Customers are the most important element of a successful organisation and employees are important in building customer experience, therefore, maintaining a satisfied and motivated workforce is the key factor towards serving customers accordingly, resulting in an overall growth in the organisation (Harris, 2007). This literature review focuses on the importance of job satisfaction within the workplace. The workforce is an important success factor of a company therefore, it is important to keep all employees satisfied. The management of an organisation should ensure that all employees are satisfied with their role towards the company and that the entire workforce of the organisation is satisfied and productive. This review analyses the consequences of job satisfaction such as a productive workforce, low turnover and absenteeism within the organisation which in turn would reduce costs and improve profitability. Moreover, results from studies conducted on job satisfaction are presented such as the relationship between job satisfaction and motivation which is then followed by the critiques of the studies presented, this literature review also suggests methods on how researchers could conduct studies that would be more accurate and reflect on job satisfaction of a wider range of employees in different sectors.
Job Satisfaction
Different authors have different views, perspectives and ideas about job satisfaction therefore the definition of job satisfaction may vary depending on different approaches each author may have (Aziri, 2011). According to Riaz and Ramay (2010), job satisfaction refers to an individual’s positive emotional reaction to a particular job. The fundamental aspects of job satisfaction can be classified as a healthy working environment, fair pay and benefits, respect and trust within the workplace.
Job satisfaction is a vital aspect of organizations in any sector. This is because job satisfaction is the key to a productive workforce. High productivity motivates employees to work towards meeting specific goals and targets in a specific period of time, which in turn, would increase sales resulting in high profits. Moreover, a satisfied workforce is less likely to leave the workplace, enabling companies to lower labour turnover and save unnecessary costs associated with turnover. Hence, companies should work towards providing a working environment that would improve and maintain job satisfaction.
Outcomes of Job Satisfaction
Employees are one of the most important aspects of the success of an organisation, therefore, maintaining a satisfied workforce is essential for the success of all organisations. Job satisfaction is linked to various outcomes such as the level of productivity, labour turnover, and absenteeism within an entity. According to the results obtained from research, employees who are experiencing job satisfaction are more likely to be productive and continue working for the organization (Mcneese-Smith, 1996). A highly productive workforce will enable the firm to utilize all resources effectively, thus productivity can be translated into good customer service, increased sales and high profitability of the organization. Therefore, it is important to maintain a satisfied workforce as productive employees are the key to a successful organization.
There is a negative relationship between job satisfaction and labour turnover as it is unlikely for a satisfied employee to leave the organization. Contrarily, job dissatisfaction would lead to a high turnover and therefore would have a direct impact on the operations of the organization (Aguiar do Monte, 2012). Labour turnover is detrimental to an organisation as it involves high costs and may also be a disruption for the continuity of the organization therefore it is important to reduce turnover by increasing job satisfaction (Chang, Chan, Gudmundsson, & Sawang, 2011). If employees of an organization are satisfied with their job, either in terms of wages, supervision, social relations with other workers, or work itself (Wild, Hill, Ridgeway, 1970), employees tend to work longer in the organization, thus resulting in low labour turnover and low absenteeism.
Antecedents of Job Satisfaction
Many researchers have carried out a significant amount of studies on job satisfaction and different elements that affect job satisfaction, therefore, it is evident that job satisfaction is a very popular area of study within researchers. According to the studies carried out, measuring the level of job satisfaction is a vital task that should be carried out by all organisations as people tend to spend most of their time at work therefore it is an important aspect of people’s lives (Wanous, Reichers &Hudy, 1997). According to Wanous, Reichers & Hudy (1997), there are two main methods and techniques used to measure the level of job satisfaction in a work place, this could be in terms of a single item measure or a use of multiple measures. A single item measure involves asking employees if they are satisfied with their job, the benefits received by the job and the working environment of the organisation, this is usually done through a questionnaire and it is the most common type of method used to measure job satisfaction. However, using multiple measures to measure job satisfaction will enable organisations to obtain accurate results on the level of job satisfaction of the employees.
According to Louise & Botha (2014), there is a positive relationship between job satisfaction and motivation of employees. Motivation can be in terms of intrinsic job characteristics such as recognition, autonomy and the nature of the work it-self or extrinsic characteristics such as salary, job security and working conditions ( Ismail, El Nakkache, 2014). All these factors measure the level of motivation within the workforce and therefore is closely related to job satisfaction. Individuals who are motivated intrinsically seek enjoyment, satisfaction of curiosity, self-expression or personal challenge in work. On the other hand, individuals are extrinsically motivated when they achieve goals that is apart from the work itself (Cho, & Perry, 2011). According to the research conducted by Tietjen, & Myers (1998), it is evident that the presence of motivating factors within the working environment has the potential to create job satisfaction within employees.
Research has also found that there is no direct relationship between job satisfaction and commitment as the analysis obtained did not show any indication that satisfaction is a determinant of commitment or that commitment is not a determinant of satisfaction (Currey et al, 1986). However, in contrast, Riaz and Ramay (2010) found out from previously conducted research that satisfied workers had low turnover intentions and that job satisfaction is positively associated with job commitment. Husield (1995) concludes that job security, presence of a union, organizational tenure are all determinants of job satisfaction which is directly correlated to the productivity of employees and the effect a highly productive workforce will have on the financial and overall performance of the business. This represents that the research found out by different researchers differ accordingly.
Critique of literature
Most of the studies on job satisfaction have been conducted in former years and may differ from more recent approaches, therefore the accuracy of the research may be questionable because results obtained may be outdated or invalid. Moreover, a significant amount of research has been carried out by the use of questionnaires in order to gather information. Research based on questionnaires alone may be insufficient to conclude on the theory. For instance, the article by Wild, Hill and Ridgeway states that the study uses a multiple-choice questionnaire as the main instrument in order to identify the relationship between job satisfaction and labour turnover. This instrument may be an insubstantial measure to identify the relationship of the two variables. Thus, the studies should be accompanied by the questionnaires to confirm the results obtained and to ensure that the research is accurate.
Employees working in different sectors may have different factors that would motivate and satisfy them, therefore, the research carried out on employees in selected sectors may not necessarily reflect on all employees working in different sectors. Moreover, Ismail and El Nakkache (2014), uses a limited sample size of employees between the ages of 21 to 30. The factors that satisfy employees between the age of 21 to 30 may be different from the factors that leads to job satisfaction in other age groups, therefore the studies may not be applicable for employees in all age groups. Furthermore, the sampling techniques used by different researchers may not always be accurate, for instance, Louise & Botha (2014) used a widely used technique of sampling called incidental sampling to determine the relationship between job satisfaction and motivation of employees. Although this sampling technique is commonly used, it is prone to bias, thus restricting the ability of the research to reflect on all employees. All these factors limits the accuracy of the research conducted by researchers.
In conclusion, although there may be various critiques in the studies presented about job satisfaction, it is evident that job satisfaction is one of the most important factors all organisations should consider in order to be competitive and successful. Although it is one of the most complex factors managers are expected to overcome, the benefits obtained from job satisfaction overweighs the complexity and therefore may be vital to achieve job satisfaction. In order to maintain a satisfied workforce, organisations should be able to analyse different personalities that persists within the different levels of employees in an organisation and should understand different elements that motivates each employee. A satisfied workforce would be motivated towards achieving the specific goals set by the company, thus, representing a productive workforce. Therefore, it is the responsibility of the management to maintain a motivated and satisfied workforce by providing an appropriate working environment with decent pay and benefits, this would result in less absenteeism