The document is a survey report from the Society for Human Resource Management (SHRM) on employee job satisfaction in 2009. The key findings are: 1) Employees ranked job security, benefits, compensation/pay, opportunities to use skills/abilities, and feeling safe at work as the top five most important aspects of job satisfaction. 2) While the current economic crisis has not significantly affected most employees' overall job satisfaction levels, job security was ranked as the most important aspect for the second consecutive year, likely due to recession concerns. 3) HR professionals view effective communication between employees and management as very important for job satisfaction, highlighting the need for open communication during difficult economic times.

1. A Survey Report
by the Society for
Human Resource
Management
2009 Employee Job Satisfaction
Understanding the Factors That Make Work Gratifying

2. About This Survey Report
In January 2009, Society for Human Resource Management (SHRM) conducted the Job
Satisfaction Survey with a sample of employees and a sample of HR professionals. It is an annual
survey that has been conducted since 2002. The objective of the Job Satisfaction Series is to iden-
tify and understand factors important to overall employee job satisfaction from the perspectives of
both employees and HR professionals. This knowledge helps HR professionals better understand
and appreciate employee preferences when developing programs and policies that can influence
employee satisfaction. The survey explored 24 aspects of employee job satisfaction divided into
four topic areas—career development, relationship with management, compensation and benefits,
and work environment. Employees and HR professionals were also asked about how the current
financial crisis in the United States and globally was affecting employee job satisfaction.
Media Contact About SHRM
Julie Malveaux
julie.malveaux@shrm.org The Society for Human Resource Management (SHRM) is the world’s largest association devoted
(703) 535-6273 to human resource management. Representing more than 250,000 members in over 140 countries,
the Society serves the needs of HR professionals and advances the interests of the HR profes-
sion. Founded in 1948, SHRM has more than 575 affiliated chapters within the United States and
subsidiary offices in China and India. Visit SHRM Online at www.shrm.org.
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3. Contents
1 Executive Summary: Has the U.S. Recession Affected Employee Job Satisfaction?
3 The Different Perspectives of Employees and HR Professionals
5 Survey Results
5 Job Satisfaction Aspects in Order of Importance to Employees
8 Top Five Very Important Aspects of Job Satisfaction
8 Job Security
8 Benefits
11 Compensation/Pay
12 Opportunities to Use Skills/Abilities
13 Feeling Safe in the Work Environment
15 Results of Other Individual Job Satisfaction Aspects
15 Career Development
15 Career Advancement Opportunities Within Organization
16 Career Development Opportunities
16 Job-Specific Training
17 Networking
17 Organization’s Commitment to Professional Development
18 Paid Training and Tuition Reimbursement
18 Employee Relationship With Management
18 Communication Between Employees and Senior Management
21 Autonomy and Independence
21 Management Recognition of Employee Job Performance
21 Relationship With Immediate Supervisor
22 Work Environment
22 Flexibility to Balance Life and Work Issues
23 Meaningfulness of Job
23 Organization’s Commitment to Corporate Social Responsibility
24 Organization’s Commitment to a ‘Green’ Workplace
24 Overall Corporate Culture
25 Relationship With Co-Workers
25 Contribution of Work to Organization’s Business Goals
26 The Work Itself
26 Variety of Work
26 Overall Employee Job Satisfaction
28 Employee Satisfaction With Individual Job Aspects
30 Conclusions
31 Methodology
31 Notations
33 About the Respondents

4. 35 Appendix: Tables 1–13
44 Endnotes
45 Recently Published SHRM Survey Products

5. 2009 Employee Job Satisfaction Understanding the Factors That Make Work Gratifying 1
Executive Summary:
Has the U.S. Recession Affected Employee Job Satisfaction?
Research indicates that employees who are satisfied were exit interviews, feedback from employees’
with their jobs are more likely to stay with their em- performance reviews, speaking with employees on an It is not
ployers. According to this survey, 86% of employees individual basis, tracking turnover data and conduct-
surprising
indicated overall satisfaction with their current posi- ing employee attitude surveys.
that during
tion, with 41% of employees reporting they were very
the current
satisfied. What’s more, majority of employees (58%) What Do These Findings Mean for
reported that the current economic climate has not Employers? economic
made any difference in their level of satisfaction—and downturn,
this is good news for employers, especially during the  Conduct Environmental Scanning: Identifying employees
the external forces or trends that affect the organiza-
economically challenging time. selected job
tion is an integral part of the organization’s strategic
It is not surprising that during the current economic plan. Through a process called environmental scan-
security for
downturn, which some have compared to the 1929 ning, organizations systematically gather and analyze the second
Great Depression, employees selected job security for all relevant data about external opportunities and consecutive
the second consecutive year as the most important threats that may affect them at present and in the year as
aspect of their job satisfaction. It was also at the top future. Examples of external forces include chang- the most
of HR professionals’ list this year for the first time. ing demographics, economic conditions, emerging important
Benefits, compensation/pay, opportunities to use skills marketplaces, advances in technology and increased
aspect of
and abilities and feeling safe in the work environment global competition. Organizations can then use these
rounded off employees’ top five very important job data to evaluate their mission/vision, develop goals
their job
satisfaction contributors—nearly identical to the top and develop/train employees. satisfaction.
five of 2008 (see Table 1).
 Tap Into Available Talent: Opportunities to use
Factors that were not strongly connected to em- skills and abilities were ranked among the top five
ployees’ overall job satisfaction were organization’s aspects of job satisfaction for employees. Employee
commitment to a ‘green’ workplace, networking, career development will likely take a higher priority for
development opportunities, paid training and tuition organizations in the near future. Although the job
reimbursement programs, and organization’s commit- market might appear to be saturated due to the cur-
ment to professional development. rent downturn in the economy, several demographic
trends (e.g., Baby Boomers retiring around the same
Other noteworthy findings include the following: time, aging population and shortage of highly skilled
workers) will have a major impact on the workplace
 Employees whose organizations had been some- over the next decade, particularly on talent manage-
what affected by the current financial crisis were more ment. HR professionals are in a position to prepare
satisfied overall with their current jobs compared with their organizations for the future by developing
employees whose organizations had been greatly af- programs that will motivate, develop and boost skill
fected by the recession. levels of employees. Cross-training, mentoring, vol-
unteering, etc., are low-cost programs that organiza-
 Nearly three out of 10 employees were very satis- tions can adopt during times of fiscal constraints.
fied with their compensation/pay.
 The most common methods companies used  Open the Communication Door: HR profes-
to measure and monitor employee job satisfaction sionals have always rated factors from “the relation-

