5 Benefits of Happy Employees Backed by Facts

#Employee Appreciation
Sep 20, 2021 · Blog
'Smile' written on a small pebble
Most of us spend a lot of time investing in things that will make us happy. Why?

Because who doesn’t want to be happy? Over time we’ve come to realise that happiness can benefit us in a whole heap of different ways. Did you know that being happy can help boost your immune system? A recent study from the Psychosomatic Medicine journal discovered that those with more positive emotions are less likely to develop the common coldcool huh?

Happiness provides feelings of optimism and gives a sense of purpose. These attributes can have a knock-on effect on a variety of benefits associated with a person’s health, both mentally and physically. When we are happy, we want it to stay that way! So, we’ll protect our health in several ways. Happiness can help you sleep better, encourages you to improve your diet, lowers blood pressure and we are often more likely to exercise regularly which can lower the risk for cardiovascular disease.

On our free time and our days off, we’ll spend time doing things that we know make us happy. But what about at work? Research into employee satisfaction from last year found that job satisfaction rates in the UK are among the lowest in Europe, with only 64% of employees stating that they were happy in their current role.

On top of that, job satisfaction has been reported to have fallen 10% in the last three years!

Some of the most common reasons for job dissatisfaction come from poor management, pay, and feeling undervalued. That’s why we preach employee appreciation all day every day!

With job satisfaction rates declining, it’s no wonder more of us are talking about happiness at work. There are so many benefits to happy employees, and while some might be obvious, there are some factors that often slip through the cracks that could make or break company success.

Let’s look at the importance of happy employees using facts and statistics to find out the answers to all your questions about employee happiness.

5 Benefits of Happy Employees

1.    Are happy employees more productive?

Employees are more productive when they enjoy what they do.

While most of us strive for this work life, where we enjoy our jobs and can’t wait to perform at our best, not everyone is that fortunate as the endless “I hate my job” tropes and memes rife within our media.

For those amongst who are lucky enough to have found a job that they genuinely enjoy, you’ll often find that they are usually very good at what they do. Productivity levels increase when employees are passionate about their jobs and genuinely want to achieve success. Employees are more likely to try harder if they believe in the end result and associate value to their work. Unhappy employees might struggle to see why they are being asked to do certain tasks.

Research has shown that happiness made people roughly 12% more productive. The same study revealed that happier employees have also been found to use their time better, with Professor Oswald sharing that, “The driving force seems to be that happier workers use the time they have more effectively, increasing the pace at which they can work without sacrificing quality.”

2.    Are happy employees more engaged?

Summarily to productivity, higher levels of employee engagement are often present when employees have a passion for their jobs and what to excel at what they do.

This kind of engagement happens when employees are happy with their job and feel thankful to be part of your company.

71% of executives say that employee engagement is critical to their company’s success. Engaged employees tend to be more enthusiastic about their work which can have a positive influence over colleagues and teams in the office. This kind of leadership could also impact the overall workplace culture.

Engaged employees have a more rounded idea of the company’s goals and visions, making it easier for them to become ambassadors for your business.

3.    Does happiness encourage creativity in employees?

It’s become almost common knowledge that people often feel happy and energised when they are engaged in creative activities, so it shouldn’t come as a surprised that it often works the other way around!

Shawn Anchor, who wrote The Happiness Advantage, reported that the brain works much better when a person is feeling positive. When their brain is performing at its highest, employees are more likely to be creative, better at problem solving and often more innovative. This can mean great things for your company!

Unhappy employees feel very little connection to the business and often lack any motivation to try new things or put in as much effort.

4.    Does employee happiness lead to a more positive work environment?

We’ve all been around someone who’s happiness is infectious, so it’s easy to understand how much of an impact the wellbeing of your team has on the rest of your company’s environment.

When employees are happy, they bring that positive energy with them into the workplace. This can rub off on those working in the office, making employee relationships stronger and a more coherent working environment. A positive work atmosphere with happier employees will benefit the whole business and really boost employee morale amongst the whole team.

5.    Will having happy employees reduce costs?

We mentioned that happiness can have a big impact on physical health as well as our mental health, and that’s why happy employees have been linked to lower costs.

Poor mental health and low morale could be costing your company. Dissatisfaction and stress to do with work often leads to absenteeism. In a flagship report on mental health and wellbeing in the workplace from Doloitte, it was reported that the average cost of poor health adds up to £1,652 per employee in the private sector and a further £1,716 per employee in the public sector per year.

In summary…

  • Research has shown that happiness makes people roughly 12% more productive.
  • 71% of executives say that employee engagement is critical to their company’s success, and happy employees tend to be more engaged.
  • Reports show that the brain works much better when a person is feeling positive, which is why happy employees will often think more creatively.
  • It was reported that the average cost of poor health adds up to £1,652 per employee in the private sector and a further £1,716 per employee in the public sector per year, money that could go towards recognition rewards for your employees! 😉  

So now you know the benefits of having happy employees it’s type to up your game! Here’s 5 ways you can keep your team happy even without a monetary bonus:

1.    Consider employee work-life balance so that your employees have a positive work experience that supplements their own life
2.    Make sure employees feel connected to the organisation so they understand the bigger picture
3.    Make sure communication is paramount and make sure you are honest and transparent with them
4.    Offer progression and career pathways to your employees so they feel motivated to work towards career development
5.    Always make employees feel valued, appreciated and recognised for their work!

This last one is probably THE most important. Being recognised for a job is a great indication you’ve done something correct and when employees know that their work is appreciated, they will feel more positive about their role and feel happier about their job and the company as a whole. Find out more about Employee Appreciation over on our blog here.

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