The Role of Employee Happiness in Business Success: Why it Matters

Q: How important do you think employee happiness is for the success of a business?

Employee happiness is highly important for the success of a business. Here's why: Increased Productivity: Happy employees are more engaged, motivated, and focused, leading to higher productivity and better quality work. Studies have shown a significant correlation between happiness and productivity, with happier employees producing up to 13% more ([link to Forbes article about employee happiness and productivity]). Reduced Turnover: Happy employees are less likely to leave their jobs, which saves the company time and money on recruitment and training costs. High turnover can be disruptive and lead to a knowledge gap within the company. Improved Customer Service: Happy employees are more likely to provide excellent customer service, leading to higher customer satisfaction and loyalty. A positive work environment can translate to a positive customer experience. Enhanced Creativity and Innovation: Happy employees are more likely to be creative and innovative, which can help a business develop new products and services and stay ahead of the competition. A positive and collaborative environment fosters out-of-the-box thinking. Stronger Employer Brand: A reputation for employee happiness can attract top talent and create a stronger employer brand. This can be a significant advantage in a competitive job market.

Updated on: July 18, 2024

In the context of the employee satisfaction and well-being, it is important for employers to realize what are the main reasons and motivators that keep the employee happy in the current job that would eventually promote work development, productivity and greater loyalty, and would overall lead to business growth and success.

It’s no secret that employees who feel heard, encouraged and understood at their workplace are more inclined to significantly increase their work productivity because they feel appreciated and supported. Corporate culture must strive to allow to promote mutual communication between the management of the company and its employees, which is an important aspect in ensuring mutual cooperation and promoting work productivity.

Employee satisfaction and happiness is a major contributor to their loyalty to the company. The more satisfied the employee, the more motivated he will be to invest in the company. Therefore, more and more companies seek feedback to find out if employees are satisfied with the work environment, what improvements are needed and how to motivate employees to contribute to the development of the company. This is especially important now, when remote work has become relevant and more and more employees are becoming increasingly interested in their rights. We have detected some essential strategies that can create and enhance employee happiness at work:

In This Article

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Employee satisfaction surveys

Employee satisfaction is an essential contributor to their loyalty to the company, as well as productivity. But how to find out if the employees are satisfied with the current situation in the work environment, what improvements are needed and what problems each employee faces on a daily basis? Employee survey is one of the most effective ways to quickly, efficiently and collectively obtain information about employees’ well-being in the work environment and involvement in work processes.

Employee satisfaction surveys have plenty of benefits in enhancing employee happiness and satisfaction and will help to determine the company’s growth direction. Employee surveys make it possible to identify the most important problems affecting the company’s internal environment, showing the most appropriate solutions for eliminating these problems and introducing new improvements that are beneficial to the majority of employees in the company, thus indicating potential opportunities for growth in the company.

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The opportunity to speak and be heard

The company must provide employees with the opportunity to express themselves. Above mentioned employee satisfaction surveys allow this expression to be provided in a much more convenient and employee-friendly format – in writing, as well as anonymously, gaining the most honest insight into the company’s operations from the employees’ point of view. As the company is focused on the needs of the employees, wanting to find out and implement them as much as possible, it gains more trust from the employees, which also contributes to their loyalty to the workplace and satisfaction with the working conditions.

Also open meetings, team-building activities, seminars and encouraging an objective feedback will make a world of difference for employees to feel heard and understood. The mutual involvement and listening to employees promote mutual communication between the management of the company and its employees, which is an important aspect in ensuring smooth cooperation and promoting work productivity.

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Regular trainings at least once a year

In order to promote employees’ job satisfaction, a starting point is necessary – the company’s management must establish a strategy for determining the level of employees’ happiness and job satisfaction, as well as a plan for further actions that need to be taken to improve these indicators. Every company should organize some type of team-building training at least once a year, as well as strengthening existing knowledge and for new skills as well.

This is relevant for all heads of departments, because the emotional state of the team depends on them, which, in turn, is reflected in the overall results. In this type of training, attention should be paid to solving specific, work-related problem situations, looking for different alternatives, thus encouraging employees to consciously pay attention to the analysis of their actions from an emotional and also practical point of view.

