EMPLOYEE SATISFACTION – Meaning, factors and surveys

Employee satisfaction is a term that is used to measure the happiness of an employee in an organisation. It shows how content the employee is with the job. The level of happiness or satisfaction depends upon the type of working condition prevailing in the organisation, the reward system, working hours, the nature of the job, and the working experience in the organisation. Employee satisfaction is very important because it helps in measuring the overall health of an organisation. The higher the level of employee satisfaction higher is the rate of employee retention, which is very necessary for the efficient working of an organisation. A higher Employer Satisfaction might lead to Employer Engagement that boosts employee morale and increase productivity

Employee satisfaction is from the viewpoint of the employer or the organisation, whereas job satisfaction is from the viewpoint of the individual employee. Both the terms employee satisfaction and job satisfaction are interrelated, and it can be said that job satisfaction is complementary to employee satisfaction.

To have a healthy employee retention rate, it is very important that the employees are satisfied with their job. A person who is satisfied with his job holds a positive feeling about the work while the person with low satisfaction for the job holds a negative feeling. Along with this, job involvement also plays a very important role where people identify psychologically with their jobs and consider their perceived performance level important to their self-worth. Employees with a high level of job involvement strongly establish a connection and are concerned about the kind of work they are doing. Another important factor is the organisational commitment. An employee with strong organisational commitment identifies with the organisation and its goals and wishes to remain a member of the organisation. Employees who are loyal to their organisation, are less likely to leave, even if they are dissatisfied because they feel that they should work harder out of a sense of commitment or attachment to the organisation.

Since employee satisfaction is from the viewpoint of the employer perceived organisational support plays a very important role because employees perceive the organisation as supportive when rewards are deemed fair, employees have a voice in the decision-making process, and they see their supervisor as a supportive figure rather than an authoritative one. Employees are more likely to work as an exchange than as a moral obligation, so employees look for reasons to feel supported by the employer, which in turn makes the employee satisfied.


  • ORGANISATIONAL VARIABLES: This variable plays a very important role in employee satisfaction because an employee spends most of his time in the organisation and there are certain factors present in the organisation which has an impact on the employee’s satisfaction.
    • ORGANISATIONAL DEVELOPMENT: It is an ongoing structured process to bring about changes in the organisation. It is done keeping in mind the changes happening in the outside world so that the organisation is efficient enough to cope up with the future challenges and potential requirements of the organisation.
    • COMPENSATION AND BENEFIT POLICY: This variable plays a very important role in employee satisfaction. It includes rewards and incentives given to the employees based on their performance. Employees have a sense of satisfaction when they are rewarded for their job well done.
    • PROMOTION AND CAREER DEVELOPMENT: Promotion may be reciprocated as a big accomplishment within the life of an employee. It guarantees and delivers extra pay, responsibility, authority, independence, and status. So, the chance for promotion determines the degree of satisfaction to the worker.
    • JOB SATISFACTION: It is a feeling reflected from the perception that one’s job fulfils or allows for the fulfilment of their job values. Jobs that are wealthy in positive activity elements like autonomy, task identity, task significance, and feedback contribute to employee satisfaction.
    • JOB SECURITY: It is a term associated with employee’s assurance or confidence that they’re going to keep their current job. Staff with a high level of job security have an occasional likelihood of losing their job in the future. Some professions or employment opportunities inherently have higher job security than others; a worker’s performance additionally strikes job security, the success of the business, and also the current economic setting.
    • WORKING ENVIRONMENT: Employees’ motivation depends on smart operating conditions as they sense a feeling of safety, comfort, and motivation. On the contrary, poor operating conditions bring out concern about the danger and bad health of workers. The more well-off the operating surroundings are, the more productive the workers are going to be.
  • PERSONAL VARIABLE: The personal determinants conjointly facilitate in maintaining the motivation and personal factors of the staff to figure out how to work effectively and efficiently. Employee satisfaction is often associated with psychological factors, so a large number of personal variables play an important role in the satisfaction level of the employee.
    • PERSONALITY: The character of an individual may be determined by carefully understanding his psychological condition. The factors that confirm the satisfaction of an individual and his psychological conditions are perception, point of view, and learning.
    • EXPECTATION: The expectation level of workers affects their satisfaction level. If one receives different outcomes than expected, then the individual is extremely happy and vice-versa.
    • AGE: Age can often be delineated as important determinants of worker satisfaction. It is as a result of younger age workers possessing higher energy levels are capable of having a lot of worker satisfaction than older age workers.
    • EDUCATION: Education is a major determinant of employee satisfaction because it provides a chance for developing one’s temperament. Education develops and improvises individual knowledge and analysis methods. The extremely educated workers will perceive the situation and assess it as they possess persistence, rationality, and thinking power.


Businesses that would like to enhance satisfaction need to establish metrics to grasp where they presently stand. There would be an expansive range of approaches that may be applied to assess satisfaction; however, analysis usually shows that surveys are extremely effective. With a survey, you’ll get a glimpse of how the workers feel regarding your company. Giving out surveys consistently over time will allow you to watch the performance, whereas testing the effectiveness of the latest management methods.


Before giving out surveys, you need to recognise what areas you would like to evaluate. In general, you need to concentrate on factors that you believe you will be able to manage. Some topics that can be included in an employee satisfaction survey are:

  • management expectations
  • coworker relations
  • perceptions of authorisation
  • communication quality
  • level of stress


Once you have organised a list of things, you must compose a survey that’s acceptable for your organisation. It would be best if you took some time for creating a survey since you may need to use an equivalent survey over several years to profile your performance. You’ll be able to print out copies of your survey; however, digital channels are typically the best in today’s world. There is an expansive range of cheap tools that you can use to email surveys to any or all of your workers simultaneously.


The enhancements that you implement can be monitored over-time to make sure that they had been effective. Additionally, you need to sporadically review the satisfaction of your personnel to get new pain points that turn up. In several cases, you will need to schedule a quarterly or annual meeting along with your workers to debate problems associated with job satisfaction.

Most significantly, workers need to realise that satisfaction could be the responsibility of all the members of your company. Once workers feel empowered to boost their satisfaction and therefore the satisfaction of other people in your company, They’ll naturally feel a lot more motivated and happier regarding their jobs.

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