Relationship between Job Satisfaction and Employee Performance in the Construction Industry of Pakistan

Aftab Hameed Memon

Shabir Hussain Khahro

Nafees Ahmed Memon

Zubair Ahmed Memon

2 and

Ahmed Mustafa

Department of Civil Engineering, Quaid-e-Awam University of Engineering, Science and Technology, Nawabshah 67450, Pakistan

Department of Engineering Management, College of Engineering, Prince Sultan University, Riyadh 11586, Saudi Arabia

Department of Civil Engineering, Mehran University of Engineering and Technology, Jamshoro 76062, Pakistan

Submission received: 6 March 2023 / Revised: 8 May 2023 / Accepted: 18 May 2023 / Published: 27 May 2023

Abstract

Organizations focus on human resources to improve performance as a result of high global competition and a dynamic business environment. In today’s competitive environment, employee performance and job satisfaction are critical to the achievement of a company’s goals. Job satisfaction is an organization’s unnoticed success. Employee performance and job satisfaction are powerful tools that help in continuously developing and improving organizational performance to achieve strategic objectives. Job satisfaction is critical to the overall productivity of any given industry. Job satisfaction is important for both the employer and the employee. According to studies, employers greatly benefit from satisfied employees because they are more productive. One of the most important goals of a company is to maximize employee performance to achieve those goals. As a result, the focus of this study was on identifying the factors of job satisfaction and employee performance. It also evaluated the relationship between job satisfaction and employee performance in Pakistani construction projects. A detailed literature review was used to identify various factors, which were then shortlisted based on their relevance to the Pakistani construction industry by interviewing ten experienced practitioners. Totals of 11 job satisfaction and eight employee performance parameters were discovered. In total, 85 samples were collected as part of the data collection process via a questionnaire survey and statistically analyzed using multiple regression analysis. According to the results, all of the models have a high ability to compute the increase in employee performance criteria via the predicting variables. The overall models are significant because a value less than 0.05 indicates that they are. The study’s findings will assist practitioners in understanding the critical criteria that will increase employer satisfaction and improve performance.

1. Introduction

Employee performance and job satisfaction are critical in today’s competitive environment in order for firms to achieve their goals. Previously, materialistic items were regarded as more valuable than any other in the eyes of an organization. Organizations, on the other hand, have realized that human resources are more valuable than other assets. Organizations focus on human resources to improve performance due to high global competition and a dynamic business environment. Organizations can attain social sustainability with a positive working relationship with employees. A competent and motivated worker is a resource that is extremely scarce and not readily available in the market. Because of this, modern businesses seek to use sustainable human resources to gain competitive advantages. Human development, including education, training, a positive work environment, fair pay, and a sound corporate culture, is the key to achieving social sustainability [1]. In recent years, one of the most important goals of any organization has been to effectively manage its employees by encouraging positive attitudes such as increased productivity, job satisfaction, and organizational social behavior, while discouraging negative employee attitudes such as high employee turnover, absenteeism, and deviant behavior in the workplace. This can be accomplished in any organization by employing better management and implementing the best employee empowerment system. Human resources are assets made up of the employee’s skills and experiences. A great job encourages employees to seek knowledge, the most up-to-date information skills, and how and where to apply their expertise to advance their status. A better working environment motivates employees, and the continuous advancement of technology for the best utilization of the workforce benefits them in working and completing their projects [2,3]. One of the factors that can influence employee job satisfaction to achieve company goals is the work environment [4,5]. If the company employees are provided with a suitable work environment, they put more effort in to meet the objectives of their company.

Job satisfaction is an organization’s unnoticed success, which refers to a collection of positive feelings that employees have about their jobs, and it has a cascade of effects on various aspects of a company [6,7]. It combines physiological and environmental factors that cause an individual to be genuinely pleased with his or her work [8]. Job satisfaction is critical to the overall productivity of any industry, which is important for both the employer and the employee. This is because numerous studies have shown that employers greatly benefit from satisfied employees. They are, after all, more productive [9]. Job satisfaction can also be defined as the degree to which a worker is satisfied with the rewards he or she receives from his or her work, particularly in terms of intrinsic motivation. Human Resource (HR) practices in organizations, such as career opportunities, job nature, and overall working environment, have an impact on professionals’ job satisfaction [10]. According to [11], employee satisfaction indicates how satisfied an employee is with his or her job and working conditions. Everyone, from managers to retention agents to HR, needs to understand employee engagement and loyalty to determine how committed the workforce is to the organization and whether employees are satisfied with the way things are done to determine their likelihood of staying with them.

