Why Happy Employees are Important and How to Keep Them

November 18, 2022

The employees of an organization are one of the most significant assets. Often, they say happy employees determine the success of the company. 

Employee happiness is essential to a business's growth and development. A happy, satisfied workforce is less likely to stay late at work. 

They will be more motivated, productive, and less likely to leave. The happiness of an organization is the happiness of its employees. 

If you want to create a happy culture, make sure you find out what makes your employees happy, and then let them know about those things so they can do it. 

Employees are happy to come to work because the organization has values they believe in. 

Employers never used to think about employee happiness or its connection to productivity in the workplace.

But they eventually discovered that employee happiness is significantly intertwined with the productivity and success of their company. It still is true today.

Keep reading to know why the employees' happiness is crucial to the organization's well-being.

Why Does Employee Happiness Matter?

Employee happiness is an essential factor for the success of a company for the following reasons:

Improved Retention

Companies need to retain their employees and provide them with reasons to stay and continue working.

Employee happiness is an essential factor that affects employee turnover. Research from the Development Academy found that more than 75% of unsatisfied workers want to leave their current roles. 

People who are satisfied with their current company are less likely to change companies. Also, recruiting and training employees can be expensive and time-consuming. 

Therefore, it is better to retain employees by keeping them satisfied.

Increased Productivity

A study from the University of Warwick found that employees who are happy with their workplace have a 12% increase in productivity.

Happy employees tend to take lesser breaks and work more efficiently. While on the contrary, unsatisfied employees keep getting distracted and thus cannot give their 100 percent to their work. 

Therefore, workplaces should focus on keeping their employees happy so that they get more and more efficiency and productivity from their employees in return. 

The higher the employee happiness rate, their enthusiasm to work will yield productivity.

High Engagement

Happier employees are more engaged. And engaged employees show increased productivity as well as a far lower rate of absenteeism from work.  

Engaged employees are passionate about their work and excited to contribute to the company's profit-making. Employee happiness is one of the first steps to driving employee engagement.  

A happy employee is more likely to feel connected to their workplace's success and will make themselves engaged and loyal towards the company. An engaged workforce drives a company's ability to compete and lead. 

High engagement brings greater productivity, satisfaction, creativity, and customer loyalty. 

By creating an environment that encourages collaboration, communication, and trust, you can create both an environment for success and a climate for greatness and employee happiness.

Low Absenteeism

Employees that are happy with their work environment tend to look forward to work and therefore have maximum attendance. 

On the other hand, unhappy employees try to make excuses and not show up to work, thus making themselves unproductive. 

Companies with low employee absenteeism rates will show more productivity and efficiency than those with higher ones. 

The loyalty and enthusiasm of the employees are therefore important factors for the company to be successful. 

Consequently, it is crucial to keep the employees happy.

Happy Employees Provide Better Customer Service

Happy employees are more likely to work with a positive mindset and attitude. Therefore they will be much more attentive when delivering customer service. 

Likewise, customers will prefer dealing with employees with a positive attitude. When the customers enjoy interacting with your staff, customer satisfaction will grow. 

Happy employees tend to enjoy their work. So they are proven to be the best service providers. They have more intrinsic motivation, are more creative, and make better customer decisions. 

Happy Employees are More Intelligent and Creative

Employees who feel satisfied and happy are much more likely to innovate and put their creative thinking to use. 

They try to implement more creative and innovative ideas in their work. Happy employees are eager to try new things, take risks and jump right in without spending too much time planning. 

They can think outside the box and use their creativity to solve necessary problems. They do not shy away from challenges because of their confidence in themselves and the company. 

The company should therefore consider the happiness of its employees as a priority.

Healthier Workplace Culture

A healthy workplace is where employees can enjoy the benefits of their labor. It's a culture where employees feel valued, safe, and supported. 

A healthy workplace is an environment that encourages innovation and collaboration. Creating a healthy workplace has many benefits for both your employees and your organization. 

The environment in which you work will make you more productive, happier, and healthier. 

A healthy workplace promises not only happy employees but also great productivity and enormous profits for the company, thus proving beneficial to the goodwill and reputation of the company.

What You Can Do To Boost Employee Happiness

There are many ways and ideas to ensure that your employees are satisfied with their job and workplace. To boost employee happiness, consider doing the following:

Learn More About Your Employees

Companies should celebrate the diversity and the different cultures of all employees. 

Explore how to make your workplace happier, gain insight into how you can improve workplace culture, and learn about your unique challenges and opportunities in creating a better work environment for your employees. 

Learn more about your employees, get in touch with them and support them. This will give you a better understanding of how they enjoy working at your company, how much they love their job, and how to help give them a great experience. 

Get insights about their cultures their lifestyles and cater to their needs and requirements. This extra attention will make all your employees feel seen and heard.

Provide Perks That Work For Your Unique Employee Pool

We know that happy people make a better company. And one of the best ways to ensure that is to give perks to your employees.

That's why you should make it your mission to provide perks that work for your unique employee pool.

Provide perks that work for your unique employee pool. These might be medical benefits, paid vacation, flexible scheduling, or a sense of belonging to the company culture. 

Ask employees what needs they have and then design a perk that meets their needs best. Surprise your employees. 

As you search for the perfect perk, consider their needs, behaviors, and how they will fit into their lifestyle. Give an outlet for feedback and let them be heard.