Use internal communication

Also, companies should create a strategy on how, using their premises, resources and communication channels, to convey information about the importance of workplace satisfaction, well-being and productivity. For example, relevant information should be placed on the internal homepage, banners in common areas such as elevators, books in the company library and in the resting areas.

HR departments are advised to conduct staff interviews to find out and systematize the reasons for employee turnover, which should later be analyzed in order to understand the reasons for employees leaving and develop necessary actions to reduce turnover.

In general, the internal communication of the company serves as the basis of building loyalty, which is one of the important challenges of HR professionals today. It is also essential for the attraction and involvement of new employees in the company, and for personal and professional development. Without internal communication, it is more difficult to promote effective cooperation between colleagues and departments.

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Mentoring and joint meetings

It is also desirable to develop a plan for the socialization of new employees in the organization, accurately explaining the daily duties and work routine, appointing a mentor with high emotional intelligence and knowledge, as well as organizing joint meetings of new and existing employees to regularly discuss current problems and find the best solutions.

Mentoring is an effective way for one person to teach another person with useful advice from their own experience. By applying mentoring practice in the workplace, you have the opportunity to manage talent – to help people increase their efficiency, improve career growth opportunities, as well as create a more productive organization. This practice allows to stay motivated and keep improving your knowledge – never stop developing yourself. To help others grow, you have to see the value in your own growth.

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Satisfaction and loyalty as the result of employee happiness

It is obvious that in the name of productivity and business success, employee happiness is essential to ensure long-term cooperation. It is also an important aspect to attract a valuable employee; to keep it in the team by motivation it and continuously satisfying the needs of your valued employees.

If a person’s wishes and needs are respected at the workplace and fulfilled for a job well done, it is an investment in the name of the common good of the company. Also additional bonuses can serve as a reward that creates motivation to do more by providing mutual work satisfaction. Loyalty consists of the satisfaction of the person in a workplace, his duties, environment and contribution. Fulfilling employee needs in this way not only gives satisfaction and motivation, but also gratitude for what has been received that leads to more work productivity and healthier workplace environment.

Summary

The feeling of satisfaction and happiness of employees at work is an important aspect for promoting the development and productivity of the company. Therefore, it is important to find out the employees’ satisfaction with the company’s working conditions, their suggestions for improving the working environment, so that these suggestions can then be implemented in practice.

The company must provide employees with the opportunity to express themselves. Such tool can be employee satisfaction surveys allowing this expression to be provided in a much more convenient and employee-friendly format – in writing, verbally as well as anonymously, gaining the most honest insight into the company’s operations from the employees’ point of view.

As the company is focused on the needs of the employees, wanting to find out and implement them as much as possible, it gains more trust from the employees, which also contributes to their loyalty to the workplace and satisfaction with the working conditions – that also must be improved accordingly. In order to ensure loyal, satisfied, happy, and long-term working relationship-oriented employees, attention should be paid to all the aspects mentioned above in this article for beneficial work results and pleasant coexistence.

How important do you think employee happiness is for the success of a business?

Employee happiness is highly important for the success of a business. Here's why:

Increased Productivity: Happy employees are more engaged, motivated, and focused, leading to higher productivity and better quality work. Studies have shown a significant correlation between happiness and productivity, with happier employees producing up to 13% more ([link to Forbes article about employee happiness and productivity]).
Reduced Turnover: Happy employees are less likely to leave their jobs, which saves the company time and money on recruitment and training costs. High turnover can be disruptive and lead to a knowledge gap within the company.
Improved Customer Service: Happy employees are more likely to provide excellent customer service, leading to higher customer satisfaction and loyalty. A positive work environment can translate to a positive customer experience.
Enhanced Creativity and Innovation: Happy employees are more likely to be creative and innovative, which can help a business develop new products and services and stay ahead of the competition. A positive and collaborative environment fosters out-of-the-box thinking.
Stronger Employer Brand: A reputation for employee happiness can attract top talent and create a stronger employer brand. This can be a significant advantage in a competitive job market.

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