6. 2 2009 Employee Job Satisfaction Understanding the Factors That Make Work Gratifying
ship with management” category of job satisfaction
aspects among their top five contributors to employee
job satisfaction. Effective communication between se-
nior management and employees is important. It will
help employees understand the organization’s busi-
ness goals, policies and vision, and keep employees
informed about what is going on in the organization.
Senior management can keep employees well-
informed through companywide meetings and the
use of technology in top-to-bottom communications
(e.g., CEO blog, intranet mechanisms and e-mails).
Organizations should also encourage communication
from the bottom-up through employee feedback,
suggestions, etc.

7. 2009 Employee Job Satisfaction Understanding The Factors That Make Work Gratifying 3
The Different Perspectives of Employees and HR Professionals
The recruitment and retention of qualified, skilled need to know that the programs they are promoting
employees is the foundation of any business, small for employees are indeed important to them. One
or large. Research indicates that employees who way for HR professionals to gauge their knowledge
are satisfied with their jobs are more likely to stay of employee needs is to recognize the degree to
with their employers. Keeping a cadre of happy and which their perceptions are accurate when matched
motivated employees, however, is often elusive as up against employees’ perceptions. While collecting
the expectations of employees shift. These changing only employee data on job satisfaction would pro-
expectations stem from demographic trends, such vide useful information for HR professionals, another
as growing numbers of Generation Y employees
piece of the puzzle is found in a direct comparison of
(those born after 1981) and women entering the
the two groups’ perceptions.
workforce, the retirement of Baby Boomers (those
born between 1945 and 1964), caring for elderly
In order to make meaningful comparisons, it is
parents, and more general changes in society, such
important to consider the employees represented
as increased stress levels as employees attempt
in this study. HR professionals were asked to report
to juggle work and personal responsibilities. As life
on employees in their organizations, i.e., the entire
becomes more challenging, employees may become
workforce, including both exempt and nonexempt
more stressed. Therefore, the factors long thought
to satisfy employees may be shifting, depending on workers. With this in mind, it is accurate to say that
attributes such as the gender and age of employees. the profile of employees from the HR professionals’
perspective tends to be a more generalized and
In addition to demographic factors, the economic inclusive category.
landscape in which most U.S. and global compa-
nies are operating is of particular interest this year. Employee data were analyzed by demographic
Employees go to work not knowing what to expect; variables such as employee age, gender and job
hiring freezes and layoffs lead to taxed resources tenure. These types of analyses are useful because
and diminished employee morale. they highlight that not all employees have the same
preferences with respect to job satisfaction. HR pro-
HR professionals are an important organizational fessionals who are aware of the needs of different
link to the human capital embodied by employees. groups by age, gender and job tenure may be able
Therefore, as organizations face fiscal constraints, to develop programs that appeal to certain groups
the role of HR becomes even more crucial in helping more than others. For example, if an organization
companies balance the necessity to reduce operat-
has high turnover among employees 35 years of
ing costs while maintaining employee motivation and
age and younger, it would be useful to know what
satisfaction on the job.
factors affect their satisfaction the most and how the
This report compares the responses of HR profes- organization can offer programs that appeal to this
sionals and employees in an effort to understand segment of its workforce.
the similarities and differences between these two
vantage points. HR professionals are strategically ELEMENTS OF JOB SATISFACTION
primed to serve as a voice for employees. In addi- The following 24 elements of job satisfaction, and
tion, as individuals most heavily involved in recruit- eight special compensation and benefits elements,
ment, retention and performance management, HR are examined in this report:
professionals benefit by knowing which factors em-
ployees value most. Yet, this is sometimes difficult Career Development
because understanding what satisfies employees is 1. Organization’s commitment to professional
a dynamic and evolving process. HR professionals development

