Employee Job Satisfaction: Definition, Indicators, Benefits

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Nowadays, many companies want their employees to feel happy in the work environment. However, can this happiness have a good influence on the company and its employees?

From an employee perspective, it can be said that this feeling of happiness has quite a good impact. This can be seen through a survey conducted by Ipsos which shows that:

43% of respondents worldwide say that having meaningful work is one of the greatest sources of happiness in life

Based on the data above, it cannot be denied that employees feel quite a big impact by having a job that makes them happy.

Apart from that, companies can also feel the impact of the happiness felt by their employees. Where based on a report by Gallup:

21% of companies generate higher profits with employees who feel happy and engaged with the company

Therefore, you have to be more observant in seeing how happy employees are in a work environment. To find out, you can assess it through job satisfaction indicators.

Through this article, Erzedka will explain what job satisfaction is, what the indicators are, and other benefits of job satisfaction indicators.

What is Job Satisfaction

Employee Job Satisfaction: Definition, Indicators, Benefits

Job satisfaction is a form of attitude of feeling satisfied and happy with one's current job. This feeling of satisfaction is obtained because the company can meet employee needs well, such as achieving work goals, dynamics of the work environment, and other aspects that support employees at work.

This feeling of satisfaction with work can be reflected through several changes in attitudes such as high levels of morale, discipline, motivation, productivity, achievement and work performance.

Job Satisfaction According to Experts

Then, there are several other meanings or definitions of what job satisfaction is according to experts, some of which are:

1. Robbins (2015)

Job satisfaction is a general attitude towards a person's job that shows the difference between the amount of reward they receive and the amount they should get.

2. Locke (2015)

Locke explained job satisfaction as a level of self-emotion that is positive and pleasing to oneself or an individual.

3. Handoko (2016)

Job satisfaction is an emotional state that reflects both pleasant and unpleasant views of their work.

4. Moorhead and Griffin (2013)

Job satisfaction can have an impact on employee satisfaction. This can be illustrated by the fact that employees who feel satisfied tend to be less absent, make more positive contributions, and stay with a company. Employees who feel dissatisfied tend to do the opposite.

5. Hasibuan (2017)

Hasibuan defines job satisfaction as an emotional attitude that pleases and loves one's current job. This attitude can be seen or reflected through their work morale, sense of discipline and work performance.

Factors that Influence Employee Job Satisfaction

The fulfillment of employee job satisfaction is influenced by several factors which are divided into two types, namely:

1. Intrinsic Factors

These are factors that influence job satisfaction that originate from within the employee and have existed since the employee's first day working at the company

2. Extrinsic Factors

Factors that arise from outside the employee and influence job satisfaction while in that environment, such as the dynamics of the work environment, workload and employee benefit programs by the company.

Job Satisfaction Indicators

Job Satisfaction Indicators

To be able to properly determine the level of employee job satisfaction in the work environment, there are several measurements that can help assess it. This measurement is divided into several categories and aspects related to employee comfort and welfare factors while working.

This measuring tool is called a job satisfaction indicator. So, what indicators of employee job satisfaction can you use?

1. Job Suitability (Work it Self)

Employees who feel that their current job is right will certainly make employees more enthusiastic about carrying out their duties in that job.

The right job also encourages employees to continue to improve their capabilities in that field and the opportunity to accept greater responsibility.

The tasks that will be carried out will certainly be easier and you will not feel burdened every day. And matching the job with the employee's personality can increase work productivity.

2. Physical Conditions of the Work Environment

The work environment in this case is related to the external physical conditions of employees that support comfort at work. This includes comfortable working room temperature, availability of rest rooms, arrangement of rest and working times, lighting, air circulation, and availability of work support facilities.

3. Wages and Promotion (Pay and Promotion)

The existence of opportunities and opportunities to increase wages and promotions to higher levels can increase employee motivation. The wages or salaries given must also be adjusted to the increasing responsibilities.

Appropriate wages or salaries can even drastically increase employee satisfaction. Employees feel that they have received appreciation from company management. The impact is that there is a significant increase in the level of loyalty and a decrease in company employee turnover.

4. Attitudes and Social Relations Established (Attitude and Social Relations)

A professional attitude is the basis for building relationships in the work environment. Therefore, the relationships formed between co-workers and superiors have different interactions but must be well established in accordance with a professional work ethic.

Colleagues must work together to complete their respective tasks as a team. Meanwhile, supervisors or superiors also provide constructive and positive direction and feedback. Each individual must understand that there are boundaries formed between work and personal life.

Structured attitudes and relationships like this can increase the comfort and satisfaction of your employees in their work environment.

Employee attendance can be an indicator of job satisfaction that needs attention from company management and the HRD team. The reason is, a work environment that positively supports employees can reduce the percentage of employee absenteeism by up to 81%.

This means that the greater the proportion of employee absences (without a clear reason) in a company can be an indicator that the level of employee job satisfaction is low. And conversely, decreasing employee absenteeism can be a good indicator of employee job satisfaction.

