The Employee Satisfaction- Performance Link and How It Relates to Company Profitability

Data of problem

The majority of frameworks and the teams of control in the businesses today are concentrated on controlling with a specific return on investment (KING). The KING can be measured in actual value with quantifiable results. Too much often, these frameworks focused by KING does not control �with the softer disciplines� like the human capital. These frameworks and chiefs of corporation miss an enormous occasion.

The aim of this research is to examine the impact which the satisfaction of the employees has on the financial execution of the organizations. In today 'the commercial environment of S, it is imperative that the executives and the chiefs concentrate on the human capital their companies and not simply on their assessments and targets of SG&A. This document will show the direct correlation between the bond of execution of employee-satisfaction and how it refers to the profitability of company.
Importance of problem

In today 'the total macro-economic environment of S, the companies which succeed will control not only with the result, but will control their human capital successfully. The majority of the companies and products on the market today are confronted with greatest competition, with the commoditization of much of products and services, and at an increasingly competing global market.

In this environment, a challenge of management of the keys is to create the competitive in the long run and bearable advantage based on the points of differentiation which are mainly unexploited. A factor of differentiation which is mainly unexploited and excessively under-served is human capital. Research proved that the satisfactory employees provide the higher service to the customers, and alternatively, the satisfactory customers are most advantageous. The Keller grass, founder of Southwest Airlines, indicated that �there is a key with profitability and the stability during a pole or the economy of bust: moral of the personnel.� In other words, the creation of an work environment which motivates and satisfies employees is a key factor by carrying out the advantageous growth and competition in the long run.

Limitations and delimitations

Limitations:
. The satisfaction of the employees directly carries out the financial execution by the costs and the income
. The satisfaction of the customer is the bond (indirect) between the satisfaction of the employees and the profitability of company.
. The satisfaction of the customer is continuously supervised per many companies, therefore it was easy to obtain data
. All research is compiled secondary resources
. Using the data and the reports/ratios of the employees of availability ratio to be translated for the employees of coating of non-customer
. Indirect bonds between the satisfaction of the employees on the turnover of the employees and the satisfaction of the customer
Delimitations:
. All undertaken research is secondary only.
. The soft exits analyzed in this study are human capital only; the study would have been with large or with unfocused so of other disciplines were included.
Examination of the literature

There were many studies published in the service and the sector with the detail which showed the direct link of the satisfaction of the employees to the satisfaction of the customer and alternatively, profitability.
Methodology

Included in this article is a detailed compilation of research and analysis secondaries of these results. The author will also connect on the various studies made during the thirty last years, as well as the use the method of case study by analyzing the use of the management of the human capital like remunerative tool. The case studies will include the following companies: T-Mobil the United States, Taco Beautiful, close state, normalize American, and Ritz-Carlton.
Results

It is this author 'hope of S to note that the bond between the satisfaction of the employees and the profitability of company is prolonged beyond the employees of customer-coating to all the employees in the organization. This report/ratio will prove that there is a direct correlation with the job satisfaction and all the employees to that of a company of a 'result of S.

Watson Wyatt in the whole world compiled research on the practices as regards human resources of 1.500 companies as a North-American and Europe and concluded that the higher matter practices of human capital are a principal indicator of financial execution.