Job satisfaction can have an effect on several different aspects of your business. In 2007, a worldwide survey of six industrialized nations including the United States showed that 80 percent of American workers are satisfied with their jobs, according to the Harris Interactive website. Understanding the importance of job satisfaction will motivate you to make sure that your employees are among the 8 out of 10 satisfied American workers.
In order to understand the importance of job satisfaction, you need to attach economic factors to it. The cost of losing and replacing one single employee can be as high as $75,000, according to William G. Bliss, writing on the Small Business Advisor website. Some of the costs involved in replacing an employee include advertising for a replacement, the drop in productivity that occurs when you lose an experienced employee and the drop in productivity that occurs when you are bringing a new employee up to speed. Creating job satisfaction lowers employee turnover and reduces these costs to the company.
A disgruntled employee who is unhappy with his job can cause a drop in overall productivity. But as that employee starts to spread his dissatisfaction through the rest of the staff, it can cause a drop in employee morale. The dissatisfaction with the company can grow if not addressed, and a universal drop in productivity occurs. Employees who are satisfied with their jobs do not create problems with staff morale.
An employee who is satisfied with her job will want to retain that job for as long as possible. When the company offers training to enhance employee knowledge regarding their job duties, that training is accepted by satisfied employees. Ongoing training helps to make your staff more competitive within your industry by keeping them up to date on new developments in sales processes, equipment and changes with the competition. Satisfied employees are more eager to apply new knowledge to their job performance and help to improve the company's competitive advantage.
Satisfied employees will attempt to recruit people they know who have the background necessary to assist the company. Recruiting new talent for your company becomes easier when the existing staff is satisfied and speaks highly of your organization. When your current staff is satisfied, they will act as recruiters for your organization and bring talented candidates to your company's attention that may have otherwise not applied for a position.