Research results of the Institute "Work and Qualification" of the University of Duisburg Essen from 2011 came to the conclusion that employee satisfaction in Germany is continuously declining in the long run. We are also in fifth last place in a European comparison. This finding could become a serious problem in German companies. After all, which entrepreneur today is not familiar with the emerging problem of the "war for talents"? Shouldn't one assume that companies do the best they can to ensure that their employees are satisfied and enjoy working for their company? Aren't these companies afraid of losing their top employees to the competition?
"Only satisfied employees are good employees." This statement is often heard, but is it sufficiently implemented? If you look at the study results of the University of Duisburg-Essen, you have to doubt it. Employee satisfaction has not increased but decreased in the last few years and this should lead some companies to rethink - at least one would think so. Employee satisfaction is becoming an increasingly important topic - not only for the companies themselves, but also for the employees. When employees notice how much is done for their satisfaction and well-being in other companies, they start to think, which in the worst case could lead to their quitting their current jobs. That is why, in this context, employee retention is an issue that companies can no longer suppress. It is becoming increasingly important for companies to retain their "high professionals" who have a broad range of knowledge and skills in order to keep this knowledge within the company.
The current Gallup study on the commitment of German employees came to a shocking conclusion in this regard: in 2012, only 15% of the employees surveyed in Germany had a high level of employee commitment. 61% felt only a low level of emotional commitment to their company and the remaining 24% had no emotional commitment at all. More and more companies are therefore implementing measures to increase job satisfaction and thus increase the loyalty of their employees.
Table of Contents
1. Introduction and objectives
2. Employee satisfaction
2.1 Definitions of employee satisfaction
2.2 Theories related to employee satisfaction
2.2.1 The two-factor theory according to Herzberg
2.2.2 The concept of motivation potential according to Hackman and Oldham (job characteristics model)
2.2.3 The Bruggemann model
2.3 Factors that can influence employee satisfaction
2.3.1 Working atmosphere
2.3.2 Pay
2.3.3 Attractiveness of work activity
2.3.4 Working time regulations
2.3.5 Employee Management & Operational Communication
2.4 Impact of employee satisfaction on the company
2.4.1 Organizational Citizenship Behavior (OCB) and Employee Satisfaction
2.4.2 Performance
2.4.3 Absenteeism and fluctuation
2.5 Impact of employee satisfaction on the person
2.5.1 Job satisfaction and life satisfaction
2.5.2 Personality development
2.6 Consequences of a lack of employee satisfaction
2.6.1 Internal termination
2.6.2 Consequences for the company
3. Employee retention
3.1 The importance of employee retention for the employee
3.2 The importance of employee retention for the company
3.3 Organizational commitment – a more precise definition
3.4 Examples of measures to promote employee retention
3.4.1 Staff development
3.4.2 Market-driven payment
3.4.3 Work & Life Balance
3.4.4 Company pension scheme
4. The relationship between employee satisfaction and employee retention
5. Conclusion
Objectives and Key Themes
The present work aims to provide a comprehensive overview of the constructs of employee satisfaction and employee retention, examining their individual definitions, influencing factors, and their impact on both the organization and the individual. Furthermore, the paper investigates the complex relationship between these two concepts, exploring how they interrelate and influence each other within a corporate context.
- The theoretical foundations and models of employee satisfaction.
- Key factors influencing satisfaction, including leadership and working conditions.
- The organizational impact of employee satisfaction, specifically on performance and retention.
- Strategies and measures for enhancing employee retention in modern enterprises.
- The interdependent relationship between employee satisfaction and long-term retention.
Excerpt from the Book
2.3.1 Working atmosphere
The working atmosphere has certain similarities to the construct of employee satisfaction with the difference that it does not refer to the individual, but to several people up to the entire organization and is not interested in the relationship with the work and its environment itself, but the relationship between the colleagues or the entire organization is in the foreground. It's a concept"... which indicates objective conditions within an establishment and is determined in particular by its social structures and interpersonal relationships, on which employees take a judgmental position, which in turn influences their behaviour."
It is assumed that there is a connection between the two variables working atmosphere and job satisfaction. This assumption was confirmed, among other things, in a study by James & James in 1989. In their study, they determined a positive correlation of these two factors of r = 0.89 and thus demonstrated a connection between the working atmosphere and job satisfaction. Social contact with other people is a fundamental need that each of us has. In a professional context, it is important to get along well with your colleagues and superiors. If you feel accepted and desired by your colleagues, this can help to increase job satisfaction. If the working atmosphere is right, you feel appreciated at your workplace and the daily way to work is gladly walked. If, on the other hand, you go to work with an oppressive feeling of unwelcomeness, this certainly does not contribute to satisfaction and can possibly also lead to increased absenteeism and fluctuation.
Summary of Chapters
1. Introduction and objectives: This chapter highlights the long-term decline in employee satisfaction in Germany and emphasizes the growing strategic importance of employee retention for companies facing the "War for Talents."
2. Employee satisfaction: This section explores various psychological definitions and scientific models, such as Herzberg's two-factor theory and the Hackman and Oldham job characteristics model, to explain the complexity of job satisfaction.
3. Employee retention: This chapter defines the concept of organizational commitment and provides concrete examples of retention measures, including staff development, market-driven payment, and work-life balance initiatives.
4. The relationship between employee satisfaction and employee retention: This section analyzes the intersection of both constructs, arguing that while they are distinct, they are deeply interdependent and influence each other in their impact on employee behavior and company performance.
5. Conclusion: The final chapter summarizes the findings, reiterating that employee satisfaction and retention are critical resources that must be fostered to maintain competitiveness and reduce the negative effects of absenteeism and fluctuation.
Keywords
Employee satisfaction, Employee retention, Job satisfaction, Organizational commitment, Work motivation, Herzberg, Hackman and Oldham, Working atmosphere, Performance, Absenteeism, Fluctuation, Personnel development, Work-Life Balance, Organizational Citizenship Behavior, Management style
Frequently Asked Questions
What is the primary focus of this publication?
The work focuses on the constructs of employee satisfaction and employee retention, exploring how they are defined, how they can be measured and influenced, and their overall impact on organizational success.
What are the central thematic fields covered?
The core themes include motivational theories, the impact of working conditions on satisfaction, the role of leadership, and strategic HR measures for increasing retention.
What is the central research question?
The paper seeks to define both constructs and investigate how employee satisfaction and employee retention are related, specifically addressing how they interact and contribute to long-term employee commitment.
Which scientific methods are utilized?
The work employs a literature review and analysis of empirical studies, including meta-analyses, to establish the links between job satisfaction, performance, and retention behaviors.
What does the main body of the work address?
It covers theoretical frameworks (Herzberg, Hackman/Oldham, Bruggemann), specific factors affecting satisfaction, consequences of dissatisfaction (internal termination), and various HR strategies for retention.
How would you characterize this work using keywords?
Key terms include employee satisfaction, retention, organizational commitment, motivation, and personnel development strategies.
What is meant by the term "internal termination"?
Internal termination refers to a process where an employee mentally quits their job, leading them to provide only the minimum required effort while remaining with the company, often due to unresolved job dissatisfaction.
How does the author describe the relationship between employee satisfaction and retention?
The author argues that they are interdependent; satisfaction represents the current work experience, whereas retention is a long-term commitment, but high satisfaction is usually a prerequisite for lasting retention.
- Arbeit zitieren
- Isolde Menig (Autor:in), 2013, The Connection Between Employee Satisfaction and Employee Retention, München, GRIN Verlag, https://www.grin.com/document/1160481