8. 4 2009 Employee Job Satisfaction Understanding The Factors That Make Work Gratifying
2. Career advancement opportunities within the Work Environment
organization 15. Feeling safe in the work environment
3. Career development opportunities for learning 16. Job security
and professional growth (mentorships, cross
17. Meaningfulness of job (understanding how job
training, etc.)
contributes to society as a whole)
4. Job-specific training
18. Organization’s commitment to corporate social
5. Opportunities to network with others (within or responsibility (balancing financial performance
outside the organization) to help in advancing with contributions to the quality of life of its
one’s career employees, the local community and society at
6. Opportunities to use skills and abilities in work large)
7. Paid training and tuition reimbursement programs 19. Organization’s commitment to a ‘green’ work-
place (environmentally sensitive and resource
Relationship With Management efficient)
8. Communication between employees and senior 20. Overall corporate culture (organization’s reputa-
management tion, work ethics, values, working conditions, etc.)
9. Autonomy and independence to make decisions 21. Relationships with co-workers
10. Management recognition of employee job perfor- 22. Contribution of work to organization’s business
mance (feedback, incentives, rewards) goals
11. Relationship with immediate supervisor 23. The work itself (it is interesting, challenging, excit-
ing, etc.)
Compensation and Benefits
12. Compensation/pay 24. Variety of work (working on different projects,
using different skills)
Base rate of pay
Opportunities for variable pay (bonuses, commis- The overall results (figures) are included throughout
sions, other variable pay, monetary rewards for the report with the corresponding text; however, the
ideas or suggestions) following in-depth analyses (tables) are listed at the
end of the report in the Appendix:
Stock options
 Being paid competitively with the local market  Comparisons of importance of selected aspects
13. Benefits of job satisfaction from the perspective of both em-
Health care/medical benefits ployees and HR professionals, including significant
differences.
Family-friendly benefits (life insurance for depen-
dents, subsidized child care, elder care referral  Comparisons of overall results with 2008 results,
service, etc.) including significant changes.
Paid time off (vacation, holidays, sick days, per-  Analyses by employees’ and HR professionals’
sonal days, etc.) organization industry and staff size.
Retirement benefits (defined contribution plans  Analyses by employee job tenure, gender and
such as 401(k) and other defined plans such as age.
pensions)  Analyses of the top five job satisfaction aspects
14. Flexibility to balance life and work issues (alterna- by demographic variables for employees and HR
tive work arrangements, including job sharing, professionals, including organization size, and em-
flex schedules, telecommuting, etc.) ployee job tenure, age and gender.

9. 2009 Employee Job Satisfaction Understanding the Factors That Make Work Gratifying 5
As economic
Survey Results indicators
change from
Job Satisfaction Aspects in Order of employees and senior management, opportunities to one year to the
Importance to Employees use skills/abilities, and management recognition of next, there
employee job performance. It is worth noting that are also
Employees and HR professionals were asked to rate compensation/pay, which has been ranked among fluctuations
the importance of the aspects of the work environ- the top five contributors to job satisfaction for the
in the
ment commonly associated with employee job satis- past seven years, for the first time slid to seventh place
faction. This year, a four-point scale was used, where in HR professionals’ 2009 ranking (see Table 2).
aspects
“1” represented “very unimportant” and “4” repre-
of job
sented “very important.” Components of employee In addition, employees and HR professionals were satisfaction
job satisfaction in order of importance, as indicated asked about how specific elements of compensation that
and benefits affected employee job satisfaction. These
by employees and HR professionals, are illustrated in employees
questions, however, are examined separately from the
Figures 1 and 2.
overall 24 aspects of job satisfaction that were of most
and HR
importance to employees. Also, HR professionals
professionals
The impact of the current recession is reflected in
the findings of this year’s Job Satisfaction Survey. Job were asked to estimate overall employee job satisfac- view as most
security was found to be the most important aspect tion at their organizations, and employees were asked important
of job satisfaction according to employees—a scenario to indicate their overall satisfaction with their current to overall
similar to October 2002 and 2008, when talks of re- or most recent job. employee job
cession and mass layoffs were also rampant. Benefits,
Organization’s commitment to a ‘green’ workplace,
satisfaction.
compensation/pay, opportunities to use skills and
networking, career development opportunities, paid
abilities and feeling safe in the work environment
training and tuition reimbursement programs, and
rounded off employees’ list of top five very important
organization’s commitment to professional develop-
contributors to job satisfaction. These aspects were
ment were among the components that were not
almost identical to the top five of 2008 (see Table
strongly connected to overall job satisfaction.
1). In the current economic climate, with widespread
job losses across industries and talk of more layoffs, Like employees, HR professionals also identified the
it is noteworthy that employees ranked job security, organization’s commitment to a ‘green’ environment
benefits and compensation among their top con- and networking as the two least important factors.
tributors to job satisfaction. These aspects might be
considered the primary reasons employees show up “One takeaway for HR leaders is the criticality for
for work every day. As economic indicators change HR to build a strong foundation of HR practices and
from one year to the next, there are also fluctuations programs around staffing, performance management,
in the aspects of job satisfaction that employees and compensation and benefits programs, and discipline
HR professionals view as most important to overall approaches to promote as much stability as practical
employee job satisfaction. for employees. Having a good foundation in place
can help employees gain a better sense of control over
HR professionals, for the first time since the in- their working environment. This becomes particularly
ception of the Job Satisfaction Survey, ranked job important during volatile times, as in the current
security, along with the relationship with immediate economy,” commented Ken Pinnock, SPHR, GPHR,
supervisor, as the top contributors to employees’ director of human resources service at Mountain
job satisfaction. Other aspects in HR professionals’ States Employers Council and member of SHRM’s
top five list were benefits, communication between Employee Relations Special Expertise Panel.

10. 6 2009 Employee Job Satisfaction Understanding the Factors That Make Work Gratifying
Figure 1 Very Important Aspects of Employee Job Satisfaction (Employees)
Job security 63%
Benefits 60%
Compensation/pay 57%
Opportunities to use skills and abilities 55%
Feeling safe in the work environment 54%
Relationship with immediate supervisor 52%
Management recognition of employee job performance 52%
Communication between employees and senior management 51%
The work itself 50%
Autonomy and independence 47%
Flexibility to balance life and work issues 46%
Meaningfulness of job 45%
Overall corporate culture 45%
Relationships with co-workers 42%
Contribution of work to organization’s business goals 39%
Job-specific training 35%
Variety of work 34%
Career advancement opportunities 32%
Organization’s commitment to corporate social responsibility 31%
Organization’s commitment to professional development 30%
Paid training and tuition reimbursement programs 29%
Career development opportunities 29%
Networking 22%
Organization’s commitment to a “green” workplace 17%
(n = 601)
Note: Percentages reflect respondents who answered “very important” from a scale where 1 = “very unimportant” and 4 = “very important.”
Source: 2009 Employee Job Satisfaction: A survey report by SHRM

