An expert guide on employee satisfaction: Key areas to improve on to provide for the well-being of your employees

The overwork culture in India is not a new phenomenon; it has deep roots in the country’s corporate landscape and the tragic death of 26-year-old Anna Sebastian Perayil at EY is simply one example of how this issue persists. Her death has sparked conversations about burnout and the intense pressure faced by employees, as well as an outpouring of solidarity from frustrated employees all over the country. But the unfortunate truth is that these myriad conversations highlight a more systemic issue. In an environment where pointing fingers solves little, the focus must shift towards sustainable solutions to prevent worker exhaustion. We looked at companies featured on Fortune's 100 Best Companies to Work For list and countries with the best work-life balance to understand what they do right for employee satisfaction along with insights from Dr. Ashish Bansal, Consultant Psychiatrist and Co-founder of House of Aesthetics, and Dr. Rahul Rai Kakkar, Consultant in Psychiatry at Narayana Hospital and identified five key areas companies can focus on to improve long-term employee satisfaction.

Recognition and growth: Employees thrive in environments where they have room for personal and professional growth. One key area that the Best Companies to Work For methodology measures is “whether they feel respected as individuals, if they receive training benefits, appreciation, support for their well-being, and opportunities to contribute”. It’s clear that employees are much happier to work when they feel supported by their team and director, and when their work feels meaningful and makes a difference.

“When employees get recognition in the workplace, they get job satisfaction and this adds to their loyalty towards their work. It also boosts their self confidence as they feel their input towards the firm is valued. In the absence of recognition, there is a feeling of employee dissatisfaction and trust issues,” says Dr. Ashish.

Fair compensation and support: Companies that offer salaries above the market average, along with benefits like health insurance and maternity leave, tend to have lower attrition rates. At companies like Nvidia, where some employees earn over $228,000, competitive pay plays a crucial role in employee retention and the generous compensation as well as stock options make it difficult for competitors to recruit talent. “Fair compensation plays a crucial role in an employee's mental health. When people feel they are paid according to their effort and expertise, it not only provides financial stability but also boosts morale and reduces stress related to financial insecurity,” says Dr. Rahul Rai. Employees who feel fairly compensated are more likely to stay loyal, reducing turnover and helping the company maintain a positive public image.

Innovative work culture: Cisco, yet another company that occupies a position in the 100 Best Companies to Work For list exemplifies a modern, innovative work culture where employees are encouraged to challenge norms and pursue new ideas. Their ethos — “connect everything, innovate everywhere, benefit everyone” — drives both individual and collective success, creating a workplace that employees find fulfilling. 

“Opportunities for professional development give employees a sense of purpose and progress. By allowing them to enhance their skills, the workplace becomes a space for learning, which helps in reducing stress and anxiety related to stagnation,” says Dr. Rahul Rai.

Flexible schedules: Several companies, particularly in the UK, have adopted the four-day workweek with positive results — employees report better physical and mental health, improved work-life balance, and greater life satisfaction. The flexibility allows employees to tailor their schedules to their personal needs, whether that means working half-days or spreading shorter hours over five days and this approach helps reduce burnout, and enhances productivity.

“If the workplace provides a conducive environment for a harmonious relationship between work and life, employees tend to be in a state of mind that assists in enhanced productivity. There are fewer chances of cases of anxiety or depression due to workload burnout, if personal life is well managed,” says Dr. Ashish.

Work-life balance: New Zealand is one country that leads the way in terms of work-life balance. With 26 weeks of paid maternity leave, 32 days of statutory annual leave, and a high minimum wage, it has created a supportive environment for employees. The cultural emphasis on family, recreation, and personal well-being has set New Zealand and most Nordic countries apart from the norm, making it clear that work is not the focal point of life, but a means to enjoy it.

“When the working days of the week are reduced, it gives employees a sense of trust and they feel flexible and less stressed. This in turn raises the firm’s production capacity. Constant workplace surveillance adds to the issues of anxiety or depression and employees get stressed out. But when it is reduced, employee job satisfaction rises. Additionally, in Scandinavian countries like Iceland, there has been an observed improvement in overall health and well being of employees, with a four day work week pilot” he said. 

What companies can do

To prevent overwork and burnout, companies need to take proactive steps before another instance of overwork takes a precious life. Offering flexible work hours and prioritising employee's work-life balance is definitely the highest on this list. Next, providing comprehensive mental health support to employees is imperative since psychological safety is linked to higher productivity. Ensuring transparent and fair compensation, with opportunities for professional development should also be looked at along with fostering a culture of respect where employees feel heard and valued.

In countries that prioritise employee well-being, companies are seeing higher productivity and lower turnover rates. Indian firms could benefit from adopting similar practices, focusing on creating workplaces that support not only career success but also personal fulfilment.