee turnover rate. It means that people would like to stay with your company for longer.
  • Motivated employees that feel appreciated tend to be more loyal to their workplace. As a result, they work harder to reach their organization’s goals.
  • Satisfied employees can have increased productivity as well. So, it can also mean better profits.

Job Satisfaction Is Different for Everyone

It can be a curveball to maintain job satisfaction for all employees. Because it can have different meanings for every individual. Some of your employees will be happy with flexible work hours. But others will constantly look for opportunities to learn. So, your human resources department can have a field day trying to listen to everyone.

What satisfies one person, might not satisfy the other. So, you have to decide what you can provide your employees easily that will also benefit the majority. For instance, training sessions and paid leaves are something most people would appreciate. Moreover, you should also consider the age of most of your employees.

How Can You Increase It?

So, it may not be a numerical figure, but it is possible to measure employee satisfaction. Moreover, it can be directly proportional to employee performance. Here are some methods to incorporate it in your talent acquisition plan to increase employee satisfaction:

  • Make sure you demonstrate trust in your employees. If they think you trust them with your work, they are likely to take up more responsibility.
  • You should also make sure your employees feel secure in their position. Job security can play a huge part in satisfied employees.
  • Try to create a healthy work environment for your employees where they feel safe and open to communication.
  • Provide market-competitive salaries with better bonuses and monetary benefits.
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