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Factors of Job Satisfaction in the Czech Republic

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Journal of Entrepreneurship and Business Development

Volume 1, Issue 1,December 2021, pages 14-19


Factors of Job Satisfaction in the Czech Republic

DOI: 10.18775/jebd.2806-8661.2021.11.5002
URL: https://doi.org/10.18775/jebd.2806-8661.2021.11.5002

Vaclav Stritesky
Department of Marketing, Faculty of Business Administration | Prague University of Economics and Business
Abstract: The paper aims to identify overall job satisfaction in the Czech Republic and explore its differences between the various economic sectors. It also provides a comprehensive view of potential influence factors on job satisfaction with the emphasis on sociodemographic variables and job characteristics. This study aims to offer a different perspective on the issue of job satisfaction, which is often analyzed in conditions of one specific organization. In the Czech Republic, a study analyzing the global situation of job satisfaction in terms of sociodemographic variables has not been published yet. The study is based on quantitative research using personal interviews. Data were collected in cooperation with the research agency Median, s.r.o. within its research project Market & Media & Lifestyle. The size of the sample is over 15,000 respondents. Tests for the homogeneity of binomial proportions and logistic regression are used. The paper provides a comprehensive view of job satisfaction in the Czech market. The influencing factors of job satisfaction are discussed. These results can be used when assessing the level of job satisfaction of various groups of Czech employees in terms of specific companies. The paper includes implications for assessing the effectiveness of various HR policies on the job satisfaction of various groups of employees in the Czech Republic. This comprehensive macro perspective on the issue of job satisfaction may lead to the conclusion that some socio-demographic groups of employees may generally exhibit a lower level of job satisfaction regardless of the specific conditions of the company. This paper provides a different perspective on the issue often examined in the conditions of the Czech Republic, which is still missing and is frequently published in other countries.
Keyword: Job, Job satisfaction, HR policy, Labour market, Motivation.

1. Introduction

Employee satisfaction is a crucial issue in the current business environment. The new situation in the labor market caused by the current phase of the economic cycle is the main concern of enterprises in Central Europe. The long-term challenge is the changing content of jobs, ranging from routine activities to heuristic tasks. This fact significantly affects the value of human resources in business. Some researchers present the risk of a lack of specific qualifications in the labor market, which poses a challenge for businesses to reduce employee fluctuation and stabilize good staff (Bosworth, Jones, and Wilson, 2008). Other risks in this area stem from the overqualified workforce (Croce and Ghignoni, 2012). Both cases are also a reason to solve the problem of employee satisfaction.

Nowadays, many papers and studies deal with employee satisfaction and its factors.  Some of the employee satisfaction factors are examined in the chosen sectors, such as the banking industry, IT, public services, etc. (Shan, Yao, Shi and Ren, 2014; Tso, Fai and Li, 2015). Other studies are designed in broader dimensions. They examine the impact of socio-demographic factors on the level of employee satisfaction in specific areas of working life (Urosevic and Milijic, 2012; Tomazevic, Seljak and Aristovnik, 2014).

In conditions of the Czech labor market, only studies focusing on specific sectors or specific factors were published (Němečková, 2012; Sokolová, Mohelská and Zubr, 2016). Research on complex factors of employee satisfaction in the Czech labor market has not been published yet. The paper aims to identify overall job satisfaction in the Czech Republic and explore the differences between the various economic sectors. It also provides a comprehensive view of potential influence factors on job satisfaction with the emphasis on sociodemographic variables and job characteristics.

1.1 Data and Methods

Data for this analysis were collected in cooperation with research agency Median within the research project Market & Media & Lifestyle. The sample size is over 15 000 respondents. Data collection was based on personal interviews; random sampling was used. The sample is representative of the Czech population aged 12 – 79. Analysis for this study was focused on the labor force. Some segments such as retired people, students, children, the unemployed were filtered out. The final sample size was 9 004 respondents. Data were collected during 4 periods in 2014.

