Agree or disagree: The benchmark of a company’s health is the measure of the happiness of its employees.
Is “happiness” actually important to a company’s success? Aren’t we more concerned with profitability, productivity, performance, etc.? In truth, employee happiness is crucial to the overall success of an organization. Employees are more productive and creative when they have more positive emotions toward their organization and are more eager to perform their best. Below are three benefits of having happy employees:
1. Boosted Profitability – It’s no secret that employees who have a positive feeling toward their workplace are more willing to go the extra mile, and the company also benefits from their happiness. When looking at Fortune’s ’100 Best Companies to Work For,’ stock prices rose an average of 14% per year, compared to 6% for the overall market. Happy employees are more productive employees, which positively effects the bottom line
2. Employee Retention – According to the Bureau of National Affairs, $11 billion is lost annually due to employee turnover. Happy employees don’t search for other jobs. They are more loyal to their organization and likely to stay, which in turn leads to less turnover and higher earnings due to the reduced need to recruit, hire and train new employees.
3. Increased Performance – Lost productivity due to employee disengagement costs more than $300 billion in the US annually. However, organizations that focus on the satisfaction and engagement of their employees deliver stronger performance. According to Gallup, companies with engaged employees outperform those without by up to 202%.