Impact of Employee Dissastisfaction on Company’s Bottom Line

as written by Amrit Vijay Vaswani, Account Executive – Group Marketing & Creative Services

One of the goals of a company is to maximize profits and one of the ways to achieve this is to increase productivity. Productivity on the other hand is closely linked to the Employees performance. Higher productivity is likely to occur if employees perform at their at most potential. Employees performance depends upon job satisfaction, the more satisfied the person is with the job the more effort he will put in into his tasks.

Most employees view job satisfaction as having job security, Work/life balance and adequate remuneration and opportunities for development and growth (IOMA, 2006). If these needs are not met then it is almost certain that the employees will be unhappy at their job which eventually will affect into the company’s bottom line.

Lack of Opportunities For development and growth:
Employees will experience job satisfaction if they feel that their individual capacities, experience and values have been utilized in the working environment and that their workplace offers them opportunities for growth and development (Buitendach & De Witte, 2005).

Lack of balance between Work and life:
Employers have to help their employees to strike a balance between work and life. Constantly pounding employees with work when he/she has already have enough work on his/her hand will only lead to stress, longer hours at work, poor quality and increase absenteeism. Workers who have too much work tend to be absent as a result of too much stress at work. Work to employees should be allocated accordingly to allow employees to spend enough time at work and with their family.

Job insecurity:
The Kind of culture in the company will effect the employees i.e. their social interaction, their willingness to engage in risky decisions, fear, level of anxiety and job security (Bainbridge, 2006). With the attitudes “perform or u get fired” and company plans to cut back will only lead to employees being highly insecure about their jobs. Employees with low perceptions of job security will also be less committed and more likely to engage in work withdrawal behavior.

In adequate Remuneration:
Companies need to make sure employees are fairly compensated. Workers that feel that they haven’t been properly compensated will feel they have been discriminated in a way.

High performance work systems if implemented well will contribute to a company’s performance. Practices such as training, alternative compensation and employee involvement and enhanced communication will help improve employee satisfaction which will lead to higher productivity and higher quality output (Kling, 1995)

1. Training and Development
Employees now days have greater expectation in terms of what they want from a job. They want to be given the opportunity to learn and develop new skills and a chance to accomplish something worth wile. The company needs to redesign jobs to give workers more variety and responsibility in their jobs to make it more appealing. Job enrichments, for example is a good way could to do this.

2. Employee involvement
Getting the employees more involved in the organization can help improve productivity. This can be done when problem solving process i.e. getting employees to participate in decision making process or when implementing new changes. Employees should also be consulted during job design to create a more satisfying and motivating jobs to help improve company’s performance. When employees are consulted they feel that they are part of the organization and that its success depends on them. Employees that are more involved are more committed to the organization and will enjoy coming to work.

3. Communication
Communication from top to bottom is very crucial. Managers need to constantly talk to their employees, listen to their problems and work together to solve them, provide guidance and leadership on the job, assure them of their job and eliminate any doubts in their minds.

4. Compensation policy
Employees should be compensated fairly and should be compensated based on the amount of effort they put in on the job. They should be continuously rewarded for their hard work and effort they put into their work. Incentives should be given out when the company performs well in market as it was their hard work and dedication that resulted in an increase in the company’s bottom line.

Employee is an important asset and is proven to be a competitive advantage for companies hence they need to be managed effectively so that they can perform to their utmost and contribute to the organization. Organization should focus on employee satisfaction and make sure they are satisfied working for the company as their satisfaction on the job will help improve the company’s bottom line.