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Factors that influence employee job satisfaction

by Tanya Smith

Created on: December 16, 2010   Last Updated: December 17, 2010

What does a satisfied employee look like?  Some signs may be obvious, such as smiling vs. "stressed out" facial expressions.  The true key to knowing whether an employee is satisfied or not doesn't come from a crystal ball or study in psychology.  It comes from good business sense, fair practices and well-planned strategies for employee retention. 

Some of the factors that contribute to whether employees are satisfied in their jobs are:

1) Corporate culture: Does the company have strong values and ethics that employees share? If they do, employees are more apt to feel they are a part of the organization and will be more likely to stay in their jobs.  If the company does not have a strong corporate culture and/or values, employees may feel distant and detached from their jobs, fellow employees and the business.

2) Good compensation: Are employees receiving wages that are comparable to others in the industry?  When employees know they are being paid fairly, they feel appreciated and valued.  This leads to both good performance and to satisfaction in the job.  If wages are well below the norm, employees are likely to feel unhappy and start looking for greener pastures.

3) Great incentives: Do employees receive financial incentives, bonuses, or gifts for high performance or actions where they have gone above and beyond the call of duty for the business?  If they do, it provides them with a sense that they are making a difference in the business and being rewarded for it.  This provides an overall sense of happiness in their job. 

4) Environment: Do teams work well together and is having a strong team ethic valued and encouraged?  When employees mesh well, a great deal can be accomplished.  Some conflict can be constructive for a business, however, when there is too much of it, employees can be distracted and very unhappy in their work environment. 

5) Challenge: Do opportunities to take on new challenges occur in the job?  Sometimes when learning stops, stagnation occurs and employees become bored.  This can lead to retention problems. An environment that allows employees to take on new duties and responsibilities from time to time can be a great way to keep people engaged.

6) Non-financial incentives:  Do employees receive praise and recognition when they do a job well or come up with a better way

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