June 2006

Compensation key for employee satisfaction

Seventy percent of employees reported that compensation is the most important factor in job satisfaction, overtaking benefits. Eight out of 10 employees are satisfied with their current jobs and say benefits, job security, work/life balance, and workplace safety round out the top five most important factors, according to the Society for Human Resource Management’s (SHRM) latest Job Satisfaction Survey.

Whereas compensation and benefits are the driving forces behind employee satisfaction, HR professionals have consistently rated the relationship with immediate supervisors and recognition for performance as more important to employees.

This may be because when employees decide to leave an organization, they frequently site poor relationships with supervisors as the reason. However, this factor does not necessarily translate to positive relationships fostering satisfaction for employees.

In addition, work/life balance benefits may have helped make many organizations employers of choice among certain groups of workers. Employees, especially women and those under 35 years of age, have consistently rated work/life balance as a major component to overall job satisfaction.