Abstract:
The purpose of this paper is to explore the relationship between factors such as job satisfaction, social
factors, and work environment, and their impact on an organization's financial performance. This
paper is based on a review of existing literature on the relationship between employee happiness and
satisfaction and financial performance. Various theories, such as Expectancy Theory, Locke and
Latham's Job Satisfaction Theory, and Fredrick Herzberg's Job Satisfaction Theory, are used to
support our findings and analyze based quantitative with SMART-PLS to answer the hypothesis. The
study results show that Job satisfaction has a positive impact on financial performance. Increased job
satisfaction can reduce employee turnover, increase productivity, and reduce recruitment and training
costs. Social factors, such as a positive organizational culture, effective communication, social
support, and team diversity, also affect financial performance by creating a more dedicated and
motivated workforce. Social factors also have a positive and significant effect on job satisfaction.
Positive relationships with coworkers and superiors, good communication, and social support
contribute to higher job satisfaction. A good work environment, including a comfortable physical
environment, a positive work atmosphere, healthy employee relations, supportive company policies,
and a positive work culture, contributes to employee motivation and company performance. This
paper highlights the importance of factors related to employee happiness and satisfaction in achieving
better financial performance. It provides managers with insights on how to improve employee
satisfaction, build a positive organizational culture, improve communication, and create a supportive
work environment. The findings also contribute to the existing organizational and management
theories by emphasizing the significance of psychological and social factors in predicting financial
performance
