Why Job Satisfaction is Important? Causes, Benefits, & Examples🙂

Have you ever thought, what is job satisfaction? What are the benefits of job satisfaction?

Job satisfaction is a state of being happy and fulfilled with the job a person is doing. There are many people out there, who just working to get money but highly dissatisfied with their job.

It doesn’t matter whether you do the small or big job; what matters is job contentment.

Mohith Agadi

Statistically, only 20% of people are satisfied with their jobs. 

According to the data collected by the TimesJobs survey on more than 1,100 working professionals, they have found that out of 10, 8 employees are dissatisfied with their jobs. Out of 10, 7 feels that the inrush of the technology results in job dissatisfaction. 

If I have to explain it in simple words, then it is the positive state of emotion or pleasure that one feels due to job contentedness.

It is not about, running in a rat race but it is all about being pleased and satisfied with one’s job.

Well, if I have to give job satisfaction examples, then I would say if you are being paid based on the work you are doing, the skills you possess, etc. You would feel highly satisfied.

Here, I would discuss, what is job satisfaction, the importance of job satisfaction, causes and benefits of job satisfaction, and more.

23 Job Satisfaction Factors

I figured out a total of 23 factors that affect the job satisfaction of the employee working in a company. Some of them are from my personal experience as well.

Job Satisfaction Factors

1. Age 

Age plays an important role when it comes to job satisfaction.

Logically, higher the age means you have the experience, ideal career progress, good ranks, etc. and, all these factors contribute to job satisfaction. Therefore, yes, your age plays a crucial role and is one of the main job satisfaction factors.

2. Responsibilities

It is also one of the important job satisfaction factors as it gives a sense of value and trust.

Therefore, the more responsibility, the more satisfied you are. However, if someone is loaded with much more responsibility it ends up creating a negative effect which might result in employee burnout. 

Numerically, the respondent to the India Employee Survey by HR Hush, as many as 22% of employees claim that their productivity is low due to stress, and overwork.

Above all, more than half of the employees claimed that they are going through workplace depression.

3. Leadership

You must be aware of, what leadership is, right?

But getting the chance of showing your leadership skills makes you more productive and devoted to your job. 

4. Personal Interest

Are you loving, what you are doing? Or you are just doing it for the sake of earning money or you have to do it?

Often, we choose career paths we never want, everyone has their reasons. But here, it plays an essential role and is one of the very important job satisfaction factors.

Let me explain why?

If you were doing what you love or what your hobby is, you would never end up being bored, agree?

In short, if you are passionate about doing anything, it would make you more productive, hence, enhance job satisfaction.

Also Read: Top 60 Future Business Ideas in India

5. Challenges

We often ignore issues and challenges, right?

But what if challenges in the organization related to the workplace, allows you to grow and develop?

Another, reason for job satisfaction is that you are being trusted by the organization. All this, sum up to boost job satisfaction.

6. Creativity

Yes! Creativity matters a lot, imagine following the same schedule regularly, will you enjoy your life?

Nah! The same happens in the workplace, if you have to follow the same routine regularly, it would bore you and lessens job satisfaction.

Therefore, to stop the monotonous cycle and for employee’s growth, some creativity in the workplace is crucial. 

7. Feedback

feedback is necessary for job satisfaction

First, it is a two-way street, feedback of the employee is important, so as working on it.


That is because it gives the sense that the voice of the employees is being listened to and acted upon.

It also reflects professionalism and equality. 

8. Trust

Trust is the backbone of every relationship you ever have either professional or personal.

Mostly, employers fail to provide the contracts and complete the promises on time, no matter what, it affects job satisfaction.

The job satisfaction examples is, delays in promotion or increments, etc. 

9. Flexibility 

Here, I particularly focus on time, flexible working hours, and the work environment provides some time for the employees to enjoy their life.

Rather, than working all day or night. With that, it also creates a better image of employers and of course, increases job satisfaction. 

10. Performance Management

For employees, promotion is important but is serves best when they get promoted at the right time. For instance, if employees working hard, their promotion should not be delayed for a long time, as it results in job dissatisfaction. 

In short, the promotion of employees should not behold for the period more than average tenure. Additionally, if employees need to train, you can provide training to that employee too.

This is how you can enhance job satisfaction.  

11. Salary

Salary is also important if you are working hard but not getting the salary up to mark, this would also affect job satisfaction.


That’s easy, you are getting less for something, in which you are investing your time and energy. 

