Work/life balance more important than salary, just ask your employees

Despite ongoing cost-of-living pressures, employees continue to rank work/life balance as a bigger contributor to job satisfaction than salary. What contributes to job satisfaction, why does it matter, and what should employers be doing?

Job satisfaction, to many, is an oxymoron. In fact, according to a recent report from the Arbinger Institute, it’s at an all-time low, meaning the term might ring even less coherent than usual. Let’s unpack the findings of the report to learn how your business can reap the benefits of high job satisfaction.

Satisfaction, not happiness

According to the report, fewer than a quarter of surveyed professionals (22 per cent) described job satisfaction at their company as “excellent”. Among non-supervisory employees, this figure dropped to 13 per cent. Job satisfaction can be defined as a “set of favourable or unfavourable feelings and emotions with which employees view their work”.

Crucially, job satisfaction is not the same as happiness. As noted by Workable, happiness is a “transient emotion that can be influenced by numerous factors, both personal and professional”, while employee satisfaction refers to the “overall contentment an employee feels in their role and the workplace environment”.

In other words, job satisfaction is a broader concept than happiness and includes deeper, more substantial subjective factors like meaning and value alignment. Prioritising satisfaction over experience can have a greater bearing on employee productivity and the overall quality of their experience.

It has been said to encompass any combination of psychological, physiological, and environmental circumstances. This matters for a range of reasons. According to the Arbinger Institute, companies whose employees consider to provide excellent job satisfaction are:

• Three times more likely to experience significant revenue growth.
• Three and a half more likely to have employees with a more positive outlook on future success.
• Six times more likely to have best-in-class efficiency

According to Workleap, higher employee satisfaction means lower turnover, higher productivity, a more positive company culture, and greater loyalty.

What does this look like?

The benefits of improving job satisfaction are clear, begging the question: what contributes to higher job satisfaction? The Arbinger Institute survey asked its respondents to rank certain elements by their contribution to job satisfaction, finding the following:

1. Work/life balance (51 per cent)
2. Salary (47 per cent)
3. Meaningful work (38 per cent)
4. Recognition and appreciation (34 per cent)
5. Opportunities for growth (33 per cent)
6. Relationships with employees (31 per cent)
7. Relationships with leaders (27 per cent)
8. Feeling safe and included (20 per cent)

Perhaps the most significant finding here is that work/life balance is more important than salary when it comes to job satisfaction.

“Today’s professionals crave a workplace that not only complements their life outside of work but also serves as a place where they can contribute with purpose,” said the Arbinger Institute.

“While ‘hustle’ cultures and growth-at-all-costs mentalities once dominated the world of work, we’re seeing a major shift. A people-centric culture, focused on high performance, is now a critical component in achieving desired business results.”