19 September 2019

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Employee Satisfaction: Scope and Influencing Factors

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No company cannot achieve its goals if it does not have the right set of employees. The employees in a company largely determine the success of the company. This is the reason why companies put in extensive efforts in choosing candidates for their company. Most of the times, skills and knowledge of the employee is considered to gauge his performance in the company. One factor that is being overlooked by most of the company owners is employee satisfaction.

Various surveys and researches have shown that employee satisfaction plays a pivotal role in performance of the candidate. If any company wants to draw out the best from its employees then it should provide best means to satisfy the need and requirements of its customers. Before one can know various ways to facilitate employee satisfaction, it is essential to understand what does it actually mean.

Definition of Employee Satisfaction

Employee satisfaction is the term used to describe a situation when employees are satisfied and contented with his job and the office environment.
Importance of Employee Satisfaction
Employee Satisfaction is of utmost importance in any organisation be it small or large. Thinking that employee satisfaction is important only for the employee then it is not right. It is equally important for the organisation for which the employee is working as well. The following points will show the importance of employee satisfaction easily.

• In light of the organisation:

1. It enhances employee retention and the company does not need to train employees repeatedly.
2. The overall productivity of the company is increased and it assists in achieving the goals of the company.
3. When employees are satisfied with their job they deal with customers in a better manner and thus customer satisfaction is achieved to great extent.
4. It helps the company in getting better services and products from its employees.
5. Money spent on training new candidates and recruitment of new candidates can be saved extensively.

• In light of the employee:

1. When the employee gets satisfactory services from the company initially, he tends to believe that same treatment would be offered in long run.
2. Employee would start taking interest in his work instead of worrying about other issues.
3. The employee starts feeling a sense of responsibility towards the organisation.
4. He deals with customers in a better way and builds strong relations with them.
5. They would try to produce better results in order to get appreciation from the company.

Factors Influencing Employee Satisfaction

Various factors exist in an organisation that contributes to area of employee satisfaction. Following are listed factors affecting employee satisfaction. They are:
• The brand name of the organisation is of utmost importance to the employees and it is considered when employee satisfaction is considered.
• The aims and objectives of the organisation where an employee works are likely to affect employee satisfaction.
• Salary and wage is one of the most important factors behind employee satisfaction. The salary should always be in accordance to the position of the employee in the company.
• Rewards and penalties are other important things that affect level of satisfaction of an employee in his job.
• The kind of treatment given by the supervisor to the employee largely determines his satisfaction level. It is always desired to treat employees in a good manner.
• Working methods of the organisation determines the satisfactory level of an employee. It is true that every organisation has its own working methods but some freedom should also be given to the employees.
• It is essential to check that the personality of the employee matches the type of job being allotted to him.
• Expectations of the employee should also be in accordance to the level of organisation in which he or she is working.

Improving Employee Satisfaction

If some organisation does not see employee satisfaction amongst its employees then there is nothing to be worried about. By following some steps, the organisation can improve employee satisfaction. One of the best possible ways is to conduct a feedback program. During this program, the organisation should take feedback from the employees so that they can know what the requirements of the employees are and what exactly they are getting in the organisation.


From the above set of information, the level of employee satisfaction in an organisation can be gauged to great extent. The organisation can also make further improvements to the existing environment if required.


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