Job Satisfaction Factors: Are Happy Employees Better Employees?

Job Satisfaction Factors: Are Happy Employees Better Employees?

Gone are the days when companies searched for employees who could work hard and keep their heads down. While many job satisfaction factors can vary person to person (some love autonomy while others crave structure; some need positive feedback while others prefer to be left alone unless something is wrong), we know one thing for sure: no matter what makes you happy, just being happy at a job has plenty of benefits.

Job Satisfaction Factors: Does Happiness Matter?

When it comes to job satisfaction, it turns out that happiness does in fact matter. Employees who are the most productive and loyal are generally happier than other employees. While you don’t need to be happy in your role to succeed, happier workers are able to find success with less effort than their ho-hum office mates.

Happy Employees Better Employees ; woman working on a computer


Depending on which study you quote, happy employees are somewhere between 12 and 20 percent more productive than their unhappy counterparts — especially when it comes to sales. The Social Market Foundation found that happy employees were 12 percent happier than the ones in a control group and unhappy employees were 10 percent less productive than the control group.

Why the huge gap? Happy employees care more about their jobs than unhappy ones, which makes sense. Would you care about making a company that treated you badly more money?

Employee Retention

Happier employees tend to stay at their jobs longer than unhappy ones. One of the biggest job satisfaction factors is feeling emotionally safe and stable in the workplace. When you’re happy, you want to stay at your job, which means that a company will spend less money on hiring, on-boarding, training and development. The fewer employees a company needs to unnecessarily train, the more time and energy can be put toward skill advancement.

female entrepreneurs working desk

Satisfied Customers

Possibly one of the greatest job satisfaction factors is how much money an employee makes for a company. When employees are happy, they tend to treat customers better. They care about a customer’s experience — and are willing to go the extra mile to make every customer as happy as possible. 

Happy employees not only make customers happy, but they can also spread their happiness to other employees. Have you ever sat in a cubicle near a disgruntled employee? You were probably subjected to sounds of complaining all day long. Now imagine sitting next to a coworker who is full of joy. Emotions can easily spread throughout a company, whether the employees are onsite or working remotely.

Higher Stock Prices

One of the most interesting factors when it comes to job satisfaction is that companies with happy workers have higher stock prices. Some of the job satisfaction factors experts look at when determining the happiness of employees include an individual’s freedom to participate in decisions and overall feelings of being respected. Of course, increased earnings don’t hurt either. The companies that nail these two factors often see higher stock prices than their competitors. 

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