Performance has become a hot topic among decision-makers, who are constantly highlighting how their staff or employees perform. The term “performance” comes from the words “employee performance” or “actual performance”, and it refers to a person’s work or accomplishments. To evaluate employee performance, it is critical to analyze performance through assessment. It is possible to determine whether or not employee performance meets expectations [12]. Employees perform better when they are confident in their ability to complete work-related tasks. When employees are confident in their ability to complete work-related tasks, they have less uncertainty about themselves and their work, which improves job performance [13]. Furthermore, psychological factors such as inter-personal relationships, leadership styles, and opportunities for professional development have a significant impact on employee performance [14]. Employee performance and job satisfaction are useful tools for continuously developing and improving organizational performance to achieve strategic objectives [8]. Job satisfaction is critical to the overall productivity of any industry. Job satisfaction is important for both the employer and the employee. Many studies have shown that satisfied employees benefit employers because they are more productive [9]. Employees perceive the meaning of their work when they are satisfied with their jobs. Workers who understand how their positions affect others perform better because they have faith in their ability to complete work-related tasks. They are more confident in themselves and their work, which improves job performance [13]. Organizations rely on their workforce to achieve maximum productivity, which translates into organizational efficiency. As a result, ensuring employee job satisfaction is critical to organizational success. Pakistan has the ninth largest workforce in the world. According to the Labor Force Survey, the agriculture sector employs 38.49% of the population, followed by the manufacturing sector, which employs 16.05% of the workforce [15], while the construction industry employs a labor force comprising more than 7% of the workforce [16]. In Pakistan, very few researchers have focused on the relationship between job satisfaction and employee performance. Further, those studies were limited to the identification of the parameters of job satisfaction and employee performance. As yet, no model has been found to describe the relation between job satisfaction and employee performance in Pakistan. Understanding the issues and variables that can enhance the performance of the employees is very essential for achieving success in any business. This compelled me to investigate the relationship between job satisfaction and employee performance in Pakistan’s construction industry. This will emphasize the significance of job satisfaction and employee performance development. Thus, regression models are developed to assess the effects of job satisfaction and employee performance. This paper is divided into several sections: the introduction, the literature review, research methodology, the results and discussion, and the conclusion.

2. Literature Review

2.1. Employee Performance

Employee performance has long been a source of concern in organizational management. Any organization’s primary goal is to implement innovative approaches to motivate employees to achieve and produce higher job performance while increasing organizational productivity [17]. Construction organizations suffer from several critical problems, such as time issues [18]. In overcoming these issues, employee performance can play a significant role. According to [19], an employee’s apparent performance reflects their complete trust in their actions and contributions to the achievement of the organization’s goals and mission. They went on to say that the indicators for a worker’s performance are compensation practices, performance evaluation policies, and employee promotion procedures. Employee performance is critical to the success of a construction project for site-based workers [20]. Internal and external factors both influence employee performance. To improve employee performance, the company should investigate the external factors that influence employee performance. Construction companies should develop a strategy for improving employee performance, such as increasing the number of workers to reduce workload, compressing work weeks to achieve a healthier work–life balance, and promoting employees more frequently to improve job satisfaction. According to [21], work performance is critical in determining an employee’s quality in a company/organization. In addition, employee placement seeks to match the right person with the right job based on their skills and interests. Employee job performance can be improved if the company focuses on improving its employees’ abilities, mindsets, and behaviors. Proper employee placement is one of the keys to achieving peak job performance. A manager’s job is to evaluate employee performance and decide on future policies through performance appraisals. A company’s performance assessment is a systematic method for evaluating employees, contributions, and areas of interest.

During his research, Jufrizen [22] discovered that employee performance is very important in a government organization because it supports and aids in the achievement of each employee’s job goals. As a result, the organization must constantly monitor its employees to ensure that they are working effectively and efficiently to meet their objectives. Several factors influence employee performance, including organizational culture, organizational engagement, and job motivation. Organizational culture becomes a habit and custom that every company employee must follow to improve the organization’s performance. Individual accomplishment and levels of achievement in carrying out organizational tasks are frequently referred to as “individual performance”. Employee performance is defined as the quality and quantity of work performed by employees in carrying out and completing tasks delegated to them by their supervisor or leader based on their position in the organization. Organizational culture has a positive and significant impact on employee performance. Organizational culture is an archetype that must be taught to all members, including new members, for them to behave and solve problems, to develop workers who can adapt to their surroundings, and to bring organizational members together. Compensation includes all forms of monetary payment as well as all forms of services received as a result of employee involvement [23]. An individual’s performance is a process by which their actions are related to the task they have been assigned. The entire input, method, output, and result will be reflected in this performance.

Kustinah et al. [12] discovered that job success is dependent on each company’s level of performance, which is supported by workers’ contributions. Employee performance can be improved by improving leadership style, interpersonal communication, and job satisfaction. Because human resources are critical to the success of a project, the organization must hire experts and create a positive work environment to increase employee motivation. Because fieldwork is a dynamic task involving various project aspects, leadership is critical in the construction industry. Good communication is one of the interpersonal skills that contribute to the success of construction projects [24]. The level of consistency and comfort in communication, as well as the worker’s perception of job satisfaction, are some of the factors that influence a leader’s style in relation to the work team. Employee performance is the backbone of an organization because it contributes to its success [25]. A healthy working environment is critical for employee performance because it keeps employees from being overburdened, which reduces job productivity. Several factors influence job satisfaction at work. Employee performance is influenced by factors such as working hours, interpersonal relationships, job safety and security, and the importance perceived. Job safety and security are among the most important workplace concerns that must be strictly enforced to provide employees with a safe and versatile working environment. A company’s overall productivity is connected with the well-being of its employees. Employees at the company will have a more positive working environment, allowing them to focus on their tasks and be more productive. Previous research has discovered a direct relationship between job satisfaction and general factors such as pay and promotion, psychological empowerment, remuneration, healthcare facilities, work stress, and working conditions. Table 1 summarizes the factors influencing employee performance as identified in the literature.

