Growth Trends for Related Jobs

What Indicators Determine Job Satisfaction Ratings?

careertrend article image
Digital Vision./Digital Vision/Getty Images

Inventory is good, first-rate production lines are excellent and cash-equivalent assets can make financial statements hum, but it’s the corporation’s staff that’s a company’s most valuable asset. That’s assuming, of course, the staff is a well-oiled, fine-tuned, high-performing and extremely satisfied group of employees. But, job satisfaction? While it’s not exactly easy to come by, things like job security, competitive salaries and benefits go a long way in making sure that employees whistle while they work.

Importance of Job Satisfaction

Companies conduct surveys to collect information about employee job satisfaction, which, according to Penn State’s Brian Redmond, is a positive emotion that results from an employee’s perception of his job. Employee attitudes also reveal financially relevant information such as staff turnover, declining employee productivity, and moribund financial performance. Companies can positively affect job satisfaction, can motivate employees, and cause performance indicators, such as inventory turnover and sales growth, to skyrocket.

Job Security Influences Job Satisfaction

The extent that you’re satisfied with a job is in part determined by job security. In fact, the 2012 Employee Job Satisfaction and Engagement Report published by the Society for Human Resource Management states that job security is the number two contributor to job satisfaction. Job security is the assurance that a worker’s employment will continue in the future, which might be influenced by economic conditions as well as contract terms, a collective-bargaining agreement or legislation.

Job Satisfaction Results From Compensation

According to the Employee Job Satisfaction and Engagement report, six of 10 employees consider their compensation to be one of the top five factors that contributed to job satisfaction. Consequently, companies use compensation packages to compete with other companies for top talent. Companies also link compensation to their corporate strategies. For example, a compensation system might link a salesperson’s pay to sales volume or revenues. The Society of Human Resources Management reports that companies that pay a fair wage are more apt to retain employees, avoid the costs of replacing departing employees, and maintain the trust and commitment of employees. Compensation includes base pay, bonuses, commissions, one-time rewards for ideas and stock options.

Nature of Work Affects Job Satisfaction

Challenging work increases an employee’s engagement and job satisfaction. In the 2012 Employee Job Satisfaction and Engagement report, 52 percent of the survey respondents believed their work was very important to their job satisfaction. Such employees were likely to have post-graduate degrees or were executive and middle-management employees. These findings seem to be confirmed by the Forbes article, “The Foolproof Guide To Finding True Career Fulfillment,” which suggests that perks, such as office location, should not be the deciding factor when deciding on a career. Instead, an employee should do what he think matters to himself or the world at large.


Billie Nordmeyer works as a consultant advising small businesses and Fortune 500 companies on performance improvement initiatives, as well as SAP software selection and implementation. During her career, she has published business and technology-based articles and texts. Nordmeyer holds a Bachelor of Science in accounting, a Master of Arts in international management and a Master of Business Administration in finance.

Photo Credits

Digital Vision./Digital Vision/Getty Images