How employees feel at work can directly affect the success of a company. Many employers underestimate the correlation between employee happiness and performance. Companies that encourage positive company culture, such as Google, attract the top talents. Engaged employees do their best work to achieve the business’s goals and are willing to go the extra mile to contribute to the business’s success. This is mostly due to the fact that employees feel a sense of belonging, and when an employee feels like their well-being is a priority, they’ll give their very best and maintain their loyalty to the company. Those who show up to work with an eagerness to overcome challenges, solve problems, and achieve set goals, are the driving force of any business.
The relationship between employee happiness, employee engagement, and employee performance has been confirmed through multiple research studies. In its extensive research program, “The Science of Happiness at Work”, iOpener Institute found that:
- Happy employees stay in their job four times longer than unhappy employees;
- Happy employees are 12% more productive;
- Happy employees commit twice as much time to their tasks;
- Happy employees have 65% more energy than unhappy employees.
Creating a positive work environment and keeping employees happy has many benefits. Here are 5 benefits of happy employees:
1. They’re more productive
Creating a culture that encourages employee satisfaction and happiness will no doubt boost employee productivity and performance. Employee happiness can improve a company’s bottom line, as well as increase creativity, productivity, and service quality. Happy employees are more present and engaged. They pay more attention to the customers’ needs and are more alert of the company’s systems and processes. All these factors come together to bring organizations increased productivity and profitability.
2. They contribute to the happiness of customers and coworkers
When an employee is happy, it is apparent in the interactions they have with customers. The more engaged an employee is with the customer, the more interested the customer will be in the company’s products and/or services. The customer will likely return and tell others about their pleasant experience.
Another thing to consider when examining the effect of happiness is that it can have a multiplying effect. A positive demeanor and good mood is contagious and can influence other employees without them even realizing. Employees who give off negative vibes aren’t much fun to work with and typically aren’t as engaged. Employee happiness inspires teamwork, and such comradery helps projects run smoothly and get completed on time. Since effective team collaboration depends on having solid working relationships with your colleagues, you can lose a lot by not engaging and satisfying your team, as unhappiness breeds instability. Just one unhappy employee can affect the entire team, and in turn affect the success of the company.
3. They’re more engaged
When employees are engaged, their main objective is to contribute to the company’s success. It’s important to create an environment where your employees feel engaged and motivated in their roles. When an employee is satisfied in their role, they naturally perform better. Engaged employees are motivated to complete their tasks on time and successfully and will go the extra mile to reach their goals and objectives. They genuinely care about their responsibilities and want to make the company and their superiors proud of their work. Additionally, they’re better at meeting customers’ needs, which leads to more sales and higher revenues.
4. They’re more likely to stay with your company
It’s a given that an unhappy employee is more likely to quit, so if retention is something you care about, you should start paying attention to employee happiness. Many companies are finding it difficult to retain top talent. According to recent research of more than 600 US businesses with 50-500 employees, 63.3% of companies say retaining employees is actually harder than hiring them.
Happiness and employee retention are the results of a highly engaged workplace culture. Feeling valued and appreciated are critical components to employee happiness and retention. Consistent recognition and appreciation of your employees and their performance will increase employee morale, retention, and collaboration.
5. They’re more likely to attract other good employees
How to improve employee happiness
Employers should encourage meaningful two-way relationships with their employees, reward their hard work and dedication, and make their wellness a priority. To improve employee happiness, employers should consider the following:
- Learning what happiness means to them
- Asking how you can improve and support them better
- Ensuring they have a balanced and interesting workload
- Encouraging and investing in their skills
- Involving them in decisions
- Creating opportunities for them to get involved
- Showing you value them
- Celebrating their successes
- Always acting on their feedback
Having happy employees is a necessity for every successful workplace. Productivity, motivation, dedication and retention all depend on it. Ultimately, a positive company culture will positively affect your employees’ happiness.
Sources:
https://www.bizjournals.com/triangle/news/2019/08/29/attracting-and-retaining-top-talent-5-ways-to-make.html
https://www.indeed.com/career-advice/career-development/happy-employees
https://www.lorman.com/blog/post/36-statistics-on-the-importance-of-employee-engagement
https://www.ringcentral.com/us/en/blog/employee-happiness/