The average person will spend 90,000 hours at work over their lifetime, which is a long time if they hate their job. Imagine the difference between an employee constantly staring at the clock, willing the hours to pass by, and someone whose day whizzes by because they feel happy and fulfilled in their role. This is why job satisfaction is crucial—it impacts how we spend our lives and our mood outside of work.
This guide takes a deeper look at job satisfaction, why it's important, and actionable strategies employers can use to increase employee satisfaction.
Job satisfaction is the sense of fulfillment and pleasure your employees get from their job. It's an essential factor in employee engagement and overall happiness at work and something companies should strive to create for their team members. Here's what it might look like:
The benefits of job satisfaction are cumulative; as employees become more satisfied, they are more likely to stay at their jobs, perform better, and be more engaged. Here are some reasons why job satisfaction is critical to your business.
No employer wants dissatisfied, downtrodden employees working for them. Their performance can be affected, and their mood can project a negative image to customers. Luckily, an Association for Psychological Science paper found that the opposite is also true. High job satisfaction improves employee retention and customer loyalty rates, producing greater financial outcomes for companies.
Employees who are passionate about their work have great focus and are eager to collaborate with their peers. So, it follows that these highly motivated employees demonstrate excellent efficiency and productivity, as illustrated in research on "The Impact of Working Environment on Job Satisfaction."
Your employees must rest and recharge their batteries outside work to maintain consistent productivity levels. Enjoying your work isn't about burning the candle at both ends but defining clear boundaries between home and work life. According to a study on "Affect and Job Satisfaction: A Study of Their Relationship at Work and at Home," people with greater job satisfaction have a more positive mood, which is present in both their home and work lives.
So, how do we achieve this holy grail of satisfied employees who love their work and are loyal to the company? Employers can focus on the following key drivers of job satisfaction:
Acknowledging your employees for their daily contributions to your company is a simple practice to weave into your company culture, and it has a tremendous impact on employee morale. When Nectar conducted our employee recognition survey of 1,000 full-time US workers, 87% revealed that meaningful recognition impacts their job satisfaction. Notice the word "meaningful." Effective recognition isn't about hollow words with no value. It's about expressing your gratitude for specific examples of their work in a way that resonates with them.
Your employees are unlikely to be happy in their roles if the overarching culture is a mess. Focusing on an individual's performance target and career progression is critical, but this alone won't move the needle on job satisfaction. The Conference Board's Job Satisfaction statistics reveal that 77.4% of employees are more likely to stay with their employer when they feel satisfied with the organizational culture. This drops to 23.8% of employees with lower satisfaction and a "lower intent to stay."
Unsurprisingly, bad managers also have an impact on employee satisfaction. From micromanagement to lack of empathy, there are plenty of ways poor leadership can bring employee morale down. 80.4% of employees who were satisfied with their organization’s leaders were likely to stay in their roles, compared to 27.4% of those who weren't.
Employers can't keep tabs on what employees do outside of work, but they can support their workforce with their individual needs by making it easier for employees to manage both aspects of their lives.
75.5% of employees are likelier to stay with an employee that honors a healthy work-life balance, compared to 24.5% who don't experience this in their roles.
Job satisfaction is something that employers should strive to offer every employee in their care. Yet, there's a clear divide in how satisfied men and women feel in their roles.
The Conference Board's job satisfaction survey found that women have significantly lower levels of satisfaction across 26 areas of work. The largest gaps relate to the financial components of their roles, including job security, promotion policies, bonus plans, and total compensation. However, these indirectly impact other areas, such as recognition, employee performance reviews, growth, and communication.
We spoke to leaders across multiple industries to better understand how companies can increase employee satisfaction. Here are some of the successful strategies they shared across broad areas like company culture, employee development, total compensation, DEIB, and employee recognition.
Job satisfaction starts with offering a healthy salary. In a tough economic climate, money is a persuasive motivator, as described by Gianluca Ferruggia, Managing Director of DesignRush:
“A good salary should be your baseline. Guaranteeing that all your employees are paid a living wage removes the stress of financial insecurity. This foundation allows your team to focus on what they do best rather than worrying about making ends meet. As a result, they get more satisfaction out of their contribution to the company.”
It makes sense that employees are unlikely to feel fulfilled in their roles if they're not receiving enough compensation. In a MyPerfectResume survey, 69% of respondents say people will leave their jobs this year if they don't consider their salaries rewarding. But don't forget about benefits, which form part of your total compensation package. From health coverage and paid time off to wellness perks and childcare, try to offer an enticing mix of benefits that proves you care about your workforce.
