FACTORS THAT CONTRIBUTE TO

EMPLOYEE SATISFACTION

Prepared for

Professor Mary Groves

University of Nevada, Reno

Prepared by

Natalia Delaney
Matt Figone
Conor Ingersoll
Sam LiCausi

December 12, 2017

To: Mary Groves

From: Natalia Delaney, Matt Figone, Conor Ingersoll, and Sam LiCausi

Date: December 12, 2017

Subject: Factors That Contribute To Employee Satisfaction

Here is the report on Employee Satisfaction you requested on December 12, 2017. From the
research and study conducted, satisfied employees are more productive and efficient with
responsibilities at work.
 TABLE OF CONTENTS

LIST OF TABLES……………………………………………………………………………….iii
LIST OF FIGURES………………………………………………………………………………iv
EXECUTIVE SUMMARY……………………………………………………………………....v
SECTION I
INTRODUCTION TO THE STUDY
Introduction
Statement of the Problem
Significance of the Study
Scope of the Study
Review of Related Literature
Methods of the Study
Source of Data
Sample Selection
Statistical Methods
Limitations of the Study

SECTION II
FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS
Introduction
Findings
Basic Employee Information
Compensation and Benefits
Work Environment
Career Development
Self Satisfaction
Conclusions
Recommendations
REFERENCES
APPENDIX A: QUESTIONNAIRE
APPENDIX B: DATA ANALYSIS
APPENDIX C: POWERPOINT SLIDES
 LIST OF FIGURES

Figure

1. Response Distribution of Availability of Insurance Types

 Factors that Contribute

to Employee Satisfaction

Section 1

Introduction to the Study

Introduction

In the modern business world, employee satisfaction is a key element in conducting a successful
and efficient business. According to Weir (2013), lack of engagement and satisfaction within the
workforce cost companies $450 to $550 billion each year. This evidence indicates the
importance of employee satisfaction within a company in order for optimal efficiency. Factors
that satisfy one employee may not necessarily satisfy another. Managers need to adequately
determine which elements correlate with employee satisfaction in order to improve work
efficiency.

Statement of the Problem

The purpose of this study is to identify certain factors and criteria that positively or negatively
affect how satisfied employees are with their occupations. The identified factors will be proposed
to management in order to improve employee satisfaction.

Significance of the Study

The two main groups to benefit from this study are management and employees. By becoming
aware of certain factors that affect employee satisfaction, management can adapt business
strategies and procedures to better please their employees. In turn, employees working in a better
work environment will be incentivized to increase productivity and efficiency.

Scope of the Study

This study pertained to employees of seasonal, part-time, and full-time work status and how
satisfied these individuals were with their current occupation. Some focus groups were
represented more than other areas; the study was confined to employees between the ages of 20
and 26. In this case, certain criteria for further satisfaction within a company could not be
described. Data was collected and analyzed in the Fall of 2017.
 Review of Related Literature

Weir (2013), a writer from Minneapolis that specializes in psychological effects in the
workforce, stated that psychologists are discovering ways that work becomes meaningful to
people and how to create value from it. People spend most of their days at their jobs and more
and more it is becoming a larger influence of lives, even outside of the job. According to the
State of the American Workplace, only 30 percent of workers in the United States are engaged in
their work. The remaining 70 percent are not actively engaged. Workers who are not engaged are
believed to act on their unhappiness, causing a undermining of what their co-workers accomplish
and taking up more of manager’s time. According to Gallup, active disengagement costs U.S.
companies around $450 to $550 billion each year. A large percentage of the workforce causes
concerns on how employees are treated and engaged within their companies.1

Amabile and Kramer (2011), Amabile, a professor at Harvard Business School and Kramer, an
independent researcher, analyzed a poll from Gallup-Healthways of 1000 adults showing that
Americans are feeling worse about their jobs more than ever. Workers of all ages with different
incomes are not satisfied with their managers and organizations causing them to become distant
from working. Amabile and Kramer believe when people do not care about their jobs or
employers, they do not show up consistently, they produce less, or the quality of their work
suffers. Employees are becoming disengaged from their jobs due to their employers and the
organization as a whole.2

In a research article written for the Review of Public Personnel Administration journal, Cho and
Sai (2012) explain the importance of equity within the workplace and how perceived injustices
can negatively affect the operations of a business. Through their research, Cho and Sai have
found that instances of discrimination and the inability to communicate constructively with
management, results in a decrease in motivation, negative attitudes, and high turnovers. Being
able to distinguish and eliminate factors that lead to organizational injustices can improve the
work environment and overall productivity of a company. The authors note from their findings
that setting clear standards for performance and having management provide feedback on
performance results results can significantly change the working environment and improve
employee satisfaction, as transparency is very important to most people.3

Based on the research of Schmidt (2007) for the Human Resource Development Quarterly,
opportunities for career development play a big role in how satisfied employees are with their
job. Through his findings he was able to examine that many employees feel a stronger sense of
loyalty to a company if they are adequately trained and have further opportunities to grow within
that business. Based on a survey distributed by Lucentcare, 271 network professionals were
asked what the most important factor of job satisfaction was to them, of which the majority
chose the opportunity to learn new skills.4