The main part of the study aims to evaluate the influence of sociodemographic characteristics and job characteristics on job satisfaction. Investigated variables are gender, age, education and net income as sociodemographic ones. As for job characteristics, the economic sector in which the respondent works or does business, size of the company, status in employment, financial decision-making power, and the type of employment (employee, entrepreneur) are investigated.

The significance of the identified difference is evaluated through the tests for equality of means. Tests for the homogeneity of binomial proportions were used. Logistic regression is an additional method for assessing the significance of variables and their ability to predict job satisfaction.

2. Results

2.1 Overall Job Satisfaction

The research explored overall job satisfaction in the Czech Republic. Almost 60 % of Czech workers are satisfied with their job (see Fig. 1). It is a relatively high rate of job satisfaction as only 4 % of the Czech labor force are unsatisfied.

Figure 1: Overall job satisfaction in the Czech Republic

Source: authors, MML-TGI, Median 2014, N = 9 004

2.2 Analysis of Sociodemographic Variables

Differences between men and women are not statistically significant (p-value = 0,89). 58.6 % of the male labor force and 58.5 % of the female labor force are satisfied with their job. See Tab. 1.

Table 1: Sociodemographic variables and their significance

Variablep-valueSignificance
Gender0.89no
Age0,00yes
Age 16 – 24 vs. others0.00yes
Age 16 – 54 vs. others0.00yes
Age 25 – 54 vs. others0.29no
Education0,00yes
Net income0,00yes

 Source: authors, MML-TGI, Median 2014, N = 9 004

Depending on age intervals definition the analysis confirmed age as a significant variable influencing job satisfaction. We can say that younger people are less satisfied with their job, namely people in the age of 16 – 24 (only 50.8 % are satisfied with their job compared to 61.7 % of 55+). On the other hand, middle-aged people do not differ significantly in job satisfaction compared to other age groups (58.3 % of people aged 25 – 54 compared to 59.6 % of other people).

Education was identified as a significant variable. The higher education the higher rate of job satisfaction. The Labour force with primary education has the lowest rate of job satisfaction (47.7 %). On the contrary, people with higher education have the highest rate of job satisfaction (69.1 %). Secondary education without graduation and secondary education with graduation were joined together as these two groups were characterized by a similar rate of job satisfaction. On average, 57.5 % of the labor force with secondary education are satisfied with the job.

Net income is a significant variable but the relation between job satisfaction and the size of net income is not linear as people with a salary above CZK 100 000 are much less satisfied (61,4 %) compared to people with salary CZK 75 001 – 100 000 (96.8 %) or even CZK 50 001 –  75 000 (96.7 %). Despite this fact, the analysis confirmed that job satisfaction grows with higher income. Rates of job satisfaction for broadly defined intervals of net income are as follows:

  • Up to CZK 10 000: 43.6 %;
  • CZK 10 001 – 20 000: 55.8 %;
  • CZK 20 001 – 50 000: 66.5 %;
  • CZK 50 001 and more: 86.2 %.

 

The research identified net income CZK 50 000 as a breaking point of substantial growth of job satisfaction. 62.1 % of the labor force with income CZK 40 001 – 50 000 are satisfied with their jobs compared to 96.7 % of the labor force with net income CZK 50 000 – 75 000. These findings were important for defining the income intervals above. Dividing middle interval CZK 20 001 – 50 000 into smaller ones did not result in significant differences between them. Similarly, net income interval CZK 50 001 – 75 000 and CZK 75 000 and more.

2.3 Job Characteristics

The next part of the analysis explored selected job characteristics and their relation to job satisfaction. Statistical significance of identified differences was tested by the test for equality of means. Analyzed variables were as follows:

  • economic sector in which the respondent works or does business,
  • number of employees in the company where the respondent works,
  • status in employment,
  • financial decision-making power in the respondent’s employment,
  • type of employment (employee, entrepreneur).

 

One of the analyzed characteristics was the economic sector in which the respondent works or does business. Tab. 2 presents the ranking of sectors per job satisfaction.

