Job Satisfaction and Employer Behaviour

Deregulation of the employment relationship has characterized the functioning of European labour markets over the last few decades, particularly in the UK (OECD, 1994). This has permitted employers to institute greater labour flexibility and allowed them more discretion in employment relations, which are often regarded as a strategic necessity for maintaining organizational efficiency and price competitiveness in the face of intensifying market competition. It has also prompted concern about individuals’ labour market prospects in terms of the availability of good jobs and the chance of prospering in those jobs through wage advancements and career development. Much of the literature focuses on wage levels, earnings progression and job insecurity. Research indicates that some groups of workers – notably women, youths and the less skilled – have borne much of the burden of increased labour market flexibility (ibid.; Gregory et al., 2000). There also appears to be a link between low-wage flexible employment and lower job satisfaction.