At the end of September, companies all over the world will be celebrating International Week of Happiness at Work. These five days are dedicated to raising awareness about the importance of employee happiness and how it benefits not just team morale, but also productivity and overall business success.
So, as our own tribute to this week, we thought we’d share some interesting facts and statistics about the value of employee happiness in the workplace and the impact it has on businesses.
The cost of unhappy employees
It goes without saying that unhappy employees struggle to perform well. Employees who feel undervalued, stressed or bored are:
The bottom line? Decreased turnover and lost revenue. Put simply, businesses can’t afford to have disengaged staff. So why does it happen in the first place?
According to this 2022 study, 69% of unhappy employees cited feeling undervalued as the number one reason behind their job dissatisfaction. Another common culprit is feeling understimulated, which increases the risk of employees experiencing rust out.
Happy employees are good for business
As employers, it’s crucial to create a positive working environment and ensure your staff always feel valued, supported and incentivised. In fact, 69% of employees say they would work harder if they were appreciated more by their employer.
The biggest way happy employees benefit business is by reducing turnover rates and maximising productivity. One study found that employees who feel engaged with and passionate about their work are three times more likely than their disengaged colleagues to stay with the company.
This lowers staff turnover – by 18% according to the same study – which, in turn, improves productivity. Projects are finished quicker, fewer mistakes are made, money is saved and most importantly, relationships between employees and employers strengthen.
Here are a few other ways employee happiness brings value to the workplace so that businesses can achieve higher levels of success:
- Companies with high employee engagement are 21% more profitable
- Happy employees are 20% more productive than unhappy employees
- Highly engaged workplaces realise an 81% difference in absenteeism
- Companies with happy employees outperform the competition by 20%
- Recognising employees drives an 11.1% average increase in team performance
How to improve employee happiness
A huge 71% of executives say employee happiness is critical to a company’s success. But creating this culture of engagement requires more than the superficial incentives companies have relied on for so long, like ordering pizza or adding a ping pong table to the office.
Instead, it requires committed action every day to support staff, make them feel valued and foster a positive working environment. Sometimes, it can even be as simple as saying thank you. In fact, 60% of employees would prefer regular praise over a 10% pay increase with no recognition.
Here are the top reasons your employees may be unhappy, and what you can do to fix them.
1. They’re bored
According to one study, 33% of people leaving their jobs said it was because they were bored. Challenge your employees. Keep their brains stimulated with tasks that improve their skills, pique their interests and give them variation throughout the working week.
Not only will this improve engagement levels, it also builds rapport. Giving challenging tasks to employees will make them feel trusted and competent so that they’re more likely to believe in their own capabilities and perform well. Your business will feel the benefit, too.
2. They feel undervalued
Put simply, when employees feel undervalued, they’re not going to work hard for you. It could even inspire a culture of quiet quitting within your teams.
Making your employees feel valued, whether it’s entrusting them with new tasks or regularly reviewing their progress, will make them feel like valued members of the company. In turn, this will make them more invested in the company’s success.
Employers can also make their staff feel valued by simply recognising their work. 37% of employers say giving recognition is the most important part to helping employees succeed because it increases motivation and confidence. Meanwhile, 92% of workers are more likely to repeat an action if they have received recognition for it.
3. They have poor work-life balance
A massive 87% of employees expect their employer to help them find a work-life balance. Employees who feel their bosses don’t care about their personal lives are far more likely to become resentful, disengaged and eventually leave the workplace.
Supporting a better work-life balance can look like ensuring your employees have achievable workloads, focusing on productivity over hours spent, offering more hybrid working opportunities, and urging staff to take their holidays instead of carrying them over. It’s equally important to make your employees feel supported emotionally and that they can talk to you about any issues they’re having.
The bottom line?
Employee happiness is more important than you might think. Without it, businesses are less productive, less profitable and, ultimately, less successful.
Fostering a positive and engaging workplace where employees feel valued is the number one thing employers can do to improve operations and drive success.
City CV’s Employee Engagement & Retention Programmes make it easy to engage and inspire your people. Give us a call on +44 20 7100 6656 to find out how we can help your employees succeed and craft their own career story with you.