The Positive Effects of Employee Satisfaction on Your Business

Anika Wegner -unless-

In this post we will discover why employee satisfaction is so important for your business, what it benefits, and what positive effects come along with it.

Nowhere else in the world do employees dislike going to work as much as in Germany. 23 percent identify as unmotivated, and 16 percent have mentally checked out already. For businesses, this means not only increasing absenteeism, but also a high turnover combined with enormous losses in knowledge and time thanks to constant onboarding of new employees. Unfortunately, many companies still invest too little in their employees and those employees’ satisfaction. However, numerous studies show that there’s a better way.

What does employee satisfaction benefit, and which effects come along with it? There are numerous possibilities for how to increase satisfaction in your business. After all, only employees who are happy and satisfied with their jobs can reliably deliver the best results — and their enthusiasm is contagious. Here’s to more enjoyment in the workplace!

Employee Satisfaction

What are the keys to employee satisfaction?
Discover everything about employee happiness in our practical booklet “The Path to Employee Satisfaction.” 

Happiness at work: What benefits employee satisfaction?

Who wouldn’t want to look forward to going to work? No more “cases of the Mondays,” but rather looking forward to the start of the new week! But when do employees describe themselves as satisfied or even happy on the job? First, it’s important to realize that there is no single path to a satisfied workforce. Every individual is different and has different needs.

However, Maslow’s pyramid states that such fundamentals as job security and a competitive salary are non-negotiable: Only then can a person think about wanting more. For example, employees who feel valued at work and as if their suggestions are being heard experience increased employee satisfaction.

Key to this is professional development. A mere 48 percent of surveyed employees had ever taken part in a professional development program. And yet, such programs — including team building, mentoring and in particular language learning — are an attractive benefit in any employment package.

💡 Did you know?
You can find more ideas on how to improve employment happiness in our blog post 10 Tips for Promoting Employee Satisfaction in Your Business.

What positive effects brings employee happiness?

Self-actualization in the workplace is one of the key motivators. When a business supports its employees and even challenges them with opportunities to grow beyond their current abilities, this results in numerous positive effects.

Increased productivity

Actually, it’s pretty simple: Those who are more satisfied in their jobs are more positive, focused and thereby productive. Numerous studies (such as this one from Peacon) show that personal and professional development opportunities are the ultimate driving factor for delivering high-level performance and thriving at a company.

But the distinct advantage of learning and professional development offerings goes beyond recruitment: An attractive training opportunity in comparison with other companies is, according to employers, the number-five driver of employee retention. In times of talent shortages, it is of existential importance for businesses to retain employees for as long as possible.

Less turnover saves companies the significant work and energy of a constant search for talent, and their customers can sense employees’ increasing satisfaction – which in turn spurs them on to continue working with them. After all, a respectful working environment is the most important cornerstone for a successful business.

A better work environment

People who enjoy their jobs pass this positive attitude along to their entire team. But a positive working environment and strong feeling of belonging can only emerge where employees feel valued and heard. Employees who identify themselves more strongly with the company mission are ready to sing its praises to anyone, and an increased trust among colleagues means that the team can manage even in difficult situations with confidence.

💡 Need some inspo?
Do you want to improve employee satisfaction but you're not sure how? Find some ideas in our blog post These Companies Are Best at Promoting Employee Well-being.”

Increased resilience in stressful situations

Does employee happiness only work under ideal circumstances? The opposite, actually: It is precisely in crisis situations that the true potential of satisfied employees comes to the fore. The current coronavirus pandemic has demanded a lot of everyone. Many are working from home under drastically different circumstances. And yet it is precisely in this situation where one can see where the trustworthy and supportive company cultures are — and where they aren’t.

More employee satisfaction means not only a closer bond between colleagues, but also less absenteeism when everyone feels like they’re working together for a good cause. Stressful situations are where a workforce’s increased resilience and conflict preparedness can really shine — which then has a positive influence on other team members and makes for a successful working culture.

Greater success thanks to happier employees

Every responsible business and its executives should have their employees’ satisfaction top-of-mind, not merely for more happiness and well-being at work, but also for the sake of the company itself: For when your employees are happy to do their jobs and get engaged in their work, this will grow your business in the long-term. Thanks to sustainable benefits such as language learning, employees grow beyond their previous limits and learn to appreciate their own abilities more. Increased employee satisfaction is therefore directly related to increased success of the company.

Employee satisfaction also helps with employer branding. In a time when social media is ubiquitous, employer branding is no small feat, but it is a great opportunity. If your company is particularly worker-friendly, word will get around. With a strong employer brand, you will not only cultivate more long-term company loyalty, but also a great reputation. This will not only be apparent in strengthened relationships with customers; a positive business image automatically attracts potential candidates who share the same values as your company culture: a win-win situation. 

Smiling employees are working at their workplace.

Employee satisfaction as a cornerstone of your workday 

Employee satisfaction can’t just be all talk, however — for it to work, you’ve got to put actions to the words beyond just a few cursory agenda items at the quarterly meeting. Instead, employee satisfaction needs to become firmly anchored in your company’s day-to-day. This can’t be done overnight, however, and that is just fine. Increasing employee satisfaction is an ongoing process that always needs tending. Some key ideas for executives to keep in mind:

  • How can we integrate employee satisfaction into our day-to-day, and what advantages does a Happiness Manager have?
  • What possible changes in our company values might we want to implement? 
  • And what opportunities for professional development would we like to offer our employees?

In our new digital booklet “The Path to Employee Satisfaction,” you will discover the most important elements for happy talent, and have everything all in one place: How you can support the satisfaction of your employees individually, and what positive effects this can have on the long-term success of your business.

The coronavirus pandemic doesn’t have to be an obstacle in this goal. Quite the opposite: For quite a few businesses the pandemic has enabled conditions that many workers have long asked for, including working from home. And this remains true whether at the office or home: the happier and more balanced your employees are, the more productive they are. Indeed, especially in these times, the mental health of your team is a high priority. Bring the concept of satisfaction in the day-to-day to your business — and use the pandemic as an opportunity for digital professional development.

Babbel for Business has specialized in efficient digital learning from the start — totally flexible learning, no matter where or when you use it. Numerous workers have expressed the desire for language learning as part of their professional development, and with Babbel for Business your employees are not only able to set their own goals for learning time, but also their own personal goals. Our online language learning platform supports you in being able to offer professional development as an important asset for more employee satisfaction in your business.

If you’re interested in digital continuing education for yourself and your team, then Babbel for Business could be exactly the right fit: Our simple language learning, in video tutorials or group classes, is right at the nexus of digital learning and “new work” — for a future-proof, sustainable corporate culture with fun at work. 

Employee Satisfaction

What are the keys to employee satisfaction?
Discover everything about employee happiness in our practical booklet “The Path to Employee Satisfaction.” 

Anika Wegner, B2B Blog Editor


Exploring other cultures through language is particularly important to her. That's why she loves writing for Babbel about topics, how companies can benefit from language-learning solutions.

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