11. 2009 Employee Job Satisfaction Understanding the Factors That Make Work Gratifying 7
Figure 2 Very Important Aspects of Employee Job Satisfaction (HR Professionals)
Job security 72%
Relationship with immediate supervisor 72%
Benefits 69%
Communication between employees and senior management 66%
Opportunities to use skills/abilities 62%
Management recognition of employee job performance 61%
Job-specific training 52%
Feeling safe in the work environment 52%
Compensation/pay 51%
Overall corporate culture 49%
Organization’s commitment to professional development 48%
Career advancement opportunities 48%
Career development opportunities 47%
Relationships with co-workers 46%
Paid training and tuition reimbursed programs 43%
Flexibility to balance life and work issues 41%
The work itself 39%
Autonomy and independence 37%
Meaningfulness of job 34%
Contribution of work to organization’s business goals 33%
Variety of work 25%
Organization’s commitment to corporate social responsibility 23%
Networking 20%
Organization’s commitment to a ”green” workplace 13%
(n = 547)
Note: Percentages reflect respondents who answered “very important” from a scale where 1 = “very unimportant” and 4 = “very important.”
Source: 2009 Employee Job Satisfaction: A survey report by SHRM

12. 8 2009 Employee Job Satisfaction Understanding the Factors That Make Work Gratifying
Top Five Very Important Aspects of How many government employees are ‘satisfied’?
Nearly one-half
Job Satisfaction This is why when recruiting, I would never use ‘job
of employees
1
security’ as a carrot.”
Job Security (47%) indicated
Optimism about job growth in the United The survey also asked employees what factors have that their
States is low, according to SHRM’s Labor influenced their sense of job security during the cur- professional
Market Outlook.1 Seven out of 10 human rent economic climate. Nearly one-half of employees abilities/
resource professionals are anticipating deeper job cuts (47%) indicated that their professional abilities/skills skills and the
in the U.S. labor force in the first quarter of 2009. and the importance of their job (role) to their orga-
importance
According to a SHRM poll conducted in early 2009, nization’s overall success increased their sense of job
30% of employees believe that in six months their security. Location of employees’ company had little
of their job
jobs would be moderately or significantly at risk.2 impact on their sense of job security.4 (role) to their
Given the job market volatility, it is not surprising organization’s
that both employees and HR professionals were in Job security as an aspect of job satisfaction was more overall success
agreement in rating job security as the most impor- important to male employees than to female employ- increased
tant aspect of employee job satisfaction in 2009 (see ees. Employees from medium- and large-staff-sized
their sense of
Tables 1 and 2). In December 2008, the National organizations, compared with those from small-
Bureau of Economic Research confirmed what many staff-sized organizations, were more likely to cite job
job security.
economists, legislators and members of the general security as a very important contributor to their job
public had already assumed—that the recession in the satisfaction. These data are shown in Table 3.
2
United States began in December 2007.3
Benefits
“I was not surprised that in this economic state Employee benefits are used by organizations
job security has moved to the number one slot as to recruit and retain top talent. In times of
being most important,” says Teresa Bailey, direc- economic uncertainty, when organizations
tor of HR at ConvaTec and member of SHRM’s might not be able to offer their employees pay raises
Corporate Social Responsibility Special Expertise and bonuses, benefits become one of the many tools
Panel. However, Gerlinde Herrmann, also a member employers use to increase loyalty, productivity and job
of SHRM’s Corporate Social Responsibility Special satisfaction. Benefits have remained among the top
Expertise Panel, was somewhat surprised that job se- two most important contributors of job satisfaction
curity ranked so high on the list: “In my experience, to employees (Table 1). Differences emerged based
job security does not necessarily equal job satisfaction. on employees’ tenure and organizations’ staff size.
Figure 3 Importance of Job Security
72%
63%
32%
27%
1% 4% 1%
0%
Very unimportant Unimportant Important Very important
Employees (n = 593) HR Professionals (n = 543)
Source: 2009 Employee Job Satisfaction: A survey report by SHRM

13. 2009 Employee Job Satisfaction Understanding the Factors That Make Work Gratifying 9
It is important for organizations to take into account and It is positive
anticipate the needs, preferences and make-up of their that HR
workforce when considering benefits offerings. professionals
are recognizing
Employees with six to 10 years of job tenure were contributions by their employer would significantly the growing
more likely than their counterparts with three to five affect them.5 importance
years of tenure to report benefits as an important of benefits to
aspect of job satisfaction. Compared with employees Employers that have been challenged by the cur-
employee job
from small organizations, employees from medium rent economic downturn are taking actions to help
them weather the economic storm while continuing
satisfaction,
and large organizations placed higher importance on
benefits as a contributor to job satisfaction. These to achieve their business goals. In doing so, some em- especially
data are shown in Table 3. ployers have reduced, frozen or completely eliminated during
employee benefits. Of the 17% of companies that challenging
Benefits fell behind job security and the relationship indicated they have reduced employee benefits as a economic
way to cut cost, 78% reported that they have reduced
with immediate supervisor, which were tied for the times.
health care coverage for employees, according to a
top most important aspect of employee job satisfac-
SHRM poll.6
tion this year as perceived by HR professionals. In
2002, benefits did not make the top five list for HR
HR is tasked with finding the right mix of employee
professionals, but since then it placed third or fourth
benefits that satisfies the personal and financial needs
for HR professionals every year the survey has been
of the current and potential workforce—a challeng-
conducted (Table 2). It is positive that HR profes-
ing task given existing business conditions and cost
sionals are recognizing the growing importance of constraints. It is important for organizations to take
benefits to employee job satisfaction, especially dur- into account and anticipate the needs, preferences
ing challenging economic times. The rising cost of and make-up of their workforce when considering
health care and faltering retirement benefits are major benefits offerings. Finding a cost-effective and afford-
concerns for employees. In a 2009 SHRM study of able benefits package is particularly difficult due to
employees, 71% of employees indicated that complete the high cost of health care.
elimination of health care benefits by their employer
would have a significant negative impact on them, Benefits offerings for employees can include a wide
and 45% reported that suspension of retirement plan array of benefits and perks; however, of primary
Figure 4 Importance of Benefits
69%
60%
31% 30%
7%
3% 1%
0%
Very unimportant Unimportant Important Very important
Employees (n = 597) HR Professionals (n = 548)
Source: 2009 Employee Job Satisfaction: A survey report by SHRM