More than ever, employees want to be proud of where they work and their commitment to the world around them. A National Environmental Education Foundation study found that 90% of employees engaged in their company's sustainability work felt it enhanced their personal job satisfaction levels. Similarly, MyPerfectResume's HR and Recruitment report found that 88% of US workers expect corporate social responsibility initiatives to become more integral to business strategies in 2024.
Samantha Odo, Real Estate Sales Representative & Montreal Division Manager of Precondo, explains why CSR should form a critical part of your company culture:
“Today’s employees, particularly the younger generation, want to work for companies that are not just profit-driven but also make a positive impact on society. By involving employees in CSR initiatives, companies can give them a sense of contributing to a greater cause. This could range from environmental sustainability efforts to community outreach programs. When employees see that their work extends beyond the confines of their office and makes a real difference in the world, it can bring a greater sense of fulfillment and satisfaction to their jobs.”
A positive first impression is significant in the relationship between employers and new hires. It's about more than just getting your new people up to speed with your processes. It's also about making them feel like part of the team and valued from day one.
However, onboarding isn't always a smooth process, leaving some new employees dissatisfied with their company introduction and role. A recent Paychex survey of new starters highlighted the following about their onboarding experience:
Digging deeper into the data, new employees of large organizations are 16% more likely to be satisfied by their onboarding than those joining smaller businesses.
But organizations of any size or type can increase satisfaction during onboarding by:
Employees are no longer interested in a job for life. They prefer to hop around from role to role or company to company, seeking growth opportunities that excite and prepare them for the future of work. Employers unable or unwilling to offer professional development opportunities will fall behind, with a McKinsey study revealing that "lack of career development" is the top reason employees quit their roles.
Co-founder and CEO Jared Brown explains how Hubstaff ensures its employees can participate in training and development. He shares:
"Every employee should get a chance to use some of their work week or a number of hours per month toward development and furthering their career. People learn new skills, and often the skills that a company needs, which makes it easier to promote and grow from within. It's simple, and our people love it."
We live in uncertain times, with MyPerfectResume research revealing that 78% of people expect a recession, and 85% are worried they'll lose their jobs in 2024. While no employer can promise job security, they can continuously upskill their employees to prepare them for tomorrow's future.
Brosix CEO Stefan Chekanov describes some practical ways to upskill your employees, which also benefit the overall business:
"As a leader, you are responsible for providing stability and instilling confidence in your team. Investing in your employees' training and career advancement is one way to keep them happy.
There are countless webinars and coaching opportunities that can benefit any organization. Not only will employees feel valued and gain more confidence in their capabilities, but they're more likely to stay within your company if you can provide them with the environment to practically use their new skills.
Additionally, regularly provide feedback and show appreciation for your team's performance. These conversations open the door for constructive discussions about the future of your business and how each employee sees their part in it."
While you may have a team development target, it’s equally important to your employees’ satisfaction levels that they can see how they're developing individually. This is where progress goals come in, giving insight into how each person’s efforts impact the team and company overall.
Business owner Alistair Wood shares how VisitUs leans on technology to visualize developmental progress:
“At our company, we use an employee dashboard that shows employee statistics like progress on their KPIs, their completed courses, and which jobs they could apply for in the company. Each feature leads to job satisfaction because it's an indication of an employee's performance. Their efforts are recorded, and rewarded with skill-based courses or the chance to apply for a promotion.”
Mentoring is an excellent tool for employees to connect with senior team members, learn from their experiences, and develop professionally. Having someone in the company they can go to for advice and guidance can help them navigate difficult situations and grow their careers.
CEO Connor Butterworth reveals the positive results that occurred when Southwestern Rugs Depot implemented a mentorship program partnering veteran staff with new hires.
“This brought a sense of camaraderie and acted as a platform for the transfer of knowledge, improving team productivity and cohesiveness.”
Choose from a variety of mentoring programs to suit your organization, including:
While training is critical, it's also important to inspire passion and creativity in your employees. Allowing team members time to explore professional ideas outside their current role can enhance job satisfaction while reducing employee attrition.
Sean Spittle, Managing Partner of InspectNTrack, recommends “encouraging intrapreneurship through hackathons, pilot projects, and innovation days.”
