The Business Case For Happiness

Why employee engagement and happiness should be a mission critical

Any good leader wants their team to be happy at work. It’s nice to know that your team are upbeat and engaged, but is it really necessary? Is it a post-pandemic fad, and as long as the team are doing their job, is that all that really matters?

Well no. Employee happiness counts for a lot. In an age where corporate culture is increasingly defined by its mission, vision and values, and where ‘customer satisfaction’ is a standard benchmark for the strength and longevity of your business, we are now looking internally to our own employees.

And it’s been there all along - even the definition of company tells us that it’s a group of individuals formed to engage in and operate a business enterprise - your company, business, agency - whatever you call it, grows or shrinks with the people engaged in it, whether that’s the leadership team, the clients or Sue in accounts.

why it’s important

The move towards employee happiness started long before the pandemic, but it has brought the collective need into sharper focus, and employees also know they have options, so many are jumping ship to companies who are on board the Happiness Ship. Even those at C-Suite level are making more conscious choices about where they want to be, or not….

Our parents may not have had the luxury of choice, but they also weren’t working the hours that we all do in our connected age. Work WhatsApps, checking emails as the alarm goes off, a quiet hour at your desk on a Sunday to finish off a presentation - work surrounds us and there’s no clear delineation between work and life for many. So it’s more important than ever for people to be happy at work, so that they are happier in life.

But what does this mean for you, as a team leader? Why do you really care whether Jim in marketing is leading his best life?

The link between happiness and productivity isn’t new, but it’s still underestimated, or at least under-prioritised in the workplace. But the facts are pretty persuasive.

Happy employees:

1. Are more productive

If they are happy at work, they are more likely to care about the company and its goals - because you care about them. On average, 12% more productive, whereas unhappy employees not only reduce in productivity, but drag their colleagues down with them.

Happier employees are more engaged, pay more attention to the needs of your customers and are more alert, and mindful of your systems and processes - they are more likely to make suggestions for improvements too. All these factors come together to bring you increase productivity and profitability.

2. Are more loyal

Employees who feel valued and heard are more likely to stay with you in the longer term. And with ‘chronic imbalances’ in the UK Labour market and post-pandemic talent drain, it’s important to keep them with you.

Happy employees will stay four times longer than their unhappy counterparts

If someone leaves you, you not only have the cost of recruitment (15-20% of annual salary as standard), but the lost time in productivity as the outgoing employee slows down, the onboarding time for the new recruit and the additional pressure on your other employees filling the gap. And what of client trust? If the departee was a key client contact, how will you rebuild trust - and what happens if the client goes too?

The financial cost of losing a key employee can easily stretch into six figures.

3. Attract other great candidates

Your employees talk. If they are motivated and feel valued, and love coming to work everyday, they will tell their friends. Who might also want to come and work with you too. Attracting great talent into the business can be as simple as that.

(Remember, if they are unhappy, they’ll probably talk more, making those job vacancies harder and harder to fill)

We know misery loves company, but happiness is infectious…. keeping good staff on, who become role models for others in the business, and bring their high-achieving friends with them.

4. Are healthier, in body and mind

There are clear links between how we feel, how we think and what we do. If we are sad, angry or frustrated, we won’t have our head in the game, and can actually shut down key neurological processes that stop us behaving and performing as we would expect.

When someone feels stuck, frustrated and lost at work, this increases stress levels and can trigger other mental health issues such as anxiety and depression.

A staggering 70 million work days are lost each year due to mental health problems in the UK, costing employers approximately £2.4 billion per year. Add that to the days of bad physical health and employees taking a ‘duvet day’ because they don’t want to come to work, and that’s a very big bill to face.

On the flip side, when employees are happy, they are more energised, clear headed and less prone to work-place stress. They have greater self confidence, and are more likely to prioritise their own mental and physical health.

And whilst being happy at work won’t fix mental health disorders, it can help prevent triggers and flare ups. Happy employees are also more likely to share their concerns, and we know about ‘a problem shared’ - it will allow you to help support them more.

How do you measure Happiness?

There’s no single way to measure employee happiness, and there are many flags to point you in the right direction

• Use a standard metric to get a baseline. The Employee Satisfaction Index (ESI) is a great place to start, and continue. Building three simple questions into a regular company wide appraisal can help you to measure fluctuations over time.

• Watch for increases in employee absences, and break-room mutterings

• Ask them. Having an open, honest and regular meetings, catch-ups and an open-door policy will get the most accurate measurement.

How can you increase employee happiness?

The good news is that there is a lot you can do, straight away, to increase team morale and individual happiness in the team.

• make sure that your managers are trained and able to have open and regular catch ups with their team. When people feel they are being heard, magic happens

• create a rigorous and regular personal development framework. Incorporating annual appraisals with quarterly check ins and ad hoc ‘coffee chats’ will help you quickly build a picture of how your team are, where they may have training needs or where there may be problems.

• improve wider communication issues within teams and the organisation as a whole. An assessment like the 5Voices will allow your team members to understand themselves better. Understanding the power of your own voice and how you may come across to others, and also being able to honour the other voices in the team will improve team communication, understanding and cohesion. Take the free 5Voices assessment here, or contact us to see how targeted workshops and team coaching will help.

• share your business goals, mission, vision and values with them. When people work towards a common goal, especially one that they feel they have had a say in creating, they will work happier and harder towards them.

If you’d like to learn more about how we can help you create and happy and profitable work culture, please contact us.