14. 10 2009 Employee Job Satisfaction Understanding the Factors That Make Work Gratifying
importance to many employees are health care, paid private, public and nonprofit sectors, as did HR pro-
More tenured
time off, retirement and family-friendly benefits. fessionals in large organizations compared with those
These benefits were examined to learn about their from small and medium organizations.
employees
contribution to employee job satisfaction. placed
These data highlight the significance of retirement greater value
As illustrated in Figure 5, health care/medical ben- planning not only for employees but also for employ- on retirement
efits were the most important benefits for employee ers. With the significant drop in the stock market in benefits than
job satisfaction. It is noteworthy that while 39% of late 2008, many older workers may need to continue did employees
employees indicated that a defined benefit pension working past retirement age because their retirement
plan was very important, only 22% of HR profession-
relatively
benefits are no longer what they expected. Social
als indicated so. Family-friendly benefits were also new to their
Security and defined benefit pensions are not likely
more important to employees than HR professionals organizations.
to be available to Generation X employees by the
predicted.
time they leave the workforce, according to many
predictions. These factors alone are troubling, yet
Health care/medical benefits and retirement benefits
studies have also shown that employees are not sav-
were valued more by employees at medium and
ing enough for a financially secure retirement. More
large organizations compared with those at small
organizations are adopting technology to help their
organizations. It is not surprising that more tenured
employees with various aspects of their retirement
employees placed greater value on retirement benefits
than did employees relatively new to their organiza- planning, automatically enrolling employees into
tions. Employees with six or more years of job tenure defined contribution plans unless they opt out and
indicated that this aspect was more important to job implementing investment advice programs that pro-
satisfaction than did employees who had been with vide a range of services tailored to participants’ needs.
their organizations for two years or less. According to SHRM’s 2009 Employee Benefits Survey
Report, 35% of employers offer automatic enrollment
HR professionals from government entities viewed of employees into defined contribution plans. This is
retirement benefits as more important to employee a slight increase over 2008 (32%).7 For more detailed
job satisfaction than did HR professionals in the information about the types of benefits and trends
Figure 5 Very Important Benefits Aspects
64%
Health care/medical benefits
82%
58%
Paid time off
68%
41%
Defined contribution plans (i.e., 401(k), 403(b), etc.)
38%
39%
Defined benefit pension plan
22%
29%
Family-friendly benefits
16%
Employees (n = 598) HR Professionals (n = 545)
Note: Percentages reflect respondents who answered “very important” from a scale where 1 = “very unimportant” and 4 = “very important.”
Source: 2009 Employee Job Satisfaction: A survey report by SHRM

15. 2009 Employee Job Satisfaction Understanding the Factors That Make Work Gratifying 11
in benefits offerings over the last seven years, see the ate supervisor and open lines of communication with
The current
SHRM 2009 Employee Benefits Survey Report. senior management are integral to job satisfaction,
economic
3
especially now, when employee morale is threatened.
Compensation/Pay Employees who are compensated well but have poor climate is
Compensation has consistently remained relationship with their supervisor may be more likely not likely
one of the top five job satisfaction aspects to be frustrated, less productive and dissatisfied—all to prevent
most important to employees. However, of which may negatively affect the dynamics of a employees
during a period of economic uncertainty, HR profes- team. from asking
sionals continue to perceive the relationship with
for an out-
immediate supervisor, communication between Employees were asked how likely they were to stay
employees and senior management and job-specific with their current organization if they were offered
of-cycle or
training as more important to employees than com- more money, with the same benefits, at another unscheduled
pensation. This is not to downplay the importance of company. Almost six out of 10 employees indicated raise from
compensation, since more than 50% of HR profes- that they would be very likely to leave their current their employer,
sionals indicated that this aspect was very important position if they received an offer of a 30% salary according to
to employee job satisfaction. It may be that while HR increase and the same benefits package from another
almost four
professionals see the value of compensation/pay, they company (Figure 33). The current economic climate
also understand that the relationship with immedi- is not likely to prevent employees from asking for an
out of 10
employees.
Figure 6 Importance of Compensation/Pay
57%
48% 51%
38%
1% 4% 1%
0%
Very unimportant Unimportant Important Very important
Employees (n = 601) HR Professionals (n = 546)
Source: 2009 Employee Job Satisfaction: A survey report by SHRM
Figure 7 Very Important Compensation Aspects
55%
Being paid competitively with the local market
54%
52%
Base rate of pay
43%
37%
Opportunities for variable pay
27%
12%
Stock options
6%
Employees (n = 600) HR Professionals (n = 542)
Note: Percentages reflect respondents who answered “very important” from a scale where 1 = “very unimportant” and 4 = “very important.”
Source: 2009 Employee Job Satisfaction: A survey report by SHRM