Give your employees the opportunities to sow seeds for your company by encouraging them to think outside the box, and contribute their ideas and feedback. Their creativity could spark a new direction for the business.
Sometimes, employees feel dissatisfied because they lack the resources or understanding to progress in their roles and develop their careers. In this scenario, Will Yang, Head of Growth at Instrumentl, suggests using a skill-will matrix to evaluate employees' current skills and motivation levels. Using this information, managers can create tailored development plans for each person. He shares:
“The skill-will matrix is a prominent model utilized across various sectors for performance management and staff development. It fundamentally analyzes two key factors: the employee’s skill—their ability to perform a task—and their will—their motivation or desire to accomplish the task.
The skill-will matrix can significantly enhance job satisfaction by presenting a structured way for organizations to identify the professional development needs of their employees and tailor their approach to employee management, boosting engagement and satisfaction.”
The matrix comprises four quadrants, each representing a combination of high or low skill and high or low will. Here's how it works:
Transparency in communication and decision-making can significantly impact employee satisfaction. Employees who understand the company's goals, core values, and direction feel invested in its success and see their part in it. When this is missing, "secrecy and dishonesty can create animosity within the workplace," says Thaddeus W. Wendt, Partner & CEO at Feller Wendt, LLC, inevitably leading to dissatisfaction and even a toxic culture.
Employers can become more transparent by:
While employees will look to their managers for direction, top-down leadership won’t necessarily get the most out of your workers or raise their spirits. Trusting your employees is critical to boosting their confidence and autonomy, helping create a culture of self-motivation and ambition. This is especially important when working with remote teams or freelancers. Jared Brown shares how Hubstaff uses trust to drive employee happiness.
“The guiding principle behind what’s been successful is putting our trust in people and looking for multiple ways to protect and reward them as they work. Give people a chance to work how they’re comfortable, encourage their successes, and show them that failures aren’t the end of the world. Allow people to grow in and with your organization, and they’ll be happier at the start of their morning.”
Good employers know that their employees have lives, families, hobbies, ambitions, and interests that extend beyond your organization. Inevitably, what happens at home can blend into work. As such, it's essential to respect your employees as people, not just as a means to achieve the company's goals. Mark Damsgaard, Founder of Global Residence Index, explains how managers can build personal yet professional relationships with employees.
“Be a leader who cares about their life outside work. It doesn’t have to be best friends level or invasive—you just have to show that you care about them beyond their work performance.
For example, if you have employees with small kids to take care of, give them some leeway when they have to prioritize childcare. You may offer more flexible work arrangements for them so they can pick up their kids from school. As long as they can deliver their output, there should be no issues.”
Achieving this circles back to the idea of trust and communication. Employees must feel comfortable telling you what they need before you can offer it to them. Conor Hughes, a Human Resources Professional and SMB Guide contributor, shares some ideas on how to encourage feedback from your team:
“Leaders forget employees are human with varied experiences far beyond the job itself. I often see smaller companies lacking clear feedback mechanisms for employees, but implementing some low-cost changes can go a long way.
Regular one-on-ones with managers to discuss goals, progress, and professional development are crucial. Surveys to understand workplace concerns and ensure all employee voices are heard can also provide valuable insights. Embedding inclusion practices like employee resource groups help everyone feel valued and supported.”
Letting your employees voice their ideas and opinions is one thing. But giving them a more active role in enacting change is an impactful way for them to feel included in the company's direction and success. David Gaglione, Founding Partner of PS212 elaborates:
“Involve your employees in the decision-making processes within their departments. More than anything, employees want to feel valued in the workplace, not just as laborers but as contributors to business operations. Make them feel like they’re a significant factor in the success of more than just the financial aspects of the company; leverage their views to improve company culture and working conditions, and you’ll see instant differences.”
Christy Pyrz, Chief Marketing Officer of Paradigm Peptides, agrees:
“Employees are more than just a part of an apparatus to complete tasks; they have invaluable insight on your business operations and methods. Not allowing them to provide those leads to lost opportunities and frustration within your team.”
Here's the stinger: not every employee feels comfortable opening up and sharing their opinions. They fear failure, humiliation, or backlash if they go against the grain. Draven McConville, CEO and Founder of Klipboard, explains how employers must create a working environment where all ideas are welcomed and discussed equally.