5. Employee Benefits

Employee benefits are benefits felt by employees outside of the salary and wages given for carrying out their obligations. There are various types of benefits that you can find in accordance with government regulations and are optional from each company.

Several types of employee benefits are mandatory, such as social security and health insurance. Others include pension benefits, credit & internet allowances, accommodation allowances, profit sharing, flexible working hours and overtime pay.

6. Reference for other employee satisfaction indicators

The more and more varied employee benefits provided, the better the level of employee satisfaction with your company. Apart from the 5 indicator points that have been discussed, there are several other indicators that can be used as a reference for your employee job satisfaction, namely:

  • Supervision
  • Coworkers (Co-workers)
  • Employee Absence (Absenteeism)
  • Desire to Change Workplace
  • Work Habits or Culture (Nature of Work/Work Culture)
  • Individual Performance (Performance)
  • Communication
  • Agreed Rewards (Contingent Rewards)
  • Work Implementation Procedures/Standard Operating Procedures (SOP)

Benefits of Job Satisfaction Indicators

Benefits of Job Satisfaction Indicators

The benefits that can be felt include reducing company employee retention and turnover. This is very profitable because many employees have been trained from the start and the company has spent money to invest in them, but in the end the employees resign because they feel dissatisfied with their work.

Apart from that, the process of recruiting new employees to fill the vacancies also incurs additional costs. This detrimental process can become a cycle that will continue if job satisfaction indicators are not properly paid attention to.

Apart from reducing retention, turnover and costs, utilizing job satisfaction indicators can increase employee productivity, motivation and achievements.

Achievements that can be achieved include completing tasks and responsibilities on time, satisfying work results, and achieving performance targets given by company management both in the short term (monthly target) and long term (annual target).

Obtaining achievements that meet targets or even exceed expectations will certainly be appreciated by the company, such as annual bonuses and other non-financial benefits. This can also increase employee job satisfaction and make them more loyal to the company.

Benefits of Job Satisfaction

Nitisemito  believes that if a company is able to influence job satisfaction, then the company will gain many benefits, including the following.

  • The work will be completed more quickly.
  • Apart from the raw benefits of completing work more quickly, this will also play a significant role in reducing workload (because it is completed on time without taking up more time).
  • Damage will be reduced.
  • Damage can be reduced with the aim of work that has risks that can be reduced so as to create employee satisfaction at work.
  • Absenteeism can be reduced.
  • Employee job satisfaction has a big influence on absenteeism, where if employee job satisfaction is high, the level of absenteeism will continue to fall because employees are enthusiastic.
  • Employee turnover can be minimized.
  • Employee turnover is minimized because employees feel satisfied and happy with the work they do.
  • Work productivity can be increased.
  • Work productivity can increase due to work enthusiasm which is stimulated by relatively high employee job satisfaction.

Job Satisfaction Indicators

Measuring job satisfaction must be carried out objectively through analysis and recognition of concrete symptoms that are indications of satisfaction itself. Indicators of job satisfaction include the following.

  • Work: Does the content of the work someone does have satisfying elements.
  • Wages/Salaries: The amount of payment a person receives as a result of carrying out work is in accordance with needs that are felt to be fair.
  • Promotion: The possibility that a person can develop through promotion.
  • Supervisor: Someone who always gives orders or instructions in carrying out work.
  • Coworkers: Colleagues who help each other in completing work.

Theories of Job Satisfaction

Theories of Job Satisfaction

Many experts have put forward theories regarding job satisfaction. Several theories regarding job satisfaction according to these experts are as follows.

1. Balance Theory

According to this theory, whether employees are satisfied or not is the result of comparing input-outcome. So, if the comparison feels balanced then the employee will feel satisfied.

2. Difference Theory

If what the employee gets turns out to be greater than what was expected, the employee will be satisfied. Conversely, if what employees get is lower than expected, it will cause employees to be dissatisfied.

3. Needs Fulfillment Theory

According to this theory, employee satisfaction depends on whether or not employee needs are met. Employees will feel satisfied if they get what they need.

4. Group View Theory

According to this theory, employee satisfaction does not depend on meeting needs alone, but is very dependent on the views and opinions of groups that employees consider to be reference groups.

5. Herzberg's Two Factor Theory

Two factors that can cause feelings of satisfaction or dissatisfaction according to Herzberg are maintenance factors and motivation factors.

6. Expectancy Theory

Hope is the strength of belief in a treatment that is followed by a specific result. This illustrates that employee decisions that enable one outcome to be achieved can lead to other outcomes.

Earned Wage Access, Alternative Employee Benefits for Financial Solutions

Various benefits can increase employee job satisfaction at the company. However, there is one current employee benefit called Early Wage Access (EWA).

Early Wage Access is an alternative employee benefit to help employees deal with unexpected events and need quick access to emergency funds.

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