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How to improve employee satisfaction in 7 steps

Employee satisfaction is top-of-mind for many business owners, perhaps now more than ever. If an employer fails to take employee engagement and employee satisfaction seriously, they could put their business at risk, especially if their employees were to leave.

In recent years, workplace shifts have made employees change how they think about work. For instance, the global shift to remote and hybrid office setups has permanently impacted working life for all generations in the workforce, including the emphasis on employee satisfaction and work-life balance. 

Here's more about employee satisfaction and how you can improve the happiness of your employees in your business. 

Employee satisfaction and why it matters


Put simply, employee satisfaction is the level of employee happiness or contentment an individual feels about their job and is an integral part of any business. If the employees in a business are not happy, it can directly impact the bottom line.

In today's workforce, employees expect more from employers than they traditionally did in the past, as labour laws have advanced and work-life balance has become a priority. The modern workforce increasingly desires a professional life with meaning and variety. Moreover, they want flexibility over where and when they can work, and they want to learn new skills and feel valued.

There are many ways your business can engage employees to reduce churn, prevent performance levels from dropping, and cultivate a strong workforce morale and company culture.

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Benefits of investing in employee happiness

There are many compelling reasons to invest in an employee engagement strategy.

These include:


Lower turnover

Hiring is expensive and time-consuming. And new hires need time to get acquainted with the company and reach peak performance levels. Moreover, churn can have a detrimental impact on your remaining employees.

Higher productivity

More engaged and satisfied employees are likelier to be more productive and invested in the company and in their role.

Improved workforce morale

A satisfied workforce can create a sense of togetherness and belonging. As a result, morale also tends to be stronger.

Better environment for culture building

It's tough to foster a good company culture if employees are disgruntled. But an engaged workforce can provide the environment for your ideal culture to thrive.

Higher business resilience

Ongoing training and investment in your workforce keeps your organization's people up to date and ahead of the curve. As a result, you're better positioned to withstand marketplace shifts or shocks.

How employers can improve employee policies: the 7-step plan

By taking a holistic approach to employee satisfaction and appreciation, not only can you improve employee engagement, but you can also transform and future-proof your business.

1. Create a mentality shift

One of the biggest challenges to implementing change is securing support and a willingness to help make it happen. An open-minded, proactive mentality across management provides the foundation for a successful employee engagement strategy.

2. Ensure a correct (and prompt) payroll process

Employees expect their employer to meet certain minimum standards. One such standard: a prompt and accurate payroll process. Late payments, complicated processes to get paid, and incomplete payments can frustrate employees and lead to their resignation.

By making sure employee payroll is taken care of correctly every payment period, you'll provide the sense of financial certainty and predictability that all employees want from their employer.

3. Create an open employee–company feedback loop

Do you want to make your employees feel valued? Give them communication channels that allow their voice to be truly heard.

Better yet, make these channels a central element in the way your company operates. That way, you can tap into a massive idea pool from your workforce — an overlooked asset in the traditional top-down hierarchical business structure. This type of open feedback loop can be a win-win outcome.

4. Operate a flexible working environment

You can also boost employee engagement by integrating flexibility into the workplace. One way to do this is by accounting for different types of people and preferences in your workforce. For instance, depending on a person's chronotype, they may be more productive in the morning, afternoon, or evening.

Flexibility can come in the form of non-rigid working schedules, flexible and unlimited vacation time, and the choice of work-from-home versus in-office time where possible.

5. Provide ongoing training

Training isn't an add-on anymore — it's a crucial element in keeping staff turnover down. By investing in your learning and development function to create a constant upskilling and educational working environment, you can reap the rewards of a more capable and engaged workforce.

6. Get the work environment right

Employee wellness and health is another crucial prerequisite for employee satisfaction. Strong ergonomics — the design of the workplace to aid comfort and prevent injury — is key. Moreover, plenty of natural light, clean air and water, clean sanitation services, and elements like a working kitchen and a common area to relax are all essential to creating a positive workplace with satisfied employees.

7. Consider switching from a vertical to horizontal hierarchy

A vertical hierarchy can provide clear lines of authority and easy-to-understand tasks from upper management. However, it can also diminish employee autonomy.

In contrast, a horizontal hierarchy can give each employee a high degree of control over their own role and their sense of achievement. While switching from a more traditional vertical structure to a horizontal approach is a big decision, it can be an incredibly effective way to skyrocket employee satisfaction.

Getting payroll right: Ensure on-time and reliable salary payments with speed and ease

For small business owners in particular, running payroll can be a time-consuming process. And when mistakes happen, payroll hiccups can be off-putting and frustrating for employees, which could potentially negatively impact employee satisfaction. 

Automated payroll solutions like QuickBooks Payroll can help address this issue once and for all, so you can focus on doing what matters most for your business and keep your employees happy at the same time.

Payroll can be seen as a stressful, time-consuming process. But it really doesn't have to be. With the right payroll technology platform in place, you can master this essential process without friction or headaches.

QuickBooks lets you run payroll in less than five minutes*, so you have more time to focus on what matters most. Learn more and start paying your employees with QuickBooks Payroll today.


*Median time spent by US QuickBooks Online Payroll users reviewing and approving payroll as of December 2022.


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