22 Strong Factors Influencing Employee Satisfaction in 2022

What factors are associated with employee satisfaction and dissatisfaction? Certain factors are obvious (pay and benefits), while some are less discussed (age and online tools). There’s a plethora of things that play a role in keeping employees happy and motivated at work.

LumApps for Employee Engagement
Satisfied Employees in a Company

What is Employee Satisfaction in the Workplace?

Employee satisfaction is the level of collective positive feelings that employees have toward their jobs, or, when every employee feels they are more satisfied with their work.

So, what makes employees satisfied in their work? Herzberg’s Motivation Two-Factor Theory is often cited to answer this question.

Frederick Herzberg, a behavioral scientist, proposed his theory of motivation in 1959. It states some job factors result in satisfaction and others prevent dissatisfaction. Herzberg’s theory relied on two factors:

  • Hygiene Factors, which must be present to motivate employees at work but do not lead to long-term satisfaction.
  • Motivational Factors, which motivate employees to perform well.


Examples of Hygiene Factors

  • Pay or salary
  • Company policies
  • Fringe benefits
  • Physical working conditions
  • Level of job in the company
  • Interpersonal relations with co-workers and managers
  • Job security


Examples of Motivational Factors

  • Recognition
  • Sense of achievement
  • Growth and promotional opportunities
  • Responsibility
  • Meaningfulness of the work


This theory has limitations. It assumes there is an automatic correlation between job satisfaction levels and productivity. Herzberg’s research focused on job satisfaction and didn’t address productivity. His theory didn’t include blue-collar workers, who make up a large part of the labor force. Despite these factors, Herberg’s theory is cited frequently.

According to the Society for Human Resource Management (SHRM) survey conducted in 2017, job satisfaction includes several important factors. The most important ones are:

  • Respectful treatment of all employees
  • Compensation/pay
  • Relationships with supervisors
  • Job security
  • Opportunities to use skills/abilities
  • Feeling safe in the work environment
  • Benefits
  • Company stability
  • Communication between employees and senior management
  • Job duties
  • Immediate supervisor’s respect for employee’s ideas
  • Relationship with immediate supervisor
  • Teamwork within the department or business unit
  • Relationships with co-workers
  • Communication within the department or business unit


Why is Employee Satisfaction Important for Companies?

A company’s employees are its most important asset. Employee happiness is an essential consideration for modern businesses. It strengthens a company in several ways:

  • It results in Increased productivity rates since employees satisfied with their jobs tend to work harder.
  • It leads to higher employee retention rates; satisfied employees are less likely to leave their jobs and go to other companies.
  • Company profits may increase; happy employees make more sales and keep absenteeism rates down, leading to a better bottom line.

Factors Influencing Employees’ Job Satisfaction

The following factors influence employee satisfaction at work:

1. Being Appreciated

It’s demoralizing for employees to go to work each day without management acknowledgment or recognition. Feeling appreciated by an immediate supervisor and fellow team members can turn a regular day at work into one where an employee feels respected and valued.

Employees who feel their contribution is appreciated are more likely to work harder and put more enthusiasm into what they do. They will be more patient with customers over chat or e-mail or pass on those positive feelings at the virtual team meeting.

2. Competitive Salary

Employees want to be paid a fair wage for their work for the company. Job candidates research the market rate for similar positions by looking online. They are not likely to accept opportunities that pay significantly less than what they expect in an employment offer.

3. Health and Wellness Benefits

Benefits are also important to employees. Job candidates consider how much paid time off they will receive for vacation and sick leave, whether they have to contribute toward health insurance, and if the employer matches their pension plan contributions when mulling over a job offer.

Employees are interested in their overall wellness. They are actively looking for employers who can offer an Employee Assistance Program for help with mental health, financial and other types of services. Employees also want a comprehensive healthcare plan that covers chiropractic, vision care, and physiotherapy services.

4. Positive Relationships with Co-workers

People spend a lot of time on the job. If they can’t get along with their co-workers, their working days will feel twice as long. Picture walking into an environment each day where everyone is sullen, stern, or just plain hostile. There is no one to say “Hello” to, share a smile and a laugh with, or ask for help when needed. It will make any employee feel unwelcome and as if they are working alone.

