Today, many employers are well aware of issues such as the high cost of employees leaving their company. Many would say that it is self-evident that happier employees are better for the company. But how much better? And aside from lower costs from retaining staff, what are the actual advantages of having happy employees?
Shawn Achor, author of the famous book, ‘The Happiness Advantage,’ comments that happier employees have better levels of productivity, produce higher sales, perform better in leadership positions, and receive higher performance ratings and higher pay. They also enjoy more job security and are less likely to take sick days, quit or become burned out. Let’s look at these claims in a little more detail.
- Happiness encourages creativity
As firms increasingly find themselves in changing and competitive markets, innovation and creativity has become the key to survival for many organisations. Research suggests that being happy helps creativity since it frees up space and helps raise people’s mental flexibility, thereby increasing the chance of them creating something new.
- Happy Employees are more accurate and have better analytical abilities
Achor’s research showed that employees who are in a happy mood make better and more accurate decisions compared to unhappy employees.
- Happy Employees equal lower costs
A global health study has managed to quantify the average cost of an unhappy employee. These unhappy employees take significantly more sick leave, staying home on average of 1.25 days more a month, equivalent to 15 extra sick days per year.
- Happy employees are better at closing deals
An in-depth study of negotiations in business deals showed that those employees who expressed more positive emotions prior to negotiating deals, closed these more efficiently and successfully rather than people who were unhappy.
- Happy Employees provide a better service
Gallup’s 2008 poll on employee happiness and services, saw that retail stores with happy employees reported more earnings, than ‘’normal’’ workplaces, adding up extra profits. Moreover, another study produced by a famous American psychologist found that employee morale and company sales are directly correlated.
- Happy Employees are more productive
There is a large body of research confirming this. A study from the University of Warwick noted that, after showing and giving happiness-inducing products such as comedy clips, their productivity in standardised tasks was vastly higher. In Malta betting jobs are being promoted as a fun, happy, comfortable environment to work in. People need that feeling of belonging as well and everyone enjoys perks like free food, drinks, activities with the team every now and then.
- Happy Employees stay
It might be self-evident but the importance of your employees being happy cannot be understated. A famous accounting firm, published a global report on human resources saying that, ‘Not only are happiness and contentment key to efficiency and effectiveness, they are also key to retainers of talent for organisations.’
By choosing policies and approaches to employees that help to keep them happy, companies benefit themselves. None of these policy changes directly cost a company, but they can greatly increase profits.