“Open communication is the lifeblood of a community and is woven into everyday interactions. It's not enough to just have an open-door policy; you need to create a space where people can share their thoughts, get helpful feedback, and talk to each other. Through my own experiences, I've seen how powerful it is for a team to share ideas openly, breaking down barriers and building a working synergy that moves everyone forward. This willingness to work together creates a sense of community and a common goal that permeates the workplace.”
A diverse team brings a variety of perspectives and backgrounds to the table, leading to more innovative ideas and better decision-making. Effective leaders recognize this and prioritize fostering an inclusive environment where all employees are valued and respected. Draven McConville shares his positive experience of a diverse work culture:
“When it comes to my professional life, I've seen personally how valuable different points of view are. It's not enough to just check things off a list; you have to actively look for and welcome differences. Value variety isn't just a way to show that you care about others; it's an investment in a future that is dynamic and full of new ideas.”
Of course, diversity isn't something that just happens. Organizations must work hard to improve their DEIB initiatives, from talent acquisition to employee retention. Consider implementing some of the following to prioritize diversity in your company culture:
Elaborate hierarchies with a gazillion job titles can create a power imbalance and hinder effective organizational communication. Adopting a flatter structure, where employees have more autonomy and are encouraged to collaborate, can lead to higher job satisfaction and productivity.
CEO Victor Karpenko reveals how SeoProfy has modified its org chart to improve satisfaction across the board. He told us:
"We've blended various organizational methods with our unique structure to create an ideal setup that aligns with our philosophy, similar to a flatarchy. We've cut down the hierarchy to just 2 C-suite leaders. Because honestly, excessive hierarchy and bureaucracy not only consume valuable time but also diminish job satisfaction among employees.
The more complex and hierarchical the structure, the longer the communication and project development processes become. This leads to employees spending more time on organizational matters than their actual work."
Could this work for your organization? Ask yourself:
It's challenging for employees to feel satisfied in their roles if they're burdened with heavy workloads while their team members appear to have much lighter duties. While everyone's contributions look different, ensuring that work is evenly distributed and team members feel valued for their efforts is essential.
That’s why CuddlyNest implements an "Equitable Workload Distribution System," as described by the company's COO Ritesh Raj:
“The EWDS is designed to ensure that workloads are distributed fairly among team members, taking into account their skills, experience, and current workload. This system uses advanced algorithms to match tasks with the most suitable team members, ensuring that no one is overloaded or underutilized.
The EWDS has been a game-changer for us. Team members can see how tasks are allocated and understand the rationale behind these decisions. This transparency has boosted trust in leadership and fostered a more positive and collaborative work environment.”
Adjusting team workloads is just one way to reduce employee burnout, formally classified by the World Health Organization as an "occupational phenomenon" in 2019. Overworked employees can become physically and mentally exhausted, decreasing productivity and overall satisfaction. To combat this, organizations can implement wellness programs that prioritize employee health and wellbeing. These can include:
Certified Yoga & Barre Fitness Teacher Joanne Highland explains the multiple benefits organizations and employees receive from these wellness initiatives.
“Workplace wellness programs can include a host of activities like yoga and meditation sessions, which can help employees manage stress more efficiently and improve their overall wellbeing. As a certified yoga teacher, I've observed first-hand that regular participation in these sessions can help maintain concentration, promote relaxation, and improve productivity. Employers can also organize wellness workshops or sessions, focusing on nutrition, sleep hygiene, or even mental health awareness.”
An effective wellness program should include a focus on mental health. MetLife research found that employers significantly overestimate employee wellbeing, with 65% of employees stating that they’re mentally healthy, while 85% of employers report that their workers are mentally healthy. Joanne Highland recommends how to improve these numbers:
“Companies should consider cognitive-behavioral techniques such as managing work-related stress, developing positive affirmations, and fostering a work culture that practices mindfulness. When employees feel their company invests in their wellbeing, they are more likely to feel valued, increasing their job satisfaction.”
Flexible work arrangements have been a hot topic since the pandemic. From the employee point of view, remote work, in particular, is still perceived as incredibly positive—Buffer's State of Remote Work report found that 98% of respondents would like to work remotely, at least some of the time, for the rest of their careers.
Talent Acquisition Specialist Daniel Wolken explains why remote work flexibility has been a game-changer for employee job satisfaction when recruiting a global workforce for DailyRemote.
"Employees rank flexibility in location and hours as one of their top criteria when considering jobs. Having the autonomy to occasionally work away from the traditional office setting, whether from home or while traveling, appeals deeply to today's talent. Our candidate engagement surveys further revealed that remote flexibility was nearly twice as likely to entice job applications over comparable roles without it. Clearly, the experience of the last few years has reshaped expectations around work-life integration and independence.
