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Workplace satisfaction: save costs and boost your revenue


August 10, 2023


August 10, 2023

Workplace satisfaction is a multifaceted concept that has significant implications for both workers and businesses. It encompasses a range of factors that contribute to whether employees are happy at work, such as their purpose in the organization and the overall corporate culture

Often referred to as employee satisfaction, this measure extends beyond being merely content on the job, including personal fulfillment and alignment with company values. It affects everything from performance to talent retention, all of which greatly impact overall business growth

This article delves into the vision of workplace satisfaction and its impact on an organization's costs and success. From understanding its definition to exploring its far-reaching consequences, we shed light on why prioritizing employee happiness is a worthwhile strategy.

What does workplace satisfaction mean?

Definition of workplace satisfaction

Workplace satisfaction is made up of multiple factors, all of which contribute to how happy and comfortable employees are at work. Also called employee satisfaction, it measures how content each person is with their job, including how personally fulfilled they are by it and if it is meeting all of their needs. It reflects how they feel about the company as a whole, such as its values and how it handles conflict. As we will dive into later in the article, having a happy workforce reflects the overall culture of the organization and ultimately either boosts or hinders its success. Satisfaction can stem from compensation to culture to the physical work environment.

Difference between employee satisfaction and engagement

While they are deeply related, employee satisfaction and engagement are two separate metrics. As mentioned above, satisfaction is more defined as how a person feels about the job and the organization. In contrast, engagement refers to how passionate and dedicated that person is and, in turn, how well they perform their role. It includes how inclined they are to do their work and how focused and efficient they are while doing it. While satisfaction significantly affects levels of engagement, they measure two different dimensions.

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Employee happy at work

Why is being happy at work important? 

Employee performance and business growth

Employers obviously care about employee happiness for mental health reasons, but there are also some positive business outcomes that are worth noting. One that we briefly touched on is improved employee performance. The happier employees are at work, the more engaged they are and the greater dedication they have towards their job. 

Being in a healthy and positive work environment encourages people to be more engaged, enhances productivity, and pushes them to go the extra mile. This has a direct impact on the company’s results as a hard-working team means a better product, offering, or service and, in turn, higher revenues.

Talent attraction and retention

Retention is also impacted by employee satisfaction, as people that enjoy their jobs are more likely to stay at the company, while those who are dissatisfied will be looking elsewhere. Different elements of satisfaction play a role here, such as compensation and treatment from managers or leaders. When team members feel that they are being paid fairly, are given career growth opportunities, and have a positive relationship with leaders, they are not only less likely to quit but also more likely to promote the company. Therefore, focusing on building a good culture attracts prospective employees. So you are not only able to attract the best talent but also able to retain them. This has a direct monetary impact. The most obvious one is that it t lowers HR costs related to recruiting and onboarding.

Absenteeism and sick notes

Workplace satisfaction also reduces absenteeism, which is when people regularly avoid work without a reason. It is unsurprising that unhappy workers avoid coming to the office because it is not a positive experience for them. Therefore, businesses need to work on improving mental health and reducing employee burnout. This has a significant impact overall because when people are out sick, tasks and projects are delayed, which also has a financial effect.

Have open and frank conversations about expectations and create a culture in which people can speak up if they feel overworked, micromanaged, or burnt out. Allowing for openness and ensuring that your team does not become susceptible to these feelings contributes to reducing absenteeism. 

While sick notes might sometimes be an excuse contributing to absent team members, they also might be a sign of burnout which can also harm physical health. It is important to note that work-life balance helps improve both physical and mental well-being, decreasing the number of employees that are sick.

If half of your team is absent, the first course of action is to evaluate how they feel and why they are feeling that way through employee satisfaction surveys. There is a chance that something structural in the organization is causing this.

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Latest global statistics about employee satisfaction

Statistics about workplace satisfaction per country

A survey by the McKinsey Health Institute conducted in 2022 reviewed a number of employee satisfaction metrics, including toxic work environments, work-life balance, and access to resources. The  15,000 employees and 1000 HR executives questioned came from 15 countries across the globe. 

This is what the study found:

Workplace outcomes by country
Workplace outcomes by country

Source: McKinsey Health Institute Employee Mental Health and Wellbeing Survey 2022

What the numbers reveal about what makes people happy at work

Now that you know that keeping your employees happy contributes to better business performance, how do you ensure they are? Statistics show that three main aspects contribute to satisfaction: a sense of purpose, career growth, and relationships. The Ginux report on job satisfaction reveals that: 

  • 97% of employees have increased engagement when they feel like they are there for a purpose. 
  • 34% of individuals think that securing better chances for career progression requires them to seek a different employer.
  • 51% of surveyed individuals left their jobs due to a lack of belonging.

Data about the link between flexible work and employee satisfaction

There tends to be greater employee satisfaction in flexible work environments because they give team members more autonomy and enhance work-life balance. This helps prevent burnout and keeps them engaged. 

A study by Tech.co reveals that remote staff are so pleased with the work model that 64% of them would consider looking for a different job if their company required them to come into the office every day. In contrast, the analysis found the opposite for in-office workers, who were overall less satisfied with their experience at work. Key statistics from the study indicate that: 

  • Hybrid (25.1%) and remote workers (33.2%) felt they had better work-life balance than those who only worked from home (17.1%).
  • 88% of employees feel having the choice to work from home positively impacted their job satisfaction.

