Factors Influencing Job Satisfaction and Its Impact on Job Loyalty

Many studies have showed the job satisfaction level and the loyalty to their organizations yet these researches have not been conducted in the developing countries. The purpose of the study is to find the job satisfaction level, its impact on loyalty and the factors affecting it, to help efficient and effective management system in the developing countries like Pakistan. A model was developed which includes the factors affecting job satisfaction, their relations and effects on job loyalty. Questionnaire was developed to collect the data for job satisfaction level in various organizations. Convenient sampling was used and 148 questionnaires were filled from the employees of different private and public organizations. Statistically, Reward and recognition and workplace environment were most influencing factors to Job satisfaction, but participation in decision making and job satisfaction has insignificant relationship. Moreover, there is also positive relation between job satisfaction and job loyalty. Human resource management (HRM) claims to measure job satisfaction in developed or multi-national companies. Definitely, in under developed countries like Pakistan, these applications are rarely used. So, this paper supports use of HRM applications in the developing countries. It will help managers to better understand satisfaction level of employees and can motivate them.