16. 12 2009 Employee Job Satisfaction Understanding the Factors That Make Work Gratifying
out-of-cycle/unscheduled raise from their employer,  Opportunities for variable pay (bonuses, commis-
sions, other variable pay, monetary rewards for ideas or
It is generally
according to almost four out of 10 employees.8
suggestions): 37% of employees and 27% of HR pro- thought that
Even though compensation has ranked among the fessionals reported that this aspect was very important employees
top contributors to employee job satisfaction, it is to job satisfaction. Variable pay, or differential pay, is feel good
unlikely that employees view it in isolation from other not added to the employee’s base pay and is depen- about their
factors. To better understand how various elements dent upon performance. This allows organizations to jobs when
of compensation factor into employee job satisfac- better control their labor costs and tie performance
they are
tion, employees and HR professionals were asked and pay together. HR professionals from the public
about the importance of base rate of pay, being paid sector were the most likely to perceive this aspect to
using their
competitively with the local market and opportunities be important to employee job satisfaction. skills and
for variable pay and stock options (Figure 7). abilities and
 Stock options: 12% of employees and 6% of HR
contributing
 Being paid competitively with the local market: 55% professionals rated stock options as very important.
of employees and 54% of HR professionals rated this
to the
4
aspect as very important. organization.
Opportunities to Use
 Base rate of pay: 52% of employees and 43% of HR Skills/Abilities
professionals viewed base rate of pay as very impor- Similar to 2008, employees rated opportu-
tant to employee job satisfaction. nities to use their skills and abilities in their
Figure 8 Importance of Opportunities to Use Skills and Abilities
62%
55%
39% 37%
1% 5% 1%
0%
Very unimportant Unimportant Important Very important
Employees (n = 597) HR Professionals (n = 548)
Source: 2009 Employee Job Satisfaction: A survey report by SHRM
Figure 9 Importance of Feeling Safe in the Work Environment
54% 52%
47%
40%
1% 5% 1%
0%
Very unimportant Unimportant Important Very important
Employees (n = 597) HR Professionals (n = 549)
Source: 2009 Employee Job Satisfaction: A survey report by SHRM

17. 2009 Employee Job Satisfaction Understanding the Factors That Make Work Gratifying 13
Insights Female
Darren R. Reed, PHR employees
SHRM Employee Relations Special Expertise Panel considered
feeling safe in
Q: In your industry, what do you see as the top three job satisfaction factors? the workplace
A: I am in the information technology and financial sector. The workforce that I am working with is
an especially
primarily made of software programmers, software testers, IT project managers, systems analysts, important job
network and telecommunications analysts, and IT operations analysts. Our exit interview data and our satisfaction
own internal surveying of current employees suggest that the top three job satisfaction factors are factor
challenging work, career advancement and compensation. Our people are typically very technical, intel- compared
ligent and have a passion for technology. They get bored when they don’t have work that stimulates with male
their problem-solving and analytical skills, so it is sometimes a challenge for us to keep them feeling
workers.
challenged and excited about their work.
Q: From your viewpoint, how is the economy influencing job satisfaction in your
workforce?
A: Our business is relatively stable at this point, and we have not had to make large cuts in our
workforce. I believe in large part our workforce is happy to have a job, and we’ve seen some of the
more trivial types of complaints we used to get start to drop off. We had relatively low annual salary
increases. In most cases, people were appreciative of getting anything at all. The economic crisis has
caused people to look at things a little differently, I think. They are taking less for granted. At the same
time, many of our people are still nervous about losing their jobs, and in some cases, their spouse has
lost his or her job, causing more stress on the family, which sometimes bleeds over to their work life.
work as the fourth most important aspect of their job feeling safe in the workplace an especially important
satisfaction. It was also fourth in the HR profession- job satisfaction factor compared with male workers.
als’ list. It is generally thought that employees feel In 2004, this aspect nearly doubled in importance
good about their jobs when they are using their skills from 2002 and was included in the top five list for
and abilities and contributing to the organization. employees. HR professionals have consistently rated
As mentioned earlier, employees were asked how this element of job satisfaction lower than employees
certain factors have affected their sense of job security have.
during the current economic climate. Nearly one-half
of employees (47%) indicated that their professional With safety and security threats ranging from terror-
abilities/skills and the importance of their job (role) ism and violence in the workplace to public health
to their organization’s overall success increased their issues and workplace accidents, it is not surprising
sense of job security. that employees are concerned about workplace
5
safety. This, in turn, may lead to greater expecta-
Feeling Safe in the tions of employers to protect their workforce from
Work Environment major threats. A number of employers have taken
Fifty-four percent of employees and 52% of steps to improve their safety and security systems
HR professionals indicated that feeling safe and disaster preparedness plans. The vast majority of
in the work environment was very important to em- HR professionals (85%) reported that their organi-
ployee job satisfaction. Female employees considered zations have disaster preparedness plans in place in

18. 14 2009 Employee Job Satisfaction Understanding the Factors That Make Work Gratifying
Insights
Ken Pinnock, SPHR, GPHR
SHRM Employee Relations Special Expertise Panel
Director, HR Services Group, Mountain States Employers Council, Inc. (MSEC)
Q: In your industry, what do you see as the top three job satisfaction factors?
A: MSEC is an employers’ association, and I see the top three job satisfaction factors to be:
1. Task and job variety: We are a unique organization that provides HR consulting and support to more
than 2,800 member organizations spanning all industries and sizes. The variety of work and opportuni-
ties to work on new projects always exist.
2. Ability to continually learn and apply new skills and competencies on the job.
3. Working for an organization with a very positive reputation in the Mountain State region. Being as-
sociated with the employer brand.
Q: From your viewpoint, how is the economy influencing job satisfaction in your
workforce?
A: Right now, satisfaction is okay, as people appreciate the relative job stability compared with many
organizations. However, changes are being made that can take a toll on satisfaction. For example,
some employees had to switch roles to cover work for an employee who left and whose position was
not going to be filled from the outside. As employees are being asked to take on different work roles,
satisfaction is negatively affected.
Q: What initiatives is your company taking to positively influence job satisfaction,
despite difficult economic times?
A: We continue to provide training and development opportunities as much as possible, and we en-
couraging and scheduling in-house training for all employees. We want the learning aspect of working
at MSEC to continue. We also provide frequent updates as to the financial health of the organization.
Q: How is your company retaining key talent in view of the recession?
A: We are not doing anything differently. People are cautious about making job changes at this point.
The challenge will be to not burn people out during this time, so when the markets recover, people will
still want to stay at MSEC. So support in terms of communication and recognition is very important now.
case of chemical and biological disasters or security 70% in 2003.10 HR professionals can also play a role
threats, according to a 2005 SHRM survey on in crisis management, disaster recovery planning and
disaster preparedness.9 In 2007, 89% of organizations ensuring the safety of employees at home and abroad.
had implemented security systems as a preventative To do this, HR professionals need to be involved in
measure against potential disasters, compared with the development of safety and security measures, and

