July 2015
Happy Employees, Successful Organizations
Christine Pelosi, Information Specialist
Only one in five employees is happy at work. Perhaps this isn’t shocking, but the repercussions of
such unhappiness within organizations are. Unhappy employees are less engaged, less productive,
more stressed, and more likely to be absent, leading to higher turnover rates and lost revenue.
Luckily, putting employee happiness at the core of workplace culture positively affects the bottom
line.

When employees and sales people have positive mindsets, productivity increases by 31% and
sales increase by 37%.

Studies show that happier people are 12% more productive.

According to Gallup, organizations with 9.3 engaged employees for every actively
disengaged employee experienced 147% higher earnings per share compared to their
competitors. On top of that, these organizations recovered from the recession much faster.

The Russell Investment Group found that the “cumulative returns for the Best Companies [to
Work For] between 1998 and 2009 were over 224% compared to just 42% (S&P 500) and 47%
(Russell 3000). There are no other factors that can explain this significant, consistent,
historical return on investment” other than having happy and engaged employees.
Improving workplace happiness has many implications, including more productivity, greater job
satisfaction, and the ability to attract and retain talent. Below are solutions organizations can
implement to keep employees happy and increase the bottom line.
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Increase Engagement
Engaged employees are important for organizations. They are more invested and feel more pride in
the company. More importantly, engaged employees drive organizations forward during good
times and bad by improving procedures and cultivating new ideas.
Gallup uncovered insights into the disengaged worker and recommended ways organizations can
promote engagement.

Employee engagement is highest in the first six months after hiring.
o Introduce mentorship programs for new hires that extend this honeymoon period.
Also, organizations can pair new hires with a friend who can show them the ropes.

Employees with a high school diploma or less are more likely to be engaged than those with
a college degree.
o Those with college degrees have higher expectations for work that often go unmet.
Find out their needs and expectations.

Millennials are the least engaged generation.
o Ways to engage and retain this generation include focusing on mission and
opportunities to learn and grow.
Foster Camaraderie
Shawn Riegsecker, Founder and CEO of Centro, says that employees who have a close, personal
friend at work are 250% more happy on the job. Riegsecker points out that a high rate of turnover
hurts the bottom line; losing an employee within 18 months, after spending time and money
training them, is a financial loss. Fostering interpersonal work relationships encourages less
turnover.
The Lincoln Financial Group offers a few tips on how to best foster relationships in the workplace:

Hire happy people. While some people are just happier in general, you can increase
happiness among all employees by investing in the right people for your culture.
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
Create a positive workplace culture. A culture that prioritizes and cultivates friendships can
go a long way.

Encourage and provide opportunities for workplace socializing. Promoting face-to-face
communications helps to build relationships.
Let Them Thrive
In a Harvard Business Review article, Gretchen Spreitzer and Christine Porath reported that
employees who thrive in the workplace demonstrate:

16% better overall performance

125% less burnout

32% more commitment to the organization

46% more satisfaction with their jobs.
To create a thriving culture and empower employees, Spreitzer and Porath recommend
incorporating the four following components into the organization:

Provide decision-making discretion. The ability to make decisions gives employees more
control, more input, and more opportunities to learn, which can also increase customer
satisfaction.

Share information. Incorporating transparency into an organization allows employees to
understand how their work fits into the larger mission and strategy. A survey from
TINYPulse reports a strong correlation between employee happiness and transparency of
management.

Minimize incivility. Bad behavior and lack of respect among co-workers of all levels creates
an uncomfortable workplace.

Offer performance feedback. Offering direct feedback, even a simple “Thank You”, can
often expose a person to more day-to-day positive emotional events, which increases
happiness. According to a Kronos survey, 70% of employees felt a boost of satisfaction when
they received positive feedback.
Organizations that follow the above recommendations to increase engagement, foster workplace
friendships, and give employees the chance to thrive will have the opportunity to improve the
bottom line and reap the benefits of a happier workforce.