There are many factors in the company that can create dissatisfaction among employees. It might be the environment, the pay or the culture of the company itself. In fact, when all the factors accumulate and cause imbalance will lead to problems such as burnout, mental health problems eventually make employees feel unhappy to continue working at the same company.
Hiring talented employees seems hard but retaining the good and talented employees is even the hardest. When dissatisfaction happens, employers should find out the root cause and cure the problems. The best method is to conduct an employee satisfaction survey, it is easy and transparent to both parties. Before that let's study a bit on the consequences unhappy and dissatisfied employees could bring to a company.
At Individual level (Direct impact to employees):
1. Mental Health Problems - Dissatisfaction can cause higher stress, anxiety, depression and burnout.
2. Lower Productivity - Unhappy employee employees most likely have difficulty in focusing, poor performance and prone to make errors.
3. Poor Physical Health - Prolonged unhappiness can cause stress or even depression that can cause chronic stress that is linked to high blood pressure, weakened immunity as well as sleep problems.
4. Low Engagement - Lack of motivation will cause employees to quit such as putting minimal effort for any task given to them.
5. Increased Turnover Intention - Less loyalty to the company and actively seeking for a new job
Organizational Level (Impact on Companies)
1. Reduced Productivity - Employees might work slower and less productive
2. High Turnover Costs - More money spent on recruiting, onboarding and training replacement
3. More Absenteeism - Frequent sick leave and increase medical claim
4. Poor Team Morale - Unhappy team will spread negative attitude and affecting overall culture
5. Impact on Customer - Negative employees might deliver poor services and cause lower client satisfaction and bad impact on brand reputation
Research such as Gallup in 2022 indicates that only 21% of employees are engaged worldwide and the low engagement costs companies about $7.8 trillion annually. Another research by Delloitte shows that companies with higher employee satisfaction outperform peers by 2.3–3.8% per year in stock returns.
It’s also found that satisfied employees are less likely to leave their jobs and more likely to to be more productive based on Herzberg’s Two-Factor Theory (motivation vs hygiene factors) is often used to design satisfaction surveys. Other meta-analyses by Harter et al. (2002, Gallup) found strong correlations between employee satisfaction, customer satisfaction, productivity, and profitability.
Monitoring employee satisfaction is essential for maintaining well-being in the workplace. Regular satisfaction surveys serve as a valuable guide for understanding employee needs and concerns. Based on the results, management can plan and implement suitable programs that address current satisfaction levels and support overall employee well-being.
