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Are Organizations Responsible for the Happiness of Their Employees?

January 16th, 2018 | Posted by ATS in Benefit Accruals | Employee Productivity | Time and Attendance Blog, Workforce Management Software

The happiness of employees at their workplace depends, on many factors, including; the actual jobs they are performing, and to a large degree the type relationship they have with their boss and colleagues among others. A study by the University of Warwick found that happiness led to a 12% spike in productivity, while unhappy workers proved 10% less productive.


In his article, Happy Employees Is Good For Business Damon Burton lays out 5 benefits of a happy workforce. They include:

  1. Better decision-making abilitiesPeople are better equipped to make decisions when they are cheerful. On-the-job difficulties engender some degree of fear and nervousness in most of humanity, but satisfied people can return to their original mood faster after being faced with adversity.
  2. Happy people sell more– A simple search on Google of “happy people, productivity, success, business” are better at business” returns countless articles and several studies showing happy workers are more productive.   The expression of positive emotions can be an effective bargaining tool.
  3. Greater innovation– There’s strong evidence showing a correlation between happiness and creativity. Some studies have shown that happy employees have higher levels of creativity than unhappy ones. Being happy can free up the brain, allowing for increased mental flexibility and imagination.
  4. Reduction in lost productivityHappy people are healthier. When employees take less sick leave, they are more productive, thus improving the bottom line.
  5. Better customer service– This is a no-brainer. People like happy people. And when it comes to customer service, businesses need to be cheery. When employees’ morale is high, customer interactions reflect it. Happy people are the perfect people pleasers for customer service-based roles.

And, of course there is the conventional wisdom that purports to the fact that if employees are paid well enough they will be happy. While paying employees well should not be discounted, that’s only one component of an engaged, productive and happy workforce.

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