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How satisfied are you with your place of work and how does that impact the other parts of your life? As employers, do you know whether and why your employees are either satisfied or not at work? Do you know if there are employees who are planning on leaving? A new study by the Taub Center looks at factors that influence overall job satisfaction and its relationship with job satisfaction from different aspects of work like wages and job insecurity, and finds that Israeli workers testify to high levels of job satisfaction that have even risen in recent years. When broken down by a number of specific components, it was found that Israeli workers are much more satisfied with their income than in the past, and feelings of job security have increased over the years as well. While feelings of job insecurity were aroused among many workers during the pandemic, in 2021 their feelings returned to pre-pandemic levels among salaried workers, and among the self-employed, rates of job insecurity remained low relative to years prior to the pandemic. It was also found that work relations have the largest impact on job satisfaction, with compensation coming in second.
It is possible to measure job satisfaction with an overall score that workers give or by a score that is created by taking a weighted average of various job-satisfaction factors like wages, advancement possibilities, and the like. A new study by Haim Bleikh, a researcher at the Taub Center, examined job satisfaction from 2002–2021 — a period that included the exit from a recession at the beginning of the 2000s, a world economic crisis in 2008, and the COVID pandemic period.
Job satisfaction rates were already high at the beginning of the study period with 83% of Israeli workers claiming to be satisfied or very satisfied with their jobs — men and women, self-employed and salaried workers, public and private sector workers, those with an academic degree and those without one. Between 2002 and 2019, the job satisfaction rate increased to 89%, with the majority of the rise taking place up to 2011. In 2020 — the first year of the COVID pandemic — there was also a rise in job satisfaction, and it is reasonable to assume that this was as a result of the pandemic. For some people, the satisfaction was based in the fact that they still had jobs, some were happy to return to work after a period of unemployment or leave without pay, and others were satisfied receiving unemployment benefits during their periods of furlough from work. It is interesting to find that the data from 2021 are similar to those in 2020, with a very notable rise in job satisfaction among public sector employees (from 92% to 95%) and a drop among the self-employed (from 94% to 92%).
Workplace relations are the most influential factor; compensation come in second
The Taub Center research examined job satisfaction among salaried workers (employed persons) between the ages of 25 and 64 in the years 2002–2021, using data from the Central Bureau of Statistics Social Survey. The study focused on four factors: compensation, workplace relations, job insecurity, and work-life balance. The study found that among salaried workers, in the pre-pandemic period, workplace relations were the most influential of the factors in terms of job satisfaction, with wage levels being second in importance.
Workplace relations include relations among colleagues and with superiors, including social and professional support. This is the most influential factor in ratings of job satisfaction among workers (22%), and particularly among women (25% for women versus 20% among men). This finding is important in light of the dilemma facing many places of employment today with regard to the optimum balance between remote and on-site work. The study also found that women benefit from more assistance from supervisors and colleagues than men.
Income from work includes wages and benefits such as Keren Hishtalmut (continuing education funds), vacation days, a car — sometimes in addition to wages and other times in place of higher wages. In this study, the effect of income was expressed through the individual’s satisfaction with their wages. Satisfaction with wages is dependent not just on the wage level but also reflects one’s relative status, since workers tend to compare their compensation with others in their group (other workers in the organization or in the industry). The research found that this is the second most important factor in predicting job satisfaction, especially among men (21% for men versus 11% for women), among employees in the private sector (24% versus 8% in the public sector), and among those without an academic degree (19% versus 12% among those with an academic degree). A portion of the explanation for the gap is gender-related: in the private sector there are predominantly men versus a majority of women in the public sector, and women are also the majority when it comes to employees with academic degrees.
The Taub Center analysis shows that the overall level of job satisfaction from work income rose between 2002 and 2011, stabilized until 2019, and then rose significantly in 2020 (apparently due to the pandemic). In 2021, satisfaction with income among employees was somewhat lower than in 2020, and among the self-employed, it was somewhat higher. Among public sector employees, there was a sharp decline in income satisfaction — from 66% to 59%, although it is remained higher than in the period before the pandemic.
Job security and advancements prospects have more influence on job satisfaction among men; women are less satisfied with their work-life balance
Job insecurity relates to a lack of job stability on three main levels: a fear of losing one’s place of employment, a fear of losing one’s status at work, and a lack of security regarding the future and the ability to find future work at the current income level. An extended period of job insecurity can lead to stress, anxiety, and feelings of depression, may impact work, and cause a general rise in dissatisfaction from employment. The study identified a group of variables that play a role in job security and advancement and found that they have a larger influence on job satisfaction among men (13% among men versus 8% among women). This result aligns with the fact that men are often the principal wage-earners in the household.
Until 2019, there was a decline in feelings of job insecurity in Israel, but in 2020, during the pandemic, there was a sharp rise in these feelings — 12% of workers expressed a great deal of fear of losing their place of employment versus 6% in 2019. Among the self-employed, there was a more dramatic rise, from 10% to 24%, and among employees in the public sector and those with an academic degree the increase was smaller. In 2021, feelings of job security grew among employees and their levels returned to pre-pandemic levels. Among the self-employed this was also the case, although the levels of job security were still relatively lower than before the onset of the pandemic crisis.
Work-life balance relates to the need to find an appropriate balance between work/career and personal/family needs. The increase in women’s employment over the past twenty years, alongside a rise in the number of dual-income households, as well as the increased participation of men in child-rearing and household management, has increased the conflict between work and family. The issue is a broader one, though, and also relates to leisure time and social life, and is relevant for single individuals as well as those without children. Organizational practices such as flexible hours or the ability to work remotely can contribute to a more positive work-life balance and influence job satisfaction levels.
The CBS began measuring satisfaction with the work-life balance in 2016, and Bleikh found a continuous increasing trend in this metric among employees. In 2020, there was a sharp rise in satisfaction in the work-life balance, and although there was a decline in 2021, levels remained higher than in 2019. Satisfaction levels on this measure decline as employees reach full-time positions, especially among women — presumably because they still carry the majority of the household burden.
“Despite what most people think, wages are not the principal factor that determines job satisfaction; rather, there is a combination of factors that contribute to it. In all, compensation has less of an influence on job satisfaction than the cumulative value of the other factors. Since this factor is weaker among women, it is possible that this is a factor that also impacts gender wage gaps in Israel, or that the gap is influenced by it,” says the study’s author, Haim Bleikh. With regard to the influence of on the job relations to overall job satisfaction, he adds: “the practicalities of working from home, which has widened since the pandemic, has many advantages — among them a contribution to overall satisfaction with the work-life balance. Nevertheless, it also weakens the advantages of face-to-face encounters for workers and employers and sharpens the dilemma that many employers face in creating the proper work-life balance in the office. Decisions reached will have implications for the organization, among them worker productivity, loyalty to the company and organization, apprenticeships and professional oversight, onboarding of new workers, and keeping workers.”
The Taub Center for Social Policy Studies in Israel is an independent, non-partisan socioeconomic research institute. The Center provides decision makers and the public with research and findings on some of the most critical issues facing Israel in the areas of education, health, welfare, labor markets and economic policy in order to impact the decision-making process in Israel and to advance the well-being of all Israelis.
For details, or to arrange an interview, please contact Anat Sella-Koren, Director of Marketing, Communications and Government Relations at the Taub Center for Social Policy Studies in Israel: 050-690-9749.