English title: Job satisfaction and job performance - impacts on human capital
Author(s): Kjell-Åge Gotvassli - Anne Sigrid Haugset -
Type: Report, working paper
Within macroeconomics it is a well established point of view that investments in human capital is important for the economic growth of a region. In this paper we will look at the connection between job satisfaction and job performance and its impact on the “use” of human capital. A number of Meta - analyses shows that on average, the correlation between job satisfaction and effectiveness is about r = 0. 30 – 0. 40,which can be described as a moderate connection. Our regression analysis employing data from the European Social Survey Round 3 ESS - 3 (2006) shows that how much of the time the job is regarded as interesting has the strongest positive influence on perceived job satisfaction. Also the experience of having authority and influence over one’s own working day and over the organisation has a significant positive effect on job satisfaction. There are some consequences this should have in terms of exploiting and activating human capital amongst employees. One way in which this occurs is for the employees to experience job satisfaction. Fundamental to this goal is the creation of interesting jobs and jobs that offer influence and authority. Our empirical analyses and those of others also show that creating job satisfaction is far more important than salary in terms of developing human capital. If a region is both to attract, develop and retain a skilled and motivated workforce, a great deal of work has to be done to develop jobs that are regarded as interesting and which provide job satisfaction, rather than attempting to compete in terms of salary as the most important attraction. That means a great job must be done by the leadership in the organizations.
Institution: Nord-Trøndelag University College
Number of pages: 24
Series: HiNT Publications