Chi and Gursoy (2009), researchers from the School of Hospitality Business Management at
Washington State University, conducted a study to examine the effects that employee
satisfaction has on customer satisfaction and overall company financial performance. The results
of their study found that, although it is difficult to track direct financial performance to employee
satisfaction, customer satisfaction is strongly impacted by employee satisfaction, with a strong
positive correlation. Many companies heavily rely on consistent and loyal customers for
financial prosperity, but having a large amount of disgruntled workers may leave those
customers looking for business elsewhere. Chi and Gursoy also suggest that it cost much less to
maintain customers rather than attempting to constantly gain new ones. It would be in the
company’s favor to maintain these customers through friendly and engaging workers.5

Methods of the Study

Sources of Data

Data for this study were collected through an online questionnaire delivered via social media
platforms and email by a group of students attending the University of Nevada, Reno. The
questionnaire was divided into five sections. Those sections were: Basic Employee Information,
Compensation and Benefits, Work Environment, Career Development, and Self Satisfaction.
The section concerning basic employee information was used to establish demographic data.
Secondly, respondents were asked to rank their level of agreement or disagreement on statements
concerning compensation and benefits. Furthermore, respondents were then asked to do the same
for statements regarding work environment, career development, and self satisfaction in their
occupations. A replica of the questionnaire can be found in Appendix A.

Sample Selection

The respondents of this survey consisted mostly of college students located in the Reno, Nevada
area. Each group member was responsible for distributing the questionnaire online.
Confidentiality was required and obtained by allowing the respondents to submit the survey off a
cell phone or computer anonymously.

Statistical Methods

Statistical methods used were based on simple percentages. For example, 60 out of 71
respondents were employed. When dividing 60 by 71, the percent found is 84.5%. Moving
throughout the sections, the same percentage technique was used to identify what percent of
individuals ranked certain statements at specific rankings. For example, out of the 60
respondents, 25 indicated that they moderately agreed that the rate of pay for their work was
accurate. Going forward, 25 divided by 60 results in 41.7%. Statistical methods were consistent
throughout the questionnaire and were executed properly.

Limitations of the Study

Due to the nature of a brief questionnaire, some aspects may have been omitted in regards to
employee satisfaction. This may have skewed results or gave inaccurate data about employee
experiences within their companies. Additionally, free response features were not added in the
study; this feature would give respondents the opportunity to voice specific concerns or praises
about their employee satisfaction.

Geographical area may have had an affect on the questionnaire. Many respondents were located
in the Northern Nevada and California areas. Sampling from this group could garner slanted
results that would not be representative of the population as a whole.

Lastly, advanced data interpretations models were not introduced to dig deeper into the data that
was found. Simple statistical techniques may be generalized and may not give accurate
conclusions from the raw data.

Section II
 Findings, Conclusions, and Recommendations

Introduction

This study was designed to determine the contributing factors of employee satisfaction. The
online questionnaire was distributed via social media platforms and email. 71 responses were
recorded and 60 responded as employees, giving a response rate of 84.5%. Most respondents
were answering from the Northern Nevada area and were in the age range of 20 to 26.

Findings

The presented findings were broken down into the following sections: Basic Employee
Information, Compensation and Benefits, Work Environment, Career Development, and Self
Satisfaction.

Basic Employee Information

The respondents were asked to identify the pronoun they prefer, and responses indicate 51.7% of
respondents identified as He and 48.3% identified as She. Furthermore, participants were then
asked to classify the age group that they are currently in. Results show that a majority of
participants were between the ages of 20 to 26 with this taking up 50% of the responses. Other
breakdown of age groups include: 11.7% for 19 and under, 10% for 27 to 35, 8.3% for 36 to 44,
10% for 45 to 53, 10% 54 to 62, and no respondents for individuals 63 and over. Additionally,
participants were questioned about their level of income. 55.9% of the respondents indicated an
income of $24,000 or less; the next biggest population was income earners of $24,001 to $40,000
which netted 10.2% of answers. Findings were broken down further as: 5.1% earning $40,001 to
$60,000, 8.5% earning $60,001 to $80,000, 1.7% earning $80,001 to $100,000, 8.5% earning
$100,001 to $125,000, 5.1% earning $125,001 to $160,000, 0% earning $160,001 to $200,000,
1.7% earning $200,001 to $250,000, 3.4% earning $250,001 and over. Employee type was then
broken down into hourly and salary; statistics pinpoint that 36.7% were paid by salary and 63.3%
were paid hourly. Also, respondents identified their work environment by seasonal, part-time,
and full-time. 13.3% were seasonal workers, 46.7% were part-time workers, and 40% were full
time workers. Lastly, level of education was determined. 5% had graduated high school, 61.7%
had some college, 16.7% had graduated with a 4 year degree, and 16.7% had an advanced
degree.

