Job satisfaction as a retention strategy

                 

                   

The employees are a crucial component in achieving the organizational vision, mission, and objectives in all sectors of production and services. Thus, companies have a responsibility to maintain employee welfare and job satisfaction while ensuring that all employees achieve performance goals (Dziuba, Ingaldi and Zhuravskaya, 2020).

 According to Danish and Usman (2010), job satisfaction is the state in which an employee is pleased with his or her job and experiences positive feelings such as happiness and pride as a result of his or her contributions to the organization's success. Also, employees who report high levels of job satisfaction also report higher levels of personal well-being and productivity because they experience a sense of accomplishment in their work (Cranny, Smith and Stone, 1992). Therefore, job satisfaction is everything about getting people motivated to work harder and produce greater results by making sure they enjoy their jobs (Raziq and Maulabakhsh, 2015).

Employees who are satisfied with their jobs are more inclined to exert extra effort and create outstanding results for the organization. Conversely, dissatisfied employees are more likely to get discouraged by their daily grind, postpone taking on extra duties, and even quit their positions (sick leave, days off) (Judge et al., 2001). Scholars like Maslow (1943) agree that job satisfaction has a beneficial effect on employee accomplishments, whereas dissatisfaction has a negative effect on their performance. He further describes that an individual's level of satisfaction or dissatisfaction with a given situation can be inferred from their actions and the way they operate.

According to the equity theory developed by John Stacey Adams in 1963, an employee's efforts should be rewarded with a commensurate degree of equality and fairness (Adams, 1963). The theory explains how employees assess their own status in relation to their peers by calculating the ratio of their input (experience, qualifications, competence) to their output (incentive schemes, rewards, and recognition) (Adams, 1963). 

Figure 01

(Al-Zawahreh and Al-Madi, 2012)

The situation of current financial professionals has been observed to be affected physiologically, with increasing responsibilities, and mentally, accompanied by extreme anxiety and tension from addressing client problems, and thus, this ratio will determine whether the employee is provided with adequate job satisfaction or not (Vinod, Yasmin, and Ahamed, 2011).

Employee satisfaction is influenced by six primary determinants: job design, workplace atmosphere, performance compensation, promotion, and supervision/leadership (Rabbanee, Yasmin, and Mamun, 2012). According to the findings of the research conducted by Rabbanee, Yasmin, and Mamun (2012), it is evident that job satisfaction is strongly related to how well employees feel they are compensated for their efforts, which in turn has a profound effect on how satisfied they are with the design of their job.

Companies can boost employee job satisfaction by instituting measures to increase the intensity of employees' tasks and the pride they take in completing them successfully (Hamermesh, 2001). Consequently, The Harvard Professional Group (1998) has stated that firms should devise strategies to boost employee satisfaction, which may include the following factors,

1.       01. More freedom for employees to express their ideas and take responsibility for their work

2.      02. A safe and welcoming workplace

3.      03. Easy access to a manager who offers timely feedback and support

4.      04 Cutting-edge tools and equipment with up-to-date technology

5.      05 Competitive pay and advancement prospects

According to the findings of many research studies, it has been illustrated that job satisfaction improves employee retention (Biason, 2020). As a relevant predictor of employee retention, the author of this blog post suggests that employers engage in practices that support good working relationships and benefits because job satisfaction increases when employees believe that the company is utilizing their skills and valuing their service and dedication. Consequently, greater job satisfaction often leads to greater employee retention.

References

Adams, J.S. (1963) “Towards an understanding of inequity.,” The Journal of Abnormal and Social Psychology, 67(5), pp. 422–436. Available at: https://doi.org/10.1037/h0040968

Al-Zawahreh, A. and Al-Madi, F. (2012) “The utility of equity theory in enhancing organizational effectiveness,” European Journal of Economics, Finance and Administrative Sciences, (46), pp. 158–168. Available at: https://www.researchgate.net/publication/267783009_The_Utility_of_Equity_Theory_in_Enhancing_Organizational_Effectiveness

Biason, R.S. (2020) “The effect of job satisfaction on employee retention,” International Journal of Economics, Commerce, and Management, 8(3), pp. 405–413. Available at: https://www.researchgate.net/publication/339974603_THE_EFFECT_OF_JOB_SATISFACTION_ON_EMPLOYEE_RETENTION

Cranny, C. J., Smith, P. C., and Stone, E. F. (1992). Job Satisfaction: How People Feel About Their Jobs and How It Affects Their Performance. New York: Lexington Books

Danish, R.Q. and Usman, A. (2010) “Impact of Reward and Recognition on Job Satisfaction and Motivation: An Empirical study from Pakistan,” International Journal of Business and Management, 5(2). Available at: https://doi.org/10.5539/ijbm.v5n2p159

Dziuba, S.T., Ingaldi, M. and Zhuravskaya, M. (2020) “Employees’ job satisfaction and their work performance as elements influencing work safety,” System Safety: Human - Technical Facility - Environment, 2(1), pp. 18–25. Available at: https://doi.org/10.2478/czoto-2020-0003

Hamermesh, D. (2001) “The changing distribution of job satisfaction,” Journal of Human Resources, 3(1), pp. 1–30. Available at: https://doi.org/10.3386/w7332.

Harvard Professional Group, (1998). Job satisfaction research project report

Judge, T.A. et al. (2001) “The job satisfaction–job performance relationship: A qualitative and quantitative review.,” Psychological Bulletin, 127(3), pp. 376–407. Available at: https://doi.org/10.1037/0033-2909.127.3.376

Maslow, A.H. (1943) “A theory of human motivation.,” Psychological Review, 50(4), pp. 370–396. Available at: https://doi.org/10.1037/h0054346

Rabbanee, F.K., Yasmin, S. and Mamun, A.A. (2012) “Determinants of job satisfaction: A study on bangladesh perspective,” TIJ’s Research Journal of Commerce & Behavioural Science - RJCBS, 1(8). Available at: https://www.researchgate.net/publication/290396184_Determinants_of_Job_Satisfaction_A_Study_on_Bangladesh_Perspective

Raziq, A. and Maulabakhsh, R. (2015) “Impact of Working Environment on Job Satisfaction,” Procedia Economics and Finance, 23, pp. 717–725. Available at: https://doi.org/10.1016/s2212-5671(15)00524-9

Vinod, S., Yasmin, M. and Ahamed, F.M.A. (2011) “Job satisfaction among finance professionals in Dubai,” International Journal of Research in Management, Science and Technology, 1(1), pp. 1–8. Available at: http://www.thaavan.com/download.php?download_file=uploadfile/1.pdf