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How do you enhance satisfaction in the workplace?

Be people-focused and consider your employees’ expectations 

The first step to ensuring satisfaction in your workplace is to be employee-centric. This means putting your team at the center of the decisions being made about their role in the organization and workplace. As the workforce becomes increasingly multigenerational, it is essential to keep in mind that different generations have distinct needs and expectations about the workplace. This includes anything from remuneration to work-life balance and flexible work arrangements.

While people of different ages have clear differences, so does each individual person. While it is impossible to make everyone happy all of the time, the best you can do is try. For example, send employee satisfaction questionnaires regularly to detect areas of improvement. 

The bottom line is to make the well-being of your staff a priority because, without them, there is no business.

Build a strong corporate culture

One of the most essential aspects of a positive workplace is strong organizational culture. It creates a sense of belonging between teammates so that they feel that they are part of something greater and contributing to a larger goal. Additionally, it allows them to connect with other colleagues, helping to forge relationships and even friendships. Research has shown that friendships at work are crucial for employee happiness. Post-pandemic, people have felt isolated working from home and long for real connections. These personal relationships build camaraderie and are created by a strong culture implemented from the top down. 

Leaders need to be clear about the internal brand so that employees can relate to the business. They also need to set expectations and communicate them effectively, encouraging the team to perform at a high level. 

Create purpose and enable career evolution

Along with building culture, organizations have to create purpose. In other words, they need to make employees feel that they are contributing to something greater by working at the company. This means different things for different people. For some it might mean working for a business that promote sustainability in the office and is therefore contributing to the greater good. For others, it means working for an organization that has a large impact or having a role that positively affects business outcomes. 

Millennials and Gen Z particularly want to have a positive impact through their career and therefore are searching for jobs with a purpose. For these younger generations, money is not the only driver when choosing a company to work for. These employees look for jobs that reflect this value. 

In a similar way, many team members now greatly value career evolution. They want to keep learning and an environment where they are encouraged to go. For Millennials and Gen-Z especially, it is crucial to keep learning and evolving in their career. If they are unable to find this in their current roles, they might be more willing to leave and search for a company that supports this need for growth.

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Satisfied employees

Create a healthy and positive work environment

Creating a positive work environment requires a few different elements. One of these is DEI initiatives. These practices are crucial for creating more inclusive workplaces and ensuring all employees feel welcome and comfortable at work. This is also one of the top concerns of the younger generations, who are searching for such workplaces and prioritizing inclusive practices in their requirements for organizations.

Additionally, employees want physical and digital workspaces that answer their needs. This means having the right furniture for maximum comfort as well as the suitable spaces for specific tasks. For example, meeting rooms are needed for presentations and group collaboration, and quiet desk areas are required for focus. The type of space also changes depending on how often each person comes in. Some employees even need assigned spaces as they come into the office every day. 

Finally, prioritize employee empowerment, trust, and recognition. In hybrid workplaces, micromanagement tends to run rampant. When managers cannot see the work being completed, they worry it is not being done at all. This leads to a lack of trust, which hinders autonomy. Not only does micromanagement hurt employee empowerment, but it often has the opposite effect, leading to a decrease in productivity.

Constantly improve your management approach

Poor management is one of the key reasons employees leave a company. Therefore, constantly improving your management approach is essential. Discuss with your team what is lacking in your leadership style and ask them to provide feedback on how you could support them better. Additionally, have clear communication and share your expectations. This way, each person knows how they are being evaluated, how they can prioritize their time, and how they are contributing to the organization at large. Finally, get management training. For example, give leaders advice on how to lead a hybrid team and avoid micromanagement practices. These are skills that are more important than ever in our current work landscape.

Provide your teams with the right resources and equipment

Similar to providing the right spaces to work in, you should also equip your team with the necessary resources to do their jobs efficiently. Resources must be tailored to their needs. Do your research when searching for new workplace technology to implement. Not only should you consult with your team, but also explore all options before landing on one to ensure that it is the perfect fit. For example, for a hybrid workforce, providing them with an employee-centric desk booking and week planning platform is essential. It gives them autonomy and helps them manage their time. 

Employee happiness supports not only individual well-being but also your organization's bottom line. It's not merely a matter of ensuring mental health and happiness; it's a strategy to enhance performance, business growth, and talent retention. By creating an environment that addresses diverse needs, encourages open communication, and fosters a sense of purpose and belonging, companies can ensure their staff are happy at work

The global statistics presented show how these needs are universal, revealing the role that work-life balance, career development, and relationships play. Additionally, the shift towards flexible work arrangements exemplifies how employee expectations are evolving, urging organizations to rethink well-being in the hybrid work landscape.

Workplace satisfaction requires deliberate efforts from leaders to craft a corporate culture that resonates with workers values and encourages growth. In turn, businesses see enhanced productivity, lower turnover, and gain a competitive edge

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Workplace satisfaction: save costs and boost your revenue

Annabel Benjamin

Annabel is a hybrid work expert who combines insightful strategies with practical applications to help navigate the changing landscape of modern employment. Her writings provide a wealth of tips, best practices, and innovative approaches to boost productivity, foster team cohesion, and maintain a healthy work-life balance in hybrid settings. 

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