Employee Satisfaction and Productivity: Correlation Analysis

Introduction

"Employee satisfaction doesn't mean that work is easy or that employees are always happy. Instead, satisfaction means committed employees who are willing to give their 'discretionary energy' to their work" (Lavigna, 2010, What Drives… Section, ¶ 2).

Links to the Research Question

Employee satisfaction directly links to organizational excellence and productivity. Perhaps satisfied employees do in fact "create value in the services provided to customers, which in turn, has the potential to lead to customer satisfaction and subsequent loyalty," as well as productivity, as some researchers — like Andrew Robson, David Yarrow, and Jane Owen (2005), all with Newcastle Business School, Northumbria University Tyne, UK — argue. Or perhaps employee satisfaction does not directly link to the organization's productivity, and instead the employee's productivity and the quality of the organization's products or services influence his satisfaction. In the study "Does quality drive the employee satisfaction in the UK learning sector?," Robson, Yarrow, and Owen examine the link between organizational performance and employee satisfaction and, like various other researchers, find a number of contentions that contribute to employee satisfaction.

Just as researchers do not all agree regarding components contributing to employee satisfaction and organizational productivity, employers and employees do not typically agree on the reasons an employee stays committed to a company or on what factors contribute to an employee's satisfaction. Perceptions of both the company and the employee may be subject to change as circumstances vary. During this mixed-method, qualitative case study, the researcher focuses on employee satisfaction and productivity, investigates whether a correlation exists between employee satisfaction and productivity, and examines factors that contribute to employee satisfaction both on and off the job. The study also considers whether "satisfaction" can be measured — and if so, how.

Area of Study

The location for the present study encompasses areas throughout the world, as employee satisfaction and productivity comprise global contemporary concerns. The researcher particularly focuses on ASDA, located in the UK. On July 26, 1999, Wal-Mart — a company founded in the United States — purchased ASDA, initially founded in 1965 as Associated Dairies & Farm Stores Limited. During 2003, ASDA reportedly claimed the title of best company to work for in the UK. At one point in its history, however, colleagues described the company as the worst of all UK employers (ASDA, 2005).

Bob Lavigna (2010), vice president of research for the Partnership for Public Service, asserts that when an organization achieves high levels of engagement, customer satisfaction as well as performance and productivity naturally follow. In the journal article "Driving performance by building employee satisfaction and engagement," Lavigna stresses that for a company to obtain maximum results from its investments, it should focus on employee engagement, which universally leads to employee satisfaction and links to organizational productivity.

Rationale for the Study

The primary reason for focusing on employee satisfaction and productivity stems from an interest in how satisfaction links to the professional pursuit of managing an organization and ultimately owning and operating a business. A better understanding of employee satisfaction and whether it directly links to organizational excellence will not only help the researcher professionally but will also help readers as it relates contemporary considerations to the organization's success. As most individuals work as an employee or hold a supervisory position at some point in their lives, employee satisfaction affects the majority of people.

Significance of the Study

Increasing global competition mandates that contemporary companies maximize their productivity and quality to succeed. Joel Tan, a research assistant, Vicky Tan, Professor with the Faculty of Arts and Social Sciences at the National University of Singapore, and Tan Ngoh Tiong (2007), Professor of social work at Augsburg College, Minnesota, explain in the journal article "Work attitude, loyalty, and employee turnover" that employees with higher job satisfaction contribute to higher productivity. This study proves significant as it challenges readers to consider whether a correlation exists between employee satisfaction and productivity and what factors — both on and off the job — contribute to that satisfaction.

Hypothesis and Research Questions

The hypothesis for the study asserts: A positive correlation exists between employee satisfaction and productivity/output. To help determine the validity of the hypothesis, the researcher addresses the following three sub-questions:

1. What factors contribute to employee satisfaction, both on and off the job?
2. Can employee "satisfaction" be measured?
3. If employee "satisfaction" can be measured, how can this be done? If it cannot be measured, what reasons may contribute to the incapability?

The researcher asserts that a correlation does exist between employee satisfaction and productivity and that satisfaction can be measured. To further investigate the validity of the hypothesis, the researcher created a survey (Appendix A) which a number of participants completed anonymously. The researcher also assessed several interviews with ASDA colleagues.

Study Aim and Objectives

The researcher's primary aim is to analyze relevant literature as well as the results of a survey and interviews to determine whether a correlation exists between employee satisfaction and productivity. The study investigates six themes: employee satisfaction; employer/employee perceptions of employee satisfaction; factors contributing to employee satisfaction; ASDA reports; measuring employee satisfaction and productivity; and ASDA interviews.

Objective 1: Conduct a thorough review of literature relating to employee satisfaction and productivity, including information specific to ASDA and applicable to employee satisfaction worldwide.

Objective 2: Develop, implement, and assess results from a survey of ASDA employees and managers.

Objective 3: Analyze information retrieved through the literature review, the survey, and the interviews, and present a compilation of findings in the analysis chapter.

Objective 4: Discuss the study, offer conclusions, and make recommendations based on the study's findings.