Business today is more competitive and fast-paced than ever, prompting leaders to seek ways to boost efficiency and productivity. But how can this be achieved? By adding more work hours? Installing a gym in the office? Blocking non-work-related websites? What if the answer is actually quite simple?
Happiness.
Employee happiness, once considered a “nice-to-have,” is now recognised as a crucial element for business success. In this blog, we’ll explore why happiness at work matters more than ever, examining its impact on productivity, retention, and overall business outcomes.
The Correlation Between Productivity and Happiness
This isn’t just a myth to justify shorter work hours—research consistently shows that happy employees are more productive.
In fact, according to Nic Marks, a leading statistician specialising in happiness, happy employees are at least 10% more productive than their unhappy counterparts. As Marks puts it, “If we feel miserable, we do miserable work. If we feel good, we do good work.” It’s not a complex concept, yet it’s one that is often overlooked.
Working in an environment where we feel valued and appreciated is crucial. It’s important to be part of a team where successes, even small ones, are celebrated and where gratitude is freely expressed.
The Cost of Unhappiness
Companies not only benefit from increased productivity when their employees are happy, but they can also suffer financial losses when their workers are unhappy.
Unhappy employees are more likely to leave, leading to high turnover rates that can be costly for businesses. Replacing an employee requires significant time and money for training.
As Nic Marks points out, employers lose money when they invest in training employees who leave within a year. For long-term success, it’s beneficial to retain employees who are skilled in their roles and familiar with the company.
Drivers of Workplace Happiness
So we know workplace happiness is important, but how do we get there? According to Nic Marks, five key factors drive happiness at work:
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Connect
The team one works with is essential for a positive work experience, employees need to feel connected to their colleagues and in this way they can more effectively collaborate and enjoy what they’re doing.
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Fairness
In order for employees to thrive they must feel it is a fair and just environment. This will grow the sense of trust and respect among everyone and maintain morale.
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Empowerment
To get the most out of the work day, employees should have a sense of ownership over their work, they need to feel confident in their own abilities and decisions.
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Challenge
Without challenge, people can grow bored and complacent which is never good for productivity. Employees need to stretch their skills and keep engaged, motivated, and excited for the future.
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Inspiration
Employees who find meaning and purpose in their work are more likely to be passionate and committed to their roles.
The Friday Pulse Method
When Nic Marks started Friday Pulse, his aim was to help build happy and successful teams by understanding employees’ emotional experiences at work.
Friday Pulse uses brief weekly check-ins with questions like “How happy were you at work this week?” This simple question captures the emotional pulse of the workplace, providing valuable insights into the well-being of employees.
Quarterly, Friday Pulse sends out deeper assessments that give a cultural analysis of the teams. This information equips senior leaders with the insights needed to improve collaboration, creativity, and communication among their employees.
Invest in Happiness
Happy employees are more creative, innovative, and likely to contribute to a company’s long-term success.
When companies understand and address what it takes to create a happy work environment, their employees can thrive more than ever. While everyone wants to be happy, it’s often not prioritised because it’s seen as less important—don’t make that mistake again!
It was a privilege to have Nic on the latest episode of Greatest Minds. To listen to the full episode, see here: https://open.spotify.com/episode/3hDTBfMySKkg7psYDrMe8s?si=cnD5xJ0KSyiajwhawjzThA
To listen to other Greatest Minds episode, see here: https://thepodcastguys.co.uk/greatest-minds/