12. Respect

Respect is something, for which we all crave and no one wants to work in an organization where they have been treated with disrespect.

Not only this, but it also affects the productivity and job satisfaction. 

Also Check: 101 Business Ideas with Low Investment and High Profit in India (2021)

13. Healthy Environment

A healthy environment means a positive environment that is free from discrimination, stress, harassment, and more. As all of these not only persuade employees to work harder but also enhance job satisfaction.

14. Career Path

Would you like to work in an organization where you do not see a good career path further?

No, I don’t think anyone would like a dead-end job, right?

Employees tend to work hard, where there is the possibility of an upward career path, good wages, and more.

15. Appreciation of Work

Employees are working and trust me according to them they are giving their 100% to accomplish a task.

Then, where are the result?

They sometimes do not know, right?

That must be one of the causes of job dissatisfaction. To avoid this, you can appreciate the employees for what they are doing. This not only avoids job dissatisfaction issues but also persuade employees to work harder accordingly.

16. Relationship with Colleagues and Supervisor

Relationship with Colleagues and Supervisor

This is one of the major causes of job satisfaction, as some people want more than tangible or money achievements.

In such cases, the behavior of the supervisor and colleagues plays an important role in creating job satisfaction. 

As I have mentioned above, praising the employees, listening to the advice of the employees, and more plays an essential role in satisfying the employees.

17. Job Security

Why do people run for the government jobs?

Because it has job security or job stability, agree?

Job security becomes an important part of choosing a career because everyone wants stability instead of being afraid of losing the job. 

More job security, more good performance, and productivity you can expect from the employees.

18. Compensation and Benefits

Compensation and benefits given to the employees should depend on demand for the job, level of skills, the standard of community pay, and more.

Employees expect univocal and inline compensation and benefits. All these likely to affect the satisfaction level of the employee.

Also Read: How To Earn Money During/After Lockdown in India?

19. Nature of Work

It includes complexities, meaningfulness, and physical strain.

I would like to discuss these separately. Let’s start with complexities, challenging works create more job satisfaction, as it gives the sense that the employer has trust in the employees.

On the other hand, simple and repetitive jobs frustrate and irritate the employees. 

Next is meaningfulness, as I have mentioned earlier, work done by the employees is considered 100% correct and satisfied with them. Therefore, to allow them to make improvements and to give a chance to show their competence, you should give them proper feedback.

This would enhance job satisfaction.

At last, physical strain, the reasonable physical strain is considered as one of the causes of job satisfaction. However, this aspect is being overlooked in this technological era. This is because technological development has made physical strain an undesirable feature of the work.

20. Working Conditions and Environment

Healthy Environment is required for job satisfaction

Work environment plays an important role when it comes to job satisfaction.

The major reason behind this is that a person wants to work in a safe, comfortable, and secure environment rather than dangerous or uncomfortable. 

That further includes working near home, in modern facilities, clean surroundings, and the availability of tools and equipment.

Not only this, but it also includes proper lighting facilities, health hazards, social density, and more contribute to job satisfaction and dissatisfaction.

21. Promotion Policies and Career Development

Other factors that contribute to job satisfaction are training programs, promotion, and career development capacity.

All the employees want fair promotion policies and opportunities for personal growth, improved social status, and increased responsibilities. 

Additionally, the individual who will perceive the decisions related to the promotion should be made a decision fair and in a just manner. This would definitely, provide job satisfaction.

22. Organizational Development Factors

What position does an organization hold in the market?

It also includes a comparison of the organization concerning its competitors, and the potential development of the organization also affects the satisfaction of the employees. 

To add, the mission and vision of an organization also contribute to job satisfaction, only if these are abode by the personnel views and goals of the employees.

23. Office Location

Although this is not a major factor but worth considering.

Many people don’t like their office location. So suppose if people are from North India, they might not like the food taste of South India or vice-versa. This sometimes is very frustrating.

Or your home, PG, or hostel is far away from the office location. These small factors sometimes indirectly impact the job satisfaction.

Component of Job Satisfaction

Why Job Satisfaction is Important

So far, I have discussed, what is job satisfaction? What are job satisfaction factors or causes? All that includes components of job satisfaction, here these are, 

1. Cognitive Component

Cognitive components simply include all the beliefs, opinions, and perceptions that a person has regarding the organization. Therefore, to measure the cognitive components, varied items are measured. 

Now comes, how to measure the cognitive components?

Cognitive components are a belief or opinion segment of the attitude. 