2.2. Job Satisfaction

Job satisfaction is a universal attitude that results from many simple attitudes in three areas: (i) individual characteristics, (ii) group relationships outside the job, and (iii) specific job factors. These components cannot be separated for analysis. Employee satisfaction is the term used to describe employees who have different needs and expectations relating to whether they are satisfied, contented, and fulfilled at work [11]. According to numerous studies, employee satisfaction is an important factor in employee engagement, goal achievement, and positive workplace morale. Employee satisfaction measures how happy workers are with their jobs and working conditions. Everyone from managers to retention agents to HR must understand employee engagement and loyalty to determine how committed the workforce is to the organization and whether employees are satisfied with how things are done so as to determine their likelihood of staying with the company. Employee satisfaction is a critical aspect of human resource management. Companies must ensure employee satisfaction because it is the foundation for increasing productivity, responsiveness, quality, and customer service. Employee satisfaction in the workplace cannot be underestimated. Job satisfaction is influenced by a variety of workplace factors, including compensation packages, opportunities for advancement, working environments, and work community. Furthermore, the determinant’s impact serves as a barometer for job satisfaction or dissatisfaction, as well as the outcome. To achieve balance, job dissatisfaction should be considered when addressing job satisfaction issues. Employees who are dissatisfied with their jobs may not quit, but their feelings of disappointment may have an impact on them and their co-workers, and the quality of performance and service they provide. Dissatisfied employees are hostile toward their co-workers [36]. Furthermore, Ref. [37] conducted a study to understand job satisfaction from the perspective of employees and discovered that five factors determine job satisfaction: independence, skill discretion, superior support, opportunities for further education, and relationships with co-workers. Empowerment is a method of approaching feeling and behaving as if one is in power and maintaining the organization [38]. A high turnover rate or withdrawal activity, increased costs in recruiting new employees, lower sales and earnings, and lower customer satisfaction are all consequences of low job satisfaction [39].

Contributing to job satisfaction could be a profitable venture for any company [40]. Employee satisfaction is one of the most reliable predictors of long-term positive company performance. High job satisfaction is linked to higher productivity, which is linked to higher profitability. Employees who are satisfied with their jobs carry out their responsibilities with sincerity and dedication. Ref. [1] pointed out that employees who face job-related issues are more likely to be dissatisfied with their jobs and intend to leave. The pro-organizational behaviors that an organization wants to instill in its employees are destroyed by these two attitudes. Organizations urgently need to encourage employees to feel good, and repeated positive emotions usually have a positive impact on social sustainability. Employees will feel a sense of belonging to your company, and they will understand that any work they do for you will have an impact on the overall success of the company. Organizations in both the private and public sectors around the world rely on their employees to achieve maximum productivity, which leads to increased organizational efficiency. Dissatisfaction is regarded as one of the primary factors that demotivate and demoralize employees in the workplace, resulting in lower morale and a negative impact on overall efficiency. Job satisfaction has a positive and necessary relationship with employee performance, implying that improving workers’ job satisfaction will improve performance. A thorough literature review was conducted to identify the variables influencing employee job satisfaction from previous research. These studies were conducted in various parts of the world. The variables affecting employee job satisfaction in the context of Pakistan’s construction industry were identified from these variables through semi-structured interviews. Table 2 shows the mapping of the job satisfaction variables identified in the literature.

3. Research Methodology

The two most common methods of conducting scientific research are qualitative and quantitative research. A qualitative approach to research aims to develop an interpretation and find significance in a specific problem. This is mainly accomplished by conducting interviews with professionals in different areas where questions are asked. However, the qualitative method is not often used in social science analysis because it is vulnerable to human biases. The amount of data gathered is small, resulting in no conclusive findings that can represent a larger population. Thus, the study was carried out in two stages: qualitative and quantitative. In the qualitative study, structured interviews were conducted to assess the importance level. A total of 10 experience personnel were interviewed and in the quantitative phase of the study, a questionnaire survey method was used to collect data as a form of intervention to acquire a variety of perspectives from project managers working in the construction industry. Most researchers utilize a closed-ended questionnaire with a pre-determined value for each question. In this study, the questionnaire forms were sent to 120 construction experts who had a lot of expertise. A total of 85 replies from 90 responses were used for analysis. The sample size (SS) required for this study was estimated based on the Cochran [49] equation, as follows: