why job satisfaction is important to your bottom line

You might have noticed a trend among popular tech companies: they’re regularly recognized as some of the best companies to work for. From Google to Netflix to Airbnb to newly launched startups, there’s no shortage of stories about how great tech companies are to work for. Why are tech companies doing such a stellar job at appealing to potential employees? It’s quite simple: because they have to. Tech is a competitive field, with more jobs than talented individuals to fill them. To secure the talent they need to be successful, tech companies must stand out from the crowd and sell potential employees on why working for them is the best option out of the many choices available to them.

the importance of employee job satisfaction

the perks of satisfied employees

attract the best talent

There’s a reason top companies are at the top. They’re smart enough to know that their people are at heart of their success. They offer their employees the tools, perks and compensation to inspire them to give their work their all. In doing so, they attract highly skilled people that contribute to their success. And because they’re successful and their employees love working for them, they continue to attract more top talent. It’s a great big circle.

retain star employees

Happy employees are more likely to stick around.  Losing star employees is one of the most costly areas of doing business. Star employees are leaders and top drivers of results and revenue – they’re often at the heart of a team and can impact the performance of others around them. Depending on the company structure, losing one standout employee can lead to a waterfall effect, that triggers other employees or leave or become demotivated.

reduce turnover costs

Replacing employees is expensive. Training and onboarding, exit interviews, recruitment, and making hiring decisions aren’t cheap. There are all kinds of stats about how much it costs to replace employees of all experience levels. According to one study, it can cost over 200% of an employee’s annual salary to replace them if their role is highly specialized, as many tech jobs are. Even replacing workers in low-skill jobs is going to cost you as much as 20% of their yearly salary. It’s the equivalent of paying the worker for 2.4 months! Let that sink in for a moment. And remember that’s the low end. Even marginally lowering turnover can mean significant cost-savings long term.

productivity goes up

Engaged employees are productive employees. They’re absent less, less likely to involved in health & safety incidents, and more maintain a higher level of quality in their work. We’ve all had to perform a task we hated. It sucks. You drag your feet and take your time because you just don’t want to do it. You procrastinate, or maybe complete the task too quickly and a little more sloppily than you should have. That’s not good for anyone. Employees suffer as does the business. Put employees’ needs first and productivity will pick up, we promise.

customer satisfaction

There’s a new business model replacing ‘customers first.’ Today’s top employers are recognizing that an ‘employees first’ policy is the true route to success. Happy employees are more positive, engaged and likely to make customer service a priority, taking care of that whole ‘customers first’ thing all on their own. When you’re miserable, you’re grumpy and you’re probably not all that fun to be around. The reverse is also true. When you’re happy you’re more likely to go out of your way to make others happy. Positivity is contagious, and that’s true in workplaces, too.

business results

There’s a proven correlation between employee satisfaction and business results. Companies with the happiest, most engaged employees are more likely to have higher profitability. Basically, when everyone is happy, the business results follow, which shouldn’t be surprising. After all, we’ve already discussed how happy employees are more productive, better at serving customers, and less likely to leave. Of course happy employees are good for the bottom line.

how do you improve job satisfaction?

foster respect and trust

Trust and respect are the foundation of a happy workplace. Studies have shown that dislike of a boss (aka lacking trust or respect for them) is the number one factor that leads employees to leave their job. If you hate your boss, it seeps into just about every other area of your work. Positive leaders create a workplace where employees feel valued. Remember trust and respect go two ways. To be trusted and respected, leaders must offer employees a reason. Trust and respect underscore just about everything else in a workplace, so if you’re going to work on one area, make it this one.

job security

Ever worked somewhere where there’s a general air that layoffs are coming down the pipeline? Even if it’s just a rumour, it creates a certain paranoia, and it’s not a positive atmosphere to be hanging around in. Everyone’s on edge and worried that their job is on line, whether or not it’s actually true. According to Randstad’s Employer Brand Research, job security was the second most important factor (after salary and benefits) to job seekers, particularly men. Feeling like their job is secure provides piece of mind so employees can focus on other things – like their productivity.  

prioritize health and safety

Safety is one of our most basic human needs. On Maslov’s hierarchy of needs, it’s second. Only physiological needs like food, water and shelter are more important. A workplace should always put health and safety initiatives first – there’s absolutely no excuse for asking employees to perform dangerous tasks or put their health at risk. Doing so will irreparably damage their trust in you as an employer. A safe workplace doesn’t just involve physical safety either. Mental and psychological safety are also important. Offering employees health and dental benefits, personal days and opportunities to take time off without repercussions will keep employees happy and working at their full potential.

opportunities to advance

It’s human nature: we don’t like to feel like we’re stagnant. This is especially true among top achievers. Top achievers are always looking for what’s next; it’s part of what makes them so successful. Opportunities to learn and progress are a key driver for them, and most employees. How do you make it clear that advancement is encouraged? Offer training and development programs. Ensure that employees are encouraged to learn new skills and take on new challenges. When hiring decisions need to be made, look within the organization first, before looking externally.

competitive pay and benefits

Last but not least: staying competitive with compensation and benefits. There’s evidence to suggest that pay and benefits are most important when bringing a new employee on board. Essentially getting started on the right foot, compensation-wise, is important when making new hires. After employees have settled into their role, they’re less likely to make compensation a bone of contention, unless their compensation falls below market-value. As long as their salary continues to steadily rise with the market, all the things we discussed above (trust, whether they like their coworkers, job security, opportunities to advance, etc.) are more likely to contribute to their overall happiness and factor into their decision to stay.

 

At the end of the day, business is a two way street. You get what you give. Treat your employees well and reward them for a job well done, and they’ll return the respect and give you their A game.

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