Analysis of factors affecting employee satisfaction: A case study from Pakistan

Abstract

BACKGROUND: Employee job satisfaction has been a research focal point throughout the world. It is a key factor when measuring the performance of an organization and individuals. A leading engineering goods manufacturing enterprise in Pakistan, has been used in this case study. In Pakistan, very limited research has been done with respect to factors affecting job satisfaction. Some research has been done in medical institutions, banks, universities and the information technology sector but large public sector organizations in Pakistan have not been studied. A theoretical foundation for researching factors affecting job satisfaction in large organizations is outlined. OBJECTIVE: The objective of this research is to analyze various demographic, financial and non-financial factors affecting the satisfaction level of employees and to study the effects across different employee groups. DESIGN/METHODOLOGY: This study is based on quantitative data analysis. The employees of the organization under study have been divided into 10 homogeneous groups based on their departments. Information on job related factors (affecting the satisfaction level) have been collected from subsamples of each group using a self-administered questionnaire. An overall sample of 250 (out of total 1100) employees has been selected. Before conducting the survey, reliability of the questionnaire was measured using Cronbach's alpha. The normality of data was also examined using the Kolmogorov Smirnov test. Hypotheses devised to address the research questions were tested by using non-parametric Spearman correlation and Kruskal-Wallis tests. RESULTS: The response rate was 73.2%. Research findings indicated the significant factors that affect the satisfaction level of employees. Median group differences existed between responses based on age, work experience, salary and designation (i.e. job position/rank) of employees. Job satisfaction was also positively and significantly associated with job related factors such as pay, promotion, relation with employees, relation with supervisor, work stress and job security. CONCLUSIONS: Job satisfaction of employees was significantly affected by demographic, financial and non-financial factors. Employees who are older than 50 years, with greater experience, and in higher management positions were more satisfied with pay, promotion, work stress, work condition and working environment. The employees' departments did not play any significant role in affecting satisfaction levels.

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