19. 2009 Employee Job Satisfaction Understanding the Factors That Make Work Gratifying 15
employees and HR professionals both need to have was very important. Career advancement was more
Career
access to resources, including training, that address a important for employees from medium and large or-
wide range of potential disasters.
advancement
ganizations than for employees from small organiza-
tions. This aspect was a higher priority for employees
was more
aged 35 and younger than for employees aged 56
important for
Results of Other Individual Job employees
and older. Similarly, employees with two years or
Satisfaction Aspects from medium
less of job tenure indicated that this aspect was more
important to their job satisfaction than did employ- and large
Career Development
The first series of questions HR professionals and
ees who had been with their organizations for 16 or organizations
employees were asked fell under the topic of career
more years. It is not surprising that employees who than for
development. Employees ranked only one of the
are relatively new to their organizations placed greater employees
factors in career development in the top five of very value on career advancement opportunities than did from small
more tenured employees.
important contributors to job satisfaction. organizations.
Career Advancement Opportunities Career advancement opportunities were reported
Within Organization as an important aspect to employee job satisfac-
As illustrated in Figure 10, 48% of HR profession- tion more frequently by HR professionals in large
als and 29% of employees reported that this factor organizations compared with respondents in small
Figure 10 Importance of Career Advancement Opportunities
44% 47% 48%
32%
20%
4% 5%
0%
Very unimportant Unimportant Important Very important
Employees (n = 603) HR Professionals (n = 548)
Source: 2009 Employee Job Satisfaction: A survey report by SHRM
Figure 11 Importance of Career Development Opportunities
50% 48% 48%
29%
18%
3% 4%
0%
Very unimportant Unimportant Important Very important
Employees (n = 602) HR Professionals (n = 548)
Source: 2009 Employee Job Satisfaction: A survey report by SHRM

20. 16 2009 Employee Job Satisfaction Understanding the Factors That Make Work Gratifying
and medium organizations. These data are shown in more likely than those from small organizations to tie
Table 5. career development opportunities to job satisfaction
(Table 5).
Career Development Opportunities
Through on-the-job learning experiences, employees Job-Specific Training
can enhance their skills and competencies. Twenty- Employers offer job-specific training to provide
nine percent of employees and 48% of HR profes- employees with the relevant skills to enable them to
sionals indicated that career development was very perform their duties efficiently. The immediate ap-
important when assessing job satisfaction (Figure 11). plication of skills acquired through such training may
boost employee confidence and productivity. Thirty-
Similar to career advancement, differences emerged five percent of employees and 52% of HR profes-
among employees’ age, tenure and organization size. sionals cited job-specific training as a very important
This aspect was a higher priority for employees aged contributor to employee job satisfaction, as shown in
35 and younger than for employees aged 56 and Figure 12. Employees appeared to place more value
older. It was more important to employees with two on this aspect in 2009 compared with 2008—pos-
years or less of job tenure than to employees who sibly as a result of the downturn in the economy.
had been with their organizations for 16 or more Employees are perhaps looking to job-specific train-
years. Lastly, employees from large organizations were ing as a way to boost their skills and abilities, thereby
Figure 12 Importance of Job-Specific Training
50% 52%
45%
35%
13%
2% 3%
0%
Very unimportant Unimportant Important Very important
Employees (n = 600) HR Professionals (n = 545)
Source: 2009 Employee Job Satisfaction: A survey report by SHRM
Figure 13 Importance of Networking
59%
48%
26%
21% 22% 20%
4%
0%
Very unimportant Unimportant Important Very important
Employees (n = 599) HR Professionals (n = 550)
Source: 2009 Employee Job Satisfaction: A survey report by SHRM

21. 2009 Employee Job Satisfaction Understanding the Factors That Make Work Gratifying 17
potentially increasing their sense of job security. and perspectives of others on this subject. Employees
Employees from medium and large organizations
As a result of
with two years or less of job tenure viewed the op-
were more likely to tie this aspect to their overall job portunity to build alliances as more valuable to job
the economic
satisfaction compared with employees from small or- satisfaction than did employees who had been with downturn,
ganizations. Younger workers appeared to place more their organizations for 16 or more years. many
value on this component (Table 5). organizations
“I am amazed that individuals do not see the value have made
Networking of networking in this economy,” said Teresa Bailey, cuts to their
This aspect of job satisfaction was placed by both member of SHRM’s Corporate Social Responsibility
professional
employees and HR professionals among the least Special Expertise Panel. “I would say that most HR
important to employee job satisfaction. As shown professionals would disagree with this assessment and
development
in Figure 13, only 22% of employees and 20% of tend to say that networking is very important.” budgets,
HR professionals felt that networking was a very according to
important contributor to employee job satisfaction. Organization’s Commitment to 37% of HR
While networking may not be particularly important Professional Development professionals
to employee job satisfaction, building alliances can Thirty percent of employees indicated that an orga-
who
be valuable when looking for job leads or clients. nization’s commitment to professional development
Through networking, employees can obtain career- was very important to employee job satisfaction,
participated
related guidance and benefit from the experiences compared with 49% of HR professionals who felt in a SHRM
poll on the
Figure 14 Importance of Organization’s Commitment to Professional Development
impact of the
recession on
organizations.
53% 49%
47%
30%
14%
3% 4%
0%
Very unimportant Unimportant Important Very important
Employees (n = 601) HR Professionals (n = 548)
Source: 2009 Employee Job Satisfaction: A survey report by SHRM
Figure 15 Importance of Paid Training and Tuition Reimbursement Programs
46% 47%
42%
28%
22%
9%
4% 2%
Very unimportant Unimportant Important Very important
Employees (n = 601) HR Professionals (n = 546)
Source: 2009 Employee Job Satisfaction: A survey report by SHRM

