The Value of Happy Employees on the Bottom Line

Diane Wing

by Diane Wing. M.A.

The benefits of happy employees may seem intangible, but actually, have a significant impact on the bottom line. Studies show an increase in collaboration, innovation, cooperation, focus, and passion as a result of increased happiness. This equates to an increase in productivity ranging between 12 percent and 20 percent.

Productivity, enthusiasm, and engagement are the hallmarks of a healthy work environment. Based on these factors, there is a correlation between the level of happiness and the number of sick days taken, customer satisfaction, and level of creativity displayed in the workplace. According to a recent Gallup survey, only 13 percent of employees are engaged, costing companies billions of dollars in reduced productivity.

Engagement can be defined as someone who finds their work to be meaningful, yet companies are limited in how they can help employees become happy with themselves. If the employee is a happy person in general, there is a higher likelihood that they feel more engaged and understand the type of work that makes them feel purposeful.

Happy people generally tend to be more tolerant of disappointments and challenges at work and be able to see the situation as an opportunity rather than a detriment. A happy employee is also more resilient and pleasant to deal with.

Companies can take steps to increase temporary levels of happiness among their employees. Some strategies include providing food/snacks, small, frequent rewards instead of one big reward for a single moment of happiness, increased pay, and varying the types of reward to pique and maintain interest. While providing a positive working environment goes a long way, it does not address the myriad problems individuals face when they leave the workplace. The workplace is only a part of the employee’s life and is subject to their personal experiences and innate view of the world.

In one study by Dr. Daniel Sgroi, the report tracked how real-world situations, such as mourning and family matters, affected workers. They found that there was a causal link between unhappiness and decreased productivity that had a lasting effect of about two years.*

Additionally, money alone does not create happiness. A study done by Princeton University found that once a person makes about $75,000 a year, income no longer has an effect on happiness. ** **(

When an employee feels that the company cares about him or her as a person, there is an increased sense of loyalty and caring toward the company. Doing something impactful for employees that is not connected to their work is one way to demonstrate the company's care for and support of its staff members.

Companies cannot be all things to their employees. Some studies show that when employees expect to find their happiness in the workplace, emotionally dependent and needy relationships arise. By creating an emotional relationship between management and employees through positive reinforcement an unhealthy expectation develops. Having an emotional attachment to the job or to the workplace makes layoffs more devastating for employees losing their jobs, as their identities are tied to the role they play at work.

But giving employees a way to boost their own happiness goes a long way. The happier a person is in general, the better equipped they are to deal with stress both in and out of the workplace. A negative stress reaction can have a detrimental effect on productivity and job satisfaction. Happiness can actually make employees, and ultimately the company, more successful. That’s where having a “happiness perspective” comes into play. It gives the employee an opportunity to know themselves better and to independently find joy and meaning, including in their work life.

By defining happiness for ourselves rather than by someone else’s criteria, it becomes a way of being as opposed to a temporary state. For many, happiness is a myth and unachievable. If we define the term “happy” as meaning and satisfaction, then the pressure is off to appear happy. It is more of a lifestyle choice rather than an obligation.

The Happiness Perspective: Seeing Your Life Differently is an effective tool to achieve a healthier organization. It can be used in discussion groups and for teambuilding. With over 50 relatable topics and exercises, this manual is perfect for group or independent work. Given as a gift to your employees and/or management team, they can work on their own to discover what drives happiness for themselves. Reach your productivity and employee engagement goals by increasing the emotional health of your employees by giving your staff The Happiness Perspective: Seeing Your Life Differently. 30% discount available for corporate orders (10+ copies)


Diane Wing, M.A. is the author of six books and a perspective changer for those ready to see things differently. Her clients are intelligent, successful women who are ready to stop struggling in their personal life so they can feel their best while creating their ideal future.

The Happiness Perspective: Seeing Your Life Differently is available on Amazon and or for bulk orders contact:
Loving Healing Press, 5145 Pontiac Trail, Ann Arbor, MI 48105 USA
Phone: +1 734 417-4266
Fax: +1 734 663 6861
SAN: 255-7770

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