Personal happiness found to be the key to workplace satisfaction

Personal happiness plays a more significant role in workplace satisfaction than previously thought, according to a major new international study published in the Journal of Organisational Behaviour. The findings challenge the long-held belief that job satisfaction is the primary driver of life satisfaction, offering fresh insights for employers on the importance of work-life balance and holistic wellbeing.

The research, conducted by experts from the US, Germany, and South Australia, analysed data from more than 160,000 individuals across multiple global studies. It revealed that people with higher life satisfaction were 32% more likely to experience increased job satisfaction over time. While job satisfaction does have a positive impact on life satisfaction, the study found this effect to be weaker and less enduring.

“Organisations that focus solely on job satisfaction initiatives may be missing a fundamental component of employee happiness,” said Christopher Wiese, Assistant Psychology Professor at the Georgia Institute of Technology and the study’s lead author. “By prioritising overall wellbeing strategies – including mental health support, work-life balance initiatives, and personal development – organisations can foster a more engaged and satisfied workforce.”

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Christian Dormann, Professor of Business Education and Management at Johannes Gutenberg-University Mainz and Adjunct Research Professor at the University of South Australia, noted that the findings overturn a longstanding assumption in psychology. For years, the prevailing belief was that job satisfaction shaped overall happiness. However, Dormann noted that this study demonstrates the opposite, showing that investing in employees’ broader wellbeing is far more impactful.

The researchers emphasised that supporting employees’ lives outside of work should be central to workplace strategies. Flexible work arrangements (FWAs) can enable employees to manage personal commitments effectively, fostering a better work-life balance. Programmes that address mental health and wellness can improve life satisfaction, while offering growth opportunities that extend beyond job-specific skills can enhance both personal and professional fulfilment.