Updated: Jan 2, 2019
As an organization, it's easy to forget just how important employee happiness can be. Whether you're focused on reducing employee turnover, as we talked about in our last installment, or you're just looking at the bottom line, employee happiness can have a profound impact. Ultimately, simply increasing employee happiness can have an incredible impact on your bottom line, leaving your company with unprecedented profits.
Happy Employees are More Productive
Two thirds of employees who report high levels of job satisfaction also consistently report putting in more work. When employees are on the clock, they're paid for it regardless of how much they're able to accomplish--but happier employees are simply better able to accomplish the company's goals every day. In fact, simply increasing happiness in employees can make return on investments and assets triple.
Your employees are the heart of your business. They are the ones who accomplish everything for your business, whether it's the simple act of completing daily tasks or coming up with new ideas and innovations. By keeping them happy, you substantially increase the odds that they will go the extra mile for your business, sharing their creativity, their time, and their energy. Happy employees share who they are and what they can do with their company. They're more engaged at work and less likely to become distracted by insignificant things, which in turn significantly improves their overall performance.
Happy Workers Don't Leave--and Businesses Grow Instead
As we discussed in our last installment, happy workers are less likely to leave your business. In fact, they'll stick around long-term, because they like working for your business and know that they will be supported there. This, in turn, significantly reduces operational costs in terms of turnover and training, which means that you'll see increased profits and available cash. Not only that, happy workers often mean businesses that are more likely to grow and thrive. When workers are happy, you're in a better position to attract the top talent in your field and keep it within your business or organization. Your business can't outgrow the number of employees you're able to keep within it, since there's only so much that a set number of employees can do--and if you're constantly dealing with turnover, you don't have the resources necessary to continue to grow. Maintaining employee happiness, therefore, can transform your business's growth opportunities.
Happy Workplaces Have Decreased Operating Costs
It's not just the cost of decreased turnover that will see your available funds rising. At many businesses, happiness leads to decreased operating costs, including:
Increased employee engagementDecreased absenteeismDecreased workplace stress, which means increased productivity
When you maintain a happy working environment, your employees are able to focus on their jobs, rather than on other problems that they might be dealing with. This means less expense for the company as a whole.
Happiness Just Works
For every 2% increase in employee happiness, revenue in the company grows by 1%. Companies who are proficient in employee happiness and handling HR issues may see 3.5x the revenue growth of companies that are less capable in these areas. Simply put, happiness just works--and making your employees happier can go a long way toward increasing your company's profits. If you're going to invest in something to improve your company, consider how investing in your employees can transform your profits in ways you never even imagined.
Shawn Achor, world-renowned happiness researcher and author of The Happiness Advantage, makes it simple when he says, "Happiness leads to greater levels of profits." This statement isn't based on opinion alone. Instead, Achor is taking a look at more than 225 academic studies conducted on more than 275,000 people by Positive Psychology researchers Sonia Lyubomirsky, Laura King, and Ed Diener. Happy employees improve your business as whole. Not only do they increase profits, they tend to have increased well-being, which means less time spent at home sick instead of at work contributing to the company. Want to learn more about how happiness increases well-being? Check out our next installment.