Employee Satisfaction and How it Can Increase Business Revenue

5 December 2022

Group of diverse employees having training in an office environment - maintaining employee satisfaction.

How often do you consider employee satisfaction when looking for ways to achieve your business goals, make your company more successful, and increase revenue? Many organizations invest in a comprehensive business strategy, building good relationships, product or service promotion, and more effective ways and processes to boost customer-brand loyalty. But employee satisfaction also significantly impacts the business's profitability, productivity, and reputation.

A satisfied employee is positive in their approach. They are productive, proactive, and committed to the company's objectives. Prioritizing employee satisfaction is a good starting point to increase the company's bottom-line profits, reduce turnover, and enhance overall business performance and productivity. Thus, keeping employees content and happy is definitely in your best interest.

That's why it's crucial for the HR department to know about prioritising employee satisfaction and how to improve employee engagement for overall business success.

Why is Employee Satisfaction Important?

Is there a connection between employee satisfaction and workplace productivity? If employees are compensated for their meaningful work, why should it matter for businesses whether they are satisfied? Studies have proven a correlation between employee satisfaction and business profitability.

Essentially, if you want to boost your company finances, one of the most effective ways is to improve employee satisfaction. It helps create a work environment that thrives and influences business performance in several ways. Team members enjoy fulfilling their tasks, so they are more likely to get their work done and remain employed longer at the organization.

Perhaps the best way to evaluate the importance of employee engagement is to look at how it affects various business aspects.

Here are the top reasons why engaged employees create a more profitable and productive workplace.

Company Loyalty and Low Employee Turnover

Engaged employees stay around for longer. The iOpener Institute research shows that the happiest employees stay at their workplace twice as long as their unhappy colleagues.

Employee turnover is a significant business expense, and workplace productivity depends on sustaining a high employee retention rate. According to the US Small Business Administration, the cost of replacing an employee is roughly 1.25 to 1.4 times the salary. Low turnover means the organization doesn't have to hire, train, and onboard new employees regularly. If an organisation can retain its existing employees, it saves money and time.

Happy staff members have no incentive to quit their jobs. They won't want to leave if they feel appreciated and content in their jobs or the circumstances surrounding their work conditions. That's why employee turnover is low when employees are satisfied.

Additionally, low turnover affects business productivity in the following ways:

  • Retain established and experienced employees
  • Builds employee morale and loyalty
  • Better work results with fewer mistakes
  • Better personal relationships and trust in the workplace.

If you have loyal employees who want to stick around, you can direct more resources to grow your business instead of sustaining it.

Customer Satisfaction

Customer satisfaction has a significant impact on business success. Happy staff members bring enthusiasm and cheerfulness to customer service. This leaves a memorable impression on customers before, during, and after their communications and interactions. This also puts customers at ease and motivates them to develop a relationship with your brand. Great impressions also create a positive customer experience, often leading to future repeat business.

According to an IDC survey, 85% of business leaders agreed that improved employee satisfaction and higher engagement translate to higher customer satisfaction, better customer experience, and increased business revenue.

Happy and engaged employees provide better customer service resulting in customer satisfaction and overall workplace productivity.

Achieves Short and Long-Term Goals

Companies cannot increase or sustain productivity without setting business goals for employees. Short-term and long-term goals help keep employees highly motivated to work hard as long as they are satisfied.

Ensure your employees feel valued and personally invested in the organization's success. This will make them feel more valuable and happier and urge them to work harder and smarter to accomplish company goals. It also results in more productivity due to:

  • Increased time and cost efficiency
  • More business growth and profits
  • Limited unexpected expenses and mistakes
  • Happier customers
  • Reduced anxiety and stress
  • Better direction for the organization

Find ways to make your employees feel satisfied and help them feel personally invested in the organization's success. Otherwise, they will have no reason to work hard and achieve company goals.

Greater Commitment

Workplace productivity can greatly suffer from a lack of commitment. So if you want to increase commitment in your workplace, you need to find ways to keep your employees happy.

Some ways to improve employee engagement and happiness include creating a flexible workplace, wellness programs, inclusive work culture, and great compensation. Higher levels of individual employee satisfaction create a great workplace which in turn develops a strong commitment to the company culture, purpose, and goals. Rather than simply showing up at work, employees increasingly consider the job as a valued and integral part of their life.

Satisfied Employees Create a Happy Workplace

Happiness is often infectious to people who may be unhappy. Therefore, workplace collaboration between happy and least happy colleagues could help create a positive workplace.