Create a Culture of Accountability and Responsibility

Employees need to know that their opinions matter, that it's okay to negotiate things or voice concerns, and that they can disagree without fear of reprisal. 

Hold employees to the same high standards that you hold yourself, ask employees what they need to be more successful, and have regular meetings to ensure each employee is knowledgeable, prompt, and active in their position. 

Accountability and responsibility are symbolic of personal and professional growth and make it easier for everyone to understand expectations. 

Happy employees don't have to worry about taking the heat for things they didn't do when you make it clear who is responsible for what. 

It would be best if you also reminded employees that while mistakes happen, accountability prevents those mistakes from growing into more significant problems.

Give Each Employee A Path for More Growth and Innovation

It's easy for employees to get discouraged if they think they will be stuck doing the same job forever. 

With a promise of upward mobility, they can prove their work has contributed to the company's success.

Make your employees more engaged, happy, and successful. Creating a detailed plan of action with clear goals aligned with the organization's strategy will give each employee greater ownership as they move through their career at your company.

Give your employees a clear path for more growth and innovation. That will help you develop hiring, performance management, and retention forecasting processes tailored to each team's needs. 

Take their strengths and weaknesses into account and motivate them to use their creativity best. Create paths for more growth, innovation, and contribution.

Recognize Employees' Achievements

Rewards and acknowledgments are great ways to acknowledge your employees' contributions. Recognize employees' achievements and successes, using positive reinforcement to help them feel valued. 

Hold regular and fun company events that celebrate the best of your team. Celebrate your employees' achievements and accomplishments each year with an acknowledgment ceremony. 

Celebrating employees' goals, projects, and annual reviews can raise workplace morale but also provide an opportunity for you to reflect on some of the critical elements of your business. 

Highlight employees' accomplishments and congratulate them on a job well done. This recognition helps boost productivity and motivation.

Create an Inclusive Workplace

Encourage diversity in your workplace and be inclusive and open to every employee regardless of race, religion, gender, sex, caste, etc. 

Avoid discrimination and provide every employee with equal treatment so that they feel safe and heard in their workplace, and they, in return, will prove their worth with their efficiency and loyalty towards their job.

A diverse and inclusive workplace includes employees who are treated equally, without bias or prejudice. An inclusive workplace that celebrates employee diversity and uniqueness is ideal for increasing employee satisfaction. 

More and more people are speaking about the importance of creating a workplace where every single employee feels like part of the team, regardless of their job title or background. 

This can make for a more productive and fun company where employees look forward to working. When employees feel valued and a part of their work environment, they're more likely to be happy, productive, and engaged in the community.

Offer Flexible Scheduling

Investing in the happiness of your employees is a great way to boost productivity and retain the best workers. By offering flexible scheduling, you allow employees to meet the needs of their personal lives and also maintain your company's goals.

It is vital to keep your employees' well-being and convenience in mind. Paying attention to your employee's schedules is essential. 

It shows you put them first and want them to be happy at work. A flexible schedule can significantly affect relationships, productivity, and retention. It goes a long way, both for the company as well as its employees.

Encourage Breaks

Encourage downtime, find the right balance between work and rest, and have regular, scheduled breaks. 

Give employees a comfort zone to recharge during their workday by allowing them to take small breaks. 

Allow them to work in an environment that is at the same social temperature as their office, or empower them with the freedom of working from home. 

Remember that the employees are real people, not just robots who work for the company's benefit. There may be stress and burnout or inadequate mental health episodes in their lives. 

Allow them to take breaks and days off to focus on their physical and mental health so that they return grateful and productive as ever. 

Employees are most productive when they have time to recharge or go off to do what they need to do. Encourage employees to take a ten-minute break, use the quality time between deadlines to catch up on email and social media, or go for a walk around the office during work hours. 

Employees should take frequent breaks to help them stay focused on the job and ensure that their team stays productive throughout the day.

FAQs: Happy employees

What is a happy employee?

Happy employees feel pride and accomplishment in their work and like what they do. They are satisfied with their job as well as their current workplace. 

They try their best to work most efficiently for the company's productivity. Happy employees are more competent and can fully unleash creativity and innovation in their work.

Why are happy employees important?

Employee happiness is vital for a company's long-term success. If you want to grow your business, you need to have a great environment that encourages collaboration, encourages employees to be autonomous, and encourages everyone to try new things.

It makes excellent business sense. While keeping your employees happy is generally the right thing to do, it can also benefit you and your team.

What is it called when employees are happy at work?

Employees that are happy at work are said to have employee satisfaction. Employee satisfaction covers fundamental concerns and needs in the workplace. 

It is a good starting point, but it usually stops short of what matters. Satisfied employees are content. Engaged employees show up daily to give their best to help their companies succeed. 

Are happy employees better employees?

Yes, happy employees are proven loyal and better for the company.

Conclusion: Happy Employees

They say that happy employees make a happy organization. 

Employees are one of the most significant tangible assets a company could possess. 

And the concern for their well-being and happiness improves their work lives and enriches the company's goodwill. 

Ask your employees if they like it here. Are they feeling satisfied with what they do? Are they happy with their job? Is there any way you can improve their time and experience with the company? 

Consider these questions as you work to understand why employee happiness is essential. 

This way, you do a favor to your employees and your company. Employee happiness is an essential factor determining the wellness and success of a company. 

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