1. Happiness = Productivity
This should seem obvious enough, but caring for your employees is an important part of any manager’s job. Those who forget that will face serious consequences. Studies show that happy employees are up to 20% more productive than those who are not. On that note, employees with a best friend at work are seven times more likely to fully engage in their work.
However, according to a TinyPulse survey, how happy workers are is more dependent on their co-workers rather than their relationship with their manager by a whopping 23.5%. In this sense, it’s important to build an environment that works as a community. Foster relationships between co-workers, and encourage a collaborative workspace.
2. Trust and Transparency is Everything
Be as honest and as open with your employees as you can, it’ll make a big impact on your workplace environment. The correlation between how much trust an employee has with their company is highly related to their overall happiness at work. A 2005 study found that companies with a policy of transparency, outperformed Fortune 500 companies by 11.3%
People who feel micromanaged are far less likely to take risks, try new things and make improvements. In a study by Kimble Applications, 23% of workers said their motivation relies on how transparent their company is in regards to the business’s health.
3. Disengaged workers are costly
Unless you disagree with the fact that productivity is good for business, then it shouldn’t come as any surprise by now that a happy employee is an efficient one. Not only that, but a person who is disengaged with their work tend to take 10-15 more sick days than their counterparts. On a grander scale, disengaged employees cost the US workplace somewhere between $450-550 billion every year. Ensuring your employees are interested in their work means they are working harder, thus saving you money.
4. Stress is costing more than just money
Unhappy and stressed out employees are also costing the workplace huge amounts of money. Cutthroat work environments that put stress on their salesforce can have harrowing effects on a company’s employees and subsequently their bottom line.
Studies have shown a correlation between high-stress workplaces and cardiovascular problems such as heart disease. Stress can have lasting effects on your employees personal life too; leading to substance abuse problems, unhealthy eating habits, isolation and loneliness and problems with their overall well-being. With 80% of doctors visits being related to stress, it may come as no surprise that roughly $500 billion a year is spent on doctors related to these kinds of unhealthy workplaces.
5. Great Company Culture Retains Employees
It’s simple: making your employees feel valued and appreciated is good for their retention. Showing your appreciation for their work isn’t limited to paying them a higher salary. Sit down with your employees for one-on-one conversations and in larger group settings to see how you and your company can be doing better. Town hall meetings or a suggestion boxes are simple ways of building report with the people in your office and having their voices be heard.
For small and new businesses, creating a good work culture is paramount. Teaching the values, habits and beliefs of a business to employees can have a big benefit. Studies have shown that companies with an established culture have a far lower turnover rate than those without.
6. Happiness is Profitability
A satisfied employee is not only more productive, but more profitable too. According to a Gallup poll, companies with an engaged workforce have shown to result in 147% more profit than others.
The path to a happy workplace starts before an offer is even put on the table for a new employee. During the interview process start off on the right foot by setting clear expectations. Be realistic about hours, compensation, benefits and the company’s health. If the picture you paint for them of the position doesn’t match up to their first couple weeks, problems will ensue. If you are taking over as new manager or in the process of a moral crisis, arrange a town hall meeting with the staff and take suggestions. Even if you aren’t able to fulfill all their requests, just having their voices heard will make a difference in morale.
Whether you are the supervisor of a small team, or the CEO of a multinational corporation, you have an obligation to your staff to make the work environment the best it can be. Employees deserve to be happy, not just because it’s profitable to you, but because they are people who happen to spend nearly 70% of their daily lives working for you.