Why Your Employees’ Happiness Should Be A Priority

13th July, 2018 by

Ahh happiness, that hard-to-define goal that we all strive to achieve. It represents something we all want in our lives, but sometimes the path to happiness isn’t clearly defined. However, if someone were to ask you “Are you happy at work?” most employees have a pretty good idea of how they would answer.

To win in the marketplace you must first win in the workplace.” – Doug Conant, CEO of Campbell’s Soup

Did you know that happier employees make for better business? Employee happiness has been increasingly imperative in businesses, and for good reason. Read on for all the proof you need to be convinced that the satisfaction and joy of those in the workplace is actually pretty important. So much so that Professor Oswald from the University of Warwick said, “Companies like Google have invested more in employee support and employee satisfaction has risen as a result. For Google, it rose by 37%, they know what they are talking about. Under scientifically controlled conditions, making workers happier really pays off.”

For attention span purposes, we have broken down the top reasons why happy employees are better employees:


A high staff turnover for a company can be devastating. The cost of continuously hiring and training new employees puts a heavy load on day-to-day business. Forbes writes, “According to an article in ERE Media, it costs between 30-50% of an annual salary to replace an entry-level employee, upwards of 150% for a mid-level employee, and up to 400% for a senior or highly specialized employee.” However, happy employees on average keep their jobs longer. There are, of course, extenuating circumstances, but overall, happy employees stay on longer.

More Productive

According to this study from The Social Market Foundation, happy employees are 20% more productive than their unhappy counterparts. Employees who enjoy their jobs and feel appreciated accomplish 20% more for the same salary. It’s easy to see how that can help a business’s bottom line.

Better Sales

Working in sales can be a really tough job. Pitching one sale after the other can become hard to handle, which is exactly why happier people are better at sales. Employees who are satisfied with their jobs have consistently shown to be better sales people in multiple studies. A study by Statistics in Medicine titled “Social contagion theory: examining dynamic social networks and human behavior” found that happiness is contagious. For example, a happy salesperson makes a phone call and spreads happiness to one person, who can then share that happiness on the next call. Therefore, happiness creates a chain of better business.

Less Expensive

Did you know that disengaged employees cost organizations between $450 to $550 billion per year? A study from The Engagement Institute states that those grumbling naysayers can cost businesses way more than a bad attitude. Also, employees who are happy with their jobs are less likely to ask for higher salaries. According to The Globe, citing a survey by Fidelity Investments, “the first wave of millennial workers (those born between 1981 and 1991) would be willing to take an average pay cut of $7,600 for a job that offers an improved quality of work life.” That’s a lot of money for the same amount of work!

Fewer Sick Days

Happy people are healthier. It may be a chicken or the egg situation, because it’s hard to be happy when you don’t feel well. However, according to a study published in the journal of Psychosomatic Medicine by Carnegie Mellon University, “Happiness and other positive emotions play an even more important role in health than previously thought.” Therefore if companies make an effort to prioritize employee satisfaction then there will be few illnesses and sick days, saving money across the board.

Keep an eye out for the next post in this series: “How To Create A Happier Workplace”


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