22. 18 2009 Employee Job Satisfaction Understanding the Factors That Make Work Gratifying
Communication between employees and senior management 51% percent
has consistently made the list of top five elements of of employees
employee job satisfaction as predicted by HR professionals. and 66% of HR
professionals
reported that
the same way. These data are depicted in Figure 14. tuition reimbursement as important to employee job communication
Although employees welcome opportunities to par- satisfaction (Figure 15). Employees from large orga- between
ticipate in training paid for by their employers, for the nizations gave more importance to this aspect than
employees
past seven years HR professionals have predicted this did employees from small organizations (Table 5).
aspect to be more valuable than employees indicated.
and senior
Professional development opportunities (e.g., attend- Employee Relationship With Management management
ing training or conferences, obtaining certifications) HR professionals have tended to rank most of the as- was very
are meant to develop or enhance employees’ skills pects from this category (relationship with immediate important to
and knowledge so that they can use this informa- supervisor, communication between employees and employee job
tion in their current positions, build their resume for senior management, and management recognition
satisfaction.
future jobs and meet their personal goals. of employee job performance) in the top five of very
important aspects of employee job satisfaction.
As a result of the economic downturn, many organi-
zations have made cuts to their professional develop- Communication Between Employees
ment budgets, according to 37% of HR professionals and Senior Management
who participated in a SHRM poll on the impact of Effective communication from senior management,
the recession on organizations. In the same poll, especially during times of uncertainty, can provide the
almost half (48%) of HR professionals indicated that workforce with direction, dispel rumors and pro-
if the current financial challenges to the U.S. and mote trust. Fifty-one percent of employees and 66%
global economy continue, their companies would of HR professionals reported that communication
likely or very likely cut professional development for between employees and senior management was very
employees. important to employee job satisfaction. These data
are depicted in Figure 16. Communication between
Paid Training and Tuition Reimbursement employees and senior management has consistently
Forty-two percent of HR professionals, compared made the list of top five elements of employee job
with 28% of employees, perceive paid training and satisfaction as predicted by HR professionals.
Figure 16 Importance of Communication Between Employees and Senior Management
66%
51%
41%
32%
2% 6%
0% 2%
Very unimportant Unimportant Important Very important
Employees (n = 601) HR Professionals (n = 545)
Source: 2009 Employee Job Satisfaction: A survey report by SHRM

23. 2009 Employee Job Satisfaction Understanding the Factors That Make Work Gratifying 19
Insights “Dialogue
Beverly Widger, SPHR is a key
SHRM Employee Relations Special Expertise Panel initiative from
all levels of
Q: In your industry, what do you see as the top three job satisfaction factors? leadership to
A: In my industry—banking—the top three job satisfaction factors are job security, livable wages and
staff.
excellent benefits, and open communication from senior management and trustees. When people
are worried
Q: From your viewpoint, how is the economy influencing job satisfaction in your about their
workforce? jobs, they must
A: People are concerned about their jobs and job security. While community banks are thriving, there have all the
is still an undertone of concern. Taxes in our community are increasing, spouses have been laid off in information and
some families, and there is concern for being able to afford the essentials. Staff are striving for infor- have a chance
mation and to keep informed. to sound off.”
Q: What initiatives is your company taking to positively influence job satisfaction, Marie LaMarche,
despite these difficult economic times? member of SHRM’s
Employee Relations
A: We conduct monthly staff meetings with open-book accounting on where the bank stands finan- Special Expertise
cially. We also have a customer contact program to keep and continually satisfy customers. We are Panel
continuing monthly wellness and social activities as planned. Our bonus is still in place, but it requires
making profitability goals.
Q: How is your company retaining key talent, in view of the recession?
A: We are paying competitively, offering good benefits and rewarding good performers.
HR professionals were asked what measures their to senior management (bottom-up communication),
organizations were taking to keep employee job such as employee attitude surveys, focus groups and
satisfaction high during uncertain economic times. suggestion boxes. In addition, employees can also
Encouraging open communication between supervi- meet with their supervisors one on one to discuss any
sors and employees (55%) and fostering open com- matters, regularly or as needed, and this can be used
munication with employees regarding organization’s as a means of upward communication.
financial standing (45%) were the top two measures
reported. On the flip side, it is important that senior manage-
ment communicate with employees so that they
Employees should not feel uncomfortable or afraid to understand the organization’s business goals, policies
pose questions, suggestions or their concerns to man- and vision, and are apprised about what is going on
agement. Organizations should ask themselves the in the organization. It can be particularly challenging
question, “Can employees question the decisions of for large organizations to keep the lines of communi-
management without fear of repercussions?”11 There cation clear and keep employees in the loop. Senior
are various mechanisms that can be used to encour- management can reduce these potential obstacles by
age feedback and communication from employees sharing organizational information with employees in