Have you ever wondered how to define a “Happy employee”? It can mean a lot of things, but happy employees are, generally, more engaged, have a positive outlook, and are more productive.

However, knowing whether your employees are happy or not is almost impossible if you’re not familiar with the employee experience. In other words, what are your employees experiencing?

Consider the link between employee satisfaction and productivity or business outcomes in general. For many organizations, this is a critical starting point.

Supporting employee wellbeing

Gallup defines the concept of workplace wellbeing as a measurement of the quality of life. It includes a person’s experiences and perceptions about their life, including career, social, financial, physical, and community aspects.

How can your organization help support career wellbeing? Consider the following:

• Provide employees with a way to learn more about their strengths.
• Explore conversations about career development with each member of the team.
• Eliminate the risk of abusive management styles.

These strategies are just the starting point for establishing employee happiness. The focus is solely on career development, but there are other strategies for measuring job happiness and building a stronger company by improving it.

The benefits of happy employees

First, consider the benefits of a positive work environment and supporting employee happiness on the job. Consider how employee happiness impacts the following areas of your company:

Productivity

An Oxford University study found that happy workers are 13% more productive than those who are simply not engaged or dread going to work.

The study found that when people are happier, they work more efficiently and faster, getting more done during their time at work.

Quality of work

Another benefit of a positive work environment is the quality of the work employees produce. It’s never beneficial to have employees rushing to complete work, but happy employees are typically less stressed and overwhelmed.

This translates into more productivity at a higher level, as noted by Harvard Business Review. Reducing pressure and unnecessarily tight or rigid schedules helps people perform more naturally at their best.

Innovation

Interestingly, employee morale and business performance are linked in another way: developing new and innovative ideas. Creating a workplace that supports creativity and innovation allows new ideas and opportunities to flourish while also reducing challenges or overcoming business obstacles. As noted by Forbes, creativity is key to creating a positive workspace and quality of life.

Retention and turnover rates

A study published in the National Library of Medicine drives home an important point: Happy employees stay longer with companies, reducing churn rates within organizations.

Employees who are paid well but also have meaningful work are more likely to remain with the organization longer, but being happy at work plays a role. Employee satisfaction and engagement are often linked to retention.

Company reputation and employer branding

Companies benefit from having a reputation as the ideal place to work. Not only does that help with consumer branding, but it also contributes to the company’s employer brand. That can help attract new talent overall and lure top talent to your organization.

Customer satisfaction and service quality

Don’t overlook the direct correlation between employee happiness and impact on customers. A Harvard Business Review piece points out that there’s a direct link between happy customers and happy employees.

Factors contributing to employee happiness

What does it take to establish a corporate culture that successfully nurtures happy employees? Focus on these areas:

• Create a better work-life balance.
• Incorporate recognition and rewards in the day-to-day culture of the business.
• Create employee empowerment and autonomy, allowing individuals to stand out from the crowd.
• Work to provide professional development opportunities.
• Create a positive workplace relationship between leadership and employees. Foster positive work environments throughout the organization.
• Provide people with purposeful work and ensure it aligns with the organization’s values.

Measuring employee happiness

How do you know where you stand when it comes to human capital management and happiness? There are a few strategies you can employ to find out. The most direct way is to ask your employees.

You can create a free, anonymous survey using a tool like SurveyMonkey to ask your employees about their experiences. Create employee feedback loops to help people drop a note to management about something they feel needs to be addressed.

You can also open the lines of communication in person. The most impactful of employee empowerment strategies is having a one-on-one conversation with employees to talk about their needs. This is where leadership plays a crucial role in supporting employee wellbeing.

Approaches to enhance employee happiness

Always align employee empowerment strategies and methods with your specific company needs. However, there are a few best practices to consider for improving the workplace environment:

• Conduct regular reviews for employees to discuss job performance, employee workloads, and other related concerns.
• Encourage employees to engage with management about what they need. Be proactive in meeting objectives related to flexible work schedules and time off when possible.
• Show employees their work matters to the company by demonstrating it. Show them metrics about how their performance impacted the company’s success.
• Create mental health resources and support programs for employees or provide health insurance coverage that includes it. Resources can include formal professional support as well as positive workplace experiences, such as fun team activities.
• Create employee engagement strategies by talking with employees about their ideas. Consider, for example, using feedback you receive to better define success.
• Customize benefits and perks to meet a diverse group of people.

Challenges and pitfalls

Organizational psychology and employee behavior are complicated subjects. Consider some of the most common challenges and ways to avoid them:

• The Institute on Leadership says that trying to make happiness an imperative can lead to some employees being excluded or experiencing burnout. Don’t stigmatize employees who may not have the same beliefs as everyone else.
• Avoid situations where your focus is solely on metrics. Looking for a correlation between productivity, profits, and happy employees is possible but shouldn’t be the focus. Instead, focus on building better relationships with people.

The connection between happy employees and successful companies is clear. The key here is to find out what might be holding your organization back. Then, implement happiness-driven strategies that can create better results.

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