Respecting these evolving needs maintains positive employee morale and reduces the chances of burnout from an inflexible setup. Permitting remote work has also correlated to measurable KPIs like higher performance reviews among remote employees. While not a universal policy fit for all roles, offering viable remote options even a few days monthly shows employees their wellbeing and responsibilities outside work hold value. Remote work flexibility has demonstrably improved job satisfaction scores, engagement levels, and key productivity indicators. It remains a powerful lever that more forward-thinking organizations are pulling to cultivate and retain top talent worldwide."
An IZA World Of Labor study looked closely at the impact of remote work on male and female employees' job satisfaction. The results found that there was little change in satisfaction levels if men worked from home or in the office. However, working mothers based at home 60 to 80% of the time scored 1 point higher on a 0 to 10 scale than when they didn't work from home. Female employees without children also reported a quarter of a point increase than when they didn't work from home.
As popular as remote work is for employees, some employers mandate that their workers return to the office. MyPerfectResume reveals that 87% of people expect more companies to commit to RTO this year. So, how can employers achieve job satisfaction in workers who don't want to be in the office?
Michael Alexis, CEO of teambuilding.com, suggests how to create an appealing and positive work environment. He told us:
“It's about creating an environment where employees feel valued and inspired. A "flexible workspace policy" allows employees to personalize their workstations or choose alternative workspaces within the office, such as standing desks or cozy corners; you empower them to create an environment that suits their needs and preferences. This simple change has shown remarkable results in boosting employee morale and job satisfaction. It fosters a sense of ownership over their workspace, ultimately leading to higher productivity and happiness at work.”
Sometimes, we all need a little extra motivation to perform at our best and be more engaged in our work. Michael Maximoff, Managing Partner at Belkins, explains how extrinsic motivators have helped employees feel connected to their roles:
“As a thriving, fast-paced, highly competitive agency team, we employ performance bonuses and all kinds of different incentives to help drive and boost employee job satisfaction. This is something our employees certainly want and expect. On top of that, better individual and team performance always plays a huge role in increasing job satisfaction.”
Of course, incentives don't always need to be monetary. At Nectar, we've also found that our clients and internal employees respond well to team challenges. We recently spoke with Nectar's Co-Founder and VP of Sales, Andrew Hollis, who shared some of our sales teams' regular challenges, including:
However, you can also increase workplace satisfaction by setting up wellness and personal development challenges, such as book clubs or steps challenges. Employees are incentivized to participate and receive a small reward when they complete their goals.
Recognizing your employees isn't just about grand gestures when they've achieved a major win. It's also about those smaller daily contributions they deliver that often go unnoticed. Klipboard's Draven McConville believes that giving someone an occasional pat on the back isn't enough; you must make it a habit. He told us:
“These celebrations, whether they're for an individual's big achievement or a team's overall win, make people feel good about what they've done and show thanks. During my work, these events have been like sparks that have pushed the team to greater heights with a renewed sense of pride and purpose.”
Searchant's owner, Marcus Clarke, also believes that creating a culture of appreciation, recognition, and empowerment is key to enhancing employee satisfaction. He shared:
“One strategy we use at Searchant is to regularly celebrate employees' achievements and milestones, whether meeting project deadlines, exceeding targets, or demonstrating exceptional teamwork. By publicly acknowledging and appreciating their contributions, our team members feel valued and motivated to continue delivering their best work.”
The last tip to improve employee job satisfaction is simple but requires consistency—measuring your data. Hubstaff's Jared Brown explains:
"Improving job satisfaction is tricky, and so is understanding what works. You must track it, measure results, and then apply what works. This is one reason we are putting a lot of resources behind workforce analytics. Make a change or offer a benefit, and then look at multiple data points to see what is improving.”
Whether through surveys, job performance reviews, or stay interviews, ensure you regularly collect employee feedback. This gives incredible insights into their level of satisfaction and demonstrates that their opinions and job experiences are valued.
Happy workers can make such a difference to your organization's company culture, employee turnover rates, and customer loyalty. But creating an environment that fosters genuine and sustainable joy can be tricky, which is where Nectar shines. Using the platform's following features, we help companies build more engaged, empowered, and productive teams:
Ready to transform levels of job satisfaction in your organization? Take a free, no-obligation demo of Nectar today.
