Employee happiness and business performance
Employee happiness and business performance
When people are happy , they are in a better frame of mind , thus improving productivity and fostering creativity . The concept is explained in the human relations theory . 1 It explains that employees with higher well-being lead to higher morale , which leads to higher productivity .
A study involving nearly 700 participants and conducted by professors at the University of Warwick determined happier employees drive the performance of a business . 2 These employees will work more effectively , resulting in higher productivity and affecting the business ’ s bottom line .
12 %
Happy employees are 12 % more productive than those who are unhappy .
If happy workers are more successful and thus increase production , it stands to reason that employee satisfaction with their roles would likely follow . The study also noted that where companies increase employee support , they have experienced notable increases in employee satisfaction . One example provided was Google , which saw a 37 % rise in satisfaction levels after investing in support programs .
2