Table 2: Ranking of selected economic sectors according to the job satisfaction

1.Education / Science72.1 %8.Public administration / judicial / military / police58.2 %
2.IT70.9 %9.Construction / Real Estate56.9 %
3. – 4.Other technical fields68.3 %10. – 11.Banking / finance56.8 %
3. – 4.Marketing / Management / Advertising / Media68.3 %10. – 11.Services / Tourism56.8 %
5.Health / Social Care64.8 %12. – 13.Transport / Logistics56.4 %
6.Agriculture / Environment / Ecology60.6 %12. – 13.Manual work56.4 %
7.Industry / production / extraction of raw materials / metallurgy59.5 %14.Trade – buying and selling of goods50.6 %

 Source: authors, MML-TGI, Median 2014, N = 9 004

This variable is significant (p-value < 0,05), differences in job satisfaction between particular economic sectors exist. The closer analysis did not prove a significant difference among all the sectors. Some of them are similar to others. Economic sectors with a significant difference in job satisfaction compared to other sectors are as follows:

  • Health / Social Care;
  • IT;
  • Other technical fields;
  • Education / Science;
  • Trade – buying and selling of goods.

 

The next tested variable was the number of employees in the company which corresponds to the company size. Overall, the test for the homogeneity of binomial proportions showed a statistically significant difference (p-value < 0.05). The biggest difference in job satisfaction was found out between companies with 1 employee (generally independent entrepreneurs) and companies above 100 employees. 64.1 % of independent entrepreneurs are satisfied compared to 55.6 % in larger companies above 100 employees. Larger companies have a similar rate of job satisfaction to companies of 6 – 25 employees (56.9 %). On the other hand, relatively high satisfaction was proven in companies of 26 – 100 employees (62.4 %). The relation between the company size and job satisfaction is not linear.

Status in employment is the next significant variable that influences job satisfaction. Differences were statistically significant both at the 0.05 and 0.01 levels. The analysis confirmed that job satisfaction is increasing with higher status in employment. The highest rate of job satisfaction was found out among directors of the companies (94.6 %). On the contrary, the lowest level of satisfaction stated ordinary (frontline) employees (56.5 %). The equal mean of job satisfaction (i.e., no significant difference of job satisfaction compared to other samples) was identified among managers with subordinate units (66.8 %). This status in employment does not imply statistically different job satisfaction (p-value = 0,08).

Financial decision-making power showed as a significant factor, too. Generally, people with greater decision-making power in finance are more likely to be satisfied with their job. An interesting exception is people with the responsibility for the highest budgets above CZK 5 mil. Their level of satisfaction is much lower and is not significantly different from other people (see Tab 3.).

Table 3: Job satisfaction related to financial decision-making power

Financial decision-making powerSatisfied with the jobp-value (binomial test)
Do not decide on financial flows57.7 %0,00
CZK 50 – 250 thousand65.2 %0,00
CZK 250 thousand – 1 million68.9 %0,00
CZK 1 million – 5 million77.0 %0,00
Above CZK 5 million56.7 %0,61

 Source: authors, MML-TGI, Median 2014, N = 9 004

The last variable included in the analysis was the type of employment. The main aim was to identify the difference in job satisfaction between employers and entrepreneurs. Aggregated data shows that private entrepreneurs are more satisfied with their job compared to employed people:

  • Private entrepreneurs: 66.0 %.
  • Employed people: 57.9 %.

 

The difference is significant at the 0.01 level.

Interesting findings offered an analysis of this variable in more detail (see Tab. 4). The highest rate of job satisfaction was identified among entrepreneurs without employees (i.e., independent entrepreneurs). On the contrary, the least satisfied are part-time employees. The binomial test compared values of job satisfaction rate between the selected category and the rest of the respondents. As p-values in Tab. 4 show, only private entrepreneurs without employees and part-time employees differ significantly from the average satisfaction of other types of employment (at the level of significance 0.05).