The employee will have no one to share anything good that happens to them, and they won’t have anyone to commiserate with when their day isn’t going well. A person in that type of “toxic” work environment won’t likely stay long.


Inclusion Community - Google Currents Alternative with LumApps

Inclusion Community – LumApps Platform

5. Positive Relationships with their Supervisor

The best managers in a company don’t tell their team members what to do. Instead, they lead by example and establish a cooperative atmosphere at work. These managers will be successful because their team will want to put forward their best efforts for them. These managers treat their team members respectfully, recognize each person’s strengths and weaknesses, and expect the best from each individual.

In a positive team environment, the manager lets team members know that the manager can help if a team member has questions about a task. The manager is also someone with whom an employee can speak confidentially about personal matters.

6. Good Work-Life Balance

The days when an employee had to be at work during set hours (Monday-Friday, 9 a.m.- 5 p.m.) may have finished. Flexible work hours are consistently near the top of the factors contributing to higher job satisfaction. Companies that cling to the policy of rigid working practices will probably find that top job candidates are looking elsewhere for employment. Instead, outstanding job seekers will deliberately seek employers prepared to offer a compressed workweek or working from home options.

7. Employer’s Financial Stability

Employees want to know that their employer is running a financially stable business, and it’s not surprising to find financial security as one of the top factors for employee satisfaction levels. While employees may enjoy their work, they also need to be paid on time! When employees know that their company is on solid financial ground, they can relax and focus on performing their job duties.

8. Interesting Job Duties

It wouldn’t be realistic to expect that all jobs will be exciting all the time. Some job tasks are quite dull but need to be performed anyway. Rather than have one person or one team assigned to the boring tasks all the time, it’s a good idea to rotate these tedious or dirty jobs so that everyone on the team takes their turn with them. All team members also have a turn at the better and more interesting tasks available.

This arrangement fosters a sense of goodwill throughout the team and it lets everyone know that the senior staff don’t get all the best assignments.

9. Opportunities for Professional Development

No one wants to feel as though they are stuck in a dead-end job with no advancement opportunities. Employees are interested in learning new skills to train for better-paying work, and they want to know that there is a career path available to them when they join a company if they are interested in advancement.

10. Online Tools that Meet Employee Needs

Employers can help employees do their work efficiently by investing in modern tools that meet their needs. LumApps offers an employee experience platform where workers can interact through social features. The platform also ensures that employees stay informed about company news and events and get to know each other by consulting the Employee Directory.



The LumApps employee experience platform is fully compatible with Microsoft 365 and Google Workspace. It also allows for multilingual communications with more than 30 languages available, an exceptional feature for companies with satellite offices located globally. The automated translation feature will enable employees who communicate in different languages to understand each other.

11. Healthy and Safe Work Environment

A healthy and safe work environment is essential for overall job satisfaction. The employer has a legal and moral responsibility to ensure that the workspace meets safety standards set out in applicable laws and regulations. These measures apply to having a First Aid kit and working fire extinguishers available. The employer must also clearly mark exits so that employees can leave the premises quickly in an emergency.

Employee health and safety also extend to ensuring the work environment is pleasant and attractive by keeping it at a comfortable temperature year-round, providing plenty of natural light, and adding plants to bring nature indoors.

12. Fair Policies About Promotions

Companies with fair and transparent policies about promotions are more likely to have employees who say they are satisfied with their jobs. If workers feel that the policies around advancement are unfair or biased in some manner, they are likely to feel demotivated. They may even decide to look for work elsewhere.

Organizations need to have fair systems around promotions and competitions for internal positions so that no one feels they have been the target of discrimination.


Job Board - LumApps Platform

Job Board – LumApps Platform

13. Feeling of Belonging

Suppose someone feels that they are an essential contributor to their team and that their work matters; they are more likely to feel satisfied in their work. Managers can help all their team members feel that they belong by encouraging everyone to participate in team meetings. (To get the group’s creative juices flowing, a manager can provide a list of topics beforehand, and this strategy allows people who need time to gather their thoughts to prepare in advance.)

