Job satisfaction and job performance represent two of the most important and popular constructs investigated in organisational psychology. Issues relating to the nature and significance of their relationship has fascinated organisational researchers since the beginning of this discipline. In the present study, we aimed to clarify the direction of plausible influences between these two constructs by using a dynamic latent difference score model (McArdle, ) and a large sample of employees who were followed for five years (N = 1,004). The findings provided support for a reciprocal model of relationships. Satisfied workers generally demonstrated higher job performance over time than did unsatisfied workers. Job performance, however, is a significant contributor of an individual's satisfaction with their work. The contribution of this study to the literature lies in its use of Latent Difference Score models to more accurately capture the longitudinal dynamics of the relationships between job performance and job satisfaction.