Why is job satisfaction falling? Analyses and outlook

Result

Job satisfaction is a crucial factor for employee well-being and, consequently, for company productivity. However, job satisfaction has declined significantly in recent years. While more than three-quarters of all employees were satisfied with their jobs in 2013, this figure has now dropped to just over half. Employees with low incomes are particularly dissatisfied – only one in three of them is happy with their job. Among higher earners, the figure is more than twice as high.

Reasons

The changes in working conditions in recent years, particularly due to digitalization and automation, globalization, and not least the COVID-19 pandemic, have undoubtedly affected job satisfaction. In many places, a stronger focus on efficiency and productivity is noticeable, and employees, especially those in the low-wage sector, are experiencing economic insecurity.

Besides financial reasons, management style and recognition also play a crucial role. Employees are more likely to remain in a job if they are dissatisfied with their manager but satisfied with their supervisor. Conversely, many employees are open to resigning despite having a good job if they don't get along with their manager.

Other reasons that can be cited include a lack of work-life balance and company culture, as well as individual and personal job characteristics such as requirements, meaningfulness and targets.

Forecast

To increase job satisfaction, employers should implement a range of different measures. Training managers in soft skills and leadership plays a central role, as good managers significantly influence satisfaction. Furthermore, targeted professional development programs, a good work-life balance, and transparent career opportunities can contribute to increasing satisfaction, particularly among lower-income earners. The level of the minimum wage will be regularly reviewed in the future and will therefore also affect job satisfaction.

In the future, more and more companies will focus on employee satisfaction in their HR strategies. A satisfied workforce not only leads to fewer absences, a better company culture, and fewer resignations, but can also be a solution to the skills shortage. And for those interested in the hard facts: happy employees are 12 percent more productive than their less happy colleagues. Satisfaction, therefore, not only improves well-being but also increases productivity.