To measure it, employees have to rate the adjectives from 1 to 5, in which 1 is highly described and 5 is not applicable. As a result, you can understand the belief or opinions of employees regarding the organization.

2. Affective Component

This component deal with the attempt to understand the needs of someone else. Further, it also includes satisfying these needs. It includes the feeling of an individual induced by the organization. It could have a positive effect and a negative effect. 

Here, let’s discuss both.

First, let’s start with a positive effect, it is the result of the feedback, information, and situation that fortify the self-worth of the individual. Although, the negative effect creates a refute situation.

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3. Evaluate Component

It simply includes likes and dislikes of an organization. In simple words, if you have to answer in a single word, how satisfied you are with your job, then this contains the answer to the entire evaluation. 

To find this out, one can simply use 5 points negative or positive scale, in which 1 indicates the most negative situation, On the other hand, 5 indicates the most favorable or positive situation. 

So, until now, you have gone through and understand the meaning, factors, and components of job satisfaction. Now, the next topic is the types of job satisfaction. 

Types of Job Satisfaction

Types of job satisfaction

Types of job satisfaction is all about what are the different things that contribute to the job satisfaction of an employee.

1. Hygiene Factors

To work comfortably in an organization, there are certain basic things that it should have. These are coffee, tea, water, a comfortable chair, and a safe working environment.

In short, these are minimum working conditions that an organization should fulfill. 

If not, it results in job dissatisfaction. Therefore, hygiene factors are essential to consider.

2. Productivity

Productivity is something that all the organization wants from its employees, right?

Employees are unhappy or unsatisfied if they are overworking and under-working. Moreover, it also includes being idle or being too busy, both affect the productivity of the employees.

3. Certainty 

Here, I’m considering certainty regarding the plans and strategy to accomplish a goal. I guess, everyone wants to work under a leader, who communicates to the employees about the future strategies and plans to accomplish a task.

In between all of these, we all want certainty and clarity, instead of an uncertain plan and strategy.

4. Intrinsic Motivation

It is doing something, not for external reward but enjoyment or because you love to do it.

It includes getting responsibility, which makes you productive and gives to the sense of satisfaction. 

Also Read: 23 Best Jobs for Over 40-Year-Old Woman in India

5. Extrinsic Motivation

Extrinsic motivation is external motivation which is not for inner fulfillment but something to avoid punishment or to get the reward.

These are incentives, compensation, praise, reward, and status.

6. Job Security

As I have mentioned earlier, job security is all we want, having a job security or less or no fear of losing the job makes us more productive. 

Job security allows the employees to work to their best abilities and allows employees to focus on the career trajectory.

7. Culture of the Office

It includes the expectations, norms, and values of an organization. If I have to give examples, then I would say, office politics are negative and uncivil.

Cultures of the office are essential as it is the total of beliefs, behaviors, traditions, and more of the organization. To add, it also creates a positive effect on the happiness, job satisfaction, performance, etc of the employees.

8. Quality of Working Life

Quality of working life

As the quality of home matters so the quality of working life, it includes interior design, location of the office, tools, and processing.

For instance, if the job is concerned with creative freedom, then an attractive office using the state of art tools would be great. 

9. Tone at the Top

It is basically, the ethical climate created by the board of directors, senior management, and audit committees. To add, it originates in the accounting field.

It is essential, as it is expected that leaders will follow the rules, policies, and abide by the internal control of the organization. If leaders fail to do so, the employees would do the same.

Hence, it focuses on the culture and values of an organization. 

Benefits & Importance of Job Satisfaction 

First, I would start with that, enhancing job satisfaction would allow employees to engage and give productive results. Not only this, but there are many more benefits of job satisfaction, these are, 

1. Enhance Productivity

It is being believed that job satisfaction is directly related to productivity.

According to the research conducted from 1996 to 2001, it shows that any improvement in job satisfaction is a direct proportion of the 6.6% increase in productivity per hour. 

Later, Harvard Business Review shows that when employees are happy and satisfied, the sales and productivity increase by an average of 37% and an average of 31% respectively.

Further, there more and more studies conducted which show a similar relation between job satisfaction and productivity. 

Therefore, the more the employees are satisfied, the more productivity would be. That eventually leads to higher profit.

2. Less Absenteeism

Taking unnecessary leaves at work without any proper reason

It can be associated with, how kids demand to miss school when they have any test or have to submit homework, right?

Not all, definitely. 