Satisfied workers are more productive and can influence co-workers into a productive workplace in the following ways:

  • Encourage social encounters and productive teamwork
  • Boost confidence, energy, and work excitement
  • Increase morale
  • Reduce anxiety, stress, and depression
  • Reduce turnover

You can measure employee satisfaction and each employee's passion and assign seemingly content employees to the least satisfied ones. This will help improve their attitude and work performance and also help you understand why these employees aren't happy.

Best Practices to Improve Employee Satisfaction

Employers and HR professionals constantly look for new ways to improve overall employee satisfaction. Creating a safe and healthy work environment is often the first step. They should also focus on understanding workers' aspirations and goals.

Below are a few things and ideas to help you improve employee engagement at work.

1. Give More Flexibility

Two male employees giving each other a high five in an office - employee satisfaction concept

Since the global pandemic, employees have become increasingly vocal about how they want their work schedule to look. According to a recent McKinsey survey, 52% of employees prefer flexible work schedules, including both remote and hybrid work. Engaged employees tend to want a good work-life balance.

A study by the University of Birmingham shows that satisfied employees with higher work flexibility reported greater job satisfaction and well-being.

Flexibility only leads to employee satisfaction if every team member feels like they receive the same treatment and have access to the same knowledge regardless of their working place or hours. Thanks to various digital tools like team chat and video conferencing apps, this should no longer be a challenge.

2. Involve Your Staff in Decision-Making

Before you implement a policy that affects their daily tasks or routines, give employees a voice by engaging them in decision-making. Harvard Business School highlights that doing so will prove to employees that you value and trust their opinion, which is critical to creating employee engagement.

Team or department leaders can gather their teams for a strategy session or lay out goals for the quarter or month, allowing employees to discuss how to achieve them.

3. Provide a Career Development Roadmap

Employees often look for ways to progress from their current position and move toward more senior roles. If you provide this development roadmap, it will make employees feel a sense of purpose and higher satisfaction.

In a recent study, 69% of millennials reported that career progression and development keep them engaged in their organizations.

4. Support Training and Continuous Learning Opportunities

Employees are satisfied when they feel confident with their work. For many employees, especially young ones, continuous learning is critical to their progression. Based on data by Statista, 47% of Gen Z believe that workplace education can create new opportunities in their organization. So if you provide training and education opportunities, your employees will be more capable and highly motivated to do a good job.

Check the quality of those education opportunities by checking in with workers. Whenever an employee completes a training session, send them satisfaction regular surveys to allow them to rate the experience. Also, ask them to include in the employee satisfaction survey results if they would like to suggest additional training to the offerings.

5. Invest in Employee Pay and Benefits

According to a survey by Payscale, only 53% of other organizations are confident with how effective their total compensation package can attract and retain top talent.

One of the best ways to ensure employee satisfaction is to invest in more than financial remuneration, though an equally important factor, and focus on generous employee benefits, material needs, perks, and other employer treats. Materially satisfied employees help you retain existing employees and attract top talent.

Regular Feedback

Employees want to hear from their managers regularly and also feel they have a voice in the organization when allowed to submit employee feedback and suggestions about the workplace culture and their jobs.

Gallup report shows that when employees receive meaningful feedback in a week, they become four times more likely to become highly engaged employees than their colleagues who didn't get any feedback.

You can allow anonymous suggestions submitted in a drop box to receive employee feedback or schedule one-on-one meetings with each team member to create opportunities for discussing opinions. Feedback lets employees understand their strengths and growth areas, enabling them to create improvement plans. It also grants them the voice to discuss their concerns and ideas without retaliation leading to happier and more comfortable employees who are more productive as a result.

In Summary

Employee satisfaction and business success go hand in hand. While it's often less prioritized than other approaches, including employee satisfaction in your organisation strategies is a sure way to increase productivity, enhance brand reputation, lower turnover, and boost overall profitability and employee performance.

However, don't assume employee satisfaction and happiness will happen on their own. You need to go the extra mile and develop a working environment that supports their development and well-being outside and inside the workplace. Every organisation needs a unique plan for enhancing employee well-being, health, and overall employee satisfaction. If well planned, employee satisfaction will lead to high productivity and increased business revenue.

If you are looking for ways to make employees more engaged and productive through work schedules and reports, request a demo from Shiftbase now.

Employee Turnover Productivity