Team leaders emphasize the feeling of belonging by recognizing their team member’s birthdays and work anniversaries. Managers can also make an effort to reach out during the Festive Season to thank the team for their hard work throughout the year.

14. Responsibility

When an employee is given more responsibility at work, it indicates the employer thinks the employee is trustworthy and capable. An employee who takes on more responsibility experiences a higher level of satisfaction.

Employers who don’t give employees extra responsibilities or decision-making power have workers who don’t feel engaged at work. They lose interest in their job and become dissatisfied with their employer. The lack of employee engagement shows in higher turnover rates, lower productivity, and reduced profits for the company.

15. Creativity at Work

Job satisfaction levels increase when employees are allowed to be creative at work. Employees feel fulfilled when the project is completed.

Workers feel invested in the project if their creativity is a part of the endeavor. It is personally meaningful even if an employee contributes a small portion of their creativity to a project.

When jobs are repetitive and monotonous, employees are more likely to feel they contributed little of themselves to their work. Job satisfaction levels will drop as a result.

16. Personal Interests and Hobbies

People who can pursue their interests or hobbies and make a career out of them are most satisfied at work. They report that their job is not a job for them; instead, it is a passion. They are making money doing something they love. They are delighted in their chosen career and will put forth the effort required for success.


Community of Interests - LumApps Platform

Community of Interests – LumApps Platform

17. Feedback

Employees who don’t receive feedback don’t know whether they are doing their work well or there are areas where they need to improve. Workers need to know where their strong points are so they can keep moving in that direction.

A manager shouldn’t simply point out what the employee is doing wrong in areas to improve; they should give a specific example of what an employee did that wasn’t correct, followed by a suggestion for a better approach. If appropriate, the manager should offer the employee support or coaching to change their behavior at work.

18. Age

Research shows that as employees get older, their job satisfaction increases and more senior employees tend to have more experience. They can demand higher pay rates and better benefits (more paid time off, flexible hours, sabbaticals, etc.) than younger workers.

Older workers may be more satisfied with their work due to their experience. They are more confident in their ability to perform the job well, which allows them to feel more relaxed when they are at work.

19. Trust Between Employees and Senior Management

Trust is a crucial component for job satisfaction in the workplace. Managers may not always tell their team members everything that is happening. However, employees should be able to trust everything that managers tell them.

It doesn’t create a good working atmosphere if the CEO tells employees that the company is performing well then cuts staff the following month due to budget cuts. That type of about-face leads to employees feeling misled, and the CEO (and the rest of the management team) will appear untrustworthy).


CEO Screen LumApps Play

CEO Screen LumApps Play

20. Inclusiveness

When scheduling meetings, be sure to extend an invitation to everyone on the team. Excluding certain people gives them the message that they aren’t needed or don’t matter. It also implies that the person making the schedule doesn’t care about their feelings.

The same rule applies when scheduling training sessions. Never assume that certain people wouldn’t be interested in attending a particular session or seminar. Invite everyone, and let individual team members respond as they will.

21. Work Group Size

Employees working for a large company don’t necessarily have to feel like they are just one of many workers doing a job. Workers divided into smaller groups to accomplish tasks report better opportunities for building understanding and trust with their coworkers. Ultimately, this situation leads to a stronger sense of job satisfaction.

If the workgroup has similar values and attitudes, its members will perform better together. There will be less friction within the group daily.

22. Workload and Stress Level

An unmanageable workload and unreasonable deadlines can make employee job satisfaction drop. When employees can’t keep up with their managers’ expectations, the situation becomes stressful for both parties and may cause conflict.

Poor planning can create a scenario like this. Managers need to allow enough time for employees to perform their tasks effectively. They also need to consider whether there are sufficient staffing levels to complete the available work when setting deadlines.

Multiple Factors Contribute to Employee Job Satisfaction

Employers have a definite interest in preserving employee satisfaction rates. Happy employees are more likely to work hard and stay with their employer. Employers should keep the factors affecting employee satisfaction in mind since replacing employees is an expensive, time-consuming endeavor.

A safe, friendly work atmosphere goes a long way to making everyone feel appreciated. Employers who provide modern equipment like LumApps’ employee experience platform are taking steps to ensure their employees are satisfied with their work.

LumApps for Employee Engagement