If the employees are satisfied with their job, it would eventually lessen the absenteeism of the employees. However, if they are dissatisfied is would lead them to take more leaves that too due to avoidable reasons. 

To add, voluntary absenteeism is a cause of worry as it refers to being absent without good reason. Contrary, involuntary absenteeism, is due to illness, funeral, in short, being absent due to unavoidable reasons.

3. Less Employee Turnover

High employee turnover is an issue of several organizations, if the employees are satisfied they won’t leave the job.

With that, studies have found that job satisfaction and employee turnover are inversely related.

Why employees turnover should be decreased instead of increasing?

Well, logically, low employee turnover is not a result of job satisfaction but hiring, and training, of new employees, increases turnover. That would be the worst-case for any organization.

High turnover requires more money and also affect the perks or rewards of the employees, which are culture-based.

4. Reduces the Unionization 

If the employees of an organization are dissatisfied they are more likely to join the union, Although, if they are satisfied it eliminates the need to joining any union. 

The major reason behind being a part of a union is that it is believed that all the employees together can influence the organization rather than an individual.

The level of activities of the union depends on how dissatisfied they are, if they are more dissatisfied it might also result in employees strike.

5. Enhance the Customer’s Satisfaction

Enhance the Customer’s Satisfaction

If the employees of an organization are satisfied, it will not only affect the productivity of the organization but also enhance the satisfaction of the customers.

As if satisfied employees will assist the customer with more pleasure and effort, that too with high customer service.

In addition, if they have provided with all the tools required to assist customers, it would allow employees to provide better customer service.

Therefore, loyalty, commitment, and customer satisfaction would certainly enhance the profit of the organization.

6. Lessen the Accidents

Dissatisfaction results in more accidents as it distracts the employees while working and it results in accidents.

On the other hand, a satisfied worker will be more attentive and careful while performing a task and would generate good results with fewer accidents.

7. Create a Good Working  Environment 

As we all know, to work in organization teamwork is crucial. If an employee is satisfied he would behave and treat everyone right, else he ends up talking rudely.

As a result, this hampers the teamwork of the organization. 

8. Growth 

The performance of the organization is measured by the growth of the organization. Growth is one of the most crucial benefits of job satisfaction, as more satisfied employees are, more loyal they will be towards the organization.

9. Enhance the Bottom Line Cost  

Let’s start with what bottom-line cost is?

It is simply the income of the company after all the expenses, which is termed as net earnings or net profit.

The bottom line cost represents the overall performance or condition of the organization. Therefore, if workers are satisfied, the bottom line cost would increases, vice versa.

10. Issue Identification

That’s easy to understand if employees are satisfied they would be more concerned about the things which they would have ignored otherwise that is because of the fear of retribution.

This would allow you to act upon these issues and generate better results which will benefit the organization.

Importance of Job Satisfaction

Importance of Job Satisfaction

Why job satisfaction is important?

So far, you have understood, what importance does job satisfaction hold importance for employees and for the organization itself. 

Job satisfaction affects performance, growth, productivity, absenteeism, employee turnover, etc. You can say, it affects the whole organization.

It gives rise to the question, why job satisfaction is so much effective? 

The answer to this question is simple, that the behavior of the individual might be affected by attitude and belief. That results either in reducing productivity or increasing productivity.

Therefore, job satisfaction is important because, 

  • Reduces the employees turnover
  • Enhance productivity
  • Increase the participation of the employees
  • Boost the growth of the organization
  • Increase the bottom line cost
  • Improve customer satisfaction, etc

Scope of Job Satisfaction

Scope of Job Satisfaction
  • Allow you to identify the satisfaction level of the employees concerning the motivation
  • Discover the areas of dissatisfaction
  • It includes extrinsic and intrinsic factors
  • Allow you to understand the opinion, perceptions and feeling of the employees


At last, the major thing to understand is that you should focus on the job satisfaction of the employees for better results.

So far, you have understood, why job satisfaction is important? Along with this, how you can enhance the job satisfaction of the employees?

All of this would certainly allow you to satisfy your employees by fulfilling the reasonable needs of the employees. A bit of praise, job security, a good working environment, and more, are some of the factors that improve job satisfaction.

In return, you would earn high profit!

Sagar V.
Sagar V.

Hi, I'm Sagar Verma, founder of 9to5Job. I quit my job in 2019 to pursue my passion for blogging and digital marketing. I'm very much interested in sharing my little experience of corporate life, make money-related topics with all of my lovely users. Read more