Exploring The Impact of Job Satisfaction Domains on Firm Performance: Evidence from Great Britain

Eberegbe, Georgina and Giovanis, Eleftherios (2020): Exploring The Impact of Job Satisfaction Domains on Firm Performance: Evidence from Great Britain. Published in: Journal of Applied Economics and Business Research , Vol. 10, No. 2 (June 2020): pp. 96-114.

Abstract

Firm productivity and performance and their determinants are a well addressed topic in the field of management and industrial organization. However, how different job satisfaction domains affect the firm performance remains relatively rare. The aim of this study is to explore the impact of seven job satisfaction domains on firm performance. The analysis relies on firm-level data derived from the Workforce Employment Relations Survey (WERS) in 2004 and 2011 in Great Britain. To reduce the endogeneity issue coming from possible reverse causality between the job satisfaction and firm performance we apply the Two Stage Least Squares (2SLS) method. The findings show that satisfaction with job security and the work itself have the strongest positive impact followed by training, income and sense of achievement. The findings provide valuable insights to firms and managers about the identification of the most important job satisfaction domains affecting firm performance, varying by the industry, firm type and workplace management. This is especially the case in the post-crisis period of 2007, where working conditions have experienced major changes, and will experience further changes and new challenges due to the COVID-19 pandemic.

• Item Type: MPRA Paper
• Language: English
• Keywords: Employment relationships; Instrumental Variables; Job Satisfaction; Job Security; Organizational Performance; Workforce Employment Relations Survey
• Subjects: D - Microeconomics > D2 - Production and Organizations > D23 - Organizational Behavior ; Transaction Costs ; Property Rights; J - Labor and Demographic Economics > J2 - Demand and Supply of Labor > J24 - Human Capital ; Skills ; Occupational Choice ; Labor Productivity; J - Labor and Demographic Economics > J2 - Demand and Supply of Labor > J28 - Safety ; Job Satisfaction ; Related Public Policy; L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L25 - Firm Performance: Size, Diversification, and Scope; M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M5 - Personnel Economics > M54 - Labor Management; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O15 - Human Resources ; Human Development ; Income Distribution ; Migration

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