Employee Satisfaction without a Pay Rise

A good salary can attract employees towards a job and incentivise them to work hard, but there are numerous other factors to take into consideration to keep workers happy and maintain a satisfactory work environment. Employee satisfaction is the emotional fulfilment of one’s personal needs within a job setting and can play an important role for employers to ensure good productivity from workers. The importance of employee satisfaction can arguably vary across different job sectors, where sectors which deal directly with customers, such as tourism, appear to benefit most due to their social nature; a satisfied employee will likely lead to a satisfied customer. So, what factors affect employee satisfaction and help to create an appealing working environment?

A quick internet search will reveal numerous lists and models for job satisfaction that normally mention factors such as promotions, good relationships with co-workers and the boss, low stress levels etc. Clearly, there is no definitive list of ways to improve employee satisfaction, and therein lies the challenge commonly faced by modern human resources departments to determine what works when it comes to keeping employees happy. Different employees will respond differently to various factors, and it can prove difficult to measure the happiness of workers; however, the aforementioned lists do share a few ideas, namely the psychological and environmental factors of worker satisfaction. On the one hand, workers have individual needs that must be satisfied, such as the job itself and how well it suits a worker’s interests and personal goals; on the other hand, workers have organisational needs such as good working conditions, good office space as opposed to cramped cubicles, and good relations with supervisors, bosses and colleagues. The simple conclusion to draw from this is that online lists can provide a full-proof guide to achieve employee satisfaction, but it is important to understand the reasoning behind them and their possible limitations.

For example, the opportunity for promotion is a factor that stands out in most lists of factors. This could be regarded as a key factor because of the motivational mechanics behind it. An employee will feel more satisfied with a job if they know there is the possibility to move up through positions in a company or their personal career. The significance of this factor is the individual drive that motivates an employee to work hard in order to achieve greater responsibility, acquire greater skills and perhaps even help pursue personal goals in a worker’s career. Arguably, this factor may be a reflection of monetary incentives that come with promotions, but there is no denying that workers can feel more motivated when they feel challenged and are presented with a path to advance in their job. This provides companies with a way to reward hard-working employees, and thus incentivise them to stay competitive in their field.

An example of a company that stands out in its industry for employee satisfaction is Valve Corporation, an American game developer company. In an industry where employees generally complain about poor leadership, stressful deadlines and suppression of creativity, Valve stands out with an exceptional employee satisfaction rating taken by surveys due to its unconventional management structure; employees are generally left to manage themselves and form their own teams to pursue any desirable projects allowing almost complete creative freedom. This is not to say that all businesses should be run this way, but it highlights the importance of factors of employee satisfaction, such as personal motivation through the incentive to pursue creative goals, and a friendly work environment in the way that workers are surrounded by other creative minds, to freely form project teams among themselves.

Despite having access to numerous theories and examples of employee satisfaction, it is important to acknowledge the shortcomings of attempting to create an exhaustive list of factors. One key issue to note is that the importance of certain factors affecting job satisfaction can change with the times depending on the economic climate and other circumstances. For example, research showed that job security became a more valued factor in 2010 compared to 2008, and good working conditions seemingly became a less important factor at the same time, supposedly because of the rise in unemployment; workers were more keen to hold onto any decent job they could find in a less certain economic climate and subsequently became less worried about good working conditions.

All in all, the issue of employee satisfaction is a difficult one, but it is clear that it is an issue that requires much more than offering more money to employees. The complex nature of employee satisfaction means there is no perfect solution to keeping workers happy, but there is a basic premise that can assist HR departments to determine what works—various psychological and environmental factors where employees can feel motivated and comfortable in their workplace. Despite its difficulties, employee satisfaction can be a worthwhile goal for companies, not just to make workers happy, but also because of its practical elements as it helps to motivate workers and maximise worker efficiency.

Edward Mah

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