Compensation and Benefits

Respondents were then brought to a new section concerning statements about compensation and
benefits. Their objective was to rank their agreement level from strongly disagree to strongly
agree. 73.4% of respondents were in some form of agreement that their work matched their rate
of pay. Furthermore, 63.3% of participants expressed that there were adequate vacation and sick
leave days. Other statements concerning compensation and benefits were mixed results. 45% of
respondents felt that bonuses and incentives were not clearly defined in their work environment,
and 52% disagreed that their insurance options covered a variety of health types. These areas
contribute to Amabile and Kramer’s (2011) poll which found unsatisfied employees less likely to
be productive and efficient in their jobs due to lack of care. Areas regarding vacation and
insurance have a strong incentive for productivity and efficiency.

Figure 1: Response Distribution of Availability of Insurance Types

Work Environment

In the next section, respondents were asked a set of statements about how comfortable they felt
in their working environment. The respondents objective here was to rank their agreement from
strongly disagree and to strongly agree. There were no areas in these set of statements where the
majority of the respondents strongly disagreed with stating their working environment
adequately satisfies standards for a productive working environment. The areas where more than
50% of respondents agreed in some way their work satisfies the requirement include: Overall
comfortness in work setting (83.3% agree to some extent), maintains open atmosphere (83.4%),
Defined work expectations (78.3%), receive constructive criticism (75%), fair and proper
evaluations (71.7%), workplace takes steps to improve communication (76.7%), workplace is
free of discrimination (85%). Cho and Sai’s (2012) research reports that communication and
feedback, which were analyzed in this section, are important in maintaining employee
satisfaction.

Career Development

Respondents were asked to rank a set of statements from strongly disagree to strongly agree,
evaluating how well they feel their job provides opportunities for career development. On a scale
of 1-6, 1 being strongly disagree and 6 strongly agree, the results of the statements on career
development are as follows: Adequate training and education is available (75% agree, with
46.7% of total respondents choosing 4), opportunity for upward mobility (61.7% agree, with
33.3% of respondents choosing 4), upward mobility is clearly defined (56.7% agree, with 35% of
total respondents choosing 4), satisfied with the way the company handles employee inquiries
about career development (63.3% agree, with 38.3% of total respondents choosing 4), scholarly
opportunities for academic development (58.4% agree, with 28.3% of total respondents actually
choosing 3). The findings are related to Schmidt’s (2007) findings on how many employees find
career development a major factor in keeping or leaving a certain career or company.
Self Satisfaction

In this section, respondents were asked to rank how strongly they agreed or disagreed with
statements regarding how they have grown through the company and their level of self
satisfaction within this company. Respondents used the same 1-6 scale and the results were
tabulated. Rewarded and acknowledged for quality work (75% agree, with 40% choosing 4),
learned and acquired new skills (78.3% agree, with 38.3% choosing 4), consistently encouraged
to perform their best (66.7% agree, with 30% actually choosing 3), feeling of accomplishment
(78.3% agree, with 36.7%of respondents choosing 4). These findings are directly related to
Amabile and Kramer’s (2011) findings on how employees perceive their self satisfaction while
working for their current company.

Conclusions

From these findings, a variety of conclusions can give an insight into which factors contribute to
overall employee satisfaction. From research and the study conducted, satisfied employees are
more productive and efficient employees, while unsatisfied employees feel less of an incentive to
conduct satisfactory work.

Areas with the most unfavorable responses were found under compensation and benefits. The
specific topic addressed insurance options and variety of insurance options. A majority of
respondents felt their company was lacking in this area and felt less satisfaction in this area.

From the questionnaire, responses indicate compensation and benefits had the most weight for
employee satisfaction. Employees need to feel that the work they produce is rewarded
adequately. Incentivizing employees through good pay, strong benefits, and clearly defined
bonuses has the strongest correlation for improving employee satisfaction.

Recommendations

Gathered from the findings and conclusions, the following are recommendations for improved
employee satisfaction:

1. Employers should focus on offering more encompassing incentive packages that include
concrete bonuses, insurance options, and a variety of insurances types.
2. Employers should identify which specific programs their employees want the most in
order to better appease their needs.

3. Employers should conduct several surveys throughout the fiscal year that indicate ways
to better satisfy employees on a daily basis.

4. Employers should perform more research to more accurately pinpoint what satisfies
employees that takes into account a different variety of variables.

References

Amabile, T., & Kramer, S. (2011, September 3). Do Happier People Work Harder? The New
York Times, p. SR7.

Chi, C. G., & Gursoy, D. (2009). Employee satisfaction, customer satisfaction, and financial
performance: An empirical examination. International Journal of Hospitality Management ,
28(2), 245-253.
Cho, Y. J., & Sai, N. (2012). Does Organizational Justice Matter in the Federal Workplace? .
Review of Public Personnel Administration , 33(3), 227-251.

Schmidt, S. W. (20017). The relationship between satisfaction with workplace training and
overall job satisfaction. Human Resource development quarterly, 18(4), 481-498.

Weir, K. (2013). More Than Job Satisfaction. American Psychological Association, 44(11), 39.