Employee happiness plays a critical role in any company. According to research from the University of Warwick, happier employees are 12% more productive. Unhappy employees will spend more time unfocused and are likely to update their resumes during work hours. Those who are less stressed are more likely to be more engaged and content, which will result in greater customer service and higher revenue.

Foster good relationships

As Maurice Maeterlinck said, "Happiness is as contagious as gloom. It should be the duty of those who are happy to let others know of their gladness." Having happy employees in the work environment will influence positive relationships with their peers. It'll create a healthy and supportive work environment. Other benefits include:

  • Higher Retention Rates: Hiring is a complex process for employers. The Society for Human Resource Management reported that the total cost of hiring a new employee is nearly $4,700. Of course, those who are happy and content with their job will stick around.
  • Encourages Work-Life Balance: According to Gallup's American Workplace report, 64% of employees prioritize a role that allows them to have greater work-life balance and better personal well-being. They'll set time management goals, create personal and professional boundaries, practice self-care, and so much more.

How to promote employee happiness

At the end of the day, employers should remember that a company's reputation is a reflection of its employees. Yes, keeping employees happy in today's economic climate can be challenging. Still according to Gallup, unhappy workers can cost up to $7.8 trillion a year.

Here are some key factors to implement to promote employee happiness:

  • Physical Health: Being active can help reduce stress and improve mood, according to the Mayo Clinic. Encourage employees to take their breaks and leave their desks to walk around. Offering a fitness center in the office or providing a discounted membership/rate at a gym. Making physical health available can motivate and encourage employees to get moving and prioritize their health.
  • Mental Health: Mental health awareness has increased in recent years, especially due to the pandemic. As reported by the World Health Organization, people haven't been able to return to their usual routine due to the trauma and anxiety the pandemic triggered. What can be done to help support the mental well-being of employees? Make yourself available, listen to employee needs, promote free mental health services online, and allow them to take breaks. Don't underestimate the importance of emotional intelligence when it comes to discerning mental health issues, such as burnout.
  • Work Flexibility: As McKinsey Quarterly published, "Hybrid work is here to stay." Millions of employees were able to experience working from home during the pandemic, and it brought a great deal of benefits, including improvements in their work-life balance. Everyone has different working styles. Some employees are more productive working in an office setting, while others perform better from the comfort of their own homes.
  • Training and Education: You can never stop learning. Those who are stagnant at work will be stagnant in their lives. A Pew Research Center survey found that 63% of employees quit due to a lack of advancement opportunities. Training and development opportunities can provide employees with a sense of ownership and a future vision for the company.

Don't underestimate the power of feedback and recognition

According to a Gallup survey of more than 15,000 American workers, only 30% of people received recognition or praise for doing good work, which drives employees away. Provide feedback and recognize employees' achievements outside of performance reviews. Professionally praise employees in public settings and let them know how much of an impact they have on the company. Hearing positive words really does make a difference, so consider how to adjust your incentive plans to better align with employee desires and expectations.

Keep employees happy and reap the rewards

Employee happiness is the key to a successful company, as it directly impacts productivity, retention rates, and job satisfaction. Happy employees are more engaged, motivated, and committed to their work, leading to higher levels of performance and better outcomes. An employer's main focus is to provide positive work environments by being available, presenting beneficial resources, and encouraging good health and work practices among employees.