Table 4: Job satisfaction related to the type of employment

Type of employmentSatisfied with the jobp-value (binomial test)
employed / sole job / full time58.5 %0,77
employed / two or more jobs or employed and self-employed54.5 %0,13
employed / part-time or part-time50.7 %0,00
private entrepreneur (owner / co-owner of the company) without employees67.4 %0,00
private entrepreneur (owner / co-owner of the company) with employees61.8 %0,33
other52.8 %0,14

 Source: authors, MML-TGI, Median 2014, N = 9 004

2.4 Modelling of Job Satisfaction through Logistic Regression

The significance of variables described above was evaluated also through logistic regression. The main aim of this part of the analysis is to answer the question of whether sociodemographic characteristics and characteristics of the job itself can be used for modeling job satisfaction.

The dependent variable is an agreement with the statement that the respondent is satisfied at work. Independent variables are sociodemographic characteristics and characteristics of the job. They are as follows:

  • age,
  • education,
  • net income,
  • economic sector – education/science,
  • economic sector – IT,
  • economic sector – other technical fields,
  • economic sector – marketing / management / advertising / media,
  • size of the company,
  • status in employment,
  • financial decision-making power.

 

Table 5: Outputs of logistic regression

Parameter est.Std. errorTest statisticsp-value
Intercept-1,150,1744,70,00
Independent variables
Age0,100,0216,50,00
Education0,090,045,780,02
Net income0,110,0154,540
Sector – education / science0,480,1215,720
Sector -IT0,420,185,360,02
Sector – other technical fields0,420,167,390,01
Sector – marketing / …0,810,317,030,01
Size of the company-0,050,034,340,04
Status in employment0,190,0514,190
Fin. decision-making power-0,070,0210,530

 Source: authors, MML-TGI, Median 2014, N = 9 004

Counted levels of significance for each variable confirm the relevance of analyzed factors influencing job satisfaction. Most of the factors are significant at the 0,01 level, education and size of the company at the 0,05 level.

The significance level for the model is 0,00. On the other hand, the coefficient of determination is very low (0,02). It means that this model is probably not suitable for the explanation and prediction of job satisfaction. Hard variables such as sociodemographic characteristics and characteristics of the job are not sufficient. Preliminary analysis of other models based also on lifestyle variables showed that this type of independent variable has much better potential to predict job satisfaction. The coefficient of determination was between 0,2 – 0,3. This could be a basis for further research in this field. Job satisfaction is probably determined by a complex system of variables and will be generally difficult to predict.

Conclusion

The findings of this research can be used in designing incentive programs for businesses in the Czech Republic. The expected impact of individual actions and tools can be corrected just in the context of moderating factors of employee satisfaction.

The findings of this study confirm that the Czech labor force is characterized by a relatively high rate of job satisfaction. Most sociodemographic characteristics except for gender have a significant influence on job satisfaction. Young people are more likely to be less satisfied compared to senior people. Higher job satisfaction was also proved among the labor force with higher education and higher net income. Net income of CZK 50 thousand was identified as a breaking point in job satisfaction.

As for job characteristics, this study has brought interesting findings. Economic sectors with the highest level of job satisfaction are education/science and IT. People working in big-size companies with above 100 employees feel much less satisfied with their job as independent entrepreneurs. A relatively high level of job satisfaction was identified among people working at companies with 26 – 100 employees. The relationship between these variables is not linear. Status in employment was also identified as a significant variable. Especially, the difference in job satisfaction between company directors and ordinary employees is of high range. People with greater decision-making power in finance are more likely to be satisfied with their job except for people dealing with budgets above CZK 5 mil. This responsibility decreases job satisfaction again. Very interesting findings resulted from the analysis of the type of employment. Generally, private entrepreneurs are more satisfied with their job than employed people. The highest level of job satisfaction was identified among independent entrepreneurs without employees.

Logistic regression confirmed statistical significance for most of the investigated variables. On the other hand, due to the very low coefficient of determination, sociodemographic variables and variables describing various job characteristics are not sufficient for predicting job satisfaction. Based on preliminary analysis it was found out that variables regarding work lifestyle and values are much better predictors than sociodemographic and job characteristics. Factors influencing job satisfaction are probably hidden behind the psychological characteristics of people. This hypothesis will be investigated in the next steps of this research.

References

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