Higher Employee Satisfaction Leads to Higher Employee Retention

by Jane-Michele Clark

Employee satisfaction and retention are becoming increasingly important issues for managers. Over 25% of large North American companies have implemented stress reduction and continuous learning programs to help employees cope with the stress of juggling home, work, family and other commitments. Here are some ideas you can use in your organisation.

As little as 5 years ago, “work-life balance” was still being met with resistance and scepticism in some circles despite burn-out having reached record levels. Even now, some executives dismiss the idea as being irrelevant to their company situation.

According to a 2007 study by the American Psychological Association, three-quarters of Americans experience stress-related symptoms such as overwhelming fatigue, headaches, upset stomachs, muscle tension, teeth grinding, changes in appetite and sex drive, dizziness, irritability, depression and more.

Nearly half of the study participants also reported lying awake at night as another symptom of their stress.

This supports research conducted by members of The Q Group in 2009 which suggests that at least half of the working population in North America feels more stress than was the case five years ago and that money and work are the main stressors.

It’s not news that high levels of absenteeism and staff turnover affect the bottom line, as, reduced productivity, temps, loss of intellectual capital, recruitment and retraining take their toll. Today, although the topic of improving work-life balance is on an increasing number of HR managers’ agendas, it’s surprising that so few organizations have made job satisfaction a top priority.

Perhaps it’s because they’ve yet to grasp the potential gains from such an approach. Lynne Sanders, President of NYCC (New York Corporate Coaches) recounts the story of her first meeting, with the VP Finance from what is now her largest client. (It’s a story this executive shares often, so we’re not telling any tales out of school.) “When I mentioned the term ‘work-life balance’, R.D. scoffed and snarled, ‘If they [employees] can get it together so that their home life is balanced, then it won’t interfere with their work and the problem will take care of itself.’ Today R.D. is our biggest advocate because within 18 months of implementing various programs, absenteeism is down 7% and profits are up even more.”

Study after study shows that satisfied employees tend to be more creative, more productive, and far more committed to their employers. There is also a direct correlation between staff satisfaction and customer satisfaction.

So what you can do to improve employee satisfaction?

1. Make work/life balance a priority.
As more and more people report having more and more to juggle, there is a growing reluctance to spend unreasonable numbers of hours at work (and yes, the majority of people under 40 do tend to view more than 40 – 44 hours/week as unreasonable). In Canada, employment is at a 32 year low; in the US, the 4.6% rate is a 4 ½ year low. With the “balance of power” currently in the employee’s favour, employers who help lighten the load are getting the nod.

The #1 employee suggestion for lightening the load: As much as possible, allow people to juggle their schedules to accommodate daycare drop off times, or after work courses.
Grant reasonable amounts of personal time when it’s needed. Employees can make up the time by staying late on other occasions. In our company, if people need time to take a mother to the doctor’s, take part in a tournament, etc. – they take it. What I find is that this “lost” time usually gets made up by people putting in extra hours when a special project warrants the time and attention. When people know they will be treated fairly, they usually respond in kind. For the very few employees who might take advantage of the looser arrangement, it’s not worth losing the overall benefits of a more flexible approach.

2. Recognition and appreciation.
No matter how senior the level, all people want their achievements to be recognized. Even “small” successes deserve recognition, but frequently go unnoticed. When you notice employees doing something well, take the time to acknowledge their good work immediately. Just make sure the praise is sincere or it’ll come across as patronizing…or worse. Publicly thank the person for handling a situation particularly well. Write a kind note of praise, or award a bonus, if appropriate. You may even want to establish a formal recognition program, such as "employee of the month."

Also, keep in mind that promoting according to ability and contribution, rather than seniority, helps lead to increased levels of job satisfaction. And if it’s not possible to promote an outstanding employee when you think his or her work merits such a move, then offer a different title, one that more accurately reflects the caliber of the work and its value to the company – this can go a long way to increasing morale.

3. Employees will be more motivated to do their jobs well if they have ownership of their work. This includes allowing people to make their own decisions, to take responsibility for their choices and to solve their own problems. Yes, be there as a mentor, coach and master coordinator, but don’t micro-manage the process.

4. Job enrichment is a key component of job satisfaction – and essential to motivating employees to put forth their best efforts. In a recent survey, 74% of employees, from a variety of industries, indicated that having a job that enriches their lives to some degree is “very important”. What does this include?

• Variety of the daily tasks. Although there is a certain comfort in performing a job you’ve mastered, boredom sets in – and job satisfaction drops dramatically – if more than 50% of the day is spent doing similar tasks.
• Responsibility and managerial decision making.
• Getting direct feedback – on the good and the not-so-good – and being able to discuss the job with decision makers.
• Having an opportunity to interact and build relationships with clients. People like being able to represent their companies.
• Enjoying unique experiences (ones not possible in many other jobs) and having regular opportunities to learn new things.
• Control over resources, staff deployment and scheduling.

5. Provide opportunities for personal growth.
This includes opportunities for advancement within the company, courses that can be taken at or through work and other programs of a more personal nature. The company doesn’t have to pay for these programs, but some kind of subsidy can go a long way to improving overall satisfaction ratings. Many companies have introduced “lunch ‘n learn” sessions – where employees can learn about myriad matters at lunch while building bonds with others within the organization. From what we hear, topics range from retirement planning, to cooking classes, to coping with toddlers, to handling stress, to… the list is endless. For more on this subject, please click here to read “It takes more than money to motivate people.”

6. Pay on par with peers.
People want to know that they are being paid at or above what the rest of the industry is paying for similar work. When people feel their salary is not competitive with comparable positions in similar organizations, they can get the “grass is greener on the other side” syndrome and start searching. This is particularly true if they are not happy in their current workplace or position. Since it costs a lot more to recruit and retrain than it does to offer fair (or better than fair) compensation, you have to wonder why any employer would want to short-change one of the company’s most valuable assets.

7. Satisfy your customers’ needs.
Employees say they are happiest when working for companies that make products and services that satisfy customers’ needs. When customers are happy dealing with a company, the employees are happier – and this begets better customer service, creating a profitable circle that is far from vicious. The corollary is that when companies do not provide good customer service, when they don’t honour their customer commitments, employee morale drops and this leads to greater customer dissatisfaction and reduced customer loyalty.

8. Hiring the talent that’s needed.
This one may sound funny, but employees tell us that they feel more comfortable, and capable, when they feel that co-workers have the skills their jobs demand.

These are but a few suggestions. What it takes most of all though, is to create a culture where people are free to express their needs – and where they know that these needs will not be discounted. Listening is crucial to employee satisfaction and reduced turnover as it serves as the foundation for all else.


Copyright @2005-2010 Jane-Michèle Clark. All rights reserved.


Jane-Michèle Clark is president of The Q Group ( www.theQgroup.com ), a strategic positioning and marketing communications firm that has worked with many blue chip companies over the past 30 years. In addition to being seasoned business strategist and marketing expert, Jane-Michèle also teaches MBA level marketing at the top-ranked Schulich School of Business York University). Jane-Michèle is also a corporate trainer and speaker and 9-time nominee for the RBC Canadian Woman Entrepreneur of the Year Award.

Jane-Michèle can be reached at jmc@theQgroup. or by calling 416-424-6644.


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