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How Employee Satisfaction and Productivity Related to Each Other?

How Employee Satisfaction and Productivity Related to Each Other?

|Apr 3, 2021

Most businesses fail to understand the correlation between employee satisfaction and productivity. Although, few understand the meaning of this relationship but are unable to achieve them.

It is essential to have employees who are productive and can do their job to a high standard. Additionally, you need to build a team of creative individuals – how can this be achieved? This can be attained by building a rich atmosphere in your workplace where employees are satisfied and by productivity improvement techniques.

Read on to understand the impact of employee satisfaction and productivity!

Explain the Relation Between Employee Satisfaction and Productivity

Management plays a pivotal role in an organization. They can either contribute to enhancing the productivity of the workers or vice versa. It must ensure that employees are well equipped with tools and are satisfied with their work environment and supportive organizational culture.

Explain the Relation Between Employee Satisfaction and Productivity

Employee satisfaction is generally viewed as moral or the response of the employees towards you. The satisfaction level can be calculated based on how aware the employee is towards its organization. However, it is complex to examine the relationship between satisfaction and behavior but still plays an important role.

The increase in satisfaction of employment not only develops a rich environment in the office but increases productivity as well. Therefore, all of you need to satisfy your customers to increase productivity.

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Numerous studies depict that satisfied employees are more productive. It was discovered through a study - that satisfied and happier employees were 12% more productive, while unsatisfied employees were less by 10%. The study stated that if the employees were undervalued or not happy with the environment, the performance would get affected.

Another study by snack nation stated that satisfied employees performed extraordinary by 20% in the competition. Similarly, the study of Warwick showed that the increase in an incentive at google raised the satisfaction of employees by 37%. It is proved that if the employees are happier, they will put in their whole effort to deliver top-quality work. Another study from Harvard business review stated that positive work culture results in more productivity of the employees. In other words, satisfied workers are productive workers.

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Another study analyzed over 40,000 surveys from over 300 organizations and the results were shocking. They stated that more than 42% of the employees were not familiar with the organization's vision as they were unsatisfied. Additionally, they said that 18% of employees stated that the corporations don’t take suggestions from them, resulting in low productivity.

From the above discussion, this has become crystal clear that satisfied employees are more productive!

How To Improve Your Employee Satisfaction

It is vital to understand the needs of your employees to keep them satisfied. A satisfied worker attempts to offer the very best to the company. Since you know the importance of satisfaction, here are few ways that can help you improve employee satisfaction and productivity.



One of the most vital factors which can increase satisfaction in your employees is that they know they are respected. To demonstrate that you respect and value your employees or co-worker is my being transparent with them. Another way is by catering to their health needs, by offering a standing desk for work.

Another way is you can involve them in the decision-making process. Additionally, you can also help them to build additional skills like conflict communication skills and be satisfied. Paid training is another way to help them learn something new of their interest.


Trust is another factor that can help to increase the satisfaction level of your employees. You should ensure your employees that the company has trust in them and also support their decision. It is necessary to develop a level of trust between you and your employee. It not only increases productivity but enriches the work environment as trust is the basis of every healthy work relationship.



If your employees are not sure about the job, then they would leave the job for fear of being rejected. It is investigated that employees who are unsure about their job security tend to be more unsatisfied. Therefore, you need to be transparent with your employees, as job satisfaction and productivity go hand-in-hand.

A healthy working environment

A healthy working environment

One of the first things an employee expects from you is a healthy atmosphere in the work arena. Providing your employees with an essential tool like an ergonomic chair helps in making the office environment better. A good environment includes higher job satisfaction, tools to enhance employee satisfaction and productivity, a stress-free workforce that has no sign of harassment.

Listen to Your Employees

Listen to Your Employees

Many times, the reason for an employee's dissatisfaction is that no one listens to them. It is not only for the employees at the lower level but also the one on the top level. By listening to their ideas, you are showing that you value your employees and that they are part of the corporation. Being a company’s management is not easy. You need to be very patient with your employees, listen to their opinions and resolve miscommunication. This will boost their confidence, and they will feel valued too!

Pay and Benefits

Everyone in an organization comes to work so that they can earn but, some of the employees get good money. However, pay always plays an essential part in the satisfaction of an employee. The benefits can be several forms like bonuses, health care, bulk office furniture order for employees, vouchers, or flexible work hours.

Wrap Up

Satisfying your employees is a complex task and demands lots of time and effort. However, in the long-run, this investment will be worthwhile. The satisfaction of your employees is a vital factor. Therefore, you should be sure that this is on top of your list.

If this is not your priority, then chances are your organization will face losses, so you should make it so! A satisfied employee is equal to more productivity which is equivalent to more profit.

Since now you have all the information about Employee satisfaction and productivity, implement it in your corporations and notice the change!

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