Employee Satisfaction

How employee satisfaction is connected to productivity

Maintaining employee satisfaction and making sure that they put in a full day’s work without employee time theft are two of the most important considerations for any business owner. It doesn’t matter if you’re running a larger or small business size. It doesn’t even matter if you use in-house or outsourced employees.

Either way, you need a productive, focused staff. But, were you aware that there’s a close correlation between employee satisfaction and productivity? It’s true.

Satisfied employees produce 6.6% more per hour than employees who are less than satisfied. What’s more, happiness makes employees 12% more productive. Imagine getting that kind of jump in productivity without the expense and time required to hire new employees.

Ways employee satisfaction translates into productivity

Employee happiness manifests itself in a number of positive ways.

1. Happy employees are more relaxed

When an employee works in a relaxed, non-confrontational environment, they’re more relaxed. That makes sense. As a result, they have less stress. Lower stress levels allow them to focus on the job at hand rather than all of the unnecessary drama you find in far too many workplaces.

2. Happy employees want to keep their jobs

Most employees know that a really good job is a rare commodity. So when they realize their job working for you is one of those rare opportunities, they’ll be far more likely to do all they can to make sure they hang on to their current job. That definitely includes beefing up their productivity.

3. Happy employees refer more business

Happy employees are much more willing to tell their friends and family about your company’s products and services. That’s basically free advertising. Who doesn’t want more referral business for their company?

4. You’ll have a lower turnover rate when your employees are happy

Constantly hiring and training new employees can be extremely expensive. Plus, with a high turnover rate, you lose the priceless advantage of more experienced employees. Replacing an entry-level employee typically costs between 30 and 50% of their annual salary. With mid and higher-level employees, the percentage is even higher. Just maintaining your current employees can literally transform your business.

5. Happy employees work together more effectively

Another way employee satisfaction affects productivity is in the way employees work together. Happy employees are more likely to share information and skills. They’re also more likely to mentor younger employees.

6. Happy employees are more creative

Stress is the enemy of creativity. After all, when an employee is afraid for their job, it’s much less likely such an employee will go out on a limb and share a creative idea. Fear stifles creativity. If you’re concerned out-of-the-box thinking will get shot down, you think inside the box. But when employee satisfaction is high, creativity flourishes.

Employee satisfaction is a strategic tool

Finding ways to keep your employees happy isn’t just the right and kind thing to do—it’s also a smart business move.

You’ll have a more peaceful work environment and you’ll reap some impressive business benefits. Benefits like up to 12% higher productivity, lower turnover rate, and a culture conducive to creativity.

That’s why strategic business consultants are so quick to prompt business owners to boost employee satisfaction. Happy employees can make as big a difference as innovative technologies, like office automation software. What’s more, it’s typically not hard to boost employee satisfaction. Just consider what matters most to your employees, and work to address those concerns.