Why is a Happy Employee a More Productive Employee?


The conventional wisdom goes along the lines that by paying workers enough, their productivity will remain high. Or by introducing a pay raise, productivity will rise in tandem. There is, however, more to it than this. Recent research found a link between the happiness and the productivity of a workforce. And there are a number of companies that have implemented various factors on that note, and are now seeing the benefits.

Economists from the University of Warwick in England, found that an increase in happiness was responsible for a 12 percent spike in terms of productivity. On the other hand, it was found that unhappy workers were 10 percent less productive. The research team stated that there’s a strong correlation between human happiness and the positivity of more productiveness. Positive emotions appear to work in that they invigorate the emotions.

Nevertheless, financial incentives alone are not enough in terms of creating a very productive employee.

One of the three researchers to lead this particular study stated that companies that were intent on investing in the support and satisfaction of their employees were far more successful in the generation of a happier workforce. And, as an example of this, at Google, the satisfaction of employees rose by some 37 percent, simply on account of implementing these forms of initiatives. Which in turn, suggests that the traditional financial incentive is not enough to induce highly productive employees.

Furthermore, it has been found that when someone is feeling happier, their brain functions better. It’s at these times that individuals are at their creative best and thus, are better at problem solving activities. More research has demonstrated that when a workforce in general is happy they collaborate more effectively in terms of working toward a common goal. It’s an obvious incentive for any organization, given that happiness does in fact lead to ever-greater profits.

However, the burden with respect to the improvement of workers’ satisfaction does not have to rest in the lap of companies alone. Further research would suggest that there are many simple ways whereby employees are able to provide a boost to their own levels of happiness, such as meditating for a short period of time daily, providing a helping hand to co-workers in need, and reflecting on things that they feel grateful for at their work.

So, in other words, a mindfulness to relationships does really matter, particularly so early on.

Researchers at Harvard found that students who had strong social support, both while at home and also at school, were generally happier and they also dealt with stressful situations more effectively. And as these students matured into adulthood, they brought with them those same skills into their places of work. Workers that have strong relationships with their co-workers are likewise better at remaining engaged and carrying out tasks when under stress.

And, in turn, this has led some to say that the happier employees generally make for better leaders. Alexander Kjerulf, the founder of Woohoo Inc., believes that being happy is responsible for boosting productivity to extraordinary levels. In his view, happy employees excel at time management, make overall better decisions, and they are in possession of a variety of extremely important leadership skills.

The vast majority of the working population do not enjoy their work.

There’s plenty of room for improvement in terms of improving happiness in the place of work. A Gallup survey that was conducted recently found that a mere 13 percent of employees found their work engaging, which means that by far the vast majority take little pleasure from their jobs.

From one recent measure, that fact is responsible for costing companies in the US alone as much as $450-$550 on an annual basis. Taking this from a different viewpoint, however, and it’s obvious to see that low-level worker engagement provides companies with an opportunity to improve their productivity, simply by making investments in overall workplace happiness and employee welfare.

But still, there is a question of just how much resources must be devoted to this cause. While in the meantime, there’s extra research required in order to determine the practices that are most successful in the generation of such outcomes. Nevertheless, there is already good reason to believe that this offers one of the rare instances whereby you can in fact make everyone happy.

Learn about how the introduction of a time card app can help to improve employee efficiency and productivity.

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