Investing in Employee Satisfaction: Why It Matters

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Building a powerful company is impossible without a team of loyal, dedicated, and motivated employees. When employees derive satisfaction from their work and are happy with how the company treats them, they perform better. Various studies have shown that employee satisfaction is intrinsically linked with performance, productivity, and team cohesion. What do successful business owners, managers, and CEOs have in common? They care about their employees’ well-being. 

In this article, we’ll discuss why investing in employee satisfaction matters from a business perspective, and not only. 

Productivity Depends on the Environment 

For employees to give their best every day, managers have to create an environment that sustains productivity and where employees can enjoy both physical and mental comfort. This requires keen attention to detail when it comes to designing and managing the office. Employees must feel that managers consider their needs in every aspect. 

Implementing tiny changes in the office can be enough to increase employee satisfaction and, at the same time, create an environment more conducive to productive work. Consider something as simple as finding a vending machine for sale that provides healthy snacks. Employees will appreciate having healthy food options, and their productivity will also increase due to eating better. 

Employee Satisfaction is Connected to Customer Satisfaction 

The main goal in business is to increase customer satisfaction. As long as customers are satisfied, they return for the same product or service. The higher the rate of returning customers, the higher the profit. But customer satisfaction doesn’t depend just on the quality of the product or service. It’s also dependent on the quality of the interaction between customer and business. 

Since employees are the face of the company, the only way to offer customers a pleasant experience is to ensure that employees have an optimistic, positive attitude. This unveils the powerful connection between employee satisfaction and customer satisfaction. Happy employees are more likely to have a positive, friendly demeanor when interacting with customers and outsiders. Conversely, stressed and unhappy employees are more likely to transmit negative feelings, even if unwillingly. 

Employee Morale Can Dictate Success 

The ability to overcome challenges is vital in the business world. Companies that cannot handle unpredictability don’t survive. Since it’s impossible to avoid difficult times, keeping high morale during these periods is essential for staying afloat. All investments in employee satisfaction show their value in difficult times. Not only that satisfied employees are more loyal and thus more willing to stick with the company through difficult moments, but they also maintain a positive, optimistic attitude in the workplace. And a positive attitude is tightly connected to confidence and perseverance, which are essential qualities for solving problems. 

Employee morale has multiple ramifications. Confident and optimistic employees are also more likely to embrace daring ideas and to contribute to the company’s success with innovative solutions. They are also more likely to work hard even when immediate results are improbable. Unsatisfied employees are likely to show more reticence when it comes to tackling challenging problems. They may give up easier when faced with an obstacle. Because they don’t feel valued in the company, they don’t see the company’s success as their own, so they don’t feel the same strong pull to give their best. 

Happy Employees Stick Around Longer

Many jobs require intensive training in the workplace. Managers and HR departments invest time and significant resources in training new employees. Regardless of their level of experience, most employees need guidance in the beginning so they can get familiar with the particular requirements of the job. Given that companies invest a lot in training their employees, a high employee turnover translates into a waste of time and money. 

Happy, satisfied employees stay longer in the company. This gives them the time to master all the intricacies of their jobs. Thus, they perform significantly better as time goes by. Companies grow faster when they have a stable core of loyal employees whose performance increases by the day. When a company must use resources to recruit and train new employees regularly, its growth is stunted. There’s nothing that perturbs business operations as bad as a high employee turnover. 

Employee Satisfaction Fosters Collaboration 

Efficient collaboration is one of the hallmarks of productivity in a company. Whether we’re talking about collaboration between individuals, teams, or departments, a negative atmosphere can disrupt business. Happy employees are more eager to collaborate and have quality interactions with coworkers. Because they feel valued in the company, they contribute to creating a sense of community in the workplace. It’s safe to say that employee satisfaction leads to solidarity, which then leads to more efficient collaboration. 

When a company provides regular employee recognition, empowering people through positive feedback, employees become more engaged with their work. They also develop a stronger interest in building quality relationships with coworkers. Employees taking pride in their common accomplishments leads to greater organizational success and higher work quality. 

How to Measure Employee Satisfaction?

Each HR department has its methods for measuring employee satisfaction, and surveys are the most common way of asking for specific feedback. Some companies prefer to meet with small groups of employees and ask for feedback verbally, which is a direct and transparent way to develop a feedback-loop. It’s also common to ask employees who want to leave the company for feedback. Discovering what exactly caused them to leave can be illuminating in some cases. The company can use the information to avoid losing other employees. 


Caring about employee satisfaction is not just a nice thing that some employers or managers do. It’s an important business strategy with profound implications for the success of a company. There’s a key connection between employee satisfaction levels and growth metrics such as engagement, productivity, and employee retention. Thankfully, ensuring a high level of employee satisfaction does not have to be expensive or even cost any money at all. In many cases, greater attention to details that matter to employees can be enough. Providing feedback, holding regular meetings, and optimizing the workplace environment can bring great results in terms of employee satisfaction. 


Disclaimer: This content does not necessarily represent the views of IWB.


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